Is My Power of Attorney Document Enough?

What is a Power of Attorney?

Thinking about a loved one losing the ability to make decisions can be painful. However, research shows that there is a high probability that all of us will experience a phase of life in which we are completely dependent on another person to communicate on our behalf. For example, a loved one may already be in a nursing home and need a spouse, son, or daughter to handle business at the bank or accountant’s office.

Having a well-drafted Power of Attorney can make the decision-making process much easier for a loved one when the time comes. A Power of Attorney is a document provided for by Georgia law that allows you to appoint someone to be your “agent.” You can then grant that “agent” various types of authority to communicate decisions on your behalf, such as transferring funds at the bank, hiring an accountant, selling real estate, and creating certain types of trusts that may be necessary for nursing home care or government assistance.

Is a Power of Attorney enough for me to handle my loved one’s accounts before and after they pass away?

A Power of Attorney has one significant limitation: the Power of Attorney is only valid while the individual is still living. As soon as a person passes away, any power of attorney they drafted is instantly invalidated. Further, a Power of Attorney is not accepted by certain government entities and departments. Therefore, it is important that you consult with an experienced attorney when planning for end of life circumstances or incapacity.

There are other crucial tools available to handle both personal property and real estate after you pass away, including a Last Will and Testament and various types of Trusts. An estate planning attorney can help navigate the complexities of personal property, investment accounts, real estate, and Medicaid—all of these considerations can factor into the tools you should use.

I already have an Advance Directive—do I need a Power of Attorney?

While the Advance Directive is a very important document, it only covers medical decisions. The Power of Attorney is necessary for appointing an agent to handle financial or property related matters.

Can I draft my own Power of Attorney?

The State of Georgia provides very specific requirements for Power of Attorney documents, and any variation from those requirements may invalidate the document. Further, there are significant choices a Power of Attorney requires that you make: Do you want your agent to have authority to make gifts in your name? Do you want your agent to have authority to change your beneficiary designations on retirement accounts or life insurance policies? What about the authority to create qualified income trusts, or apply for Medicaid?

An experienced estate planning attorney can help you think through each of these important choices and find the right plan for you and your family.

Here at Echols Law Group, we have extensive experience helping families navigate Power of Attorney documents as part of a thorough estate plan. If you would like to learn more, we would love for you to attend one of our free estate planning workshops. To register, visit www.echolslawgroup.com/workshops. We look forward to helping you find peace of mind.