This article is next in our series on granting powers of attorney in the state of Oklahoma. Our first article explained that a person may give power to another person to handle their financial affairs. We call this power the “Power of Attorney.” The person delegating the power is the principal. The person receiving the power is the agent.
Our second article explained that this power may be durable or non-durable, depending on how it is drafted. A non-durable power of attorney ends when the principal becomes incapacitated. In contrast, a durable POA stays active even if the principal cannot make decisions.
In this article, we will look at the legal requirements to create a valid power of attorney in the state of Oklahoma.
The requirements for a valid power of attorney in Oklahoma
A person may allow another person to act on their behalf in Oklahoma. We call this delegation the “power of attorney.” The word attorney simply means agent. An agent is a person who acts on another person’s behalf. An employee acts on behalf of an employer. A realtor acts on behalf of their client.
A power of attorney can be extremely broad, or extremely narrow and only for a limited purpose. Power of attorney documents can also be limited in duration, meaning they expire after a period of time. These documents can be very broad and last for a lifetime. Or they can be so narrow as to cover a single act for a single purpose on a single date.
The principal must be alive and competent
So you may be wondering what the requirements are to create such a power. Let’s start with the basics. First, a person must be alive, competent, and able to sign. Now, this is not a joke. As an estate planning attorney, I often deal with carrying out the orders of a deceased client. This is a normal part of our business. Therefore, it’s important to determine what documents can be carried out after the client is deceased, and what cannot. I also must determine what new powers can be created upon death, and which powers cannot.
A power of attorney is a document to be used while a client is alive. It expires when the client dies. A deceased client can’t create this power, but they can still create other powers and new trusts after death. So the first requirement is that the client be alive.
The next requirement is that the client be competent and capable of signing the power of attorney form. This is problematic for many families who wait until it is too late. Their spouse or parent is incapacitated. An incapacitated person cannot delegate a power of attorney. This is why estate planning is so important. It must be done in advance of when you need it. And you never know when you will need it.
The principal’s signature must be notarized to avoid legal challenges
The next requirement is that the power of attorney must be in writing. A verbal power of attorney is not valid in Oklahoma.
Finally, the principal must sign the power of attorney. If the principal is unable to sign, they may direct another person to sign on their behalf as long as it is done in the presence of the principal. Title 58, O.S. § 3005.
In order to create a legal presumption of validity, the power of attorney must be signed before a public notary. By notarizing the signature, the power is presumed to be legally valid. Power of attorney documents are often challenged, from all angles. First, the bank may challenge the validity of it. In probate proceedings, POA transactions before the decedent’s death are often challenged. It’s crucial to hire an attorney for preparing financial documents. This helps avoid legal problems later.
Hire an OKC Power of Attorney lawyer to help you
If you are in need of prepare power of attorney documents, whether for yourself or for a close family member, we invite you to contact us. Our mission is to help families stay out of court and avoid conflict. Valid power of attorney documents are key to managing financial matters without needing court help. Call 405-607-7799 or send us an email to learn more.
Continue reading our next article to hear why you should hire a lawyer to prepare your power of attorney.