Power of attorney is an important part of lifetime planning. A POA is accepted in all states, but the rules and requirements differ from state to state. However, one of the main concerns is about what happens with the principal’s affairs when he passes away and who has power of attorney after death if there is no will.
What Is a Power of Attorney?
Power of Attorney (POA) is a document that gives someone the legal authority to manage another person’s affairs.
The person who grants authority is called the principal. The person who receives the power to act on the principal’s behalf is known as an agent or attorney-in-fact and can be any competent individual, such as a family member or friend.
There are two main types of POA: medical and financial, both giving the agent general or limited powers.
Types of Power of Attorney
POAs can be divided into several different categories, such as:
General power of attorney
By a general POA, you give your agent the legal authority to act for you in all the situations permitted by local law. This includes financial affairs, business, and other legal matters.
It acts as a non-durable Power of Attorney, terminating when the principal becomes incapacitated or dies. Also, the principal can revoke the POA at any time.
Durable power of attorney
A durable POA is a legal document allowing the agent to handle the principal’s financial affairs, business, and legal matters when he cannot make those decisions for himself.
The attorney agent can continue to make decisions for the principal even after he becomes mentally incapacitated, but his authority ends terminated when the principal passes away.
Non-durable power of attorney
On the other hand, a non-durable POA allows your agent to act on your behalf for a specific event when you can’t present yourself.
It is valid when you are legally competent, meaning you are coherent and able to think for yourself. A non-durable power of attorney takes effect as soon as all documents are signed and ends when:
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the principal becomes incapacitated.
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is revoked by the grantor.
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at the principal’s death.
Financial POA
The financial POA enables the agent to manage all the principal’s financial and business affairs (filing tax returns, signing bank checks, depositing, and mailing Social Security checks).
More information
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Disclaimer: The information above is provided for general information only and should not be considered legal advice. Our probate attorneys provide legal advice to our clients after talking about the specific circumstances of the client’s situation. Our law firm cannot give you legal advice unless we understand your situation by talking with you. Please contact our law office to receive specific information about your situation.
