This document discusses key concepts related to agency and powers of attorney in social work. It defines various types of agents including those appointed in advance directives, trusts, and by courts. It outlines important rules for reviewing legal documents like powers of attorney, including the four corners rule. It also discusses important terms, requirements for durable powers of attorney, an agent's fiduciary duties, and other considerations like how divorce impacts agency. The document provides guidance on understanding agency issues that social workers may encounter both personally and professionally.

1. Ethics in Social Work
UNDERSTANDING AGENCY ISSUES

2. Jan Neal
Jan Neal Law Firm, LLC
207 N 4th St
Opelika, AL 36801
(334) 745-2779
800-270-7635
neal@janneallaw.com
www.janneallaw.com
https://www.facebook.com/janneallaw
@janneallawllc
www.linkedin.com/in/jboydneal

3. AGENCY MATTERS
It is important to understand agency best practices and requirements in multiple settings, both personal and
professional. An understanding of the legal and ethical requirements of agents helps the social worker in his
or her personal capacity as an agent as well as in his or her professional dealings with agents for clients.
An agent may be the person appointed in an advance directive to make financial, medical or end of life
decisions for a person who is no longer able to make those decisions. Or an agent may be a person
appointed by a court to serve as a guardian or conservator. An agency appointed agent may be the person
serving as representative payee for Social Security benefits or fiduciary for VA benefits. These agency
appointed agents only have authority over the benefits paid by the agency.
Beware a sponsor is not a legal representative though they often act in an agent capacity (decisions in a
nursing home when there is no legal representative, applying for Mediciad).
Agents for health care decision-making and end of life decision-making may be incorporated into a durable
power of attorney or be appointed in a separate Advance Directive for Healthcare.
Agents may also be appointed in a Trust to make financial and medical decisions during the incapacity of the
individual who created the trust.

4. FOUR CORNERS RULE
In reviewing legal documents the Four Corners Rule requires the reader to completely read the document
at hand. Applying that rule to advance directives, the reader should read the entire document - which is
not an easy task in a busy setting. Still, that is the preferred and safest way to review and rely on an
advance directive, and when in doubt as to its meaning or validity, seek a legal opinion. Know the correct
attorney from which to obtain legal advice. If you work for a company, that attorney should owe his or
her primary duty to that company.
Assumptions create liability. Problems can arise from reliance on a document that is inadequate to permit
an agent to take the action undertaken.
Examples of confusion in seeking legal advice:
• The agents who accept the end of life decision-making role can sign after the document has been
executed. Not knowing that can lead to the erroneous conclusion that the entire document is not
valid, which is not true.
• Facility social worker seeking advice from Ombudsman/Older Americans Act Legal Assistance provider.

5. TERMS
Pursuant to the Alabama Uniform Power of Attorney Act the person who gives the power by signing a Power
of Attorney is referred to as the Principal.
The Agent, referred to as the Attorney-in-fact, carries out the business designated in the document for the
Principal, and these decisions may involve financial or routine health care decisions.
The Health Care Proxy is a person specifically authorized to make decisions regarding the providing,
withholding, or withdrawing of life-sustaining treatment or artificially provided nutrition and hydration in
instances involving terminal illness or injury and permanent unconsciousness. This is true whether
appointed by a Power of Attorney or an Advance Directive For Health Care

6. TERMS CONTINUED
Agents serve in in a Fiduciary capacity. A fiduciary is a person or organization that acts on behalf of another
person or persons, putting their clients' interests ahead of their own, with a duty to preserve good faith and
trust. Being a fiduciary thus requires being bound both legally and ethically to act in the other's best
interests.
Incapacity means inability of an individual to manage property or business affairs because the individual:
• has an impairment in the ability to receive and evaluate information or make or communicate decisions
even with the use of technological assistance; or
• Is missing, detained (including incarcerated in a penal system), or outside the United States and unable to
return.
A ward is the term used to describe a person over whom a court has granted a guardian or conservator.

