What Does It Mean to Establish a Power of Attorney?

Jordan Meggs • Dec 05, 2022

Power of Attorney is incredibly helpful, but should only be given to someone you trust. Let's walk through the importance of this role.

Spouse establishing power of attorney with lawyer

If you want to allow someone else to perform certain tasks and make major decisions—such as selling a house, filing taxes, and cashing checks in your name—you will need a power of attorney. These documents, which are sometimes referred to as POAs, give certain powers to trusted individuals known as agents or attorneys-in-fact. In this guide, we’ll define power of attorney and explain the importance of these documents.


The Availability of POAs in Alabama


There are several options for those needing powers of attorney. Most Alabama estate plans include two POA types: financial and medical powers of attorney. Both types are durable, which means they remain in effect even when a person is incapacitated. Most people should have these documents, as they make it easier to prepare for unexpected events.


Medical Powers of Attorney


In the state of Alabama, a medical power of attorney, which is sometimes called a living will or an advance healthcare directive, gives a chosen entity or individual the ability to make health decisions on a person’s behalf when they can no longer do so. With a medical POA, your agent will be able to request or refuse certain medical procedures and treatments on your behalf.


Alabama’s Requirements for Financial Powers of Attorney


Mental Capacity


The state of Alabama requires those making powers of attorney to be able to comprehend their actions and decisions. If you are helping someone else make a POA, ensure that they understand which rights they’re giving up.


Notarization


Although Alabama doesn’t require the notarization of POAs, it’s highly recommended. Under state law, when a person signs a power of attorney in a notary’s presence, the document is assumed to be genuine and is harder to challenge in court. Additionally, most financial institutions require POAs to be notarized.


Making a Financial POA in Alabama


Below, we’ll outline the steps required to create a financial power of attorney in Alabama.


Hire a Lawyer or Fill Out a Form


Alabama offers statutory forms that can be filled out to create POAs. Alternatively, there’s software that guides you through the process step by step. The best way to create POAs, however, is to hire a local estate planning attorney.

No matter which method you use, the process of creating a POA will include choosing the powers the agent will receive. Some people give their agents general authority while others give them power over:

  • Real estate holdings
  • Stocks
  • Bonds
  • Financial holdings
  • Taxes
  • Retirement planning


In Alabama’s fillable POA forms, the state allows users to provide special instructions. Financial powers of attorney are durable, which means they remain in effect after a person’s incapacitation unless that person states otherwise.


Sign the Document in Front of a Notary


As mentioned previously, the state doesn’t require the notarization of powers of attorney. Getting these documents notarized, however, will make them more difficult to contest.


Save the Originals


Once the POA is complete, store original copies in a safe and easily accessible place. If you are in an accident, become ill, or are otherwise incapacitated, your agent will need these documents to do things on your behalf.


Give Your Agent a Copy


Along with saving the original documents, it’s best to give a copy to your attorney-in-fact so they can familiarize themselves with the document’s contents and act when needed.


File the Document With the County Land Records Office


If your agent can conduct real estate transactions, it’s a good idea to file the document with the county’s land records office. This allows office staff to recognize the agent’s authority if they need to mortgage, transfer, or sell real property for you.


Give the Bank a Copy


Many people also give copies of their financial powers of attorney to banks and other financial institutions. This step may make the process easier for an agent if they ever need to enforce the document, as banks are sometimes selective about POA acceptance.


Who Can Be an Attorney-In-Fact?


In the state of Alabama, you can choose almost any mentally competent adult to be an agent. There are a few exceptions; for instance, a resident of an assisted living facility cannot choose an employee as an agent unless they are related to that person. When selecting a POA agent, consider their financial status, location, trustworthiness, and other factors.


The state allows planners to choose co-agents who can act simultaneously, but most people choose just one agent to reduce the risk of conflict. Choosing a successor, or an alternate who can step in if the first person is unavailable, is a wise decision.


When Do Financial Powers of Attorney Take Effect?


In Alabama, a financial POA takes effect as soon as it’s signed, unless the creator says otherwise. It is possible to create conditions that must be met before a POA takes effect—such as officially being declared incapacitated—but these powers of attorney are rarely used.


When Does an Alabama POA End?


A power of attorney, whether it’s medical or financial, ends when the creator passes away. POAs also end if:

  • They are revoked. If a person is mentally competent, they can revoke a POA anytime they choose.
  • Agents are not available. Planners can reduce this risk by choosing a successor as mentioned above.
  • The document is invalidated. It’s quite rare, but Alabama’s courts may invalidate a document if it was signed under duress, or the creator was mentally incompetent at the time of the signing.


Furthermore, Alabama law states that, if a spouse is chosen as an agent, the designation ends when either party files for annulment or divorce. While that person’s authority ends, the POA remains intact. That’s why it’s so important to choose a successor when creating a power of attorney. 


Get Legal Advice


While powers of attorney are not complicated documents, it still makes sense to seek legal advice when creating them. By getting a lawyer’s help when making a POA, you’ll ensure its legitimacy and protect yourself from the unexpected. Learn more about Alabama POAs on the firm’s website or call today to schedule a consultation with an attorney.


