In the legal field powers of attorney are utilized for various different purposes. A power of attorney in Oklahoma is used to name someone who will be legally empowered to act in your behalf in a legally binding manner.
The person executing the power of attorney is referred to as the grantor or principal. The individual who is empowered to act on behalf of the principal is the agent or attorney-in-fact.
There are multiple types of powers of attorney. In this post we will look at limited powers of attorney and general powers of attorney and examine some of the differences.
Limited Powers of Attorney
A limited power of attorney in Oklahoma will grant the agent the power to act on behalf of the principal under limited circumstances.
For example, let’s say that you are conducting business in China for three months. During that time there will invariably be instances when you are called upon to enter into legally binding agreements in the United States.
If you knew someone that you could trust implicitly, you could give this person a limited power of attorney. It would expire when you return in 90 days. The agent would only be empowered to act for you while you are away.
This type of power of attorney can be utilized for scenarios that are even more limited. Suppose you have a sister who lives in Vermont. You love to ski, and she has informed you about a particular piece of property that is for sale. You have rented this home while on vacation. You want to buy it and use it as a vacation getaway.
The only problem is, you are indisposed. You could empower your sister to consummate this transaction using a limited power of attorney. She would have the power to act in your behalf for just this one transaction.
General Powers of Attorney
A general power of attorney in Oklahoma gives the agent or attorney-in-fact sweeping power to act on behalf of the agent. There is no particular expiration date, and the ability to act for the agent is not limited to any particular type of transaction.
In essence, if you execute a general power of attorney, the attorney-in-fact can do anything that you can do when it comes to using your identity to enter into legally binding agreements.
In the field of estate planning durable general powers of attorney are often utilized. A general power of attorney will no longer remain in effect if the grantor becomes incapacitated.
This is a problem, because you may well want to empower someone to make decisions in your behalf in the event of your incapacitation when you are preparing for the eventualities of aging.
If you add the “durable” designation, the general power of attorney will remain in effect even if you become incapacitated.
Parman & Easterday