This post is the first in a series of articles on Powers of Attorney in Oklahoma. In this series, we will explain to you the definition of a power of attorney and why you may need one. We will also examine the different types of power of attorney forms. You will need to know the legal requirements to form one. You would not want to have a POA that doesn’t work when you need it. Finally, we will discuss why a person would want to hire a lawyer versus downloading a form online.
What is a power of attorney?
When we talk about powers of attorney, we are really talking about principals and agents. A principal is someone who has authority over another person who is their agent. The principal chooses the agent, and the agent agrees to act on behalf of the principal. This legal arrangement occurs every day in most people’s life.
For example, when you work for a company, you are an employee of that company. You are also are an agent of that company. You do things, not for your own benefit but for the benefit of the company. If you do something incorrectly – like mess up an order for a customer – you are not personally liable. Instead, the company is liable to the customer to either correct the order or refund the customer’s payment. An employee-employer relationship is a form of agent-principal relationship.
When we talk about creating powers of attorney, what we really mean is to create the power to act on another person’s behalf in their personal, financial affairs. We use the word “attorney” because historically that word meant agent. An attorney-at-law will act on behalf of a client when signing court documents, for instance. A person who has a valid power of attorney in Oklahoma is referred to as an “attorney-in-fact.”
What powers does a person have when they hold the power of attorney in Oklahoma?
The person holding the power-of-attorney may have broad powers or very limited powers. It all depends on how much power and authority the principal gave the agent in the POA document.
For example, you could give an accountant a very limited power of attorney to simply communicate with the IRS on your behalf. Similarly, you could give a property manager a power of attorney to evict tenants on your behalf. In each of these documents, you could define the extent of the powers granted.
By contrast, you could also give a family member extremely broad powers to do almost anything on your behalf, from selling real estate to buying stocks and making investments. You could give authority to your agent to withdraw money from your account and sign checks in your name.
A topic of controversy that often arises in probate cases is whether a family member with a valid power of attorney had a right to give away property, instead of selling it. This is why we specifically identify the power to make gifts in our POA forms.
You can also limit the time frame for the power, as well as set conditions for when the power “springs” into action, as well as when it expires.
OKC Power of Attorney Lawyer
If you are interested in talking to an experienced lawyer that handles power of attorney documents, call our office to schedule a consultation. You will see there is a lot of value in getting counseling from a licensed attorney before you make assumptions about what type of power of attorney form to use. It is also helpful to understand how a power-of-attorney works in conjunction with an estate plan. It’s very important that you do not have documents that contradict each other. Therefore, it’s always best to consult with a lawyer before executing these types of financial documents.
Our next article will discuss the differences between durable and non-durable powers of attorney in Oklahoma.