If a loved one has named you as an agent as part of their estate plan, you should consider yourself honored.
When someone chooses you as an appointed agent, it means they trust you with their life — literally. Serving as an agent is a tremendous responsibility, and ideally, you should be aware of the responsibilities that come with the role before you have to step into it. Here’s a closer look at a few things to know when acting as an agent in Florida.
Your Role as a Florida Agent
Florida law allows a Florida resident (a “principal”) to name an agent (also sometimes called an “attorney-in-fact”) in a document known as a power of attorney. Power of attorney gives the agent the authority to serve as an actor in place of the principal.
Your exact duties as an agent will vary depending on the scope of the power of attorney. However, agents can be responsible for many areas of the principal’s life. As an agent, you may be asked to do the following:
- Manage the principal’s assets
- Make investments on the principal’s behalf
- Ensure that the principal’s bills are paid
- File and submit documents
- Make healthcare decisions
- Manage the principal’s business or office
- Maintain a record of all transactions made on the principal’s behalf
- Apply for Medicare, Social Security, or other benefits or assistance on the principal’s behalf
- Sign legal documents for the principal
Fiduciary duty is a critical part of your role as an agent. Someone who has a fiduciary duty is obligated to act solely in the principal’s best interests. If an agent fails to act in the principal’s best interests or makes business, healthcare, or financial decisions that cause harm, they may be held legally liable.
Powers of Attorney and Appointed Agents
Florida statutes outline several different types of power of attorney. These options ensure that a principal can clearly specify which decisions appointed agents are allowed to make. The following are some of the main types of power of attorney in Florida:
Durable Power of Attorney
A durable power of attorney stays in effect even if the person you represent becomes incapacitated. For example, if your mother has established a durable power of attorney and falls into a coma, you could make decisions on her behalf while she’s unable to make them.
Non-Durable Power of Attorney
A non-durable power of attorney is effectively the opposite of a durable power of attorney. With a non-durable power of attorney, your authority as an agent ends if the principal becomes incapacitated.
A non-durable power attorney is usually designed to grant an agent limited authority for a specific period of time. For instance, if your friend will be out of the country while their business is finalizing an important contract, establishing a non-durable power of attorney would allow someone else to handle the business for them.
General Power of Attorney
If someone wants a trusted individual to manage their business and personal affairs, they may choose a general power of attorney.
A general power of attorney gives an agent broad authority to handle decisions for the principal. For example, a principal might choose to create a general power of attorney if they’re developing Alzheimer’s disease and want a reliable person to make decisions for them going forward.
Medical Power of Attorney
In some cases, a principal might only want an agent to make healthcare-related decisions for them.
If someone asks you to act as an agent, they should inform you of the type of power of attorney they want to obtain. You should thoroughly understand what’s being asked of you before you progress to the signing stage.
Signing Documents and Real Estate Transactions
When signing any kind of document or completing a transaction for the principal, you should remember that you’re acting in a representative capacity. Florida law outlines a specific way for agents to sign and date documents:
- First, sign the name of the person you’re representing
- Next, sign your name
- Finally, add either “Agent” or “POA” after your name
The “POA” here stands for “Power of Attorney.” It’s critically important that all contracts and other legal documents you sign adhere to this exact format.
When Does the Authority Granted by a Durable Power of Attorney End?
Florida citizens have the right to create customized powers of attorney that detail the specific powers an agent can have. As an agent, your authority is constrained by the POA document itself.
However, Florida law expressly prohibits the delegation of some powers. A power of attorney document may not authorize you to do any of the following:
- Execute or revoke the principal’s will
- Vote on behalf of the principal
- Create an affidavit regarding the principal’s personal knowledge
- Testify under oath on behalf of the principal
As an agent, you also may not fulfill a contract on behalf of the principal if the contract explicitly requires the services of the principal. For example, if the principal has signed a contract that requires them to complete a series of live performances with a group of working actors, you could not perform in the principal’s place.
Because the authority granted by the power of attorney documents can be abused, Florida lawmakers have designated certain powers as “superpowers.” This means the principal must take extra steps to grant them. Some of the main superpowers in Florida include:
- Changing beneficiaries
- Establishing new trusts or modifying existing ones
- Creating new rights of survivorship or changing existing ones
To grant superpowers, a principal will usually have to initial each power and have the document notarized and officially witnessed.
Registered Agents and Offices in Florida
Serving as the registered agent for a business in Florida isn’t quite the same as being named an agent or attorney-in-fact on someone’s power of attorney document. Generally, a Florida business must have a registered agent and a registered office. Both serve related purposes:
- A registered agent is a person who serves as the point of contact between the business and the state
- A registered office is the physical address where the registered agent conducts business
For example, a registered agent would receive tax forms and other communications on behalf of the business, while the registered office would be the office address where those documents are sent.
Limitations and Risks of Being an Agent
Agreeing to serve as an agent isn’t a decision you should make without careful consideration. In Florida and elsewhere, there are certain risks that come with acting as an agent, such as:
- You could be held liable for decisions that aren’t in the principal’s best interests, even if you made them in good faith
- Powers of attorney are complex legal documents that can be challenging to understand
- Because there’s little oversight for most agents, you could make unwise decisions without realizing it
It’s also important to consider that representing someone in business, health, and other decisions can be extremely stressful, especially if you’ve never managed someone’s affairs before.
As such, it’s highly recommended that you weigh all the relevant drawbacks and benefits before offering your services as an agent.
Do I Have Unlimited Power to Make Decisions for Another Person if I Am Appointed as Their Agent?
No. As an agent, the only authority you have is explicitly granted to you by the principal in their power of attorney document. If you agree to serve as an agent, you must have a clear understanding of where your authority to make decisions begins and ends.
Next Steps
Serving as an agent is a major responsibility. If you have questions or concerns about your duties or want to create a power of attorney document yourself, the William C. Roof Law Group is here to help. Contact us today to schedule a free consultation.
The contents of this article are not comprehensive, they provide only a general overview of the subject matter discussed. This article does not establish a client-attorney relationship with the reader, and no legal decisions should be made based on the article’s contents. Because every legal matter arises under unique facts specific to the client, no legal decision should be made without consulting a licensed attorney.