What Does It Mean to Establish a Power of Attorney?

Jordan Meggs • December 5, 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.


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Driver’s License Suspensions  The state may suspend a driver’s license for several reasons. A driver with several traffic tickets might find the state takes away their ability to operate a motor vehicle, as it is responsible for keeping other drivers on the road safe. When a person fails to appear in court after being ordered to do so, the state may suspend their driver’s license. It might also take a person’s license if they own back child support to encourage the delinquent parent to catch up on their financial obligation. Driving under the influence will also lead to the suspension of a person’s license. Driving Under the Influence A person driving under the influence of drugs or alcohol will have their license suspended, and that is only one of several penalties they face. When charged with this crime, a person immediately loses driving privileges. Law enforcement has either tested this individual and found their blood alcohol content was at or above the state legal limit or the driver refused chemical testing. The driver must turn their license over when they are charged. They may have the license returned until they appear before a judge, and the judge may suspend the license again for a longer period. Implied Consent Many drivers believe they can refuse chemical and field sobriety tests to avoid losing their licenses. That is not the case. When they receive their driver's license, they agree to undergo chemical testing for drug or alcohol use. This testing may include blood tests, urine analyses, breath tests, or a Breathalyzer. When a driver refuses one or more of these tests, the law enforcement officer may arrest them and require them to undergo testing. Refusing these tests subjects the driver to harsher penalties. The refusal may lead to the driver losing their license for 90 days or being required to have an ignition interlock device installed on their vehicle. Prosecutors may also bring up this refusal in court as evidence of the driver’s impairment. Restoring Driving Privileges Once a License Has Been Suspended Drivers must know how to have their license restored once it has been suspended. They must first confirm that the license has been suspended rather than revoked. When the license has been revoked, the driver must go through all steps required to restore their driving privileges just as they would if the license were suspended. However, they must also retake their driving tests before getting their license back. Administrative license suspensions often come shortly after a DUI arrest. They differ from a license suspension related to criminal charges, such as a DUI conviction. To restore a license following an administrative suspension, the driver can request a hearing where they contest the suspension. During this hearing, the law enforcement officer who handled the arrest will share evidence of why they stopped the driver and what they found during the traffic stop. The driver then mounts a defense, and the hearing officer rules. If the hearing officer upholds the suspension, the driver must abide by all court orders and pay all fines and fees before the suspension period ends. The fines, fees, and court orders vary by the suspension type. DUI Suspensions Before restoring a person’s license when they have been convicted of a DUI, Alabama requires the driver to complete a substance abuse treatment program. The state currently has over 25 court referral programs for drivers, and each program has court referral officers and juvenile instructors. 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Level Three treatment programs include a mental health evaluation. The student is also referred for treatment in an approved substance abuse program, which may be either inpatient or intensive outpatient. Anyone 21 and under charged with DUI is considered an at-risk youth. They must take part in a 12-hour presentation. The presentation covers topics such as coping skills and conflict resolution. In addition, the youth will learn more about alcohol and drug abuse laws. Restoring the License Taking part in a treatment program is one step in restoring the license. The driver must also pay any fines associated with the suspension and obtain SR-22 insurance. The state may issue a restricted or hardship license for those needing a license to continue working or attending school. This license allows the individual to drive under certain conditions, such as when they have medical or treatment appointments to attend. Before issuing this restricted license, the court will require the driver to install an ignition interlock device on their vehicle. How Long Will the Suspension Last? Administrative suspensions may last as little as 90 days or up to three years. First-time offenders will have their licenses suspended for 90 days, second-time offenders will lose their licenses for one year, and third-time offenders lose them for three years, according to FindLaw.com. If they obtain a restricted license, it may be used for essential travel only in Alabama. Fines and Penalties Assessed with Suspended Licenses Any driver whose license has been suspended must pay a $275 reinstatement fee. There is also an additional $25 drug-related fee and a $150 interlock issuance fee. Additional fees may also be charged, and the driver might need to pay an attorney to fight the suspension. Fees are typically lower when the suspension is from something other than driving under the influence. Contact a criminal defense attorney for more information on restoring a suspended license. No two cases are identical, and the attorney can guide the person through this restoration. With their help, a person can navigate this process and get their license back at the first opportunity.
