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What is an Alabama Power of Attorney?

An Alabama Power of Attorney (PoA) is a legal document that gives a selected person or organization permission to handle financial matters on your behalf, such as signing contracts, accessing your bank account(s), and buying or selling property. 
 
The person giving permission is called the "principal," while the person or entity receiving authority is called the "agent" or "attorney-in-fact." Suited for Alabama residents, this Power of Attorney is made for use in Madison County, Jefferson County, Mobile County, and in every other county or municipality in the state. All Alabama PoA forms from Rocket Lawyer can be customized for your particular scenario. As a result of having this legal document, your agent(s) will be able to offer proof to financial institutions and other parties that they can legally act in your interest when you are not present or able.

When to use an Alabama Power of Attorney:

  • You wish to give someone broad authorization to act for you if you are absent or incapable.
  • You wish to give someone power to handle certain financial or legal issues in your absence or if you become ill.
  • You wish to authorize someone to act on your behalf if case you become legally incompetent or incapacitated.

Sample Alabama Power of Attorney

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ALABAMA POWER OF ATTORNEY FORM

IMPORTANT INFORMATION

 

 

This power of attorney authorizes another person (your agent) to make decisions concerning your property for you (the principal). Your agent will be able to make decisions and act with respect to your property (including your money) whether or not you are able to act for yourself. The meaning of authority over subjects listed on this form is explained in the Uniform Power of Attorney Act Chapter 1A, Title 26, Code of Alabama 1975.

 

This power of attorney does not authorize the agent to make health-care decisions for you.

 

You should select someone you trust to serve as your agent. Unless you specify otherwise, generally the agent's authority will continue until you die or revoke the power of attorney or the agent resigns or is unable to act for you.

 

Your agent is entitled to reasonable compensation unless you state otherwise in the Special Instructions.

 

This form provides for designation of one agent. If you wish to name more than one agent, you may name a coagent in the Special Instructions. Co-agents are not required to act together unless you include that requirement in the Special Instructions.

 

If your agent is unable or unwilling to act for you, your power of attorney will end unless you have named a successor agent. You may also name a second successor agent.

 

This power of attorney becomes effective immediately unless you state otherwise in the Special Instructions.

 

If you have questions about the power of attorney or the authority you are granting to your agent, you should seek legal advice before signing this form.

 

DESIGNATION OF AGENT

 

I, , residing at , , , name the following person(s) as my agent:

 

of , , ,

 

GRANT OF GENERAL AUTHORITY

 

I grant my agent and any successor agent general authority to act for me with respect to the following subjects as defined in the Alabama Uniform Power of Attorney Act, Chapter 1A, Title 26, Code of Alabama 1975:

 

If you wish to grant general authority over all of the subjects enumerated in this section you may SIGN here:

 

____________________________________

(Signature of Principal)

 

OR

 

If you wish to grant specific authority over less than all subjects enumerated in this section you must INITIAL by each subject you want to include in your agent's authority:

 

________ Real Property as defined in Section 26-1A-204

________ Tangible Personal Property as defined in Section 26-1A-205

________ Stocks and Bonds as defined as defined in Section 26-1A-206

________ Commodities and Options as defined in Section 26-1A-207

________ Banks and Other Financial Institutions as defined in Section 26-1A-208

________ Operation of Entity or Business as defined in Section 26-1A-209

________ Insurance and Annuities as defined in Section 26-1A-210

________ Estates, Trusts, and Other Beneficial Interests as defined in Section 26-1A-211

________ Claims and Litigation as defined in Section 26-1A-212

________ Personal and Family Maintenance as defined in Section 26-1A-213

________ Benefits from Governmental Programs or Civil or Military Service as defined in Section 26-1A-214

________ Retirement Plans as defined in Section 26-1A-215

________ Taxes as defined in Section 26-1A-216

________ Gifts as defined in Section 26-1A-217

 

GRANT OF SPECIFIC AUTHORITY (OPTIONAL)

 

My agent MAY NOT do any of the following specific acts for me UNLESS I have INITIALED the specific authority listed below:

 

(CAUTION: Granting any of the following will give your agent the authority to take actions that could significantly reduce your property or change how your property is distributed at your death. INITIAL ONLY the specific authority you WANT to give your agent.)

 

(___) Create, amend, revoke, or terminate an inter vivos trust

(___) Make a gift, subject to the limitations of the Uniform Power of Attorney Act Chapter 1A, Title 26, Code of Alabama 1975 and any special instructions in this power of attorney

(___) Create or change rights of survivorship

(___) Create or change a beneficiary designation

(___) Authorize another person to exercise the authority granted under this power of attorney

(___) Waive the principal's right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan

(___) Exercise fiduciary powers that the principal has authority to delegate

(___) Disclaim or refuse an interest in property, including a power of appointment

(___) Access the content of electronic communication

 

LIMITATIONS ON AGENT'S AUTHORITY

 

An agent that is not my ancestor, spouse, or descendant MAY NOT use my property to benefit the agent or a person to whom the agent owes an obligation of support unless I have included that authority in the Special Instructions.

 

Limitation of Power. Except for any special instructions given herein to the agent to make gifts, the following shall apply:

 

(a) Any power or authority granted to my Agent herein shall be limited so as to prevent this Power of Attorney from causing any Agent to be taxed on my income or from causing my assets to be subject to a "general power of appointment" by my Agent as defined in 26 U.S.C. § 2041 and 26 U.S.C. § 2514 of the Internal Revenue Code of 1986, as amended.

 

(b) My Agent shall have no power or authority whatsoever with respect to any policy of insurance owned by me on the life of my Agent, or any trust created by my Agent as to which I am a trustee.

 

SPECIAL INSTRUCTIONS (OPTIONAL)

 

Effective Date.

 

I hereby revoke any and all special powers of attorney that previously have been signed by me. I hereby revoke any and all general powers of attorney and special powers of attorney that previously have been signed by me. I hereby revoke any and all general powers of attorney that previously have been signed by me. However, the preceding sentence shall not have the effect of revoking any powers of attorney that are directly related to my health care that previously have been signed by me. any and all of my accounts at any bank, trust company, savings and loan association, credit union, thrift company, brokerage firm, or other financial institution the following specific accounts

Compensation of Agent.

 

My Agent shall provide an accounting for all funds handled and all acts performed as my Agent as required under state law or upon my request or the request of any authorized personal representative, fiduciary or court of record acting on my behalf.

 

EFFECTIVE DATE

 

This power of attorney is effective immediately unless I have stated otherwise in the Special Instructions.

 

RELIANCE ON THIS POWER OF ATTORNEY

 

Any person, including my agent, may rely upon the validity of this power of attorney or a copy of it unless that person knows it has terminated or is invalid.

 

SIGNATURE AND ACKNOWLEDGMENT

 

Dated ____________________, ______, at , .

 

 

 

__________________________________

 

STATE OF ,

COUNTY OF , ss:

 

On this _____ day of ____________________, _____, before me, ________________________________, personally appeared , known to me (or satisfactorily proven) to be the persons whose names are subscribed to the within instrument and acknowledged that they executed the same as for the purposes therein contained.

 

In witness whereof I hereunto set my hand and official seal.

 

 

 

_________________________________

Notary Public

 

My commission expires _____________

 

IMPORTANT INFORMATION FOR THE AGENT

 

Agent's Duties

 

When you accept the authority granted under this power of attorney, a special legal relationship is created between you and the principal. This relationship imposes upon you legal duties that continue until you resign or the power of attorney is terminated or revoked. You must:

 

(1) do what you know the principal reasonably expects you to do with the principal's property or, if you do not know the principal's expectations, act in the principal's best interest;

(2) act in good faith;

(3) do nothing beyond the authority granted in this power of attorney; and

(4) disclose your identity as an agent whenever you act for the principal by writing or printing the name of the principal and signing your own name as "agent" in the following manner:

(Principal's Name) by (Your Signature) as Agent.

 

Unless the Special Instructions in this power of attorney state otherwise, you must also:

 

(1) do what you know the principal reasonably expects you to do with the principal's property or, if you do not know the principal's expectations, act in the principal's best interest;

(2) avoid conflicts that would impair your ability to act in the principal's best interest;

(3) act with care, competence, and diligence;

(4) keep a record of all receipts, disbursements, and transactions made on behalf of the principal;

(5) cooperate with any person that has authority to make health-care decisions for the principal to do what you know the principal reasonably expects or, if you do not know the principal's expectations, to act in the principal's best interest; and

(6) attempt to preserve the principal's estate plan if you know the plan and preserving the plan is consistent with the principal's best interest.

