## Facts

- Julia Adams LeCraw executed a written power of attorney naming her three sons as attorneys-in-fact.
- The instrument expressly authorized bank deposits and withdrawals and generally authorized the sons to do any act she could do in person, stating it was intended as a “general power of attorney.”
- The document did not expressly grant authority to make gifts.
- Before executing the power of attorney, Mrs. LeCraw had an established pattern of making inter vivos monetary gifts to family members in varying amounts.
- Over the 13 months between execution of the power of attorney and her death, the sons caused substantial gifts to be made from her accounts to children, spouses, grandchildren, and close friends.
- The trial court found the gifts continued her prior pattern and were made to reduce estate transfer tax exposure.
- The trial court found Mrs. LeCraw was informed of the gifts as checks were prepared, voiced no objection, accepted thanks from recipients, and remained competent and actively involved in her financial affairs.
- After her death, an IRS audit challenged whether the gifts were authorized, creating uncertainty for estate administration; the executors sought a declaratory judgment on the scope of the power of attorney.

## Issues

1. Whether a broadly worded general power of attorney, without an express gifting clause, authorized attorneys-in-fact to make inter vivos gifts from the principal’s funds, including gifts to themselves and other relatives and friends, when consistent with the principal’s established gifting practice and objectives.

## Decision

- The Supreme Court of Georgia affirmed the trial court.
- The Court held that, under the instrument’s broad language and the trial court’s factual findings, the power of attorney authorized the gifts at issue.
- The gifts were treated as valid acts of the attorneys-in-fact.

## Legal Principles

- A formal power of attorney is strictly construed; general terms are confined to the instrument’s purpose and do not extend authority to “new and distinct powers” different from those expressly delegated.
- Even under strict construction, an agent’s authority includes the necessary and usual means to effectually execute the powers granted.
- A broadly drafted “general” power of attorney may implicitly authorize gift-making when the gifts align with the principal’s established course of conduct, objectives (including tax planning), and contemporaneous knowledge and acquiescence.
- Trial court findings on the principal’s intent, competence, and course of dealing are given substantial deference on appeal absent clear error.

## Conclusion

The court upheld gifts made by attorneys-in-fact under a broadly worded general power of attorney, concluding that the instrument’s expansive grant of authority, together with findings that the gifts matched the principal’s longstanding practices and were made with her knowledge while competent, brought gift-making within the agents’ implied authority.


LeCraw v. LeCraw, 261 Ga. 98, 401 S.E.2d 697 (Ga. 1991)