A power of attorney gives a specified agent the legal authority to make decisions on behalf of someone else. This authority can cover financial, medical or other personal matters.
Many people use powers of attorney as part of their estate planning. However, it is important to understand how long this authority lasts and what happens when the person granting the power dies.
A power of attorney ends at death
In Minnesota, a power of attorney automatically ends when the person who created it dies. The agent loses all legal authority to act on behalf of the deceased. This applies to both financial and healthcare powers of attorney. Any decisions made or actions taken after death under a power of attorney have no legal effect.
Once the person dies, their estate becomes the responsibility of a personal representative. This representative, sometimes called an executor, handles the deceased person’s financial matters. This includes paying debts, managing property and distributing assets to beneficiaries. The probate court usually oversees this process.
What happens to financial matters after death
After death, financial institutions will no longer honor a power of attorney. If the agent tries to access bank accounts or manage property, they will be unable to do so. Instead, the personal representative will gain access by presenting legal documentation, such as a death certificate and letters of appointment from the probate court.
If the deceased person held property jointly with another person, that property may transfer directly to the co-owner. Similarly, accounts with designated beneficiaries, such as life insurance or retirement funds, usually pass outside of probate. The power of attorney no longer controls these assets after death.
Planning for after-death decisions
Considering that a power of attorney does not remain in effect after death, having a will or trust is essential for managing assets. These legal tools provide clear instructions for handling property and distributing it to loved ones.
Understanding the limits of a power of attorney under Minnesota law can help you plan effectively. While this document is useful during life, other legal instruments are necessary to manage affairs after death.