 

Termination of Agent's Authority

 

You must stop acting on behalf of the principal if you learn of any event that terminates this power of attorney or your authority under this power of attorney. Events that terminate a power of attorney or your authority to act under a power of attorney include:

 

(1) death of the principal;

(2) the principal's revocation of the power of attorney or your authority;

(3) the occurrence of a termination event stated in the power of attorney;

(4) the purpose of the power of attorney is fully accomplished; or

(5) if you are married to the principal, a legal action is filed with a court to end your marriage, or for your legal separation, unless the Special Instructions in this power of attorney state that such an action will not terminate your authority.

 

Liability of Agent

 

The meaning of the authority granted to you is defined in the Uniform Power of Attorney Act Chapter 1A, Title 26, Code of Alabama 1975. If you violate the Uniform Power of Attorney Act or act outside the authority granted, you may be liable for any damages caused by your violation.

 

If there is anything about this document or your duties that you do not understand, you should seek legal advice.

 

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Alabama Power of Attorney FAQs

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  • Can I get an Alabama Power of Attorney form for free?

    It's fast and simple to grant or obtain the support you may need using a free Alabama Power of Attorney template from Rocket Lawyer:

    1. Make the PoA - Provide a few basic details and we will do the rest
    2. Send or share it - Go over it with your agent or seek legal advice
    3. Sign it and make it legal - Mandatory or not, witnesses and notarization are recommended

    This solution, in many cases, would be much less time-consuming than working with a traditional lawyer. If needed, you can start a PoA on behalf of your spouse, an elderly parent, or another relative, and then have them sign once you've drafted it. Please remember that for this document to be considered valid, the principal must be an adult who is mentally competent when they sign. In the event that the principal is already incapacitated and unable to make their own decisions, a court-appointed conservatorship might be required. When facing this situation, it would be best for you to work with a lawyer .

  • Do I need to have an Alabama PoA?

    Every person over 18 years old ought to have a Power of Attorney. Even though it may be painful to think about, there will likely come a day when you are not able to make your own legal decisions. There may also be times when you are simply out of pocket. Here are a few common situations in which you may find a PoA to be useful:

    • You are planning to live or travel abroad
    • You are aging or have limited mobility or declining health
    • You currently live in a residential care facility and need help managing your finances
    • You would like to authorize someone to take legal actions on your behalf if you become legally incompetent or incapacitated

    Whether this Alabama Power of Attorney has been generated as part of a long-term plan or created in response to an unexpected emergency, notarization and/or witnesses can help to protect your agent if a third party questions their authority.

  • Which type of Power of Attorney do I need in Alabama?

    Power of Attorney documents can be classified in multiple ways. They are largely based on what powers will be given, when they come into effect, and how long they are valid. Often, you'll find them separated into four buckets:

    • Special Power of Attorney - Would grant limited powers over specified affairs
    • General Power of Attorney - Would grant a broad scope of authority over your affairs
    • Springing Power of Attorney - Would come into effect based on certain guidelines
    • Durable Power of Attorney - Would remain in effect even when you become mentally incompetent or incapacitated

    When drafting your free Alabama Power of Attorney with Rocket Lawyer, you can choose to have the authority begin on a selected day, immediately, or only at the time when you're not capable. The Power of Attorney may terminate on a particular date or when you die.

  • Should I work with an attorney for my Alabama PoA?

    Alabama Power of Attorney forms are normally straightforward; however, you could need advice. Hiring an attorney to comment on your Alabama Power of Attorney can be expensive. An easier option is through Rocket Lawyer attorney services. As a Premium member, you can have your document reviewed by an experienced attorney. You can rest assured that Rocket Lawyer is here for you.

  • What would it traditionally cost for me to get a Power of Attorney form in Alabama?

    The cost of meeting and hiring an attorney to make a Power of Attorney could total between two hundred and five hundred dollars, depending on your location. When using Rocket Lawyer, you aren't just filling out a Power of Attorney template. If you ever require help from a lawyer, your Rocket Lawyer membership offers up to a 40% discount when you hire an Rocket Lawyer network attorney.

  • What steps should I take after I make an Alabama Power of Attorney?

    Attached to your Power of Attorney, there's a checklist of suggested actions to take once your document is finished. Feel free to take any of these actions related to your PoA: editing it, saving it in PDF format or as a Word document, and signing it. Finally, your agent(s) and financial institutions should get a copy of your final document.

  • Does a Power of Attorney need to be notarized, witnessed, or recorded in Alabama?

    The laws governing PoA forms vary in each state; however, in Alabama, your Power of Attorney will require notarization. If your agent will have the ability to handle real estate transactions, the Power of Attorney will need to be signed before a notary and recorded or filed with the county.

    See Alabama Power of Attorney law: § 26-1A

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