Powers of Attorney After Death

It’s important to understand that standard powers of attorney typically expire upon death. They are insufficient for handling specific post-death obligations, such as paying funeral costs, rent, or utilities. To cover these immediate needs, you can create a restricted post-death power of attorney that explicitly grants authority for these purposes.

 
Why Standard Powers of Attorney Are Not Enough

Standard powers of attorney are only valid during your lifetime and terminate immediately upon your passing. This means that even trusted individuals holding your POA will no longer have legal authority to act on your behalf after death. To bridge this gap, you need a specialized power of attorney that includes provisions for limited, specific actions post-death.

 
How to Restrict a Post-Death Power of Attorney
Funeral Costs

The power of attorney can explicitly authorize payments for funeral services, including:

• Funeral home fees.
• Memorial services, flowers, and grave maintenance.
• Rent Payments
  

The POA can ensure that rent payments continue to meet lease obligations or manage the residence until the estate is formally transferred.

Utility Bills
It can also cover ongoing payments for critical utilities, such as:

• Electricity, gas, and water.
• Internet and telephone services.
   
  How to Draft Such a Power of Attorney
  

The power of attorney must be tailored to these specific needs. For example:

"This power of attorney authorizes the holder to use funds from account [Account Number] to pay for my funeral expenses, ongoing rent payments, and utility bills, including electricity, gas, water, telephone, and internet, until these obligations are managed by my heirs or executor."

Additionally, it’s wise to set a time limit:

• "This power of attorney remains valid for up to three months after my death."
  
• "This authority terminates upon the formal appointment of an executor or heirs."
   
  Why This Special Power of Attorney Matters
  

Immediate Action: Allows your trusted person to act quickly without waiting for estate proceedings.
Prevents Disruptions: Ensures rent, utilities, and other obligations are handled seamlessly.
Minimized Risk: Limits authority to specific accounts and tasks, reducing potential for misuse.
 
Next Steps

Creating a restricted post-death power of attorney requires careful drafting to ensure it complies with legal requirements. A notarized document is highly recommended, especially if it involves contracts or significant financial transactions. Contact us to help you design a power of attorney that meets your needs and ensures your affairs are managed effectively after your passing.