Give Someone Legal Authority Before a Crisis Makes It Too Late

A durable power of attorney is a legal document that authorizes a named person — your agent — to manage your financial affairs on your behalf. The word “durable” means the authority continues even if you become incapacitated. Under Georgia law (O.C.G.A. § 10-6B), a power of attorney is durable if it contains specific language stating that it is not affected by incapacity. Without that language, the power of attorney terminates the moment you become incapacitated — at exactly the moment your family needs the authority it provides. A durable power of attorney gives your agent authority over banking, investments, real estate, tax matters, benefit applications, and other financial transactions you specify.

A regular (non-durable) power of attorney is valid while you are mentally competent but automatically terminates if you become incapacitated. It is typically used for specific one-time transactions — authorizing someone to close a real estate deal while you are traveling, for example. A durable power of attorney remains in effect through incapacity and is the document your family needs to manage your finances during a serious illness, recovery, or long-term disability. For estate planning purposes, the durable power of attorney is the correct document. A non-durable power of attorney provides no protection for the situations estate planning is designed to address.

Your agent should be someone you trust completely and who has the practical ability to manage financial matters responsibly. Most people name a spouse first, then an adult child or close friend as successor agent if the primary agent cannot serve. The agent does not need to be a financial expert — they need to be organized, honest, and willing to ask for professional help when needed. You should talk to the person before naming them to confirm they are willing to serve, understand their responsibilities, and know where your financial documents are kept. An agent who does not know they have been named cannot act effectively in an emergency.

Yes — but the power of attorney must be drafted specifically to include business authority. A standard financial power of attorney covers personal banking, investments, and real estate but may not include authority over LLC operations, business bank accounts, contract signing, or business tax filings. For business owners, the power of attorney should explicitly authorize your agent to act as a member or manager of your LLC, access business accounts, sign contracts on behalf of the business, and make day-to-day operational decisions. A generic form that does not include this language will leave a gap — your agent can manage your personal finances but cannot keep your business running while you recover.

A durable power of attorney does not expire on a set date — it remains in effect until you revoke it while competent, or until you die, at which point it terminates automatically. Some people create powers of attorney that “spring” into effect only upon incapacity — called a springing power of attorney — which requires a determination of incapacity before the agent can act. We generally recommend an immediately effective durable power of attorney, which avoids the delay of proving incapacity when your family needs to act quickly. You can revoke the document at any time while you are competent to do so. The agent’s authority over your estate ends the moment you die and the executor of your estate takes over.