7. COMBINING FINANCIAL AND HEALTH CARE POWERS INTO ONE DOCUMENT
You may see multiple documents granting agents authority. But you may see all these powers in one
document.
A power of attorney pursuant to the Alabama Uniform Power of Attorney Act found at § 26-1A-101 – 404 can
also incorporate the appointment of a general health care power of attorney AND a health care proxy for end
of life decision-making pursuant to Code of Alabama § 26-1A-404 which meets the requirements of The
Natural Death Act found at Code of Alabama § 22-8A-4 (The Advance Directive For Health Care).
.

8. DEALING WIH COURT APPOINTED GUARDIANS AND CONSERVATORS
When dealing with guardians appointed by the court recognize that the power of the guardian extends only
to the body of the ward.
When dealing with a conservator appointed by the court the conservator has authority over the finances of
the ward.

9. DURABILITY: WHEN THE DOCUMENT WAS SIGNED/REQUIRED LANGUAGE
Powers of Attorney created in Alabama on or after 01/01/12 are presumed to be durable, meaning they
remain in effect when the principal becomes incompetent.
Powers of Attorney created in Alabama prior to 01/01/12 must include the following language to be
considered durable:
“This power of attorney shall not be affected by disability, incompetency or incapacity of the principal.”

10. SALE OF PROPERTY
Another major difference in powers of attorney created before 01/01/12 and those signed on or after that
date involves the sale of property.
With powers of attorney created in Alabama before 01/01/12 an agent would not have authority to convey
the principal’s real property unless the power of attorney specifically granted that authority.
With powers of attorney created in Alabama on or after 01/01/12 the agent can convey the principal’s real
property (even to the agent himself or herself) with a general grant of authority over real property.

11. EFFECTIVE DATE
A power of attorney is effective when executed unless the principal provides in the power of attorney that it
becomes effective at a future date or upon the occurrence of a future event or contingency.
If a power of attorney becomes effective upon the occurrence of a future event or contingency, the principal,
in the power of attorney, may authorize one or more persons to determine in a writing or other record that
the event or contingency has occurred. This is known as a springing durable power of attorney.
If a power of attorney becomes effective upon the principal's incapacity and the principal has not authorized
a person to determine whether the principal is incapacitated, or the person authorized is unable or unwilling
to make the determination, the power of attorney becomes effective upon a determination in some other
writing or other record.

12. EFFECTIVE DATE
You can see the complexity of a springing power of attorney when the principal is not specific as to how the
disability is to be determined.
Like the durable power of attorney, the instrument must be in writing and must include the following
language: “This power of attorney shall become effective upon the disability, incompetency, or incapacity of
the principal.” Many people making documents of this nature do not think past this declaration to envision
the need for an agent to quickly take over and make decisions in an emergency.
Springing the document’s power needs to specifically define how the disability, incompetency or incapacity
of the principal shall be determined. It might require a finding by the person’s primary care physician or any
physician or multiple physicans who have examined the principal and rendered opinions concerning the
incapacity.

13. REVOCATION AND DEATH
Powers of attorney cease to provide authority when revoked or the principal dies. Note that many people do
not know this and try to continue using the power of attorney after the death of the principal.
An institution will not be liable for relying on a document if it does not have actual knowledge of death.

14. DIVORCE AND AUTOMATIC REVOCATION
For Financial and Routine Medical agents, any authority granted to the spouse under a durable power of
attorney shall be revoked if the marriage of the principal is dissolved or annulled, or if the parties are legally
separated or are parties to divorce proceedings.
For an Advance Directive for Health Care proxy, the divorce, dissolution, or annulment of marriage of the
principal revokes the designation of the principal's former spouse as health care proxy unless otherwise
provided in the proxy designation or in an order of divorce, dissolution, or annulment of marriage or legal
separation.
It is not unusual to see ex-spouses serving as agents. If the power of attorney was created after the divorce,
then there is no problem. If created prior to the divorce, absent language in the document providing for
ongoing authority in the event of divorce, the authority of the ex-spouse to serve as agent is invalid. So to
determine whether or not a valid power of attorney or advance directive for health care exists, it may be
necessary to determine when the divorce occurred. If you do not make this determination, and angry
children appear later, you may subject your employer to liability.

