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•  Durable Power of Attorney
•  Wills

•  Advanced Medical Directive

The Durable Power of Attorney

The durable power of attorney is an important estate planning instrument. A power of attorney allows a person you appoint -- your "attorney-in-fact" -- to act in your place for financial purposes when and if you ever become incapacitated.

In that case, the person you choose will be able to step in and take care of your financial affairs. Without a Durable power of Attorney, no one can represent you unless a court appoints a conservator or guardian. That court process takes time, costs money, and the courts may or may not choose the person you would prefer. In addition, under a guardianship or conservatorship, your representative may have to seek court permission to take planning steps that he/she could implement immediately under a simple durable power of attorney.

A power of attorney may be limited or general. A limited power of attorney may give someone the right to sign a deed to property on a day when you are out of town. Or, it may allow someone to sign checks for you. A general power is comprehensive and gives your attorney-in-fact all the powers and rights that you have yourself.

A power of attorney may also be either current or "springing." Most powers of attorney take effect immediately upon their execution, even if the understanding is that they will not be used until and unless the grantor becomes incapacitated. However, the document can also be written so that it does not become effective until such incapacity occurs. In such cases, it is very important that the event or standard for determining incapacity and triggering the power of attorney be clearly laid out in the document itself.

Most states require the court to respect your nomination "except for good cause or disqualification."

For a sample Power of Attorney or more information, contact the Office of Development by email at plannedgiving@tbfa.org or
call 334-394-2001.

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Your will is a legally-binding instrument directing who will receive your property at your death. It also appoints a legal representative to carry out your wishes. However, the will covers only probate property. Many types of property or forms of ownership pass outside of probate. Jointly-owned property, life insurance proceeds, property in trust and property with a named beneficiary, such as IRAs or 401(k) plans, all pass outside of probate.

Why have a will? Here are some reasons:

First, with a will you can direct where and to whom your estate (what you own) will go after your death. If you died intestate (without a will), your estate would be distributed according to Alabama State law. Such distribution may or may not accord with your wishes.

Many people try to avoid probate and the need for a will by holding all of their property jointly with their children. This can work, but often people spend unnecessary effort trying to make sure all the joint accounts remain equally distributed among their children. However, these efforts can be defeated by a long-term illness of the parent or the death of a child. A will can be a much simpler means of effecting one's wishes about how assets should be distributed.

Second, only with a will can you choose the person to administer your estate and distribute it according to your instructions. This person is called your "executor" (or "executrix" if you appoint a woman) or "personal representative," depending on your state's statute. If you do not have a will naming him or her, the court will make the choice for you.

The third reason to have a will is to make the administration of your estate run smoothly. Often the probate process can be completed more quickly and at less expense to your estate if there is a will. And, with a clear expression of your wishes, there are unlikely to be any costly, time-consuming disputes over who gets what.

Fourth, for larger estates, a well-planned will can help reduce estate taxes.

Fifth, and most important, through a will you can appoint who will take your place as guardian of your minor children should both you and their other parent both pass away.

Before approaching your legal counsel, write down as much information ahead of time. This will help you make decisions about what to put in your will. Bring it and any additional notes to your lawyer and he or she will be able to efficiently prepare a will that meets your needs and desires.

The Christian's Will

What is it that makes a will Christian? You should consider a Christian preamble to your will as a final means of expressing your life for the Lord and what He meant to you. You may have unsaved relatives and because the will is a public document you may be a witness even in death to others. For a sample Christian Preamble to a will, contact Randy Driggers at 334-394-2001or email plannedgiving@tbfa.org.

Types of Wills 

•  Simple Will
•  Pour Over Will

Articles

•  Will Your Will Be Known?

For more information, contact the Office of Development by email at plannedgiving@tbfa.org or call 334-394-2001.

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Advanced Medical Directive

Any complete estate plan should include a medical directive. This term may encompass a number of different documents, including a health care proxy, a durable power of attorney for health care, a living will, and medical instructions.

Both a health care proxy and a durable power of attorney for health care designate someone you choose to make health care decisions for you if you are unable to do so yourself. A living will instructs your health care provider to withdraw life support if you are terminally ill or in a vegetative state. A broader medical directive may include the terms of a living will, but will also provide instructions if you are in a less severe state of health, but are still unable to direct your health care yourself.

For a sample document or more information, contact the Office of Development by email at plannedgiving@tbfa.org or call 334-394-2001.

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