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Joint or 50/50 Custody Arrangements The most common custody arrangement is shared custody, where both parents can make legal decisions for the child and the child splits their time between both households. The amount of time the child spends at each house will vary by the specifics of the case. In some cases, one parent can override the other when it comes to legal decisions. What are the disadvantages of 50/50 custody? Shared custody works in many cases, but it can have negative impacts on the child, especially at the beginning when they are getting used to living in two different households. There also can be issues with differing rules based on which house the child is at, issues with exchanges, and more. Sole Custody Arrangements Sole custody arrangements are where one parent has physical and legal custody of the child. The other parent may have supervised or unsupervised visitation, but the child doesn’t live with them. The parent with legal custody is able to make all decisions for the child, such as what school they attend, what religion they are brought up with, and more. What are the disadvantages of sole custody? Disadvantages can include a strained relationship with the other parent, the child having issues with not being able to see the other parent as much, issues with exchanges during visitation, and more. It is important for parents to understand and mitigate these disadvantages as much as possible. What Do the Courts Consider? While shared custody is the most common type, it does need to be considered on a case-to-case basis, as it is not a good fit for all situations. Courts will consider a number of things when determining custody, including the following. The needs of the child The home environment for both parents Stability of both parents Safety of the child Ability to provide for the needs of the child Relationship between the child and each parent The disruption caused by changes after the divorce The child’s preferences if they are old enough Any potential issues that can arise Modifications for Custody Custody is legally binding once the courts have approved or set it, but that doesn’t mean that changes are impossible. It is possible, and often necessary, to change the custody arrangement after some time has passed. There are numerous reasons why custody arrangements can be changed, including the following. Child’s Needs Change The child may need to live more with another parent to get into a special school or may be better living with the other parent due to behavioral issues that appear after the divorce. Parenting Ability Changes One parent may go through life changes or medical issues and not be able to parent the way they did previously. This could mean it would be better for the child to live with the other parent more. Changes in a Parent’s Living Situation If a parent moves out of state, it may be better for the child to stay with the parent who isn’t moving so they can still live in the same place, attend the same school, and be close to their friends. Tips for Co-Parenting After the Divorce Co-parenting can be hard, especially in the beginning, but it can become easier over time. The main goal should be to focus on the child and their needs, not on the end of the relationship or any anger over the situation. Focus on the Child, Not the Feelings While there may be a lot of feelings toward the divorce and new living arrangements, it’s best not to discuss these with the child or use them as a way to vent. Instead, focus on the child and talk to someone else, whether that’s a friend, family member, or therapist, about the divorce. Work on Improving Communication Take the time to learn more about improving communication in a divorce. This may mean using written communication methods like text to avoid forgetting anything or a shared calendar to help everyone stay on the same page. Learn How to Make Decisions Together The parents must learn how to make decisions for the child together unless one parent has full legal custody. Even with full legal custody, though, it is a good idea to take into account the other parent’s desires for major decisions. Make Transitions Easier for the Child Parents should do as much as possible to make any transitions easier for the child. This includes the initial divorce as well as when they transition from one household to another. Let the Child Know What to Expect It is a good idea to let the child know what to expect going forward so everything is less confusing. This can mean talking to them about when they’ll see the other parent, how holidays are handled, and more. Co-parenting and determining custody are complex and many factors can vary from situation to situation. For parents getting divorced and worried about custody, it is important to speak with a lawyer to learn more about local laws and the impact they can have on the case. Schedule a consultation today to work with a lawyer to help find the right custody arrangement for your situation.
By Seo Management August 6, 2024
Who is going to take care of the kids after the divorce? How will visitation with the other parent be done? When divorcing, there is a lot to consider, and a lot of the contention comes down to the children. It can be hard to separate and think about the kids living at each house part-time instead of being with both parents every day. It also doesn’t help that the laws for custody can be confusing. Talking with a lawyer can help clarify custody issues and enable parents to learn more about what to expect from their situation. Types of Custody Arrangements There are various potential custody arrangements that parents must consider. Custody covers the physical custody, such as where the child lives each day. It also covers legal custody, which covers who is able to make educational, medical, religious, and other decisions. Parents who want to make sure they get as much parenting time as possible will want to work with a divorce attorney in Cullman, AL . Joint or 50/50 Custody Arrangements The most common custody arrangement is shared custody, where both parents can make legal decisions for the child and the child splits their time between both households. The amount of time the child spends at each house will vary by the specifics of the case. In some cases, one parent can override the other when it comes to legal decisions. What are the disadvantages of 50/50 custody? Shared custody works in many cases, but it can have negative impacts on the child, especially at the beginning when they are getting used to living in two different households. There also can be issues with differing rules based on which house the child is at, issues with exchanges, and more. Sole Custody Arrangements Sole custody arrangements are where one parent has physical and legal custody of the child. The other parent may have supervised or unsupervised visitation, but the child doesn’t live with them. The parent with legal custody is able to make all decisions for the child, such as what school they attend, what religion they are brought up with, and more. What are the disadvantages of sole custody? Disadvantages can include a strained relationship with the other parent, the child having issues with not being able to see the other parent as much, issues with exchanges during visitation, and more. It is important for parents to understand and mitigate these disadvantages as much as possible. What Do the Courts Consider? While shared custody is the most common type, it does need to be considered on a case-to-case basis, as it is not a good fit for all situations. Courts will consider a number of things when determining custody, including the following. The needs of the child The home environment for both parents Stability of both parents Safety of the child Ability to provide for the needs of the child Relationship between the child and each parent The disruption caused by changes after the divorce The child’s preferences if they are old enough Any potential issues that can arise Modifications for Custody Custody is legally binding once the courts have approved or set it, but that doesn’t mean that changes are impossible. It is possible, and often necessary, to change the custody arrangement after some time has passed. There are numerous reasons why custody arrangements can be changed, including the following. Child’s Needs Change The child may need to live more with another parent to get into a special school or may be better living with the other parent due to behavioral issues that appear after the divorce. 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Instead, focus on the child and talk to someone else, whether that’s a friend, family member, or therapist, about the divorce. Work on Improving Communication Take the time to learn more about improving communication in a divorce. This may mean using written communication methods like text to avoid forgetting anything or a shared calendar to help everyone stay on the same page. Learn How to Make Decisions Together The parents must learn how to make decisions for the child together unless one parent has full legal custody. Even with full legal custody, though, it is a good idea to take into account the other parent’s desires for major decisions. Make Transitions Easier for the Child Parents should do as much as possible to make any transitions easier for the child. This includes the initial divorce as well as when they transition from one household to another. Let the Child Know What to Expect It is a good idea to let the child know what to expect going forward so everything is less confusing. This can mean talking to them about when they’ll see the other parent, how holidays are handled, and more. Co-parenting and determining custody are complex and many factors can vary from situation to situation. For parents getting divorced and worried about custody, it is important to speak with a lawyer to learn more about local laws and the impact they can have on the case. Schedule a consultation today to work with a lawyer to help find the right custody arrangement for your situation.
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