ANSWERS: 7
  • Not generally. POAs usually are invalid once the person issuing it dies.
  • Power of attorney is only relevant while the deceased is still alive... it is designed to give close relatives the power to use the ill person's assets on their behalf eg. to pay nursing home bills or pay for medical care when the ill person is mentally or physically incapable of carrying out the necessary transactions for themselves. However once the person passes away, there is no such thing as power of attorney any more so it is not a factor in your question. This is an issue of inheritance laws, and as far as I am aware in most places the basic rule is that unpaid debts and the like pass automatically to the next of kin, who will be liable for them. They may be certain exemptions relating to specific kinds of debts, I am not an expert in the field however and these things do vary from place to place so this is as accurate an answer as I can give you. edit - da ben's answer reminded me, it IS technically the executor of the will who takes responsibility for paying the debts... however this is nearly always the next of kin who carries out the role of executor so it is the same difference, even more so because the next of kin usually inherits the bulk of the estate too. Technically I should have said "executor" instead of "next of kin" however.
  • you have the wrong term..power of attorney only applies to someone still living....an executor is responsible for arranging the payment of bills from the estate..but not personally responsible for the bills.
  • The power of attorney is only in effect as long as the person is alive. Once the person has died then it's an estate matter. If there is no will then the heirs will need to go to probate court and file for probate. If there is no money in the estate or property that can be sold to pay the bills owed then the creditors will have to write off the debt.
  • If it is an enduring Power of Attorney that dies with the person and the POA no longer has any right to touch any of the deceased persons eztate. The payment of anyunpaid bills passes tothe executers after probate has been proven. If the POA continues to use the money in any way they could be prosecuted for fraud. The person that held the POA had best get together all accounts.
  • As others have written, the POA is only valid when the individual is living. Once deceased, the Personal Representative of the Estate is required to oversee the estate either with or without an Attorney. I would highly recommend a GOOD Attorney. I was the Personal Representative for my Grandmother's estate, which by the way had more debt than value. Since there was no Will it was a sticky situation. I hired an Attorney that informed me because the debt was greater than the value, the decedent's children would not benefit from the estate as it would be liquidated to repay outstanding debts. Being young and naive, I believed what the Attorney indicated and thought the estate was settled. About 9 years after that (May 2007) I was informed by the Probate Court the estate was not settled and I was in contempt of court and could be jailed. There was an order to show cause and I had to appear before the court. Apparently the Attorney that supposedly settled the estate was actually disbarred and never settled the estate. I was not informed of this or if I was, the mailing never made it to my new address. I had to hire another Attorney and begin the process over again. I went to a number of Attorneys that required a cash retainer of which I did not have. I was lucky enough to find an Attorney that was willing to take on the estate that had been in limbo for 9 years. This mess was just completed in April 2008. The moral to this story? Think long and hard about taking on the responsibility of being the Personal Representative of an estate. You can and will be held personally responsible should an error occur. Also, keep a close eye on the "professional" you hire. It will eliminate a lot of stress and hardship in the long run. Good luck!
  • The answer to your question is no. A person holding a power of attorney (POD) at the time of the death of the maker is not personally responsible for the decedent’s debts. Nor is the executor or administrator of the deceased personally liable for those obligations owed at the time of death. Only the assets of the deceased are liable for the debts. Moreover, a POD is nothing more agency relationship between the grantor or maker of the power and the appointed agent or attorney-in-fact. Unless it is coupled with an interest * it can be revoked at the pleasure of the maker. Importantly here is that unless the power or authority granted is coupled with an interest any authority so granted automatically ceases and expires upon the death of the grantor. Also, no form of a POD - general, special or coupled with an interest - can serve as a substitute for a last will and testament. [*] A “power of attorney coupled with an interest” is one in which the agent or attorney-in-fact has paid some consideration for the right to exercise the authority granted as spelled out in the instrument. Such a POD then becomes a contract and if not exercised during the lifetime of the grantor it can be enforced against the maker’s estate as any other contractual obligation.

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