By Nik Fondren 09 May, 2024
Staying Secure: Navigating Privacy and Reputation Management During Divorce
By Nik Fondren 09 May, 2024
Exploring Paths to Parenthood: A Guide to the Various Adoption Processes
By Nik Fondren 08 May, 2024
Maximizing Impact: Strategies for Integrating Philanthropy into Your Estate Plans
By Nik Fondren 10 Apr, 2024
Methods to Prepare for Life's Biggest Decisions
By Nik Fondren 10 Apr, 2024
Protecting Your Assets and Your Loved Ones
By Nik Fondren 10 Apr, 2024
Nobody wants to be stopped by the police, even when they have done nothing wrong. If you are in this situation, knowing what to do can help reduce the stress associated with this encounter. Stay calm and never act hostile toward the officers. Know your rights and what to do so the situation doesn’t escalate. Know Your Rights Most people know they have the right to remain silent during an encounter with law enforcement. You may be required to provide your name, depending on state laws where the encounter occurs, but that is it. Firmly state you wish to remain silent and stop speaking. They cannot compel you to do so once you make this statement. Furthermore, if police stop you while driving, the right to remain silent applies to any passengers in the vehicle. Passengers might also ask if they can leave during this traffic stop. If officers say they may, they should do so quietly. The Fourth Amendment of the U.S. Constitution prohibits unreasonable searches and seizures. Law enforcement officers cannot search your person, home, or car without your permission unless they have a warrant. Have them produce this warrant so you can review it. However, officers may pat you down to check for weapons. They are permitted to do so for their safety. If the officers ask to search, say that you do not consent. They may conduct this search anyway, depending on the circumstances of the encounter. This verbal statement that you do not consent to the search may become important if authorities file charges against you. When officers enter the home, they may not search without your permission or a search warrant. If they arrest you at home or work, they have the right to search the immediate area or anywhere they can see criminal activity. Pay attention to what they do throughout this search to confirm they conduct it properly and don’t overstep their bounds. Every person has a right to a criminal defense attorney in Cullman, AL . Request a government-appointed attorney if you cannot afford to hire a lawyer. Let the officers know you would like to make a phone call. They cannot listen to any calls between you and an attorney, but they have the right to listen to all other calls you make. The officers can tell you how to request a government-appointed attorney if one is needed. Handling Police Encounters Safely During any encounter with the police, stay calm. Never volunteer information, even if it seems harmless. Use your right to remain silent or only answer direct questions, never offering additional information when doing so. Never argue with officers or bad-mouth them, as doing so could change the whole tone of the interaction. If officers attempt to pull you over while you are driving, continue operating the vehicle until you reach a place where it is safe to stop. Never stop in the middle of the road or impede traffic, as doing so puts you and the officer at risk of harm. When the vehicle is stopped, remain in the car, turn on the interior light, and put your hands where the officer may see them. Ask passengers in the vehicle to show their hands as well. Provide any documents requested by the officer during this traffic stop. They may ask to see your driver’s license, registration, and proof of insurance. Before collecting these documents, let the officer know where they are located. Reaching into a glove box or under the seat may appear to be a threatening move to the officer. Letting them know that is where the documents are and that you aren’t reaching for a weapon can help to reduce tension. Never run from a police officer. Also, do not touch the officers, as any touch could be construed as threatening in a volatile situation. If officers arrest you, go willingly. Don’t resist or become combative. Doing so could make a bad situation worse. Common Misconceptions People often believe they must consent to a search or take a breathalyzer test. They feel they are required to answer questions when asked by law enforcement. A person doesn’t have to say or do anything when stopped by the police. Failing to answer questions or consent to a search may result in a trip to the police station. Let this happen and contact an attorney with your one phone call. While the trip to the station is an inconvenience, it will probably be a short-lived one once your attorney arrives. They will work to get the matter resolved and have you released quickly. Protecting the Rights of Others You may find yourself in a situation where law enforcement is handling a matter involving another individual and you are merely a bystander. Help each other out by observing this interaction and recording it if possible. Try to capture officers’ badges and patrol car numbers with the video to show who was involved beyond what can be seen in the video. Also, ask witnesses to state their names and contact information on the video. They may need to share what they saw with authorities. If the situation is mishandled in any way, contact the internal affairs department of the law enforcement agency, so they may handle the matter. In addition, share the video with the attorneys of all parties involved in the interaction if problems arise. When law enforcement officers know they will be held accountable for their actions, fewer problems typically arise during a stop or other interaction. Law enforcement officers cannot stop bystanders from recording their interactions with individuals. However, the person taking the video must not interfere with police activity in any way. If you wish to record an interaction, do so from a safe distance. Don’t hide the fact you are recording, as police officers know they do not have any expectations of privacy while on the job. However, you may need to ask those interacting with the officers if they wish to be recorded. State laws vary on whether permission is needed so it is always better to ask. A person may come into contact with law enforcement multiple times throughout their life. All parties are responsible for what happens in each interaction. Know your rights and how to handle these interactions safely and legally. Everyone must work together to keep our country safe while ensuring our rights remain protected. This is not a job for one person alone.
By Nik Fondren 07 Feb, 2024
Selecting the Right Executor: Essential Tips for Your Will
By Nik Fondren 07 Feb, 2024
Ensure your Journey Through Divorce is as Smooth as Possible
By Nik Fondren 07 Feb, 2024
Steps to Take to Ensure your Family's Security
By Nik Fondren 07 Feb, 2024
Finding the Right Path to Take When Your Marriage Comes to a Close
More Posts
Share by: