How to Sign Documents as Power of Attorney: A UK Guide for Agents

Acting as someone's attorney is a significant responsibility, and a crucial part of that role involves paperwork. Knowing how to sign documents as a power of attorney is not just a formality; it's a legal requirement that protects both you and the person you're acting for. Signing incorrectly can lead to rejected documents, legal complications, and even personal liability for transactions. This guide will walk you through the precise steps and legal considerations for executing documents correctly in the UK.

Whether you're managing bank accounts, selling property, or handling everyday bills, the way you sign is critical. It signals that you are acting in an official capacity as an agent, not for yourself. We'll cover the exact formats to use, the different types of Power of Attorney (POA), and the common pitfalls to avoid, ensuring you can perform your duties with confidence and legal precision.

What You'll Learn

• Correct Signature Format: The most important takeaway is how to structure your signature to show you're acting as an attorney, which typically involves signing the principal's name first, followed by your own name and title.
• Legal Responsibility: When signing, you are bound by a fiduciary duty to act only in the best interests of the person who appointed you (the principal). You must not benefit personally from the transactions.
• Authority is Key: Before signing any document, you must confirm that the Power of Attorney document is legally valid, registered (if required), and grants you the specific authority to perform that action.
• Record Keeping is Crucial: As an attorney, you are required to keep detailed records of all transactions and decisions made on behalf of the principal. This includes retaining copies of all documents you sign.

Understanding Power of Attorney: An Overview

A Power of Attorney (POA) is a legal document that allows one person, known as the 'principal' or 'donor', to grant another person, the 'agent' or 'attorney', the authority to make decisions and act on their behalf. This is a powerful legal tool that enables continuity in managing someone's affairs if they are unable to do so themselves, whether due to physical absence, illness, or a lack of mental capacity.

The role of the attorney is built on trust. You are legally obligated to act in the principal's best interests, a concept known as a 'fiduciary duty'. This means you must manage their money and property for their benefit, not your own. You cannot mix their funds with yours, and you must keep accurate accounts of every transaction you make.

It's a common misconception that the term 'attorney' in this context means you must be a solicitor. This is not the case. An attorney-in-fact can be any trusted individual, such as a family member, a close friend, or a professional, who is over 18 and has the mental capacity to take on the role. The document itself specifies the scope of your powers, which can be broad or limited to specific tasks.

The Different Types of Power of Attorney in the UK

Understanding which type of POA you hold is essential, as it dictates when your powers become active and what you are authorised to do. In the UK, there are several distinct types, each designed for different circumstances. Signing documents as power of attorney requires you to know the boundaries of your specific appointment.

Ordinary Power of Attorney (OPA)

An Ordinary Power of Attorney is typically used for temporary situations. It grants the attorney authority to manage the principal's financial affairs while they still have mental capacity. For example, someone might set up an OPA if they are travelling abroad for an extended period, are in hospital for a short time, or need help with a specific transaction. An OPA automatically becomes invalid if the principal loses mental capacity.

Lasting Power of Attorney (LPA)

This is the most common type of POA in the UK today. Unlike an OPA, a Lasting Power of Attorney continues to be valid even after the principal loses mental capacity. This makes it a vital tool for long-term planning. To be valid, an LPA must be registered with the Office of the Public Guardian (OPG). There are two types of LPA:

1. Property and Financial Affairs LPA: This gives the attorney the power to make decisions about the principal's money and property. This can include managing bank accounts, paying bills, collecting benefits or a pension, and selling their home. You can start using this type of LPA as soon as it's registered, with the principal's permission.
2. Health and Welfare LPA: This allows the attorney to make decisions about the principal's daily routine, medical care, moving into a care home, and life-sustaining treatment. This LPA can only be used once the principal has lost the capacity to make these decisions for themselves.

Enduring Power of Attorney (EPA)

Enduring Powers of Attorney were the precursor to LPAs and could be made before 1st October 2007. If an EPA was validly made before this date, it can still be used today. Like an LPA, it allows an attorney to continue acting if the principal loses mental capacity. However, once the principal starts to lose capacity, the attorney has a legal duty to register the EPA with the Office of the Public Guardian.

