The Agent Is the Person You Authorize to Act for You
The agent on a power of attorney is the person you name to make decisions or sign documents on your behalf. You choose this person. They do not explore for the role or get appointed by a court — you grant them the authority yourself by signing a power of attorney document. The agent is sometimes called an attorney-in-fact, though they do not need to be a lawyer.
The agent's job is to handle specific tasks you cannot or do not want to handle yourself. Those tasks depend entirely on what you write into the document. You might give an agent authority to manage your bank accounts, sell property, pay bills, make healthcare decisions, or file taxes. You can limit the agent's power to one task or give them broad authority across many areas of your life.
The agent must act in your best interest and follow the exact terms you set in the document. If you say the agent can only access your checking account, they cannot touch your investment accounts. If you say the agent's authority ends on a specific date, it ends on that date — no exceptions.
Key Takeaways
- You choose your agent when you create a power of attorney document; the agent does not explore or get appointed by anyone else.
- An agent can be a family member, friend, professional advisor, or anyone else you trust to act in your interest.
- The agent's authority is limited to exactly what you write in the document — if you do not mention bank accounts, the agent cannot access them.
- An agent must act honestly and in your best interest, and they can be held legally responsible if they misuse the authority you gave them.
- You can name more than one agent, require them to act together, or name a backup agent to take over if your first choice cannot serve.
Who Can Serve as Your Agent
You can name almost anyone as your agent. Many people choose a spouse, adult child, sibling, or trusted friend. Some people name a professional — a lawyer, accountant, financial advisor, or bank — to handle specific tasks. You do not need to ask the person's permission before naming them, though it is wise to discuss the role with them first so they understand what you are asking and can agree to take it on.
The person you choose should be someone you trust completely, because the agent will have access to your money, property, or personal information. They should also be reliable and organized enough to keep records and handle the tasks you assign. If the person lives far away or is elderly themselves, consider whether they can realistically do the work.
Some states have rules about who cannot serve as an agent. For example, some states do not allow a healthcare provider to be your healthcare agent unless they are a family member. A few states require the agent to be at least 18 years old. Check your state's rules before you name someone.
What Authority You Can Give an Agent
The power of attorney document lists the specific powers you grant. Common powers include the right to access bank accounts, deposit or withdraw money, pay bills, buy or sell real estate, manage investments, file tax returns, and make healthcare decisions. You can grant one power or many. You can also create a document that gives the agent very broad authority to do almost anything you could do yourself.
Some powers are so sensitive that states have special rules. Healthcare decisions — like choosing medical treatment or deciding whether to use life support — usually require a separate document called a healthcare power of attorney or healthcare proxy. Financial powers and healthcare powers are almost never combined in one document.
You can also set conditions on the agent's authority. For example, you might say the agent can only access your accounts if you become unable to manage them yourself (called a springing power of attorney). Or you might say the agent's authority ends on a specific date, or that the agent must get a second person's approval before spending over a certain amount of money.
How an Agent's Authority Begins and Ends
An agent's authority begins the moment you sign the power of attorney document, unless you create a springing power of attorney that only takes effect if you become incapacitated. Most financial powers of attorney are effective when ready, meaning the agent can start using them right away even if you are healthy and able to manage your own affairs.
The agent's authority ends when one of these things happens: you revoke the document in writing, you die, the agent resigns or dies, or the document itself says the authority expires on a certain date. If you become incapacitated but the document does not say it is springing, the agent's authority continues. If you recover from an illness, the agent's authority still continues unless you revoke it.
A healthcare power of attorney usually ends when you die. A financial power of attorney also ends at death, but the agent's authority to pay your final bills or handle your estate may continue briefly depending on state law and what the document says.
Naming Multiple Agents or a Backup
You can name more than one agent. You might name two agents and say they must act together — meaning both must sign any check or make any decision. Or you might name them to act separately, so either one can act without the other's approval. Acting together is safer if you are worried about misuse, but it is slower because both agents have to be available.
You can also name a successor agent or backup agent. This person takes over if your first choice dies, becomes incapacitated, resigns, or refuses to serve. You can name multiple successors in order — a second choice, a third choice, and so on. This ensures that someone is always available to act for you if needed.
If you name co-agents who must act together and one of them dies or resigns, state law usually says the remaining agent can continue alone unless your document says otherwise. If you want a successor to step in instead, you need to say that clearly in the document.
The Agent's Legal Duties and Responsibilities
An agent has a legal duty called fiduciary duty, which means they must act honestly, in your best interest, and exactly as the document instructs. The agent cannot use your money or property for their own benefit. They cannot ignore your wishes. They cannot be careless or lazy about the job.
An agent must keep records of what they do — what money they spent, what bills they paid, what decisions they made. If you ask to see those records, the agent must show them to you. If you die or become incapacitated, the agent may have to show those records to your family, your doctor, or a court.
If an agent breaks these duties — for example, by stealing money or ignoring your instructions — you can sue them to recover the money or undo the damage. Your family or heirs can also sue after you die if they discover the agent misused their authority. Some states allow criminal charges for serious misuse.
How to Revoke or Change an Agent
You can revoke a power of attorney at any time as long as you are mentally able to understand what you are doing. You do this by signing a written revocation document and giving copies to the agent, your bank, your healthcare providers, and anyone else who has been relying on the agent's authority. straightforward telling the agent they are fired is not enough — you need a written document.
You can also change the agent without revoking the entire power of attorney. You would create a new power of attorney document naming a different agent, and then revoke the old one. Some people keep the old agent for certain tasks and name a new agent for others.
If the agent dies or becomes incapacitated, the authority does not automatically transfer to a successor unless you named one in the document. If you did not name a successor and your agent can no longer serve, the power of attorney is effectively dead — no one has authority to act for you unless you create a new document.
Frequently Asked Questions
Does my agent have to be a lawyer?
No. An agent can be anyone you trust — a family member, friend, accountant, or professional advisor. The term "attorney-in-fact" is just a legal title for the agent role; it does not mean the person has to be a lawyer. However, if the tasks are complex (like managing a large estate or making intricate financial decisions), a professional may be more may have access to.
Can I have more than one agent?
Yes. You can name multiple agents and decide whether they must act together or can act separately. You can also name successor agents who take over if the first agent cannot serve. The document must be clear about how multiple agents work together.
What happens if my agent dies?
If you named a successor agent in the document, that person takes over automatically. If you did not name a successor, the power of attorney ends and no one has authority to act for you. You would need to create a new power of attorney document and name a new agent.
Can my agent use my money for themselves?
No. An agent has a legal duty to act in your best interest and cannot use your money or property for their own benefit. If an agent steals from you or misuses the authority, you can sue them to recover the money, and in serious cases criminal charges may explore.
Can I take back the agent's authority?
Yes. You can revoke a power of attorney at any time by signing a written revocation document and giving copies to the agent and anyone else who has been relying on it. You must be mentally able to understand what you are doing to revoke it.