15. POWER OF APPOINTMENT
If a power of attorney includes a power of appointment, the agent has the ability to designate another
person to act as agent. This may be needed if the agent becomes too sick himself to handle decision-making
for the principal’s finances and health care needs or if he or she is out of state/country or otherwise
indisposed.
Absent a power of appointment in the document, an agent cannot just grant the authority to another other
than to designate that a named alternate agent may take over acting as primary agent.

16. RESIGNATION OF AGENT
In some situations an appointed agent may wish to decline the job or resign from the role. Sometimes you
will see attached statements in which an agent states an intent to resign allowing the successor agent to take
over the role of agent. If there is no successor, then a guardian/conservator will need to be appointed by the
probate court.
The law indicates that unless the power of attorney provides a different method of resignation, the agent
should give notice to the principal, but if the principal is incapacitated:
• to the conservator or guardian, if either has been appointed for the principal, and a co-agent or successor
agent; or
• if there is no conservator, guardian, co-agent or successor agent, then to the principal's caregiver;
another person reasonably believed by the agent to have sufficient interest in the principal's welfare; or
a governmental agency having authority to protect the welfare of the principal.

17. DUTY TO ACCEPT POA
Some institutions will not accept a power of attorney because it is not the particular form they want (the
bank’s power of attorney form). This is against the law since Code of Alabama § 26-1A-120 states that a
person may not require an additional or different form of power of attorney for authority granted in the
power of attorney presented.
The law requires a person offered a power of attorney to either conduct the requested transaction in
reliance on an acknowledged power of attorney or request a certification, a translation, or an opinion of
counsel within a reasonable time after presentation of the power of attorney to conduct the transaction.
The power of attorney may be refused for other valid reasons such as the person has actual knowledge of
the fact that the power of attorney is void, invalid, or terminated; that the agent's authority is void, invalid,
or terminated; or that the agent is exceeding or improperly exercising the agent's authority; or if the person
makes, or has actual knowledge that another person has made, a report to the Department of Human
Resources stating a belief that the principal may be subject to physical or financial abuse, neglect,
exploitation, or abandonment by the agent or a person acting for or with the agent.
If there are no valid reasons to refuse the power of attorney, the person refusing to conduct business
through the power of attorney may be subject to a court order to comply and be ordered to pay attorney
fees if a court action is brought.

18. HEALTH CARE AGENT ISSUES

19. WHEN PROXY AUTHORITY FOR END OF LIFE DECISIONS IS EFFECTIVE
An advance directive for healthcare for end of life decision-making becomes effective when:
• The attending physician determines that the declarant is no longer able to understand, appreciate, and
direct his or her medical treatment; and
• Two physicians, one of whom shall be the attending physician, and one of whom shall be qualified and
experienced in making such diagnosis, have personally examined the declarant and have diagnosed and
documented in the medical record that the declarant has either a terminal illness or injury or is in a state
of permanent unconsciousness.

20. AGENT RIGHT TO MEDICAL RECORDS
Subject to any limitation in the durable power of attorney, an attorney in fact may, for the purpose of making
a health care decision, request, review, and receive any information, oral or written, regarding the principal's
physical or mental health, including medical and hospital records, execute a release or other document
required to obtain the information, and consent to the disclosure of the information.
Further, the law says that a person authorized by the principal in the power of attorney to determine that the
principal is incapacitated (when there is a springing durable power of attorney) may act as the principal's
personal representative pursuant to the Health Insurance Portability and Accountability Act, Sections 1171
through 1179 of the Social Security Act, 42 U.S.C. Section 1320d, as amended, and applicable regulations, to
obtain access to the principal's health care information and communicate with the principal's health care
provider.
But sometimes an agent needs medical records for other purposes besides health care decision-making, such
as bringing a lawsuit. In that event it is beneficial to have the agent designated as a HIPPA Representative in
a power of attorney.

