A Power of Attorney (POA) is one of the three foundational estate planning documents we recommend for every adult in Georgia. Alongside the advance directive for health care and the last will and testament, the Power of Attorney completes a trio of documents that form the foundation of a comprehensive estate plan. Importantly, for those who completed their estate planning some time ago, their Power of Attorney is likely out of date and may not work due to significant changes in Georgia law in 2017. If your POA is out of date, that's an issue that should be promptly addressed.

Importance of a Power of Attorney

• Holds power only during your lifetime

• The effect can be immediate or triggered by specific events (e.g., incapacitation)

• Allows you to appoint a trusted individual as your agent to manage financial affairs and personal business when you're unable to do so or choose not to

What Does a Power of Attorney Do?

The power vested in the agent by the Power of Attorney is beneficial in cases of incapacitation, such as being confined to a hospital bed, suffering from dementia or Alzheimer's, or other circumstances that limit your ability to manage your financial affairs. This pre-appointed agent is entrusted to handle your financial obligations and personal business affairs responsibly.

Having a valid Power of Attorney in place generally means that no conservator for you is necessary should you become incapacitated. A conservator is a person appointed by the probate court and given authority to manage and control your assets and personal business affairs. Conservatorships take time and cost you and your family money, so we generally want to avoid those if at all possible. 

The Power of Attorney: Limitations and Misunderstandings

• The powers of a Power of Attorney do not extend beyond your lifetime. So, the agent under a Power of Attorney can no longer act for your after your death.

• After your passing, the directives in your Will take precedence for the distribution of your probate assets.

• If you don't have a Will, Georgia's laws of intestate succession dictate the distribution of your assets.

Major Changes to Georgia POA Laws in 2017

Georgia adopted new laws regarding Powers of Attorney in 2017 to help address problems with a Power of Attorney not being honored by 3rd parties such as banks and financial institutions when it is needed most (when the principal is incapacitated). With the new laws, 3rd parties can now be compelled by a court to honor the POA and let the agent manage the principal's affairs, and the 3rd party may then also be forced to pay the agent's costs in seeking to enforce the Power of Attorney. These new laws are very beneficial, but they only apply to Powers of Attorney completed on or after July 1, 2017, that use the new state form for a Power of Attorney or a substantially similar document. Accordingly, if your Power of Attorney was signed prior to July 1, 2017, or after that date but not consistent with Georgia's new laws, then you have a hole in your estate plan that should be promptly addressed as your POA may prove to be worthless as it cannot be enforced. Don't delay – get that hole plugged promptly.

Contact Peach State Wills & Trusts

A Power of Attorney is an indispensable tool in that planning process. Peach State Wills & Trusts is dedicated to helping Georgians understand their estate planning needs.

Contact Peach State Wills & Trusts at 678-344-5342 or online to learn how to plan for a secure future in Georgia today. If you have any questions about estate planning in Georgia, you can download our free guide here, no strings attached.