Planning for the future often involves choosing the right tools, and a Power of Attorney (POA) is a key option. This legal document lets someone you trust make decisions on your behalf, from managing finances to signing paperwork. Not all POAs are the same, though, so let's explore the differences between Durable and Non-Durable POAs.

At Peach State Wills & Trusts we've spent years helping Georgia families with personalized estate plans. Led by Joel Beck, an estate planning attorney with more than twenty-four years of experience, we're known for simplifying complex legal processes. Let's break it down together.

What Is a Non-Durable Power of Attorney?

A Non-Durable Power of Attorney is often used for short-term needs or specific tasks. This type of POA allows someone, known as the agent, to act on behalf of the principal (that's you) for a limited purpose. However, if the principal becomes incapacitated or passes away, the non-durable POA automatically becomes invalid.

When Might You Use a Non-Durable POA?

Here are a few scenarios where a non-durable POA might come in handy:

●  Travel Plans: If you're out of town and need someone to sign documents for a real estate closing.

●  One-Time Transactions: Handling a specific banking or financial matter when you know you will be unavailable but still have the capacity to act for yourself.

Because it's limited in scope and time and does not function if you don't have the legal capacity to act for yourself this type of POA is not generally used except for very specific and limited circumstances. Its short-term nature and lack of durability mean it's not ideal for long-term planning or situations involving serious health concerns, including your possible incapacitation.

What Is a Durable Power of Attorney?

A Durable Power of Attorney, on the other hand, is designed with longevity in mind. This document stays in effect even if the principal becomes incapacitated.  That's what durable means in the name. It's a crucial tool for long-term planning because it ensures that your trusted agent can continue to make important decisions on your behalf, even if you are incapacitated and can no longer act for yourself.

Common Uses for a Durable POA

Durable POAs are especially helpful in situations like:

●  Financial Management: Allowing your agent to handle bills, investments, and other financial tasks if you're incapacitated.

●  Legal Matters: Taking care of ongoing business or legal responsibilities.

●  Managing Other Personal Affairs: Allowing your agent to deal with retirement benefits, insurance, real estate issues including maintenance, etc.

There's also something called a springing durable POA, which only becomes effective when a specific event occurs, like a doctor declaring you incapacitated. This offers more control for those who want the POA to activate only under certain circumstances.

Durable vs. Non-Durable POA: Key Differences

To make it easy to understand the differences, here's a quick breakdown:

When deciding between these two, it's important to think about your needs, your goals, and the level of trust you have in the person you're appointing as your agent.

Choosing the Right Power of Attorney for You

There's no one-size-fits-all answer when it comes to picking the right type of POA. Here are some factors to consider:

●  Your Finances: A durable POA is often the better choice for managing complex financial matters over the long term. Further, a durable POA is critical to ensure your agent can act if you are incapacitated.

●  Trust in Your Agent: Choosing the right person is key, especially for a durable POA. You want someone who will always act in your best interests, as the law requires.

●  Correct Powers:  A POA will identify what powers are given to the agent. In other words, the POA should clearly state what the agent has authority to do on your behalf, and what types of assets or personal business affairs they can manage for you.  As such, giving your agent the right powers is extremely important to ensure that your affairs can be well managed if you can't act for yourself. But, there may be some powers that you don't need to grant to your agent, to ensure that certain arrangements are not changed without your express approval. Working with an estate planning attorney can be very helpful when selecting what powers to grant to your agent in a POA.

In Georgia, there are also specific laws governing POAs so it's important to make sure your document complies with state requirements. We recommend consulting with an experienced estate planning attorney to ensure that the right type of POA is utilized, with the appropriate powers given to your agent depending on your unique situation.

What about a Power of Attorney for Healthcare?

In some states, a person might prepare a financial power of attorney to deal with their assets and personal business affairs, and then also prepare a power of attorney for healthcare.  In Georgia, however, we use a POA to deal with financial matters/personal business affairs, and an Advance Directive for Healthcare to deal with managing your healthcare. As such, we don't use powers of attorney for healthcare (sometimes called a medical power of attorney) or living wills.  The Advance Directive combines the features of those two types of documents into one document.  Read more about Advance Directives here.

Let's Start Planning Today

If you're ready to secure your peace of mind, we're here to help. At Peach State Wills & Trusts, we make estate planning simple, personalized, and stress-free. Give us a call at 678-228-8233 or visit our website to schedule your free consultation. Let's work together to create a plan that protects you and your loved ones.

If you have any questions about estate planning in Georgia, you can download our free guide.