What Do You Call the Absolute Power of Attorney?

By Teo Spengler

You may find references on the Web to an "absolute" power of attorney that remains in effect after death, but no such animal exists. Although these important legal documents can grant agents extremely broad authority in both financial and health care matters, every power of attorney expires upon the death of the maker.

You may find references on the Web to an "absolute" power of attorney that remains in effect after death, but no such animal exists. Although these important legal documents can grant agents extremely broad authority in both financial and health care matters, every power of attorney expires upon the death of the maker.

Powers of Attorney

Powers of attorney have little to do with lawyers. Rather, the legal documents are vehicles that allow you to appoint someone to make decisions and take actions in your place. The person making the power of attorney, termed the principal, decides on the scope of the authority granted. For example, you can use a financial power of attorney to name an agent to sell your house or you can name someone to take complete control of your finances.

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Terminating Powers of Attorney

A competent principal can terminate her power of attorney at any time after making it. No formal revocation procedure is necessary as long as the agent is informed, but it is preferable to put it in writing. Regular powers of attorney also expire if the principal becomes incapacitated, but durable powers of attorney do not; they continue in full force until the principal's death. An agent misusing authority granted under a power of attorney, the POA can be terminated by the court.

Death Ends All

The death of a principal terminates a power of attorney in every state. Since an agent's role is to make decisions and take actions in a principal's stead, it makes sense that this authority terminates with the demise of the principal. After a principal dies, her estate passes to her heirs or beneficiaries, who can manage their affairs as they see fit.

Absolute Power of Atttorney

Although no power of attorney lasts beyond the death of the principal, such sweeping powers are afforded by a durable, general power of attorney that it may be appropriate to call it absolute. Whether financial or medical, a durable power of attorney gives the agent the right to act virtually unsupervised in the principal's stead. Although the agent is in a fiduciary relationship with the principal, charged with a very high duty of good faith and fair dealing, it is difficult for loved ones to monitor an agent's actions if the principal is incapacitated.

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Can a Debt Collector Come After the Power of Attorney After a Death?

References

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Can You Sell a Home With a Power of Attorney?

Depending on state laws, powers of attorney can give an agent broad powers over someone’s finances and property. With a power of attorney, the person who gives the power – called a principal – can customize the power he gives his agent. Both limited and general powers of attorney give an agent authority to sell the principal’s home.

Can a Judge Take Away Someone's Durable Power of Attorney?

An agent under a durable power of attorney has legal authority over someone else's finances or medical care decisions. But he is also a fiduciary, held to the highest duty of care known to the law. If the agent violates that duty of care by failing to act in the best interests of the principal, a court can take away his authority and hold him accountable.

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An individual who has been given authority via a power of attorney, also known as an "agent," may sometimes change beneficiaries on bank accounts. Although state law varies, this type of authority may only be granted in specific circumstances. When an agent wields authority she does not actually have --such as changing beneficiaries -- it may be considered an abuse of her power.

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