21. PROHIBITION ON HEALTH CARE PROVIDER SERVING AS AGENT
The law states that under no circumstances shall the health care provider of the principal or a nonrelative
employee of the health care provider of the principal make decisions under the durable power of attorney. A
health care provider is defined as any person or entity who is licensed, certified, registered, or otherwise
authorized by the laws of this state to administer or provide health care in the ordinary course of business or
in the practice of a profession.
Any health care provider so appointed would be directing care under invalid authority, and tremendous
liability could be incurred by the worker and his or her employer.

22. DO NOT ATTEMPT TO RESUSCITATE ORDERS
A Do Not Resuscitate Order (DNR) or Do Not Attempt Resuscitation Order (DNAR) can be signed by a doctor
instructing that resuscitative measures not be provided to a person under a physician's care in the event the
person is found with cardiopulmonary cessation. DNARs can be issued either:
• with the consent of the patient, if competent; or
• pursuant to instructions in an advance directive if the patient is not competent or is no longer able to
understand, appreciate and direct his or her medical treatment and has no hope of regaining that ability;
or
• with the consent of a health care proxy designated under the Natural Death Act; or
• at the instructions of an attorney-in-fact under a durable power of attorney that grants the agent the
power to make end-of-life decisions in accordance with the Natural Death Act.
For many years DNAR orders have been used in health care facilities, but those orders were valid only in the
facility where ordered. If the patient left one facility and entered another, a new order had to be signed. In
2016 Alabama law addressed DNAR orders and provided for a "Portable DNAR" that will be valid across
multiple health care settings. A form that meets the requirements of law to make it portable is provided at
the State Board of Health Administrative Code 420-5-19 Appendix 2.
While health care providers may continue to make facility specific DNARs, to create a portable DNAR, the
state prescribed form needs to be used.

23. DUTY OF HEALTH CARE PROVIDER TO TRANSFER CARE
A health care provider who refuses to comply with a living will or the directions of a duly designated proxy or
a duly appointed surrogate or who refuses to honor a portable physician DNAR order executed in compliance
with the directives of the law and using the form designated by the State Board of Health has a legal duty to
promptly advise the patient and any individual designated to act for the patient, and permit the patient to be
transferred to another health care provider.
Such health care provider shall reasonably cooperate to assist the patient, or any individual designated to act
for the patient, in the timely transfer of the patient to another health care provider that will follow the
directions of the portable physician DNAR order, living will, health care proxy, or surrogate.
The provider refusing to comply shall not be liable for refusing to honor the directive.
During the time for the transfer, all life-sustaining treatments, including resuscitation efforts in the event of
cardiopulmonary cessation and artificially provided nutrition and hydration, shall be properly maintained.

24. CONCEALING A DNAR OR HEALTH CARE DIRECTIVE
Any person who willfully conceals, cancels, defaces, obliterates, or damages the portable physician DNAR
order or advance directive for health care of another without the patient’s consent or who falsifies or forges
a revocation of the advance directive for health care of another shall be guilty of a Class A misdemeanor
(potential 1 year in jail and $6000 fine).
Any person who falsifies or forges the portable physician DNAR order or advance directive for health care of
another, or willfully conceals or withholds personal knowledge of the revocation of a portable physician
DNAR order or advance directive for health care, with the intent to cause a withholding or withdrawal of
resuscitative measures or life-sustaining treatment or artificially provided nutrition and hydration contrary to
the wishes of the patient, and thereby, because of such act, directly causes life-sustaining treatment or
artificially provided nutrition and hydration to be withheld or withdrawn and death to be hastened, shall be
guilty of a Class C felony (punishable for 1 year and 1 day – 10 years and $15,000 fine).

