# What Is A Power of Attorney?

> What is a Power of Attorney?

Source: https://wiki.powersofattorney.com/concept · Updated 20 June 2023

This page examines [common definitions](https://wiki.powersofattorney.com/concept#common-definitions-of-a-power-of-attorney) and their [shortcomings](https://wiki.powersofattorney.com/concept#shortcomings-of-common-definitions) and includes a [better definition](https://wiki.powersofattorney.com/concept#a-better-definition) of what is a *Power of Attorney*.

This page discusses the [importance of detail](https://wiki.powersofattorney.com/concept#importance-of-detail-in-power-of-attorney) in a *Power of Attorney* and their [common features](https://wiki.powersofattorney.com/concept#what-are-common-features-of-a-power-of-attorney), as well as the [worrying trend of using government forms](https://wiki.powersofattorney.com/concept#worrying-trend-of-using-government-forms).

The contents of this page are focused upon *Powers of Attorney* for [commercial](https://wiki.powersofattorney.com/terms#meaning-of-commercial) purposes.

### Common Definitions Of A *Power of Attorney*

A *Power of Attorney* is:

"..*an instrument in writing by which one person as principal, appoints another as his agent and confers upon him authority to perform certain specified acts or kinds of acts on behalf of the principal*.."[^1]

"..*a formal instrument by which one person empowers another person to represent him, or act in his stead for certain purposes*.."[^2]

#### Shortcomings Of Common Definitions

The common definitions above fail to recognise that:-

- the concept of a "person" where it appears in these definitions is not limited to a [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person), it includes a [body corporate](https://wiki.powersofattorney.com/terms#meaning-of-body-corporate-or-bodies-corporate) (e.g. a trust, partnership, corporation etc.)
- more than one [person](https://wiki.powersofattorney.com/terms#meaning-of-person-ie-natural-person) may together, be [principals](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power) either [jointly or severally](https://wiki.powersofattorney.com/terms#meaning-of-jointly-or-severally)
- more than one [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may be appointed under a *Power of Attorney*
- a *Power of Attorney* may be [created](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) [orally](https://wiki.powersofattorney.com/typescommonlyusedpersons#oral-powers-of-attorney), although most *Powers of Attorney* are recorded in writing
- a *Power of Attorney* may either be:-

  - used to authorize the performance of specific [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks)
  - [general](https://wiki.powersofattorney.com/typescommonlyusedpersons#general-powers-of-attorney) in nature, authorizing the performance of any [task](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) that the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) could perform for themselves

These shortcomings highlight the inadequacy of common definitions.

### A Better Definition Of What Is A *Power of Attorney*

A *Power of Attorney* is a convenient [legal instrument](https://wiki.powersofattorney.com/terms#meaning-of-legal-instrument) able to be used by any kind of [legal entity](https://wiki.powersofattorney.com/terms#meaning-of-legal-entity) to establish a scheme to assign [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks), variously or otherwise, to a chosen [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or chosen [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal).

Through the terms of their *Power of Attorney*, the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power-of-attorney) can prescribe how the scheme is to work, dealing with issues like:-

- who may replace an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who is [ineligible](https://wiki.powersofattorney.com/terms#meaning-of-ineligible)
- what [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) may be performed by an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) and when an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may perform those [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks)
- whether an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) can authorize anyone else (i.e. [sub-agents](https://wiki.powersofattorney.com/subagents#what-is-a-sub-agent) to perform [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) they are themselves authorized to perform

The proposed [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) are at liberty to elect whether or not to [accept appointment](https://wiki.powersofattorney.com/agentswhatisagent#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal), upon the terms set out in the *Power of Attorney*.

If the proposed [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) decide to [accept appointment](https://wiki.powersofattorney.com/agentswhatisagent#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states), upon [accepting appointment](https://wiki.powersofattorney.com/agentswhatisagent#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) they are bound by a [fiduciary](https://wiki.powersofattorney.com/terms#meaning-of-fiduciary) duty owed to the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power), which requires them to put the interests of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power) first at all times, being a central feature of a *Power of Attorney*.

### Importance of Detail In *Power of Attorney*

Omitting necessary detail from a *Power of Attorney* comes at the peril of the [principal](https://wiki.powersofattorney.com/principal#the-principal-is-the-entity-that-makes-the-power).

For example, the absence of suitable words in a *Power of Attorney* dealing with the following kinds of issues would present difficulties:-

- whether or not an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or [successor agent](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) can appoint a [sub-agent](https://wiki.powersofattorney.com/subagents#what-is-a-sub-agent)
- whether an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) who became [ineligible](https://wiki.powersofattorney.com/terms#meaning-of-ineligible) and was replaced by [successor agent](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) and subsequently became [eligible](https://wiki.powersofattorney.com/terms#meaning-of-eligible) again, is entitled to resume office as an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- what is to happen if a [protector](https://wiki.powersofattorney.com/protector#why-does-the-term-protector-mean) identified certain [successor agents](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) and a dispute arises as to priority of appointment between the nominated [successor agents](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible) and [successor agents](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) named in the *Power of Attorney*
- how things are to work if overlapping [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) are assigned to different [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- how things are to work if multiple [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) are appointed to act by agreement and less than all of them are [eligible](https://wiki.powersofattorney.com/terms#meaning-of-eligible)

The right words in a *Power of Attorney* can solve all of these problems.

### What Are Common Features Of a *Power of Attorney*?

A *Power of Attorney* identifies an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or various [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) and the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) they may perform and may also include terms that:-

- assign [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) to be performed differently, by one or more [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal), by agreement, majority or independently
- identify [successor agents](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) or a [protector](https://wiki.powersofattorney.com/protector#protector-ca-tx-il-pa) being someone authorized to name additional [successor agents](https://wiki.powersofattorney.com/successoragents#a-successor-agent-replaces-an-original-agent-who-is-ineligible)
- authorize an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) or [successor agent](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) to appoint [sub-agents](https://wiki.powersofattorney.com/subagents#what-is-a-sub-agent) or [delegates](https://wiki.powersofattorney.com/subservantsdelegates#sub-servants-and-delegates)
- record [conditions](https://wiki.powersofattorney.com/conditions#conditions-can-be-imposed-in-respect-of-an-agents-appointment) either in respect of an [individual](https://wiki.powersofattorney.com/conditions#conditions-upon-an-individual) or a [class](https://wiki.powersofattorney.com/conditions#conditions-upon-a-class) of [officeholders](https://wiki.powersofattorney.com/introotherofficeholders#essential-officeholders-include-the-principal-and-agents).
- define how an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) may [accept appointment](https://wiki.powersofattorney.com/agentswhatisagent#how-an-agent-may-accept-appointment-varies-in-the-six-6-greater-states) or [resign](https://wiki.powersofattorney.com/termmng#renouncement-resignation)
- require an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) to perform the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) they are authorized to undertake
- define [incapacity](https://wiki.powersofattorney.com/capacitytexas#the-six-6-greater-states-have-defined-incapacity-in-legislation) by reference to performance of the [tasks](https://wiki.powersofattorney.com/whatcanagentdo#an-agent-can-perform-commercial-tasks) specified in the *Power of Attorney*
- impose a [positive duty to act](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-may-not-have-a-positive-duty-to-act) upon the [agents](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal)
- identify [successor agents](https://wiki.powersofattorney.com/successoragents#why-does-the-term-successor-agent-mean) or a [protector](https://wiki.powersofattorney.com/protector#protector-ca-tx-il-pa) to deal with risks associated with an [agent](https://wiki.powersofattorney.com/agentswhatisagent#an-agent-is-an-entity-appointed-by-the-principal-to-represent-and-bind-the-principal) being [ineligible](https://wiki.powersofattorney.com/terms#meaning-of-ineligible)
- include [risk management provisions](https://wiki.powersofattorney.com/insightrisks#there-are-risk-management-practices-involving-the-terms-of-the-power-of-attorney) to reduce the likelihood of a *Power of Attorney* being misused

Surprisingly, none of these arrangements are included in [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il).

Without access to these kinds of features, [creating](https://wiki.powersofattorney.com/creation/create#terms-like-create-or-make-a-power-of-attorney-have-various-meanings) a complete and personal solution using a *Power of Attorney* is not possible.

