A power of attorney (POA) grants an individual (the Attorney) the authority to make decisions on behalf of another person (the Donor). This authority can cover financial, medical, or legal matters, depending on the type of POA. But, what happens to LPA when the Donor dies? Understanding the legal implications is crucial for anyone acting with a power of attorney.
Immediate Termination of Power of Attorney
One of the most important aspects to understand is that a power of attorney automatically terminates upon the death of the Donor. This means that as an Attorney, you no longer have any legal authority to act on their behalf. Any actions taken after the Donor’s death, may be considered invalid and could lead to legal consequences.
Steps to Take After the Donor’s Death
While your role as power of attorney under a Lasting Power of Attorney (LPA) ends, there are still responsibilities you may need to handle. This is particularly if you were closely involved in the principal’s affairs. Here’s what you should do next:
1. Notify the Appropriate Parties
Inform close family members and friends about the passing. Then notify the Donor’s healthcare providers, financial institutions, and any other relevant organisations. You must also notify the Office of the Public Guardian (OPG)in the UK and send them the power of attorney documents.
2. Obtain the Death Certificate
You will need multiple copies of the death certificate to complete various administrative tasks. This might include closing bank accounts and settling estate matters.
3. Cease All Actions Under the LPA when the donor dies
You must immediately stop making any financial or legal decisions on behalf of the deceased. Continuing to act under the LPA after death can be considered fraud. In certain circumstances, if you are also an executor, it could also be considered intermeddling. Intermeddling is when you continue to administer the estate after death but, then later decide to give up the executorship.
4. Locate the Will and Estate Executor
If the Donor had a will, locate it as soon as possible. The executor of the estate (appointed in the will) takes over the responsibility of managing the deceased’s assets and settling debts.
5. Contact the Probate Court
If the Donor had a will, it must go through the probate process unless the estate was set up to avoid probate (e.g., through a trust). If there is no will, the laws will determine how assets are distributed, typically through intestate succession.
6. Assist the Executor If Needed
If you were involved in the Donor’s financial affairs, you may be asked to provide documentation or clarification to the executor or legal representatives. Your knowledge of the deceased’s affairs could be helpful in settling outstanding debts, locating assets, or resolving disputes.
Third party authority
The accounts that you have been dealing with as the Attorney may still turn to you for authority to act after the Donor has died. You need to point out clearly that you are no longer in charge and point the account or institution towards the executor.
Special Considerations
- Joint Accounts: If you were named on any joint accounts with the Donor, you might still have access to those funds. This will depend on the account type and bank policies.
- Trusts and Beneficiary Designations: If the deceased had assets in a trust or named beneficiaries on accounts (such as life insurance policies or retirement accounts), those assets will pass directly to the beneficiaries without going through probate.
- Legal Consequences: If you suspect any wrongdoing in managing the Donor’s estate, seek legal counsel to protect yourself. Ensure everything is handled correctly.
Final Thoughts
Being an Attorney is a significant responsibility, but that authority ends upon the Donor’s death. At that point, the estate executor or court-appointed administrator takes over. If you were the Attorney, your knowledge of the deceased’s financial and personal affairs can still be valuable in assisting the family and legal representatives. Understanding your role and acting within the law ensures a smooth transition and avoids potential legal issues during the estate settlement process.