25. LIMITATIONS ON HEALTH CARE AGENTS/PHYSICIANS
A health care directive permits the agent to make all decisions the principal could make but does not include
psychosurgery, sterilization, abortion when not necessary to preserve the life of the principal, or involuntary
hospitalization.
The advance directive for healthcare of a patient who is known by the attending physician to be pregnant
shall have no effect during the course of the patient's pregnancy.

26. FOREIGN ADVANCE DIRECTIVE
An advance health care directive executed in another state in compliance with the law of that state or of
Alabama is valid, but this provision in the law does not authorize the administration, withholding, or
withdrawal of health care otherwise prohibited by the laws of Alabama.

27. FINANCIAL AGENT ISSUES

28. AGENT COMPENSATION
Unless the power of attorney otherwise provides, an agent is entitled to reimbursement of expenses
reasonably incurred on behalf of the principal and to compensation that is reasonable under the
circumstances.
While this is permitted by law, it is seldom seen, and, if exercised, great care should be used to avoid any
compensation that could raise a claim of uncompensated tranfer for Medicaid purposes or disputes with
other relatives.

29. MANDATORY FIDUCIARY DUTIES (FINANCIAL)
The agent must act:
• In accordance with the principal’s reasonable expectations to the extent actually known by
the agent and, otherwise, in the principal’s best interest;
• In good faith;
• Only within the scope of authority granted in the power of attorney.
Example: John gave power of attorney to his son, Allen. John always despised his nephew
Earl and made a point of how he would not spit on him if he was on fire. It would be a breach
of his duties for Allen to use John’s money to pay for Earl’s bail (based on actual knowledge of
John’s reasonable expectations).

30. BREACH OF FIDUCIARY DUTIES
An agent who breaches a fiduciary duty is liable to the principal for the amount required to restore the
value of the principal’s property to what it would have been had the violation not occurred. Additionally,
the agent is liable for the amount required to reimburse the principal or the principal’s successors in
interest for the attorney’s fees and costs paid by the principal on the agent’s behalf.
Recognize that breach of fiduciary duty may rise to the level of a crime such as
Financial Exploitation 1st Degree (Class B felony) for value of property taken exceeding $2500 and
punishable by 2 to 20 years in prison;
Financial Exploitation 2d Degree (Class C felony) for value of property taken exceeding $500 but not
exceeding $2500 and punishable by 1 to 10 years in prison;
Financial Exploitation 3rd Degree (Class A misdemeanor) for value of property taken not exceeding $500
and punishable by up to 1 year in prison.

31. EXONERATION OF AGENT FOR LIABILITY FOR BREACH OF DUTY
A principal may exonerate or relieve an agent of liability for breach of duty. Any such provision is binding
except to the extent the provision:
• Relieves the agent of liability for breach of duty committing dishonesty, with an improper motive, or
with reckless indifference to the purposes of the power of attorney or the best interest of the
principal; or
• Was inserted as a result of an abuse of a confidential or fiduciary relationship with the principal.
Example: John’s power of attorney relieves Allen of liability for breach of duty, but the provision is not
binding when Allen takes all of John’s money to go gambling and leaves John with no funds to pay for his
nursing home charges (indifference to best interest of John)
Or
John’s power of attorney relieves Allen of liability for breach of duty, but the provision is not binding when
Allen forges checks on John’s account to take his money.

32. AGENT PROTECTIONS UNDER THE LAW
An agent has some protection provided in the law and is protected from liability for the following
circumstances:
• An agent that acts in good faith is not liable to any beneficiary of the principal’s estate plan for failure
to preserve the plan;
• An agent who acts with care, competence, and diligence for the best interest of the principal is not
liable solely because the agent also benefits from the act or has an individual or conflicting interest in
relation to the property or affairs of the principal;
• Absent a breach of duty to the principal, an agent is not liable if the value of the principal’s property
declines;
• An agent that exercises authority to delegate to another person the authority granted by the principal
or that engages another person on behalf of the principal is not liable for an act, error of judgment, or
default of that person if the agent exercises care, competence, and diligence in selecting and
monitoring the person.
Examples: Allen is not liable to John if he acts in good faith but has to use money for John’s care that
John had previously designated as an inheritance for others in his will or if he uses care, but the value of
John’s investments decline.

