Attorney Thomas B. Burton explains why your Agent's authority to act under your Financial Power of Attorney document ends at your death.
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Transcript of Video: Why Your Financial Power of Attorney Document Dies With You
Today's question has to do with the
power of attorney for finances document
and why does it end after the person who
made the power of attorney dies
this is often a confusing subject we
talk about using a power of attorney for
finances during your lifetime to help
avoid the need for a guardianship if
you're incapacitated and unable to act you can name someone else to manage your
financial affairs while you recover and
get to good health however that
financial power of attorney is only
effective while you are alive
upon your death the power of attorney
under that document dies with you after
your death the person who takes over is
the personal representative under your
will the or the trustee named under your trust
so for instance if your daughter is
paying your bills while your alive under
the financial power of attorney and then
you die she no longer has the power to
pay your bills after your death even
though some of those bills were possibly
accrued while you were alive if she's
the personal representative she must
wait until she's appointed by the court
and files the will with the court and
gets the necessary letters to act as
personal representative if however you
formed a trust and your daughter was
named as trustee she should have the
authority to act while you're
incapacitated and the power should
continue to flow seamlessly after your death
until your trust and estate is
administered and wrapped up for this
reason a revocable living trust is often a
nice document because there isn't that
period where the power of attorney ends
at death and your child or person you
name has to wait to get appointed by the
court this is often confusing so just
remember a power of attorney is
effective while you're alive and it dies
with you when you die. Great question and thanks for asking.
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Transcript and captions provided for ease of access for the hearing impaired.