Alabama Power of Attorney Form Template – Forbes Advisor

A power of attorney is a legal document granting one person the right to act on behalf of another person. The person granting this authority is the principal, and the person given this power is the agent or “attorney-in-fact.”

The POA can be limited to a specific area of the principal’s life, for example, a medical power of attorney or a financial power of attorney. It can also be limited in duration or limited based on the state of the principal. If the principal becomes incapacitated, only a “durable” power of attorney will allow the agent to continue to act on the principal’s behalf.

Anyone who wishes to allow another person to make certain financial, healthcare or other decisions on their behalf should strongly consider a power of attorney. They can be an especially useful estate planning tool to protect your wealth if you can no longer manage your finances.

You must satisfy the following requirements to create Alabama power of attorney:

• The principal must be competent, meaning they can make their own decisions.
• The power of attorney must be in writing.
• The document must contain:
  • The name of the attorney-in-fact
  • The responsibilities the principal gives the attorney-in-fact
  • The principal’s signature, which must be notarized
  • The date of execution

While not required, you may wish to give copies of the final, signed document to your attorney-in-fact, financial institution and key family members. Store the original in a safe place. Revisit your power of attorney regularly and update it as circumstances change.

Principals can choose from several types of powers of attorney. But, generally speaking, there are two different categories of powers of attorney:

• those based on mental soundness and
• those based on what they do and don’t cover.

Capacity-Based Powers of Attorney

Protecting assets if someone becomes incapacitated is one of the main reasons for creating powers of attorney. That’s why many POAs are designed based on the capacity of the principal.

• Durable Power of Attorney. Here, the principal intends for the authority granted to the agent to continue even after they become incapacitated. Durability is presumed in Alabama, which means a POA will automatically remain effective if the principal becomes incapacitated or disabled.
• General Power of Attorney. A general (or “non-durable”) power of attorney can only be created when the principal is competent. If the principal becomes incapacitated, the POA is no longer effective.
• Springing Power of Attorney. Here, the POA only becomes effective if the principal becomes disabled or incapacitated. It’s also sometimes called a “standby” power of attorney.

Scope-Based Powers of Attorney

These powers of attorney are confined to a specific task or situation. They can be as narrow as a POA to sell a specific piece of property or asset. Or, they can be as broad as granting the agent the power to act in all financial matters for the principal.

The medical power of attorney is perhaps the best-known scope-based power of attorney. This document grants the agent the power to make medical decisions on behalf of the principal. Typically, this is when principals cannot make those decisions themselves.

Nearly anyone can serve as an attorney-in-fact. They do not need to be an actual attorney. They do, however, need to be a legal adult and not otherwise incapacitated.

Ensure that the attorney-in-fact is someone you trust. Note that principals may also select backup attorneys-in-fact, in case the primary is unreachable.

Signing requirements for a power of attorney differ across states. When you consider the broad powers a POA can grant, the strict requirements make sense.

In Alabama, a POA must be notarized.

You don’t need a lawyer to create a power of attorney in Alabama. However, you should seek the help of a trusted attorney to finalize your document to ensure it’s legally sound.