Legal Requirements for Signing as a Power of Attorney

When you agree to be an attorney, you take on significant legal duties. These responsibilities are not just suggestions; they are enforceable obligations designed to protect the principal. Every action you take, including every time you engage in power of attorney document signing, must be guided by these principles.

The cornerstone of your role is the fiduciary duty to act in the principal's best interest. This means every decision must be made with their welfare as the primary consideration. You cannot make decisions that benefit you, your family, or anyone else at the principal's expense. For example, you cannot sell the principal's house to a friend for a below-market price or 'lend' yourself money from their account.

You must also act within the scope of the authority granted in the POA document. Read the document carefully to understand any restrictions or conditions. Some POAs grant broad powers, while others might limit you to specific tasks, like managing a particular bank account. Exceeding your authority can have serious legal consequences.

Furthermore, you have a duty to keep the principal's finances entirely separate from your own. Mixing assets is a serious breach of trust. You must maintain meticulous records of all income, expenditure, and significant decisions made on their behalf. This transparency is crucial for accountability and protects you from accusations of mismanagement.

These records should be available for inspection by the principal (if they have capacity) or later by the Office of the Public Guardian or the Court of Protection if required.

Before You Sign: A Preparation Checklist

Before you put pen to paper, taking a few preparatory steps can prevent significant problems down the line. Proper preparation ensures that you are acting correctly and that the document you sign will be legally accepted. Rushing into signing without confirming the details can invalidate a transaction.

1. Review the Power of Attorney Document: Don't assume you know what it says. Read the original POA document or a certified copy thoroughly. Confirm the exact powers it grants you. Does it cover the specific transaction you are about to undertake? Note any limitations or conditions the principal included.

2. Confirm Your Authority is Active: Is the POA currently in effect? An Ordinary POA is only valid while the principal has capacity. An LPA for property and financial affairs can be used before the principal loses capacity (with their consent), but a health and welfare LPA cannot. If the POA is an LPA or EPA, ensure it has been registered with the Office of the Public Guardian if required.

3. Have a Certified Copy Ready: The institution you are dealing with (like a bank, solicitor, or government agency) will need to see proof of your authority. They will not accept a simple photocopy. You will need the original document or a certified copy. You can get copies certified by a solicitor or, for LPAs, by the principal themselves if they have capacity.

4. Understand the Transaction: Make sure you fully understand the document you are being asked to sign. What are the legal and financial implications for the principal? If you are unsure, seek professional advice from a solicitor or financial advisor. Remember, you are making this decision on behalf of someone else, so diligence is paramount.

How to Sign Documents as Power of Attorney: The Correct Format

This is the most critical procedural step in your role as an attorney. The way you sign a document clearly communicates that you are acting on behalf of the principal, not in your personal capacity. Using the wrong format could make you personally liable for the contract or debt.

The goal is to make it unmistakable that the principal is the one entering into the agreement, through you as their legally appointed agent. While specific wording can vary slightly, the core components remain the same. Always check if the institution you're dealing with has a preferred format.

Here is a step-by-step guide to the most widely accepted method:

1. Write the Principal's Name: On the signature line, first print or sign the full name of the person you are acting for (the principal). For example, write "Jane Smith". This establishes that the legal party to the contract is Jane Smith.

2. Indicate Your Role: After the principal's name, you need to show that you are signing on their behalf. The most common way to do this is to write the word "by". So the line would now read: "Jane Smith by".

3. Sign Your Own Name: Next, sign your own name as you normally would. For example, if your name is John Doe, you would sign it after "by". The line now looks like this: "Jane Smith by John Doe (your signature)".

4. State Your Authority: Finally, underneath or next to your signature, you must clarify your legal capacity. Write "as Attorney" or "as Power of Attorney". This completes the signature block and removes any ambiguity.

Here are a few common and acceptable formats:

• Format 1 (Preferred):
  Jane Smith by John Doe, her Attorney

• Format 2 (Clear and Simple):
  Signed John Doe as attorney for Jane Smith

• Format 3 (On a signature line):
  Signature: John Doe, as Power of Attorney for Jane Smith
  Printed Name: John Doe, acting as Attorney for Jane Smith

Never sign just your own name. If the document has a signature line for "Jane Smith" and you simply sign "John Doe", it legally appears as if you are entering the contract yourself. This could make you personally responsible for fulfilling its terms.

