Types of Power of Attorney in Georgia

A power of attorney (POA) is a legal document that grants one person the authority to act on behalf of another, making it a fundamental tool for managing personal, financial or medical affairs. State laws govern powers of attorney, and Georgia's approach is different from many, with many options tailored to specific uses. A financial advisor can help you determine which type of power of attorney you should add to your estate plan.

How a Power of Attorney Works in Georgia

In Georgia, a POA can be invaluable for managing financial, legal or health-related matters, especially when the principal is unable to do so themselves due to illness or absence. The POA lets the principal define the agent’s powers, whether broad or limited to specific tasks.

To create a power of attorney in the Peach State, the principal must be of sound mind and capable of understanding the implications of the document. The process involves drafting the POA, specifying the powers granted and signing it in the presence of a notary public. 

In addition to fulfilling these basic legal requirements, it’s advisable to consult with an estate planning attorney to ensure that the document meets all statutory specifications and accurately reflects the principal’s intentions. Once executed, the POA should be distributed to relevant parties, such as financial institutions or healthcare providers.

5 Powers of Attorney in Georgia

There are five primary powers of attorney that you can create in Georgia. Each serves a specific purpose, so make sure you do your research when developing your estate plan.

1. Durable Power of Attorney

A durable power of attorney remains in effect even if the principal becomes incapacitated. Not all powers of attorney are durable, but in Georgia, a power of attorney is typically considered durable unless it explicitly states that it becomes ineffective in the event of the principal's incapacity. This type of POA is useful for long-term planning, allowing the agent to manage the principal’s affairs without interruption if the principal becomes incapacitated.

2. Non-Durable Power of Attorney

Unlike its durable counterpart, a non-durable power of attorney becomes effective immediately and is only valid as long as the principal is capable of making their own decisions. This type of POA is often used for specific transactions or short-term arrangements, such as selling a property or managing financial matters while the principal is temporarily unavailable. 

In Georgia, a non-durable power of attorney automatically terminates if the principal becomes incapacitated. This makes it less suitable for long-term planning than the durable variety.

3. Financial Power of Attorney

A financial power of attorney grants the agent authority only over the principal’s financial affairs. This can include managing bank accounts, paying bills, filing taxes and making investment decisions. 

In Georgia, a financial power of attorney can be either durable or non-durable, depending on the principal’s preferences. This type of POA is useful for individuals needing help with complex financial matters or managing their finances during their absence.

4. Medical Power of Attorney

A medical power of attorney, also known as a healthcare power of attorney, allows the agent to make healthcare decisions on behalf of the principal. This type of POA is important for individuals who want their medical preferences followed if they cannot communicate their wishes.

In Georgia, a medical power of attorney is often combined with a living will to provide an advanced healthcare directive. This arrangement allows the principal’s healthcare decisions to reflect their values and desires.

5. Springing Power of Attorney

A springing power of attorney becomes effective only when a specific event occurs, typically the incapacitation of the principal. This type of POA offers flexibility, as it allows the principal to maintain control over their affairs until the predetermined condition is met. 

In Georgia, the conditions that trigger a springing power of attorney must be clearly outlined in the document. This type of POA is used by someone who wants to retain autonomy while ensuring a seamless transition of authority if they become unable to manage their affairs.

How to Create a Power of Attorney in Georgia

Creating a power of attorney in Georgia follows a standardized procedure. Here are five general steps to help you get started:

• Determine which type of power of attorney is needed. Georgia recognizes several types of POAs, including durable, medical and financial. Choose the type that best fits your needs so your affairs are managed effectively.
• Select a trustworthy agent: The agent is the person you authorize to act on your behalf. Choose someone you trust implicitly, as they will have significant control over your affairs. Consider their reliability, ability to make sound decisions and willingness to act in your best interest. Discuss the responsibilities and expectations with the prospective agent to confirm that they are willing and able to fulfill the role. Additionally, appoint a successor agent as a backup if the primary agent cannot serve.
• Complete the Georgia power of attorney form: Obtain the appropriate form, which is available through legal websites or an attorney. Fill out the form with accurate information, specifying the powers you wish to grant. Make sure that all details are clear to avoid any potential misunderstandings.
• Sign the document in the presence of a notary and witnesses: In Georgia, a POA must be signed in front of a notary public and at least one witness. This step makes it valid for use with financial institutions and healthcare providers.
• Distribute copies to relevant parties: Once notarized, provide copies of the POA to your agent, financial institutions and healthcare providers. Keeping all parties informed will help your wishes get carried out effectively.

Bottom Line

Getting a power of attorney in Georgia can help you manage and distribute your estate effectively. POAs in this state are often durable by default, meaning they remain valid if you become incapacitated. Choosing the right POA depends on your needs and circumstances, and a legal professional can provide guidance to protect your interests.

Tips for Estate Planning

• A financial advisor can help you draft a POA that aligns with your specific goals and complies with legal requirements. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.
• It may be tempting to save some money and plan your own estate. But you should still be careful with these DIY estate planning pitfalls.

Photo credit: ©iStock.com/vm, ©iStock.com/Tinpixels, ©iStock.com/Vladimir Vladimirov

The post Types of Power of Attorney in Georgia appeared first on SmartReads by SmartAsset.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.