33. CO-AGENTS’ RESPONSIBILITIES AND LIABILITIES
For powers of attorney created prior to 01/01/12 co-agents must act jointly and in agreement.
For powers of attorney created on or after 01/01/12 co-agents may act jointly or independently unless
otherwise specified.
An agent is generally not liable for a breach of fiduciary duty committed by another agent unless the
agent participates in or conceals the breach of fiduciary duty. Thus, a co-agent with actual knowledge of a
breach or imminent breach of fiduciary duty by another agent must notify the principal, and, if the
principal is incapacitated, take any action reasonably appropriate in the circumstances to safeguard the
principal’s best interest. If that agent with actual knowledge of breach of fiduciary duty fails to notify the
principal or take action, he is liable for the reasonably foreseeable damages that could have been avoided
if the agent had notified the principal or taken appropriate action.
Example: John names Allen and Sally as his co-agents. Allen lives nearby, and Sally is out of state. While
looking at accounts online Sally discovers that Allen has used John’s money to pay Allen’s mortgage and
his son’s tuition to school. Sally must notify John, if competent. If John is not competent, Sally needs to
get Allen to reimburse John’s funds or bring legal action. If she does not, she is liable for the breach of
fiduciary duty herself.

34. DUALING AGENTS
When the principal is no longer competent to revoke and remake a power of attorney, and there is a clear
dispute between agents, and the differences cannot be resolved informally, one or the other would likely
need to file to be appointed guardian or conservator and let the court decide who is the better agent to
take over. If neither party will move for court intervention, DHR should be contacted because the
principal is now an adult in need of protection.

35. JUDICIAL RELIEF
The following persons may petition a court to construe a power of attorney, determine the validity of a
power of attorney, or review the agent's conduct, and grant appropriate relief:
• the principal or the agent;
• a guardian, conservator, or other fiduciary acting for the principal;
• a person authorized to make health care decisions for the principal;
• the principal's spouse, parent, or descendant;
• an individual who would qualify as a presumptive heir of the principal;
• a person named as a beneficiary to receive any property, benefit, or contractual right on the principal's
death or as a beneficiary of a trust created by or for the principal that has a financial interest in the
principal's estate;
• a governmental agency having regulatory authority to protect the welfare of the principal;
• the principal's caregiver or another person that demonstrates sufficient interest in the principal's
welfare;
• a person asked to accept the power of attorney; and
• any other person who demonstrates a sufficient legal interest in the construction or validity of the
power of attorney or the agent's conduct in connection with the power of attorney, such as to give
that person standing.

36. Upon motion by the principal, the court shall dismiss a petition filed to construe a power of attorney,
unless the court finds that the principal lacks capacity to revoke the agent's authority or the power of
attorney.
Example: Sally petitions the court to review Allen’s use of John’s money, but John files a petition to let
Allen off the hook. Sally’s petition is dismissed, but she has relieved herself of liability for breach of duty.
Note: Sally will, most likely, want to resign as co-agent.

37. AGENT DUTIES
As an agent, you might pay bills, oversee bank accounts, and pay for things the principal needs.
You might also make investments, pay taxes, collect rent or unpaid debts, get insurance if needed, and do
other things written in the power of attorney.
You have a duty to manage the principal’s money and property very carefully. Use good judgment and
common sense. As a fiduciary, you must be even more careful with the principal’s money than you might
be with your own!

38. • Follow these guidelines to help you make careful decisions:
• List the principal’s money, property, and debts. To make careful decisions, you need to know
what the principal owns and owes. Your list might include:
Checking and savings accounts;
Cash;
Pension, retirement, annuity, rental, public benefit, or other income;
Real estate;
Cars and other vehicles;
Insurance policies (to include health insurance coverage);
Trusts for which the principal is a beneficiary;
Stocks and bonds;
Jewelry, furniture, and any other items of value; and
Unpaid credit card bills and other outstanding loans.

