Power of Attorney Duties After the Principal’s Death
It isn’t possible to obtain an attorney’s power to represent someone else who has died and an existing power of attorney will be ineffective upon dies of principal, the person who granted you the authority to perform certain actions on behalf of them.
There will be a person who will be responsible for the affairs of their estate after they die however, it will not necessarily be the person appointed as an agent in a power-of-attorney in their life.
Does Power of Attorney Last After Death?
Perhaps your parent passed away and you were named their agent in an Power of Attorney (POA). You’re the person they asked to handle certain personal matters that concern them. The POA granted you the power to represent them in a variety of financial scenarios, including purchasing or selling a home for them, or perhaps just paying their expenses.
You may think that you have to continue paying the bills and settling the accounts following their demise however, you shouldn’t and certainly not unless you’ve been designated as executor of the estate by their will or the court has appointed you as executor or administrator for their estate in the event that they didn’t make an estate plan in their testamentary will.
Who Has Power of Attorney When There’s a Will?
Legally, people can’t have property once they die and probate is the only way to transfer the assets to heirs who are living. The will of your parents must accordingly be submitted to the probate court as soon as possible after the death of their loved ones if they owned an account with a bank or other property held in the sole name of their deceased parents.
The probate process begins for the legal distribution of their property to their beneficiaries living. The executor in the will is accountable to make this distribution and is responsible for overseeing the estate throughout this process.
Who Has Power of Attorney When There’s No Will?
The property of the deceased must be disposed of through probate in order to actually achieve it’s transfer, even though they didn’t leave the property in a will. The main difference is that the assets will be passed compatible to the law of the state instead of like to the wishes of the deceased as stated in the will.
The court can appoint one administrator who will settle estates, if the deceased did not make an estate plan in the form of a will. You may ask the court for appointment as administrator. The court will likely agree when the deceased had no survivorship spouse, or the spouse who survived them and their other children are of the opinion they should be appointed to the task.
Estate Executor Vs. Power of Attorney Agent
In any case regardless of whether or not there is an estate plan, the probate judge grants the authority to handle the estate of a deceased individual to a person who could or not also act as the agent with the authority of attorney. Both roles will be split in the event of death of the. In certain cases the agent named in the POA may also be appointed in the capacity of executor, administrator or trustee for an estate.
Note
You’ll continue to hold the authority to manage the deceased’s bank accounts and other assets, if you’re named as administrator or executor or until the property is transferred to living persons.
What Does Someone With Power of Attorney Do After a Death?
The POA you have to your parents’ names is ineffective and has no value following their passing. The person who died has no property for you to take care of as they cannot legally keep property or money.
The POA may allow you to conduct financial transactions on their behalf However, they technically do not have any ownership of the property or the funds for that for which the POA has placed the responsibility on you. The estate of the POA owns it therefore only the executor or administrator for their estate is able to manage it in the probate procedure.
Note
In reality the majority of financial institutions stop the accounts of individuals who died after they discover their death. The freeze is in effect until they are contacted by the administrator or executor or administrator of estate. If you try to utilize the POA to apply for a loan, you’d be refused.
Certain very small estates don’t require probate. In fact, your parent may have used living trusts to plan their estate instead of a last will and testament. Therefore, probate wouldn’t be necessary. A successor trustee will take over following the death of the deceased in the event that they had left a living trust that was revocable However, the exceptions to this are not a lot.
The POA is invalid in both instances, and is therefore not valid.
Power of Attorney and Rights of Survivorship
It could also alter things in the event that your parent’s account or other asset isn’t included in their probate estate due to some reason. Probate is only needed to transfer assets that your parents own under their own name. They require a formal process for transfer to living beneficiaries.
However, if your parent names you as a co-owner of their bank account, or on their deed to their house that grants them “rights of survivorship,” the account or property is transferred in a way as a gift directly to your upon the time of their death. Probate for these assets would not be required.
You’d still have control of these assets, however, you will no longer be accountable for paying the debts of your parents from this money since probate handles the final expenses. You’d be accountable to pay off debts you signed with the deceased, exactly like you did during their lifetime.
Frequently Asked Questions (FAQs)
Does the an irrevocable Financial Power of Attorney in effect after the death of a person?
The nondurable and durable authority of attorney end following their death. Nondurable powers of attorney expire after the demise of person who is the principal. Durable power of attorneys is valid in the event that the person you’re legally authorized to represent is still active but becomes incapacitated. For instance parents diagnosed with dementia might give a durable power of attorney to a child who is an adult.
What rights does a person with a power of attorney enjoy following the death of a loved one?
Even if you were granted powers of attorney for somebody while you were living, the rights following their death are only in the direction they stipulated within their will. If you are not happy with the decisions that the executor of their estate, you might have the right to challenge the executor in the court.
