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An attorney-in-fact is a person who is legally authorized to act on behalf of someone else, known as the principal, in legal, financial, or business matters. The attorney-in-fact is granted the power of attorney by the principal through a legal document called a power of attorney (POA).

Here are key points to understand about an attorney-in-fact:

1. Power of Attorney (POA): A power of attorney is a legal document that grants someone the authority to act on behalf of another person. The principal, who is typically the person granting the power, designates an attorney-in-fact to handle specific tasks or make decisions on their behalf.

2. Authorized Powers: The powers and authority granted to an attorney-in-fact can vary depending on the specific terms outlined in the power of attorney document. The powers can be broad or limited, allowing the attorney-in-fact to handle a range of matters, such as financial transactions, legal decisions, medical decisions, or property management.

3. Fiduciary Duty: An attorney-in-fact has a fiduciary duty to act in the best interests of the principal. This means that they must exercise their authority responsibly, honestly, and in accordance with the wishes and instructions of the principal. They must avoid conflicts of interest and make decisions that benefit the principal.

4. Types of Powers of Attorney: There are different types of powers of attorney that determine the scope and duration of the authority granted to the attorney-in-fact. These include:

– General Power of Attorney: Grants broad authority to the attorney-in-fact to act on behalf of the principal in various matters.

– Limited Power of Attorney: Limits the authority of the attorney-in-fact to specific tasks or a particular time period.

– Durable Power of Attorney: Enables the attorney-in-fact to continue acting on behalf of the principal even if the principal becomes incapacitated or unable to make decisions.

5. Appointment and Revocation: The principal appoints the attorney-in-fact by executing a power of attorney document. The document specifies the attorney-in-fact’s name, the powers granted, and any conditions or limitations. The principal also has the right to revoke or modify the power of attorney at any time as long as they are mentally competent to do so.

6. Legal Capacity and Representation: An attorney-in-fact does not have to be a licensed attorney. They can be any adult individual trusted by the principal to act on their behalf. However, in some legal proceedings, such as representing the principal in court, the attorney-in-fact may need to be a licensed attorney.

It’s important to note that the appointment of an attorney-in-fact is a significant decision that should be made carefully. The principal should choose someone they trust, discuss their wishes and expectations clearly, and consider seeking legal advice to ensure that the power of attorney document accurately reflects their intentions and protects their interests.