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Key things to know about powers of attorney in Georgia

On Behalf of | Aug 31, 2023 | Estate Planning

Powers of attorney are typically documents that enable a person to appoint another person to make decisions, access information, and handle certain matters if they cannot do so.

Generally, the most common types of powers of attorney are:

  1. Financial power of attorney
  2. Healthcare power of attorney (advance directive for healthcare)

These documents are usually inexpensive to draft properly, but they are important documents that you should consider as part of your estate planning.

When you create a power of attorney, keep in mind the following key points:

  • To create a power of attorney, you must be competent, which means that you must be able to understand what you are signing and why. You must also be able to communicate that you understand what you are signing and why.
  • The person who creates the power of attorney is usually called the “principal,” and the person the principal chooses to appoint is called the “agent.”
  • The principal does not waive their right to make decisions after signing a power of attorney. They keep full authority over their affairs and can make decisions and engage in business transactions as they wish.
  • The agent does not become the primary decision-maker, and the principal remains the primary decision-maker.
  • The agent cannot do anything that the principal does not agree with. The principal can revoke the authority given to the agent at any time.
  • The power of attorney and the authority given to the agent end when the principal passes away.

Powers of attorney are simple yet useful legal documents to have, because no one knows what the future brings.

If you become incapacitated, having someone you trust who has agreed to take over your affairs can be extremely helpful.

It is important to understand what you are signing, however, and to ensure that you trust the person you are appointing when you create a power of attorney.