Georgia Power of Attorney Agent Duties and Fiduciary Responsibilities

Being named as an agent under a Georgia power of attorney isn't just an honor — it's a legal obligation with real liability. Under O.C.G.A. § 10-6B-14, an agent must act within the scope of authority granted, exercise the care a prudent person would use with their own affairs, and keep meticulous records of every transaction.

The Core Fiduciary Duties

Georgia law imposes several mandatory duties on every agent acting under a power of attorney:

Good faith. The agent must act honestly and in the principal's best interest, not their own. Every financial decision should answer one question: is this what the principal would want?

Loyalty. The agent must avoid conflicts of interest. Using the principal's funds to benefit the agent personally — lending money to themselves, buying the principal's property at below-market value, or directing the principal's investments to benefit the agent's own business — violates this duty.

Prudent management. The agent must manage the principal's assets with the same care and diligence a reasonable person would apply to their own property. Risky investments, speculative ventures, and neglecting routine financial obligations all breach this standard.

Record-keeping. The agent must maintain complete and accurate records of every transaction made under the power of attorney — deposits, withdrawals, bill payments, investment changes, property sales, and tax filings. These records must be available for inspection by the principal (if still competent), a court-appointed guardian, or a successor agent.

What the Agent Cannot Do Without Express Authorization

Georgia's statutory power of attorney form requires the principal to specifically initial certain high-impact powers under O.C.G.A. § 10-6B-40. Without explicit initialing, the agent has zero authority to:

• Create, amend, or revoke an inter vivos trust
• Make gifts from the principal's assets
• Change beneficiary designations on insurance policies, retirement accounts, or payable-on-death accounts
• Nominate a guardian for the principal
• Delegate the agent's authority to someone else

An agent who performs any of these actions without express authorization faces personal liability for the unauthorized transaction. The principal or their estate can sue to reverse the transaction and recover damages.

Personal Liability

An agent who violates their fiduciary duties can be held personally liable for:

• Actual damages — the financial loss caused by the breach
• Restitution — returning any personal benefit the agent received from the breach
• Attorney fees — if the principal or estate must sue to enforce the agent's duties

Georgia courts take fiduciary abuse seriously. An agent convicted of financial exploitation of an elderly or disabled person faces criminal penalties in addition to civil liability.

Practical Agent Responsibilities

Beyond the legal obligations, effective agents handle day-to-day tasks that keep the principal's life running:

• Pay recurring bills (mortgage, utilities, insurance premiums) on time
• File income tax returns and pay any taxes owed
• Maintain insurance coverage on the principal's property
• Respond to creditor claims and legal notices
• Communicate regularly with the principal (if still competent) or with family members about financial decisions
• Keep the principal's assets separate from the agent's own funds — commingling is a fiduciary violation

Accepting the Role

Before acting under a power of attorney, agents should sign a formal acceptance letter acknowledging their duties. While Georgia doesn't legally require this, a signed acceptance creates a clear record that the agent understood their obligations from the start.

The acceptance letter should confirm that the agent:

• Has read and understood the power of attorney document
• Understands their fiduciary duties under O.C.G.A. § 10-6B-14
• Will keep separate records of all transactions
• Will not commingle the principal's funds with their own

The Georgia Power of Attorney Kit includes an agent acceptance letter template and a transaction log that helps agents maintain the records Georgia law requires.

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