Does Power of Attorney Expire When Someone Dies?
Many people believe a “Durable” Power of Attorney (POA) lasts forever. It does not. Under current US law, all Power of Attorney authority generally ceases the moment the principal dies. If you use a POA to withdraw money after death—even for funeral expenses—you may be committing bank fraud. Here is why the power stops and who actually takes control.
1. The Rule: The “Hard Stop” at Death
Regardless of whether you have a “General” POA or a “Durable” POA, the authority is strictly limited to the principal’s lifetime.
It does not mean it survives Death.
Once the heart stops, the POA document becomes a worthless piece of paper.
2. Before vs. After Death (The Red Line)
Actions that were perfectly legal 5 minutes before death become illegal 5 minutes after.
| Action | While Alive (Coma) | After Death |
|---|---|---|
| Pay Medical Bills | Legal (Yes) | Illegal (No) |
| Sell House | Legal (Yes) | Void (Executor Only) |
| Write Checks | Legal (Yes) | Fraud (Bank Freeze) |
| Access Safe Box | Legal (Yes) | Locked (Court Order) |
3. Timeline: The “Authority Gap”
There is often a dangerous gap between when the POA ends and the Executor is approved by the court. During this time, assets are generally frozen.
| Timeline | Your Power | Legal Status |
|---|---|---|
| Alive | 100% | |
| Death | 0% | |
| Probate (Wks later) | 100% |
4. Strategy: The Executor Takes Charge
The only person who can legally handle the deceased’s finances is the court-appointed representative.
- If there is a Will: The person named as “Executor” must file the Will with the probate court to get “Letters Testamentary.” Only then can they touch the money.
- If there is NO Will: State law determines priority (usually spouse, then children). The court appoints an “Administrator.”
- The Trust Exception: If assets are in a Living Trust, the “Successor Trustee” can usually take over immediately without court delay.
5. Warning: Don’t Act “Helpful”
Grieving family members often make serious legal mistakes trying to pay bills.
⛔ Do Not Use the ATM Card
Even if you have the PIN and the POA document:
- Using the deceased’s debit card after death is technically theft, even if used for funeral costs.
- Banks check Social Security Death Master Files. If they see a transaction after the date of death, they flag the account for fraud investigation.
- Correct Move: Bring the death certificate to the bank. They may allow a check written directly to the funeral home.