Attorney in fact vs. attorney at law– what’s the difference? An attorney in fact is an agent who is allowed to act on behalf of another person but isn’t necessarily qualified to practice law. An attorney at law is an attorney that has been legally authorized to prosecute and defend actions before a court of law.
What Is an Attorney At Law?
An attorney at law is permitted to represent another person in the practice of law but is not permitted to make decisions on their behalf. This includes any decision-making, like whether or not to settle. This term came from England, where lawyers who were authorized to practice in the common law courts were referred to as attorneys at law.
In the British legal system, different terms was used depending on the type of law that was practiced. At the turn of the 19th century, the separation was ultimately eliminated when attorneys came to be known as solicitors. However, in the United States, the term was adopted to refer to any law practitioner.
What Is an Attorney In Fact?
An attorney in fact is an agent who is authorized to act on behalf of another individual but is not necessarily authorized to practice law. Their duties and power depend on what’s precisely stated in the power of attorney document.
If you would like to become somebody’s attorney in fact, you need to have them sign a power of attorney document. This will designate you as their agent and enable you to carry out any actions on their behalf. An attorney in fact doesn’t have a client. Instead, he or she is called a “principal.” There are two types of an attorney in fact:
- General power of attorney: Allows the attorney to conduct all business and sign documents on behalf of another individual.
- Special power of attorney: Allows an individual to conduct business and also sign documents on behalf of another individual, but just in certain situations.
The power of attorney document outlines when an attorney can act on another person’s behalf, even in the case of a special power of attorney. An attorney in fact doesn’t have the permission to file lawsuits or to represent their principal in court. An attorney in fact can make decisions for another person that’s been given those powers. Nevertheless, this title doesn’t allow you to practice law, unless you’re representing yourself.
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The Responsibilities of an Attorney In Fact
If designated as a general power of attorney, an attorney in fact can carry out any spending or investment actions that the principal would normally make. Therefore, the duties of an attorney in fact might consist of:
- Withdrawing funds
- Opening and closing bank accounts
- Trading stocks
- Paying bills
- Cashing checks
If a principal is not comfortable giving that much power to somebody else, rather than assign a general power of attorney, they can decide to designate an attorney in fact as a special power of attorney. For example, if a parent is generally healthy but has surgery, they may give their child special power of attorney until they recover or decide to withdraw it.
An attorney in fact’s power is restricted in two important ways:
- When an individual passes away, an attorney in fact loses all power. An attorney in fact is only permitted to act while the principal is still alive.
- An attorney in fact only has control over assets that are not held in a trust. Instead, trust assets are always managed by a trustee.
With the comparison of an attorney at law and an attorney in fact, we now have a greater understanding of the differences between their respective legal roles. While both offer important services in our legal system, you should consider which to hire depending on your needs. In making this decision, it is wise to reach out to an experienced law firm like Drake Law Firm, who can guide and advise you on what is best for your case.
