Does a Power of Attorney End at Death in NC or SC?

Many people use a power of attorney to help manage financial or medical decisions as they age or face illness. It is a familiar document that names someone to step in when help is needed. But what often gets overlooked is the fact that this power does not continue after death. Once the person who signed the document dies, the authority granted under the power of attorney comes to an immediate end.

If you are named in a power of attorney, or if a family member recently passed and left one in place, it is important to understand what this document does and when its power stops. Misusing it, even with good intentions, can lead to legal and financial problems.

What Is a Power of Attorney?

A power of attorney (POA) is a legal tool that allows one person (called the principal) to give another person (called the agent or attorney-in-fact) the authority to make decisions on their behalf. That might include handling bills, transferring property, or communicating with banks and medical providers. These documents are governed by the Uniform Power of Attorney Act in both North and South Carolina.

The North Carolina version is codified in Chapter 32C of the North Carolina General Statutes. In South Carolina, the rules are found in Title 62, Article 5 of the South Carolina Code. Both sets of laws make it clear that the agent’s powers are limited to the lifetime of the principal.

What Happens When the Person Dies?

The power of attorney is only valid while the principal is alive, and that means the moment of death automatically ends the agent’s authority. From that point on, only someone appointed by the probate court, usually the executor named in the will, has the legal authority to act on behalf of the estate.

Using a POA after the principal has passed can cause serious problems. For example, if an agent writes a check or closes a bank account after death, the bank may flag the transaction as unauthorized. Those actions could delay the probate process or trigger a legal dispute, even if no harm was intended.

Why Does the Law End the POA at Death?

The logic behind this rule is straightforward. A power of attorney exists so the principal can get help managing their own affairs. Once the principal has passed, they no longer need help making decisions. