Legal Definitions - letter of attorney

A letter of attorney is a formal legal document that grants one individual the authority to act on behalf of another person in specified matters. It is commonly known as a Power of Attorney. The person granting the authority is called the principal, and the person receiving the authority is called the agent or attorney-in-fact (who does not necessarily have to be a lawyer).

This document is used to delegate legal authority for financial, medical, or other personal decisions, ensuring that someone can manage affairs if the principal is unable to do so themselves due to absence, illness, or incapacity. The scope of authority granted can be very broad or very narrow, depending on the principal's wishes and the specific needs.

• Example 1: Managing Finances During Extended Travel

  Eleanor plans to embark on a year-long sabbatical to travel the world. While she will have internet access, she wants to ensure her monthly mortgage payments, utility bills, and investment accounts are managed promptly and correctly. She executes a letter of attorney, appointing her trusted niece, Clara, as her agent. This document specifically authorizes Clara to access Eleanor's bank accounts, pay bills, and communicate with her financial advisor regarding her investments. This illustrates how the letter of attorney grants Clara the necessary legal authority to handle Eleanor's financial affairs in her absence.

• Example 2: Healthcare Decisions During Incapacity

  Mark is scheduled for a complex surgical procedure that carries a risk of temporary incapacitation. He wants his wife, Susan, to be able to make medical decisions on his behalf if he is unable to communicate his wishes. Mark signs a letter of attorney, specifically a healthcare power of attorney, designating Susan as his agent for medical matters. This document empowers Susan to consult with doctors, access Mark's medical records, and consent to or refuse treatments according to Mark's previously expressed wishes or what she believes is in his best interest. Here, the letter of attorney provides Susan with the legal standing to make critical health choices for Mark when he cannot.

• Example 3: Selling Property Remotely

  The Rodriguez family inherited a vacation home in a different state and decided to sell it. Mr. and Mrs. Rodriguez, due to their busy schedules and the distance, find it difficult to travel for every step of the sale process, such as signing listing agreements, accepting offers, or closing documents. They execute a letter of attorney, appointing their real estate attorney in the state where the property is located as their agent. This document grants the attorney the specific authority to sign all necessary paperwork related to the sale of the property on their behalf. This demonstrates how a letter of attorney can facilitate complex transactions by delegating specific legal powers to an agent, even if that agent is a professional.