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A letter of authority is a formal document that gives a third-party authorisation to act on your behalf. Learn more about authorisation letters and how you can use memo templates as part of the process.
A letter of authority (also called a letter of authorisation) is a document that formally grants permission to transfer authority or power from one party to another. It permits the authorised party to make decisions or actions on behalf of the principal. The specific actions the authorised party can carry out will be stipulated clearly in the letter of authorisation.
Some common examples when a letter of authorisation may be used include:
A letter of authorization is only one example of official documents in the legal field. Letters of intent and affidavits also serve unique purposes in formal proceedings:
Formal documents, including letters of authorisation, require specific information that’s clear and can be understood by everyone involved. Using a template can help ensure all the necessary details are in place.
While an important document that can transfer a significant amount of power, letters of authority don’t need to be overly long or complex. In fact, they should be concise, accessible and easily understood.
A typical letter of authority will include:
Now that we’ve explored what a letter of authority is, you can learn how to write one. Use and edit this free letter of authority template the next time you need one.
You can use the following copy to guide you in creating your letter of authority:
[Your name]
[Your address]
[Email address or phone number]
[Date]
[Recipient’s name]
[Recipient’s address]
Dear [Recipient’s name],
I, [Your name], hereby authorize [Authorized person’s name] to act on my behalf from [Start date] to [End date] i regarding [situation]. This authorisation includes the following powers or tasks:
[Authorised person’s name] should have the authority to handle documents, make decisions, and undertake any necessary action related to the matters specified above within the written period.
For any verification or questions, you can reach me at [Your email address].
I thank you for your cooperation and understanding.
[Your name and signature]
View an example of how you can put the letter of authorization template to use.
Penny Lane
123 Yellow Brick Road
Liverpool, L1 1AB
01234 567 890
27th March, 2025
Oz Community Credit Union
Customer Service Department
456 Street Lane
London, NW1 9YZ
Dear customer service representative,
I, Penny Lane, residing at 123 Yellow Brick Road, Liverpool, L1 1AB, hereby authorise Sky Walker, my cousin, to act on my behalf in dealing with all the matters related to my bank account (#123456789) at Oz Building Society from 29th March, 2025 to 29th March, 2026.
During this period of time, I grant Sky Walker permission to:
This letter of authorisation doesn’t allow Mrs. Walker to open or close any accounts in my name, apply for loans, or change the account’s beneficiary information.
penny.lane@example.com
Thank you for your attention to this matter.
Regards,
Penny Lane
There are many reasons why you might need a letter of authority — managing financial accounts, making medical decisions, or handling properties — but whatever the purpose, it’s an essential part of transferring rights and power between parties. If you’re unfamiliar with writing clear and concise letters or legal documents, it can be a challenge to get it right. Below, are five steps you can follow to craft a letter of authority effectively.
Begin by naming everyone involved. State your name and address along with the individual you are authorising’s name, address, and other relevant information. Putting the identification at the start of your authorisation letter sets a foundation that will clarify who is involved and under what capacity.
Next, detail the specific actions the authorised person can or can’t perform. Ensure that you’re as clear and meticulous as possible in your authorisation letter to avoid any confusion or ambiguity.
The start and end dates for your letter of authority are useful if you need to put a limit on your letter. It can prevent the authority from becoming open-ended and should clarify if the authorisation is for a single transaction.
You might need to include additional information in your letter of authority for the arrangement to work, but this will depend on the details of your authorisation. For example, if you’re giving permission to access your bank account, you might choose to limit how much money can be withdrawn, or which accounts can be accessed.
Finally, both the person granting the authorisation and the authorised individual(s) should sign the document. You may also need to have the signatures notarised, as this will add an extra layer of validity. This can be especially important if you need to authorise more significant transactions.
If you’re creating a letter of authority, you can use Adobe Acrobat for business, for writing, formatting, editing, and signing the PDF securely.
Yes, a letter of authority is a legally binding document. Because of this, it’s important that all the details in the document are accurate. You may wish to have a solicitor review the details of your letter of authority if you’re unsure you’ve included everything you need.
The length of the validity on your letter of authority will depend on the terms you’ve written into the document. Typically, an authorisation letter will be valid for 12 months, but you can both lengthen and shorten this period. If you don’t include a date, or want to cancel your previous letter, you can send a written notice.
Letters of authority are important because they transfer power from one party to another. This might grant someone permission to make financial, medical, and other impactful decisions. Usually, letters of authority aren’t written unless the individual transferring power is unable or feels unconfident in making the decisions.
There are similarities between letters of authority and a lasting power of attorney. They both allow third parties to act on your behalf, but with the scope, duration, and legal authority of both there are key differences.
Letters of authority are generally short-term and only exist for a defined period. They’re also specific in focus, as they’re designed to grant permission to someone so they can perform a particular task. Lastly, the authority a letter of authorisation provides is limited to the specific individual that has been designated, and it doesn’t grant broad legal powers.
A lasting power of attorney, on the other hand, is usually more comprehensive. They give one person the ability to make decisions on another person’s behalf, usually after they’re incapable of making sound judgments themselves. This can cover both medical and financial decisions.
Writing a letter of authorisation to allow someone to collect documents is similar to other forms of authorisation letters. Things to include:
One crucial detail you’ll need to mention explicitly is that you’re authorising someone else to collect documents on your behalf.
Give more details, such as the specific documents they’re authorised to collect, and mention any ID verification they’ll be required to provide. You should also include a timeframe in the letter, so it’s clear how long the authorisation valid for.
If you need to write a notarised letter of authorisation, you can follow these steps:
