One of the most important legal documents for a family to have is a power of attorney. It enables a trusted individual to handle financial, medical, or legal matters for a person who is unable to do so due to sickness, injury, old age, or absence.
Families often discover how important these documents are during emergencies. Questions about power of attorney after death frequently arise because many relatives assume the person named in the document can continue handling affairs after a loved one passes away.
A power of attorney is usually terminated at the principal’s death in most states. The executor of the estate or an administrator appointed by the court assumes legal control from then on. Let’s find out what you’ve been missing!
Why Power of Attorney Matters for Families
A power of attorney is useful for preventing delays in getting the family to make important decisions when they need to be made.
If there is an appointed agent, then in some cases, that person can:
- Pay bills
- Access bank accounts
- Discuss coverage with insurance companies.
- Manage property matters
- Take care of health matters if permitted to do so
If you don’t have one, loved ones might have to go through court guardianship proceedings, which are costly and lengthy.
Many states have adopted or adapted the Uniform Power of Attorney Act, and other states, such as Florida, have enacted their own versions under Florida Statutes § 709.2101 through § 709.2402.
What Families Should Know Before Choosing an Agent
Many families don’t realize that selecting the right person is more important.
An agent under a POA owes fiduciary duties to the person who made the POA, meaning he must act in the best interests of the POA’s maker. Problems with judo funds or authority may result in legal penalties.
The individual chosen should be:
- Responsible with money
- Organized
- Calm under pressure
- Honest with relatives
- Can speak effectively
Understanding the Different Types of Power of Attorney
Not all types of power of attorney are created equal.
Common types include:
Durable Power of Attorney
A DPOA continues to serve as the power of attorney if the person becomes incapacitated. One of the most frequently used estate planning techniques for older adults.
Medical Power of Attorney
A document that gives someone permission to make medical decisions on behalf of a person who is unable to speak for themselves.
Limited Power of Attorney
A POA is valid only for a specific purpose, such as selling a home or signing paperwork while on a trip.
An advance directive for financial matters. A power of attorney for finances.
Springing Power of Attorney
A springing POA is only put into effect when a specific event occurs, typically medical incompetence.
What Families Can Do to Avoid Future Problems
Here are some action steps for families:
- Talk about wishes prior to a health crisis
- Check documents periodically over the years
- Keep copies in easily accessible places
- Consider telling trusted family members where the documents are located
- Verify state-specific signing requirements
Some states have notarization or witness requirements. The rules for execution of valid powers of attorney under California Probate Code § 4121 are included to illustrate.
Key Takeaways
- A power of attorney is someone who can act lawfully for another.
- A POA provides families with the ability to handle financial and healthcare matters in the event of an emergency.
- A durable POA typically remains in effect in case of incapacitation.
- A power of attorney authority is typically terminated upon death.
- It is important to select a reputable agent.
- Agents can be subject to heavy fiduciary obligations under state laws.
- With good planning, the family can avoid the conflict and court action.