Pro Tip: When dealing with banks or financial institutions, call ahead to ask about their specific procedures for power of attorney document signing. Some may have their own internal forms or require a specific signature format. Clarifying this beforehand can save you time and prevent document rejection.

Common Mistakes to Avoid When Executing Documents

Acting as an attorney is a role filled with potential pitfalls. Even with the best intentions, simple mistakes can cause serious legal and financial problems. Being aware of these common errors is the first step toward avoiding them and protecting the principal's interests.

One of the most frequent and dangerous mistakes is signing your own name without indicating your capacity. As detailed above, this can make you personally liable. Imagine signing a loan agreement for the principal; if you only sign your name, the bank could legally pursue you for the debt.

Another critical error is acting beyond the scope of your authority. Your powers are strictly defined by the POA document. If it only authorises you to manage bank accounts, you cannot decide to sell the principal's property. Always refer back to the document before any major transaction.

If you are unsure, it is always better to seek legal advice than to risk overstepping your bounds.

Failing to keep meticulous records is another common pitfall. You must be able to account for every penny spent and every decision made. This isn't just good practice; it's a legal requirement. Without clear records, you leave yourself open to challenges from family members or authorities who may question your actions.

Use a separate bank account for the principal's affairs and keep all receipts and statements organised.

Finally, mixing the principal's assets with your own is a fundamental breach of your duties. This is known as commingling funds and must be avoided at all costs. You cannot pay your personal bills from the principal's account, even if you intend to pay it back. This blurs the legal lines and can be seen as mismanagement or even abuse of your position.

The Role of Notarisation and Witnesses

Understanding when a signature needs to be witnessed or notarised can be confusing. The requirements depend on the type of document being signed, not necessarily on the fact that you are acting as an attorney.

First, let's distinguish between the POA document itself and the documents you sign on the principal's behalf. The creation of a Power of Attorney document has strict witnessing requirements. For a Lasting Power of Attorney in the UK, the principal's signature must be witnessed, the attorney's signature must be witnessed, and a 'certificate provider' must sign to confirm the principal understands the document and is not under pressure.

However, when you are later signing documents as power of attorney for the principal, the rules are different. Most everyday documents, like cheques or standard contracts, do not require your signature as an attorney to be witnessed. You simply sign using the correct format discussed earlier.

The need for a witness or notary arises from the nature of the document being executed. For example:

• Deeds: Documents that transfer ownership of property, such as a house, are known as deeds. By law, a signature on a deed must be witnessed. When you sign a deed as an attorney, your signature will need to be witnessed by someone who is present at the time.
• Statutory Declarations or Affidavits: These are formal legal statements that must be sworn before a solicitor or a notary public. If you are required to sign such a document on behalf of the principal, you will need to do so in the presence of the authorised official.

Always check the execution clause on the document itself. It will specify if a witness is required. If it is, the witness should be an independent adult who is not a party to the document and has no personal interest in the transaction.

Your Powers and Responsibilities: What Can You Sign?

As an attorney, you are empowered to step into the principal's shoes for a range of legal and financial matters. The specific documents you can sign depend entirely on the authority granted in the POA. A 'general' or broad power of attorney for financial affairs typically allows you to handle most of the principal's financial life.

Common documents an attorney can sign include:

• Banking Documents: Cheques, withdrawal slips, applications to open or close accounts, and direct debit mandates.
• Contracts and Agreements: Service contracts (e.g., for utilities or care services), purchase agreements, and rental agreements.
• Property Documents: Contracts for the sale or purchase of property, tenancy agreements, and mortgage documents. (Note: These are often deeds and will require a witnessed signature).
• Government Forms: Applications for state benefits, tax returns (e.g., with HMRC), and local council forms.
• Investment and Pension Documents: Instructions to buy or sell shares, and forms related to the principal's pension.

However, there are strict limitations on what you can do. Your authority does not give you the power to do anything the principal could do. Some actions are considered too personal to be delegated. An attorney cannot:

• Make or change a Will for the principal. This is a uniquely personal act that only the principal can perform (while they have testamentary capacity).
• Sign an affidavit in their own name. You cannot swear to facts on behalf of the principal as if you were them. The affidavit would need to be in your name, as the attorney.
• Vote in an election on their behalf. The right to vote is personal and cannot be delegated.
• Consent to marriage or divorce.

