June 27, 2017 | News
A new law governing financial powers of attorney in Georgia takes effect on July 1, 2017. The Georgia legislature adopted these changes primarily to combat elder abuse caused by agents misusing financial powers of attorney and to force financial institutions and other third parties to accept valid financial powers of attorney.
The new law will apply to financial powers of attorney executed on or after July 1, 2017. Financial powers of attorney that comply with the new law will have benefits that are either absent or not well defined under current law. These benefits include:
- An agent under a new power of attorney will be held to high standards of conduct described in the law
- An agent who misuses a power of attorney will be liable for damages
- Various interested parties can ask a court to review a questionable power of attorney
- Banks and other third parties can request certain information from agents and rely on that information
- Agents who provide a third party with all information required by the new law can force the third party to accept the power of attorney
- Third parties who do not accept valid powers of attorney can be held liable for damages
While financial powers of attorney executed prior to July 1, 2017 will continue to be valid, we recommend that you review your current document and consider updating it to take advantage of the new benefits outlined above. Doing so may save your agent time and expense if it were to become necessary or advisable to use your financial power of attorney.