The agent is the person you name to handle money, property, or medical decisions on your behalf
The agent (also called an attorney-in-fact) is the person you choose to act for you under a power of attorney document. They are not a lawyer—the title "attorney-in-fact" is just legal language for someone with the power to represent you. You decide who this person is, what decisions they can make, and when their authority starts and stops.
An agent can be a family member, a trusted friend, a professional fiduciary, or even a bank or law firm, depending on what your state allows and what you need done. The agent's job is to sign documents, move money, sell property, or make medical choices exactly as you would if you were able to do it yourself. They are legally required to act in your interest, not their own.
Key Takeaways
- The agent is someone you name in writing to make decisions or sign documents for you, and they have no power unless you give it to them in the document.
- An agent can be a family member, friend, professional, or institution, but they must be at least 18 years old and of sound mind in most states.
- The agent's authority is limited to exactly what the power of attorney document says—financial decisions, medical decisions, or both, depending on the type you create.
- An agent has a legal duty to act honestly, keep your money separate from theirs, and use your assets only for your benefit, even if the document does not say so.
- You can name more than one agent, require them to act together, or name a backup agent to take over if the first one cannot or will not serve.
What an agent can and cannot do
An agent's power depends entirely on what the power of attorney document grants them. A financial power of attorney might let an agent pay your bills, deposit checks, sell your house, or manage investments. A healthcare power of attorney (also called a healthcare proxy or medical power of attorney) lets an agent make medical decisions if you cannot—choosing doctors, approving surgery, or deciding on end-of-life care.
An agent cannot do anything the document does not authorize. If your power of attorney covers only banking, the agent cannot sell your car. If it covers only healthcare, they cannot touch your money. Some documents are very narrow (pay my mortgage and utilities only), and some are very broad (handle all my financial and legal affairs). You control the scope when you write the document.
An agent also cannot change your will, make gifts of your money to themselves without your permission, or use your assets for their own benefit. These duties exist by law in every state, whether or not your document mentions them. If an agent breaks these rules, you or your heirs can sue them to recover the money or property they misused.
Who can serve as an agent
You can name almost anyone as your agent, as long as they are at least 18 years old and mentally capable of understanding the job. Most states do not require your agent to be a lawyer, a professional, or even someone who lives nearby. A spouse, adult child, sibling, close friend, or trusted colleague can all serve.
Some people name a professional fiduciary—a person licensed to manage finances for others—if they have no family member they trust or if their situation is complex. Banks and law firms can also serve as agents in many states, though they usually charge a fee. A few states restrict who can be an agent (for example, some do not allow a healthcare provider to be a healthcare agent unless they are a family member), so check your state's rules before you decide.
You can also name more than one agent. They can act together (both must sign every document), act separately (either one can act alone), or act in sequence (a backup agent takes over if the first one dies or quits). Naming co-agents or alternates gives you flexibility if one person becomes unavailable.
How an agent's authority begins and ends
An agent's power starts the moment you sign the power of attorney document, unless you write it as a springing power of attorney. A springing power of attorney does not take effect until a specific event happens—usually when a doctor certifies that you are incapacitated. Until that event occurs, the agent has no authority at all.
Most people use a regular (non-springing) power of attorney because it is simpler: the agent can act when ready, and there is no need to prove incapacity. A springing power of attorney is useful if you want to keep control now but may support someone can act if you become unable to do so yourself.
An agent's authority ends when you die, when you revoke the power of attorney in writing, when you become incapacitated (if it is not a durable power of attorney), or when the agent resigns or dies. A durable power of attorney survives your incapacity, so the agent can still act even if you develop dementia or another condition that makes you unable to manage your own affairs. Most people use a durable power of attorney for this reason.
The agent's legal duties and responsibilities
An agent has fiduciary duties—legal obligations to act honestly and in your best interest. These duties exist whether your document mentions them or not. An agent must keep your money separate from their own, use your assets only for your benefit, keep records of what they do, and avoid conflicts of interest.
If you give an agent power over your finances, they should be prepared to show receipts, bank statements, and a record of transactions if you or a court asks. They cannot borrow your money, invest it in their own business, or give themselves a gift without your written permission. If they do, they can be forced to repay it.
An agent also has a duty to act only within the scope of the power of attorney. If the document says they can pay bills but not sell property, selling your house is a breach of duty even if they thought it was a good idea. An agent who is unsure what they are allowed to do should ask you, ask a lawyer, or ask a court before acting.
Choosing the right agent for your situation
Pick an agent who is trustworthy, organized, and willing to take on the responsibility. The person should understand what you want them to do and be able to handle paperwork, phone calls, and decisions. If the job is complex—managing a business, handling a large estate, or making ongoing medical decisions—choose someone with the skills or willingness to learn.
Consider naming a backup agent in case your first choice cannot serve. Life changes: someone might move away, become ill, or straightforward decide they cannot do the job. Having a second person named means your power of attorney does not become useless if the first agent is unavailable.
If you have no family member you trust, or if your situation is complicated, a professional fiduciary or corporate agent (like a bank) can serve. They charge fees, but they are trained, bonded, and accountable. Some people name a professional as a co-agent alongside a family member, so the family member handles day-to-day decisions and the professional provides oversight.
What happens if an agent abuses their power
If an agent misuses your money or acts outside their authority, you can revoke the power of attorney when ready by signing a written revocation and giving it to the agent and anyone they have been dealing with (banks, doctors, and so on). You can also sue the agent to recover money they took or misused.
If you become incapacitated and cannot revoke the power of attorney yourself, a family member or the court can petition to remove the agent and appoint a guardian or conservator to protect your interests. Many states have laws that make it a crime for an agent to steal from you or abuse their authority, so you can also report the agent to law enforcement.
To prevent abuse, some people ask the agent to report to a family member or a professional advisor, require the agent to keep detailed records, or limit the agent's authority to specific tasks. You can also name a co-agent to watch over the first agent's actions, though this slows decisions because both must agree.
Frequently Asked Questions
Can an agent be a family member, or does it have to be a lawyer?
An agent does not have to be a lawyer. Most people name a family member or trusted friend. The title "attorney-in-fact" is just legal language and does not mean the person is a lawyer. You can name anyone at least 18 years old who you trust to act in your interest.
What happens to the power of attorney when I die?
The power of attorney ends when ready when you die. The agent has no authority over your estate after that point. Your will or the laws of your state determine who handles your property and finances after death—usually an executor named in your will or a court-appointed administrator.
Can I name two agents and require them to work together?
Yes. You can name co-agents and specify that both must sign every document, or you can let them act separately. Requiring both signatures slows decisions but adds a layer of protection against one agent acting alone. You decide which arrangement works best for your situation.
Can an agent give themselves money or gifts from my accounts?
No. An agent cannot give themselves money or property without your written permission, even if the power of attorney document does not say so. This is a fiduciary duty that exists by law. If an agent takes money without permission, they can be sued to repay it.
What if my agent becomes unable to serve?
If you named a backup agent in the power of attorney, that person takes over automatically. If you did not name a backup, the power of attorney becomes useless and you would need to create a new one with a different agent. Naming an alternate agent prevents this problem.