Estate planning isn’t a luxury for the wealthy or a task to put off until retirement—it’s a smart step everyone should take to protect their loved ones and ensure their wishes are honored. As Julie Gafnea of Legal Services Alabama said in our recent Financial Stability Partners Workshop:
“Estate planning is not just for the elderly. You don’t buy car insurance after you crash.”
Planning ahead can save time, money and stress for those you leave behind. Here’s what you need to know if you live in Central Alabama.
What Is a Last Will and Testament?
A Last Will and Testament is a legal document that details how you would like your assets divided after your death. In Alabama, it can also designate who will manage your estate and name a guardian for minor or disabled children.
Key Benefits:
- Control over how your property is distributed
- Ability to name a guardian for dependents
- Flexibility to make simple or detailed bequests
Requirements in Alabama:
- Must be over 18 and of sound mind (“testamentary capacity”)
- Cannot be created under duress or undue influence
- Needs two witnesses and a notary public (witnesses should not be beneficiaries or close family)
Important: Some assets, such as life insurance policies, retirement accounts and payable-on-death bank accounts, are not typically included in a will. Instead, they pass directly to named beneficiaries. Keep those beneficiary designations up to date.
What Is a Power of Attorney (POA)?
A Power of Attorney lets you appoint someone you trust as your agent to make decisions on your behalf.
Types of POA:
- Financial POA: Manages money, property and assets
- Healthcare POA: Makes medical decisions
- Limited POA: Grants authority for specific situations or timeframes
A POA can prevent the need for guardianship or conservatorship, both of which can significantly reduce your independence. It can take effect immediately or only if you become incapacitated.
Warning signs: If someone pressures you to sign a POA, be cautious—it could be a red flag for potential abuse.
What Is a Living Will (Advance Directive)?
A Living Will, also called an Advance Directive for Healthcare, spells out your medical treatment preferences if you cannot speak for yourself.
Options include:
- Which life-sustaining treatments you do or do not want
- Who you want to serve as your healthcare proxy
- Instructions for organ donation, funeral arrangements or other personal wishes
This document can reduce uncertainty for your loved ones during difficult times.
Common Misconceptions About Wills and Probate
“If I have a will, my family doesn’t have to go through probate.”
False. In Alabama, a will must be probated (validated in court) within 5 years after death. Only the original document can be probated. A copy will not suffice!
“Once I have a POA, I can’t make my own decisions.”
False. A POA doesn’t remove your rights while you’re still competent.
“Estate planning is only for older adults.”
False. Major life events, like marriage, divorce, birth of a child or purchase of a home are ideal times to start or update your estate plan.
How to Get Help With Estate Planning In Central Alabama
Through United Way of Central Alabama’s Financial Stability Partners, eligible Jefferson County residents age 60 or older can receive free legal assistance for estate planning from Legal Services Alabama.
Contact Legal Services Alabama:
Apply for services here.
Call: 1-866-456-3959
Email: [email protected]
Phone: (205) 397-6530