Many family members are reluctant to be named on a power of attorney because they think they will be held liable for their loved ones debt. This is not true. A power of attorney is a document by which a person (called “the principal”) nominates another (“the agent”) to act on their behalf. A power of attorney is a legal document that must comply with specifications provided by Georgia law. accepting the role as agent under a power of attorney does not obligate the agent on any of the debts of the principal. The agent is only liable for the debts of the principal if they sign a guarantee of such debts. The power of attorney is a crucial part of elder law planning, as it provides the right for another to plan your long term care. This power is important, as qualifying for government programs, including Medicaid and VA pension often require the moving of assets.