A power of attorney is a legal tool that allows you, the principal, to name someone as your agent to handle financial matters. In Georgia, agents are not automatically entitled to payment unless the document clearly states it.
A power of attorney can be durable, meaning it remains valid even if the principal becomes incapacitated. Even then, the law does not provide compensation for agents unless the document includes it.
Agents may only be reimbursed for reasonable out-of-pocket expenses. For example, if your power of attorney allows your agent to file taxes on your behalf and the agent hires an accountant at a fair rate, that expense can be reimbursed.
Changes to Georgia Law
Georgia law changed in 2017 to strengthen protections against abuse. Before that, principals could choose between no compensation, reasonable compensation, or a specific payment amount. The revised law defaults to no compensation, reflecting that most agents are family members or trusted loved ones who act without expectation of payment.
Choosing Whether to Compensate an Agent
You can still decide to compensate your agent. If you want to provide for payment, it must be spelled out in your power of attorney document. Regardless, the agent should maintain detailed records of all receipts, disbursements, and transactions to ensure transparency.
Talk to an Atlanta Estate Planning Attorney
Deciding whether to compensate a power of attorney agent is a crucial aspect of estate planning. At Thrift McLemore, our Atlanta estate planning attorneys guide clients through creating and updating powers of attorney tailored to their specific needs.
If you or a loved one has questions about power of attorney in Georgia, contact us today at 678-882-0830. We are here to walk you through your options and ensure your wishes are carried out clearly and legally.
