Choosing the Right Powers of Attorney
Decide which powers of attorney fit your situation. Depending on your situation, you may want to give your agent different types of authority to manage your affairs. Some powers relate to the management of your finances, while others are for the management of your healthcare. Additionally, you can arrange it so that the agent gains this authority immediately, or in the future once you become incapacitated by illness, injury, or age. The Alabama Uniform Power of Attorney Act governs the creation of power of attorney documents.
Consider a special power of attorney. A special power of attorney grants very limited authority to the agent. For example, you can specify that the document authorizes your agent to handle a specific business transaction, and that the power expires after 3 days.
Consider a durable power of attorney. A durable power of attorney lasts after you become unable to make decisions for yourself. It can take effect immediately or only after you become incapacitated. There are two types of durable power of attorney: financial and health care. You can elect to give both types of powers to your agent. A health care power of attorney authorizes your agent to provide or withhold medical care, including the withdrawal of life-sustaining treatment. You can also specify your wishes for end-of-life care in the document. A financial power of attorney authorizes your agent to manage your finances, write checks, and sell property on your behalf.
Picking an Agent
Choose an adult. The person to whom you give authority to manage your affairs is known as your "agent" or "attorney in fact." The age of majority in Alabama is 19, so make sure that your designated agent is at least 19 years old.
Pick someone trustworthy. The agent you choose needs to be someone you trust completely. This person will have complete authority over your healthcare and/or finances. For this reason, your agent should be responsible, disciplined, and willing to always put your wishes and best interests first. Sometimes, agents with good intentions fail at their responsibilities because of external pressures. Don't choose an agent who has a history of drug abuse or financial problems. The temptations to misuse your assets could become a problem for your agent. Many people choose a parent, spouse, or other family member as their agent.
Discuss your wishes with your agent. Explain to your agent why you feel you need a power of attorney and why you want him or her to serve as your agent. Then let your agent know how you would like your financial and healthcare matters handled in the event that you can no longer make decisions on your own. Make sure that your agent is comfortable with carrying out your wishes. For example, if you may desire that your doctors withdraw life-sustaining treatment in the event that you enter a persistent vegetative state. Your agent may feel that it would be too emotionally difficult for him or her to make that decision. If your agent will be responsible for making business decisions on your behalf, you may need to educate your agent on the workings of the business and your plans for the future of the business.
Preparing Your Paperwork
Consider hiring an attorney. A power of attorney is an important document, and the safest way to ensure that it is prepared correctly is to hire an attorney. You can find attorney referral services through the Alabama State Bar at https://www.alabar.org/for-the-public/need-legal-help/. You can also look for reduced-cost legal services through Alabama law schools, or just search online or in the phone book for attorneys who practice estate planning.
Look at example forms. You can find sample power of attorney forms specific to Alabama by searching online. You can also find blank forms at office supply stores. However, these blank forms may not comply with state law, so you should use caution when relying on pre-printed forms.
Identify yourself and your agent. Make sure that your power of attorney paperwork clearly identifies you and your agent with your names and addresses. This should avoid any confusion as to who the principal and agent are. You can also identify a successor agent, who can take over in the event that your agent is no longer able to act as your attorney in fact.
Specify the duration of the agent's powers. Specify when you want the agent's authority to start and when you want it to end. By default in Alabama, a power of attorney takes effect when it is signed and is durable (continuing after your incapacity) unless the document specifies otherwise. To create a "springing" power of attorney, which takes effect when you become incapacitated, use the following language: "This power of attorney shall become effective upon the disability, incompetency, or incapacity of the principal." To create a power of attorney that ends upon a certain date or event, specify the date or event in the document.
Spell out the powers your agent shall have. You must specify all of the financial and healthcare powers you want your agent to have. You can make a very limited set of powers, such as paying your bills and dealing with your bank. Alternatively, you can specify that your agent can have broad powers, such as the authority to make all financial and healthcare decisions, including the withholding or withdrawing of life-sustaining medical treatment.
Execute your power of attorney form. You must sign your power of attorney document to make it effective. If you are unable to sign the form yourself, you can have someone else sign it for you, as long as that person signs it in your presence and at your direction. If you have your document notarized, it will be easier to prove in court that your signature is genuine. Visit http://www.notarypublicdirectory.com/ to find a notary online. Most banks also have a notary public on staff and do not charge a fee for notary services if you are a bank customer. If you are not a bank customer, you can usually use the bank's notary service for a small fee.
Let your agent know you have executed the paperwork. You should inform your agent once the power of attorney takes effect. This puts your agent on notice that he or she now has the authority and obligation to act on your behalf, or that that power and responsibility will take effect once you become incapacitated. This will ensure that your agent is prepared and not taken by surprise when he or she is called upon to make decisions as your agent.
Keeping or Revoking Your Power of Attorney
Safeguard the original. Keep your original document with your ink signature in a safe place. You can keep the original or ask your attorney to keep it on file. Take care that your original will be safe in the event of a fire or flood.
Distribute copies. You should keep several copies of your power of attorney document. Your attorney should have copies or the original, and your agent and successor agent (if you have one) should also have copies. In the event of an emergency, your agent may need to show the document to a doctor or bank in order to prove that he or she is authorized to act on your behalf. You can also arrange for your usual doctor, hospital, bank, or financial advisor to keep copies on file as appropriate. Make sure that your spouse, family, or other trusted people know where to find the original document in case of an emergency.
Revoke your power of attorney if need be. If for any reason you ever want to revoke your power of attorney, you can do so. Simply give written notice of your intent to revoke the power of attorney to your agent, bank, or doctor, as appropriate. Make sure you sign and date the revocation. You can also revoke your power of attorney by burning, tearing, defacing, or destroying the original. You can orally revoke your power of attorney as long as you have a witness at least 19 years old who signs and dates a written confirmation of your decision to revoke the document. A non-durable power of attorney ends when you become incapacitated. A durable power of attorney ends upon your death, or the death of your agent, if there is no successor agent. If your agent is your spouse, the document will be revoked if either of you file for separation, annulment, or divorce, unless the document states otherwise.
Comments
0 comment