### Kinds of *Power of Attorney*

A *Power of Attorney* may be [commercial](https://wiki.powersofattorney.com/typescommonlyusedpersons#commercial-powers-of-attorney), [non-statutory non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-statutory-non-durable-powers-of-attorney), [non-statutory durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-statutory-durable-powers-of-attorney), [non-statutory](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-statutory-powers-of-attorney), [non-durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#non-durable-powers-of-attorney), [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#durable-powers-of-attorney), [statutory](https://wiki.powersofattorney.com/typescommonlyusedpersons#statutory-powers-of-attorney), [military](https://wiki.powersofattorney.com/typescommonlyusedpersons#military-powers-of-attorney), [legislative](https://wiki.powersofattorney.com/typescommonlyusedpersons#legislative-powers-of-attorney), [contractual](https://wiki.powersofattorney.com/typescommonlyusedpersons#contractual-powers-of-attorney), [oral](https://wiki.powersofattorney.com/typescommonlyusedpersons#oral-powers-of-attorney), [irrevocable](https://wiki.powersofattorney.com/typescommonlyusedpersons#irrevocable-powers-of-attorney), [general](https://wiki.powersofattorney.com/typescommonlyusedpersons#general-powers-of-attorney), [limited](https://wiki.powersofattorney.com/typescommonlyusedpersons#limited-special-and-specific-powers-of-attorney), [special](https://wiki.powersofattorney.com/typescommonlyusedpersons#limited-special-and-specific-powers-of-attorney), [specific](https://wiki.powersofattorney.com/typescommonlyusedpersons#limited-special-and-specific-powers-of-attorney), [springing](https://wiki.powersofattorney.com/typescommonlyusedpersons#springing-powers-of-attorney), [temporary](https://wiki.powersofattorney.com/typescommonlyusedpersons#temporary-powers-of-attorney) or [ordinary](https://wiki.powersofattorney.com/typescommonlyusedpersons#ordinary-power-of-attorney), entirely depending upon its terms.

### Worrying Trend Of Using Government Forms

The prolific use of very short *Powers of Attorney* in the shape of [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) is a worrying trend.

It is benign to suggest that [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) do an effective job of ensuring that disputes involving a *Power of Attorney* do not reach Court. Most likely, the lack of detail in [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) has the opposite effect.

[Government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) are inflexible and generic.

In Florida and Pennsylvania, there is no [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il), although the use of varieties of *Powers of Attorney* that resemble a [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) is likely.

The problems associated with using [government forms](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il) prevail in both [durable](https://wiki.powersofattorney.com/typescommonlyusedpersons#a-durable-power-of-attorney-operates-if-the-principal-lacks-or-may-lack-capacity) and other settings.

Without using a [better](https://wiki.powersofattorney.com/creation/framework#a-suggested-framework) *Power of Attorney*, a user cannot impose a genuinely unique and effective management scheme, tailored to their specific needs and circumstances.

Without more detail than appears in a [government form](https://wiki.powersofattorney.com/governmentforms#government-forms-in-ca-tx-ny-il), almost everything about the scheme a *Power of Attorney* imposes is open to debate, leaving the user to throw themselves upon a Court, if questions arise.

Absent detail in any *Power of Attorney* can easily result in a *Power of Attorney* being less than [fit for purpose](https://wiki.powersofattorney.com/whatisapoa#must-be-fit-for-purpose).

**Next Page**

**Overview**

- **The [next page](https://wiki.powersofattorney.com/importance) **examines the importance of *Powers of Attorney***, the problems they solve and how and why durable *Powers of Attorney* are important.**

**Headings**

The headings on the next page are:

- [What **problems** are **solved** by *Powers of Attorney*?](https://wiki.powersofattorney.com/aboutpoaimportance#what-problems-are-solved-by-powers-of-attorney)
- [**How** do *Powers Of Attorney* **achieve their purpose**?](https://wiki.powersofattorney.com/aboutpoaimportance#how-do-powers-of-attorney-achieve-their-purpose)
- [**Durable** *Powers Of Attorney* **are** an **important** development](https://wiki.powersofattorney.com/aboutpoaimportance#durable-powers-of-attorney-are-an-important-development)

[^1]: See for example *Bank of America v Horowytz* (1968) 248 A 2d 446 at 448 (Bergen County Ct, New Jersey); *King v Bankerd* (1985) 492 A 2d 608 at 611 (CA, Maryland); S*evigny v New South Federal Savings and Loan Association* (1991) 586 So 2d 884 at 886 (SC, Alabama); *Kisselbach v County of Camden* (1994) 876 P 2d 1383 at 1386 (App Div (Superior Ct), New Jersey); *Willey v Mayer* (1994) 876 P 2d 1260 at 1264 (SC, Colorado); *Matter of Trust of Franzen* (1998) 955 P 2d 1018 at 1021 (SC, Colorado); *Comerica Bank-Texas v Texas Commercial Bank National Association* (1999) 2 SW 2d 723 at 725 (CA, Texas).
[^2]: E Jowitt & C Walsh, *Jowitt's Dictionary of English Law*, 2nd ed, by J Burke, Sweet & Maxwell, London, 1977, vol 2, p 1399.