Powers of Attorney (POA) are crucial legal instruments in estate planning that grant someone else the authority to act on your behalf in specific situations. In Oklahoma, POA’s play a significant role in managing your affairs if you become incapacitated or unable to make decisions. Here’s an in-depth look at what Powers of Attorney are, how they function, and their importance in estate planning.
Types of Powers of Attorney
In Oklahoma, there are several types of Powers of Attorney, each serving different purposes:
- General Power of Attorney: This grants broad powers to the appointed agent to handle a wide range of financial and legal matters on your behalf. It is typically applicable for a specified period or until the principal becomes incapacitated.
- Durable Power of Attorney: Unlike a general POA, a durable POA remains in effect even if the principal becomes incapacitated. This type of POA is essential for long-term planning as it ensures continuity in managing your affairs without court intervention.
- Limited (or Special) Power of Attorney: This grants the agent authority to handle specific tasks or transactions, such as selling property or managing a bank account. It has limits in scope and duration and expires after finishing the task.
- Healthcare Power of Attorney: This authorizes the agent to make medical decisions on your behalf if you are unable to do so.
- Springing Power of Attorney: This type becomes effective only upon the occurrence of a specified event, typically the incapacitation of the principal. It “springs” into action under predefined conditions.
Decide which of these options would be best for you and take into consideration things such as long-term health issues and who you’re close to. If you are unsure at all if the person you are appointing can do the job of a POA, you should reconsider who it should be.
Importance of Powers of Attorney in Estate Planning
POA’s serve several important functions when it comes to estate planning.
- Financial Management: A POA ensures that your financial matters are taken care of even if you are unable to.
- Healthcare Decisions: A Healthcare Power of Attorney allows you to designate someone you trust to make critical medical decisions on your behalf.
- Avoiding Guardianship: By appointing an agent through a durable POA, you can avoid the need for a court-appointed guardian if you become incapacitated.
- Flexibility and Control: A POA provides flexibility and control over who manages your affairs and how they do so.
Appointing a POA doesn’t just avoid future hassles, it lets you know that they will act in your best interests. Further, being a POA is a very important task to take on. The integrity and reliability of the person you appoint is key to making sure one is used properly.
Creating a Power of Attorney in Oklahoma
When you’re ready to create a power of attorney, there are a few steps you need to take:
- Choose Your Agent: Select a trustworthy and competent person to act as your agent. This person should be capable of handling the responsibilities and making decisions in your best interest.
- Determine the Scope and Duration: Decide whether you need a general, durable, limited, healthcare, or springing POA. Specify the powers you are granting and any limitations.
- Draft the Document: Work with an attorney to draft the POA to ensure that it complies with Oklahoma law.
- Sign and Notarize: The POA document must be signed in the presence of a notary public. For healthcare POAs, it may also need to be witnessed by two disinterested parties.
After completing these steps, provide copies to your agent, an attorney, as well as relevant institutions (banks, healthcare providers, etc.). The only way to enforce a POA is to make sure it’s accessible to the people who require its validity.
Creek County Estate Planning Attorneys
Powers of Attorney are vital components of estate planning in Oklahoma, providing a mechanism to manage your affairs and make decisions on your behalf if you become incapacitated. They offer peace of mind, knowing that they will handle your financial, legal, and healthcare decisions according to your wishes. If you’re wanting to create a power of attorney, our team at Creek County Attorneys can help you. Call us at 918-209-3709 for a free and confidential consultation or ask a legal question here.