When you go to Walmart you know that the clerk at the cash register is an agent of the Walmart company, but you know that the clerk does not have the power to sell you the building in which he or she works. When you hire a doctor, you do not authorize him to sell your car. The powers given to an agent are always limited. I signed it because I want her to be able to have access to my money if I am in a coma, if I am lost at sea, or if I have been kidnapped by evil doers. It simply means that, if necessary, my wife can get to my funds and use them to help me. That does not mean I cannot have a midlife crises and go out and buy myelf a red Corvette. The power of attorney allows her to get into my accounts and use my money. I have a power of attorney naming my wife as my agent. This post is about financial powers of attorney.)Īppointing an agent to make financial decisions for you does not prevent you from making your own decisions. I will write about those in another place. (A power of attorney that allows somebody to make health care decisions is called in Oregon an advanced directive. The agent can normally write checks in your name, make purchases, buy and sell your property, and use your money to pay your obligations. You give your agent the power to engage in financial transactions for your benefit. The run-of-the-mill power of attorney form you get from the stationary store appoints an agent to manage financial matters for you. The person you appoint in the power of attorney is your agent. When you sign a power of attorney you are appointing an agent. Most agents get paid for the work they do.Ī "power of attorney" is a legal document that has very little to do with power and nothing to do with attorneys. Every agent works for the good of a principal and owes the principal a duty of loyalty. Real estate agents, insurance agents, literary agents, and talent agents are just a few of the kinds of agents out there working for their principals. I cannot, while working for my client, do anything that would harm him.Įmployees are agents of the companies they work for. I owe my principal a duty of loyalty and best efforts. While writing the will I must work for the best interests of my client and write the best will I can. A client comes to my office and hires me to write him a will. An agent is the person who gets hired (or appointed). To understand powers of attorney, you need to understand what they are.Ī principal is someone who hires (or appoints) another person to act on his or her behalf. The first significant line in the Oregon statute governing powers of attorney refers to "agent" and "principal." Lawyers spend a lot of time in law school studying agents and principals. It will require some basic law school concepts. In this blog I try to stay away from law school stuff, but all the confusion about powers of attorney convinces me it is time to break down for you what these documents are and how they work.
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