What is a Power of Attorney?

Estate planning in Norcross has many components, and the specific process for developing an estate plan will depend on the individual and their needs. Everyone in Gwinnett County should have certain estate planning documents and tools, including a will and an advance directive for health care. In addition, most people should consider drafting a power of attorney and designating an agent who can make important decisions for them concerning certain matters. What is a power of attorney, exactly, and how can you know if you need one? Consider the following information from our Gwinnett County estate planning lawyers.

Understanding the Power of Attorney Document 

What is a power of attorney? In short, as the State of Georgia explains, it is a type of legal document through which you can “authorize another person to make decisions on your behalf.” The person or entity that is authorized to make decisions for you has a type of legal power known as power of attorney. Further, as the State of Georgia clarifies, there are two primary types of power of attorney recognized in Georgia: financial power of attorney and medical power of attorney.

Medical power of attorney can be granted to a designated person in an advance directive for health care. Through that document, you can authorize another person to make certain medical decisions on your behalf if you become incapacitated and cannot voice your own decisions. Financial power of attorney is generally a bit broader, authorizing a person to make various types of financial decisions on your behalf at different points in time, depending on the terms of the document. A power of attorney document is often abbreviated as a “POA.”

Terminology Used in Powers of Attorney

The “principal” is the legal term for the person making the power of attorney document and authorizing someone else to act on their behalf. The person who is authorized to act on behalf of the principal is typically known as the “agent.”

Powers of attorney are often designated as “durable,” meaning that they survive the legal incapacity of the principal.

Requirements for a Power of Attorney in Georgia 

Each state has its own laws concerning the validity of powers of attorney. In Georgia, the requirements for a power of attorney are set forth in the Georgia Power of Attorney Act.

Generally speaking, for a POA to be valid, it must be signed by the principal and by two witnesses, and it must be notarized.

Contact a Norcross Estate Planning Attorney 

A financial power of attorney is extremely important to have for various reasons, and you should also speak with your estate planning attorney about an advance directive for health care, which partially functions as a health care power of attorney document. None of us can anticipate when we may become incapacitated or otherwise unable to handle our own affairs, and by having a power of attorney document in place, a trusted agent can act on your behalf in the event of the unexpected. Do not hesitate to get in touch with a Norcross estate planning lawyer at Bowman Law Firm to find out more about creating a POA and other important estate planning documents for Georgia residents.

Sources:

georgia.gov/establish-power-attorney

casetext.com/statute/code-of-georgia/title-10-commerce-and-trade/chapter-6b-georgia-power-of-attorney-act