A durable power of attorney is a legal document that a person (the principal, grantor, or donor) signs to appoint another person as the grantor’s agent or attorney-in-fact—with authority to make financial and property-related decisions on behalf of the principal—including transactions involving business interests, investments, insurance, taxes, bills, real estate, stocks, bonds, commodities, personal property, Social Security, Medicare, Medicaid, and other financial matters.

A traditional power of attorney is effective only while the principal has full mental capacity, but a durable power of attorney remains effective if the principal becomes physically or mentally disabled or incapacitated (incompetent) from a stroke, Alzheimer’s disease, an automobile accident, or other cause. In some states the legislature has provided a form durable power of attorney in a statute (law) and the document may be referred to as a statutory durable power of attorney.

In Alabama, a durable power of attorney (DPOA) is a legal instrument that allows an individual, known as the principal, to designate another person, called the agent or attorney-in-fact, to manage their financial affairs. This includes handling business interests, investments, insurance, taxes, bills, real estate, and other financial matters. Unlike a traditional power of attorney, which loses its validity if the principal becomes incapacitated, a DPOA remains in effect even if the principal suffers from a physical or mental disability, such as a stroke or Alzheimer's disease. Alabama law includes provisions for the creation and use of DPOAs, ensuring that the document is legally recognized and can be relied upon in the event the principal is unable to make decisions. It is important for individuals to follow the specific legal requirements set forth in Alabama statutes when creating a DPOA to ensure its validity and effectiveness.