A Power of Attorney Primer
Creating valid POAs under Georgia state law
By Benjy Schirm, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on July 8, 2024 Featuring practical insights from contributing attorney Mary B. GalardiUse these links to jump to different sections:
- What Is a Power of Attorney?
- When a Power of Attorney Is Needed
- Creating a Valid Power of Attorney in Georgia
- Find Experienced Legal Help
As people age, there is a finite amount of time in which they can continue to manage their medical decisions, financial affairs, and more. After a certain point, individuals may need another person to manage their personal affairs. The legal document that authorizes someone to do this is called a Power of Attorney (POA).
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that authorizes someone to make decisions on your behalf if you become incapacitated. There are different types of POAs, including healthcare POAs and financial POAs. Here are features of the creation and use of POAs in Georgia:
- The power of attorney goes into effect when executed;
- The power of attorney is durable (not terminated by the principal’s incapacity);
- An agent is not entitled to compensation but is entitled to reasonable reimbursement of expenses incurred in performing the acts required by the principal;
- The power of attorney is dissolved when an action is filed for dissolution, annulment, or separation of agent’s marriage to the principal;
- Co-agents may exercise their authority independently; and
- An agent who is not an ancestor, spouse, or descendant of the principal shall not create an interest in the principal’s property. Note also that the power of attorney does not authorize the agent to make health care decisions for you.
When a Power of Attorney Is Needed
If someone needs help managing their finances or other life decisions, they need to have someone step in as their agent. To do this with the fewest issues, this person needs to have a valid POA enacted with the agent (attorney-in-fact) named; otherwise, financial institutions, email accounts, and other personal information will be unavailable to someone just trying to help.
People assume that this only applies to older people, but think of what could happen if you are in a car accident today that leaves you incapacitated. When the unexpected happens, how will you access the money and information you need?
Creating a Valid Power of Attorney in Georgia
The Uniform Power of Attorney Act (UPOAA), enacted by the Georgia legislature in 2017, added requirements for creating a valid POA in the state.
The law addressed the concerns of banks and other financial institutions to protect their customers’ assets from fraudulent claims. On the other hand, if an authorized agent has a valid POA and presents it to a bank or other institution, the agent can statutorily enforce their rights to the information and finances that are requested in a short time period as long as the institution’s requests are followed. Without a valid POA, the named agent won’t have access to financial institutions, email accounts, and other personal information needed to perform their role.
“Updating an estate plan to the new statutory form can grant much more power to an agent than was previously allowed, including the power to change a principal’s estate plan,” says Mary Galardi, an estate planning attorney in Atlanta. “So in enacting a new plan, be certain to understand each power given to the agent as one initials the forms,” Galardi says.
Find Experienced Legal Help
When asked if she has any advice for consumers regarding POAs, Galardi says, “Get one. An estate plan is often not as difficult as people make it out to be. People think the process is going to be cumbersome and hard, but with the help of a reputable and experienced estate planning attorney, the process is really quite easy.”
For more information on this area of law, see our overviews of estate planning and probate and estate administration.
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