An agent acting under a Power of Attorney (POA) may need to sign checks on behalf of the principal. This requires a specific format to clearly indicate that the agent is signing with delegated authority, not personally. For instance, if John Smith is acting as POA for Mary Doe, the signature might appear as “John Smith, POA for Mary Doe.” This format clarifies that the funds are drawn from Mary Doe’s account, and John Smith is acting in a fiduciary capacity.
Executing financial transactions in this manner is a crucial element of managing affairs when an individual is incapacitated or otherwise unable to handle their financial obligations. This functionality ensures continued bill payment, investment management, and overall financial stability. Historically, the ability for appointed agents to act on behalf of others provided a vital safeguard, preventing disruption during periods of absence, illness, or disability. It allows individuals to plan for unforeseen circumstances, ensuring their financial needs continue to be met.