When it comes to estate planning, one of the most misunderstood tools is the Power of Attorney (POA). Many people assume that having a POA means everything is “taken care of” – even after they pass away. But here’s the truth: a Power of Attorney is only effective while the person who created it is alive, and in most cases, only while they are incapacitated.
Let’s break that down and explain why it’s such an essential – and time-sensitive – legal document.
Myth: A Power of Attorney Works After Death
One of the most common misconceptions we hear is:
"Don’t worry – I’m the Power of Attorney, so I’ll handle everything after they pass."
Unfortunately, that’s not how it works.
A Power of Attorney is a legal document that gives someone (called the “agent” or “attorney-in-fact”) the authority to act on your behalf only during your lifetime. And in many cases, that authority kicks in only if you become incapacitated, such as from an illness, injury, or cognitive decline.
The moment you pass away, your Power of Attorney becomes void. From that point on, only your will or trust and the successor trustee, court-appointed executor, or personal representative will govern what happens to your estate.
Types of Power of Attorney: Financial vs. Health Care
There are two primary types of POAs, and they serve very different roles:
This document allows your chosen agent to manage your financial affairs. It can be drafted to be:
Typical powers include:
A financial POA helps avoid court-supervised conservatorship and keeps things moving during emergencies.
Also called a Medical Power of Attorney or Health Care Proxy, this document gives your agent authority to make medical decisions for you if you are unable to speak for yourself due to incapacity.
These decisions may include:
This document often works alongside an Advance Directive or Living Will, which outlines your specific wishes regarding life support or resuscitation.
What Happens After Death?
Once a person passes away, the POA is no longer valid. At that point, the successor trustee, executor named in their will, or court-appointed administrator if there is no will, is responsible for:
Final Thoughts
A Power of Attorney is one of the most important tools in an estate plan – but it only protects you during life, and usually only when you’re unable to act for yourself. It does not replace a will, trust, or other end-of-life planning tools.
Having both a financial and a health care POA in place ensures that someone you trust can step in to help if you're ever unable to make decisions for yourself. But without these documents, your loved ones could be forced to go through lengthy (and expensive) court proceedings to get the authority they need.
If you don’t yet have a POA or haven’t reviewed your estate plan in years, let’s talk. We can help you put the right documents in place – and give you peace of mind for whatever life brings. Contact The Law Firm of Jeffrey Burr today to get started!
"*" indicates required fields