Saturday, November 25, 2006

Can a Durable Power of Attorney Pay Debts After the Death of a Person?

If you want your spouse, a relative or a close friend to handle your financial affairs if you become incapacitated, you must file a durable power of attorney giving him permission to do so. You can give rights to your durable power of attorney immediately or specify that he only has these rights if you become unable to handle your own affairs because of injury or illness.

Durable Power of Attorney Ends at Death

    Nolo.com says that durable power of attorney ends when you die. Your durable power of attorney has the right to make financial decisions and take care of your financial affairs while you are alive, but cannot do so after you die. When you die, responsibility for your finances transfers to the executor of your estate.

Use Your Will to Handle Posthumous Debts

    If you want your durable power of attorney to handle your debts after your death, name her in your will as the executor of your estate. By doing this, you give her financial responsibility for your entire estate once you die. In addition to handling debts, she will be responsible for your funeral costs, estate taxes and distributing inheritances to your heirs.

Other Reasons Power of Attorney Ends

    If your spouse is your durable power of attorney and you divorce, in some states his power of attorney automatically ends. In other states, you must file paperwork if you choose not to continue to trust your ex-spouse to be your durable power of attorney. If your power of attorney dies before you do, or is unavailable at the time the agreement goes into effect, his power of attorney ends.

How to File a Durable Power of Attorney

    Get a form for durable power of attorney from your lawyer or your state department. Fill out the form and sign it in front of a notary public. File it with your Secretary of State. In North and South Carolina, you must also file the form with your local land records office. Consider writing a will and filing it with the court clerk in your county of residence at the same time to ensure your durable power of attorney has financial power after your death.

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