39. • Protect the principal’s property. Keep his or her money and property safe. You may need to put
valuable items in safe deposit boxes, change locks on property, and make sure his or her home or
other property is insured. Make sure bank accounts earn interest if possible and have low or
no fees. Review bank and other financial statements promptly. If the principal owns any real
estate, keep it in good condition, the taxes paid and insurance in place.
• Invest carefully. If you are making investment decisions for the principal, talk to a financial
professional. The Securities and Exchange Commission (SEC) provides tips on choosing a
financial professional at www.sec.gov/investor/alerts/ib_top_tips.pdf. Discuss choices and goals
for investing based on the principal’s needs and values.
• Pay bills and taxes on time.

40. • Cancel any insurance policies the principal does not need.
• Collect debts. Find out if anyone owes money to the principal and try to collect it.
Take steps to have the power of attorney accepted. Sometimes banks or other businesses won’t do what
you, acting as the principal’s agent, want them to do. A bank may refuse to accept the power of attorney
and want the principal to sign its own form. This is a problem if the principal has lost the ability to act for
himself of herself. As soon as you need to act as the principal’s agent, contact any businesses (such as
banks) or people that the principal deals with and give them copies of the power of attorney. Never give
away the original document.
If someone will not accept your authority as agent, talk to a supervisor. If they still won’t accept it, talk to
a lawyer.

41. DUTY TO KEEP PRINCIPAL’S MONEY SEPARATE (NO CO-MINGLING)
Never mix the principal’s money or property with your own or someone else’s. Mixing money or property
makes it unclear who owns what. Confusing records can get you in trouble with the principal’s family and
also with government agencies, such as Department of Human Resources (DHR) Adult Protective Services,
law enforcement and Medicaid.
Follow these guidelines:
• Separate means separate. Never deposit the principal’s money or property into your own or someone
else’s bank account or investment account.
• Avoid joint accounts. If the principal already has money or property in a joint account with you or
someone else, get legal advice before making any change.
• Keep title to the principal’s money and property in his or her own name. This is so other people can see
right away that the money and property is the principal’s and not yours.
• Know how to sign as agent. Whenever you sign a check or document as an agent, write or print the
principal’s name by your own name as agent in the following manner:
(Principal’s Name) by (Your Signature) as Agent
• Pay the principal’s expenses from his or her funds, not yours. Spending your money and then paying
yourself back makes it hard to keep good records. If you really need to use your money, keep receipts for
the expense and maintain a good record of why, what, and when you paid yourself.

42. BEST PRACTICES
Keep good records because you may need to present true and complete records of the principal’s money
and property. Your records need to include receipts, disbursements, and transactions made on the
principal’s behalf. Alabama law allows the principal to review your records to check up on you. A court,
the principal’s guardian or conservator, another fiduciary acting for the principal (such as a trustee), and
DHR Adult Protective Services may also require you to turn over records.
Practice good recordkeeping habits:
• Keep a detailed list of everything that you receive or spend for the principal. Records should include
amount of checks written or deposited, dates, reasons, names of people or companies involved, and
other important information.
• Keep receipts and notes, even for small expenses. For example, write “$50, groceries, ABC Grocery
Store, May 2” in your records soon after you spend the money.
• Avoid paying in cash. Try not to pay the principal’s expenses with cash. Also, try not to use his or her
ATM card to withdraw cash or write checks to “Cash.” If you need to use cash, be sure to keep receipts or
notes.
• Alabama law says you can be paid for acting as agent unless the power of attorney says otherwise. If you
will be paid, be sure you charge a reasonable fee. It is up to you to keep detailed records as you go along
of what work you did, how much time it took, when you did it, and why you did it.

43. ACCESSING MATERIAL
This presentation will be available at the Jan Neal Law Firm, LLC, Slideshare page at
https://www.slideshare.net/jan_neal/