What is a power of attorney?
The Purpose of a Power of Attorney and Why It Is Not Valid After Death
A power of attorney (POA) is a crucial legal tool that allows one person (the principal) to grant another person (the agent or attorney-in-fact) the authority to make decisions on their behalf. While this document is highly useful in managing financial, medical, and legal affairs during a person’s lifetime, one common misconception is that a power of attorney remains in effect after death. In reality, a power of attorney automatically terminates upon the principal’s death. Below, we explain the purpose of a power of attorney and why it ceases to be valid once the principal passes away.
What Is the Purpose of a Power of Attorney?
A power of attorney serves different purposes depending on the type created. The most common types include:
Financial Power of Attorney – Grants the agent authority to manage financial affairs, such as paying bills, handling investments, and conducting transactions.
Medical Power of Attorney – Authorizes the agent to make healthcare decisions if the principal becomes incapacitated.
Limited or Special Power of Attorney – Allows the agent to handle specific tasks, such as selling a property or managing a single financial transaction.
Durable Power of Attorney – Remains in effect even if the principal becomes incapacitated but still terminates at death.
The primary purpose of a POA is to ensure that someone trusted can act on behalf of the principal when they are unable to manage their own affairs due to illness, disability, or absence.
Why Does a Power of Attorney Terminate at Death?
Once the principal dies, the legal authority granted under a power of attorney automatically ends. This means the agent no longer has the ability to manage the deceased person’s affairs. The reason for this automatic termination is that:
A POA Is a Lifetime Authorization – The principal grants authority while they are alive. Upon death, legal control over the individual’s estate shifts to the executor or administrator appointed through the probate process.
The Probate Court Takes Over – The handling of the deceased’s assets, debts, and distributions must follow the probate process or the terms of a valid trust.
Preventing Fraud or Abuse – Allowing a POA to continue after death would create legal uncertainties and potential for misuse.
What Happens After Death?
After a person passes away, their financial and legal affairs must be settled through one of the following:
Executor or Personal Representative (if a will exists) – The court-appointed executor manages the estate according to the will’s terms.
Administrator (if no will exists) – If the deceased did not leave a will, the court appoints an administrator to handle the estate under state intestacy laws.
Successor Trustee (if a trust exists) – If the deceased had a revocable trust, the successor trustee takes over management of the trust assets.
Key Takeaways
A power of attorney is only valid during the principal’s lifetime.
Upon death, the POA automatically terminates, and the appointed executor, administrator, or trustee assumes responsibility for managing the estate.
If you have been acting under a POA for a deceased person, stop using it immediately and consult with a probate attorney about next steps.
Conclusion
Understanding the limitations of a power of attorney is essential for both principals and agents. While a POA is a powerful document during life, it does not replace a will or trust for estate administration after death. If you need assistance with probate or estate administration, consulting an attorney can help ensure that the correct legal procedures are followed.
📞 Have questions about probate or estate administration? Contact The Probate Law Center at (816) 673-3223 or visit www.ksmoprobate.com for expert legal guidance.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Every estate situation is unique, and you should consult with a qualified attorney for guidance specific to your case.