What Is an Alabama Durable Power of Attorney?

Have you ever thought about what would happen to you, your estate, your business, children, assets, or even your pets if you were to lose the ability to speak or became cognitively impaired?

 While these are not things we want to think about, they can still happen—which is why it’s essential to plan for them.

 One way to ensure everything is taken care of should you become mentally incapacitated is by appointing a durable power of attorney.

 In this article, we’re going to discuss what it means to have a durable power of attorney so that you can make the necessary arrangements when the time comes.

 Read on to learn more. 

What Exactly Is an Alabama Durable Power of Attorney?

When we talk about an Alabama power of attorney (POA), in general, we’re talking about the legal document that permits a specific person to take control and have financial power over another human being should illness, disability, or another situation arises.

 Under Alabama law, the person who appoints the POA is the principal. In contrast, the designated person is known as the agent or attorney-in-fact. Depending on the principal’s discretion, the agent in question can be given broad or limited authority in terms of making legal decisions regarding the principal’s medical care, property, finances, business, etc.

 The primary difference between a power of attorney and a durable power of attorney is that a durable power of attorney yields a particular kind of authority even after the principal becomes mentally incapacitated.

 In other words, a general power of attorney has the authority to handle the principal’s legal, financial, and medical matters unless the principal becomes mentally incapacitated.

 Therefore, assigning a trusted agent to be your durable power of attorney is a means of planning for the future. Especially when you may face a significant cognitive decline and cannot make any competent authoritative legal decisions on your own regarding your affairs.

What Can a Durable Power of Attorney Do and Not Do?

Generally speaking, an Alabama power of attorney is the person that will take on the responsibility for all of your decision-making should you become mentally incapacitated.

 A durable power of attorney’s duties typically includes the following actions:

 ●      Buying and selling of property

●      The financial management of your bills, bank accounts, investments, safety deposit boxes, charitable donations, etc.

 ●      Executing leases and sign contracts

●      Spending, investing, and borrowing money

●      Filing tax returns on your behalf

●      Applying for government benefits on your behalf

●      Signing legal documents on your behalf

●      Communicating with doctors, overseeing medical care, and paying medical bills

●      Caring for and making decisions about pets

●      Potentially making hiring and firing decisions for staff

●      Modifying or purchase insurance policies

 Because of all the responsibilities and authority that a durable power of attorney may take on, it’s important to assign one while you’re still deemed mentally competent.

 Also, as mentioned above, your durable power of attorney’s responsibility and authority can be as broad or as limited as you choose. Therefore, it’s up to you to designate what your durable power of attorney is not permitted to do.

Additionally, when we talk about the durable power of attorney and healthcare, it’s essential to understand that there is a difference between these documents. Unless the agent has also been assigned as the durable healthcare power of attorney, their authority is minimal over healthcare decisions.

What Happens if I Don’t Have a Durable Power of Attorney?

Suppose you or someone you love suddenly becomes mentally incapacitated without a durable power of attorney. In that case, you’ll likely have to seek guardianship over them. Or a loved one would have to seek guardianship over you.

To obtain a guardianship, you would have to go to court, file the proper paperwork, and publicly take care of the mentally incapacitated person.

 While you take the requisite steps to obtain guardianship, the court system will appoint a temporary guardian. That person, who is a stranger, will care for your loved one’s affairs.

 Suppose the final decision of the court isn’t in your favor to take over as a guardian. In that case, the judge will appoint a third party, such as an attorney or a social worker, to become your loved one’s new guardian.

How to Choose the Right Person as Your Alabama Power of Attorney

It’s essential to assign a durable power of attorney while you are still mentally competent. It’s also imperative to assign the right person. Appoint someone you can trust to carry out your affairs and take care of your business and belongings exactly how you’d want them to.

Unfortunately, power of attorney abuse of all kinds happens pretty often. While it’s virtually impossible to monitor your durable power of attorney if you’re mentally incapacitated, you can take some precautions when writing out your agreement.

If you would like to speak with a Huntsville attorney about appointing an agent as your durable power of attorney, contact us today. Our law firm also takes care of wills, trusts, and provides legal advice on estate planning in Huntsville, Alabama. We would love to help you.