An authorization gives an individual of your choosing temporary decision-making powers on your behalf. If you are not around or are incapacitated for some reason, but you need help with financial or healthcare decisions, an authorization letter can give an individual the ability to make decisions for you.
When To Use an Authorization Letter
Authorization letters can be used in a variety of situations, including:
- Bank authorization letter that you give to a relative to complete a financial transaction on your behalf, with your signature.
- A parent or guardian transferring child care responsibilities to an afterschool care professional, babysitter, or live-in nanny, to help protect the child from harm and prove to authorities that this adult should be in charge of this child.
- A medical authorization letter can be given to a doctor or healthcare administrator to authorize the release of your medical information from one professional to another to help your treatment.
- Property authorization letters can be used to transfer selling or leasing responsibilities to a real estate agent or property manager.
- If you sell your car to an individual but all of the transfer documents are not finalized, then an authorization from you, the previous owner, can help authorities know that you agreed to this individual driving the vehicle registered under your name.
- Include an authorization letter in employees’ files at their current place of employment, which would allow future potential employers to access information on the employee without that individual having to contact the former employer each time they file an application for a new job.
How is an Authorization Letter Used?
Authorization letters transfer decision-making authority from one person to another for a temporary period. These documents are legally binding, and should be written in an appropriate format to be considered authentic and legal.
If you write an authorization letter, you should include:
- The full name of the person who will make decisions on your behalf
- The period of time that the letter is valid
- The specific activity that your proxy should undertake with your permission
- The date when the letter was issued
Because authorization letters are legal, formal documents, they must follow a professional letter format. This includes a headline with the date, the proxy’s contact information and name, your contact information and name, salutation which includes professional titles like “Mr,” “Ms,” “Dr,” etc, and then one to two short paragraphs which state that you authorize the individual bearing the letter to undertake certain tasks (money transfers, for example). These paragraphs can also contain the reason for authorization, which could be important for the transaction to occur, but they are not always necessary. If there are any restrictions on the authorization, write those down as well. Then, conclude with a professional closing such as “Sincerely.”
Why Should I Use an Authorization Letter Template?
Because authorization letters are formal and legally-binding documents, it will be important to fully understand and follow the specific format of a professional letter. However, these details and the order they come in may be difficult for everyone to remember, so use our free downloadable authorization letter template. This template outlines all the parts of an authorization letter, including your signature. Download our professional authorization letter template today!