In an increasingly digital world, the process of power of attorney document signing can be managed more efficiently. Platforms like eSignly or PandaDoc provide secure ways to execute documents electronically. These tools offer features like legally binding electronic signatures and, crucially, a detailed audit trail. This trail records who signed, when, and where, providing excellent evidence for your record-keeping duties as an attorney.

How to Modify or Revoke a Power of Attorney

The circumstances of a principal or attorney can change, making it necessary to alter or end the POA. The process for doing this depends on whether the principal still has mental capacity.

If the principal retains full mental capacity, they have the right to revoke (cancel) the Power of Attorney at any time. To do this formally, they should create a legal document called a 'Deed of Revocation'. This is a short, written statement declaring that the POA is cancelled. The principal must sign it, and their signature should be witnessed.

Once the Deed of Revocation is signed, the principal must notify the attorney and any relevant third parties (like banks or financial institutions) that the POA is no longer valid. If the POA was a Lasting Power of Attorney (LPA) or Enduring Power of Attorney (EPA) that had been registered, the principal must send the original Deed of Revocation and the original POA to the Office of the Public Guardian (OPG) with a request to have it removed from the register.

If the principal has lost mental capacity, they can no longer revoke the POA themselves. An LPA or registered EPA can only be cancelled by the Court of Protection. Someone would need to apply to the court with evidence that it is in the principal's best interests to revoke the POA, for example, if the attorney is not acting properly. Similarly, an attorney cannot simply 'resign' if the principal lacks capacity; they must apply to the court to be discharged from their role.

Frequently Asked Questions (FAQ)

Here are answers to some common questions about signing documents as a power of attorney.

How do I sign for someone if I have power of attorney?

You must sign in a way that clearly shows you are acting as an agent, not for yourself. The best practice is to first write the principal's full name, then the word "by," followed by your own signature. Finally, add your title, such as "as Attorney" or "as Power of Attorney." For example: "Mary Jones by David Smith, as Attorney."

How does a POA sign a form?

When filling out a form, you should complete it with the principal's information. In the signature box, use the legally correct format described above. If there is a space for 'Printed Name', you should print your name and clarify your role, for example: "David Smith, Attorney for Mary Jones." Always attach a certified copy of the POA document when submitting the form for the first time to an organisation.

Does a POA need a wet signature?

Traditionally, a 'wet signature' (signing with ink on paper) was required. However, UK law now widely accepts electronic signatures as legally valid for most contracts. When signing electronically as a POA, you should still ensure the signature block reflects your capacity. E-signature platforms like eSignly often have features to add titles or text to a signature, and their audit trails provide strong evidence of the signing process, which is beneficial for your record-keeping duties.

What is a POA not allowed to do?

An attorney's powers are limited. You cannot do anything that is outside the authority granted in the POA document. Furthermore, there are certain actions that can never be delegated. A POA is not allowed to make or change the principal's Will, vote on their behalf, consent to marriage or divorce, or perform any action that would represent a conflict of interest or personal benefit at the principal's expense.

How do you sign a cheque as POA?

To sign a cheque on behalf of the principal, you should sign it on the signature line using the correct POA format. Write the principal's name, followed by your own signature and the designation "POA" or "Attorney." For example: "Mary Jones, by David Smith, Attorney." Banks are very particular about this, so it's vital to be consistent and clear to avoid the cheque being rejected.

Final Thoughts

Knowing how to sign documents as power of attorney is a fundamental part of fulfilling your duties responsibly and legally. The correct signature format is more than a technicality; it is a legal shield that protects you from personal liability and ensures the validity of the transactions you undertake for the principal.

Always remember the core principles of your role: act with integrity, prioritise the principal's best interests, stay within the bounds of your authority, and keep meticulous records. By following the steps outlined in this guide, you can navigate your responsibilities with confidence and provide the vital support that the principal has entrusted to you.

If you ever feel uncertain about a specific transaction or the scope of your powers, do not hesitate to seek professional legal advice. A small investment in clarity can prevent significant problems in the future, ensuring you honour the trust placed in you as an attorney.