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CA Code 4152 states any power of attorney, which includes your grandmother's right to sign for her husband, ends with the death of the principle. So she could not legally sign his name to anything after his death, even the same day of his death. Her signature makes the transfer invalid if she had no authority to sign the agreement. The only way she could sign is if probate was conducted and she was made owner of the sole proprietorship and then she could sign as heir of the sole proprietorship.
So, her signature is invalid and what was perpetrated here was also a fraud, which I would hope be part of the suit that she is pursuing them in court over.
Thank you for your reply.Actually, she had a common law power of attorney as his spouse. So the same principles apply. That common law PoA ended at his death. So that is where you need to be arguing, proving the signature was after his death, then the CA code saying she could not sign for him after his death and finally, since she could not sign, her signature did not have any legally binding effect to create anything.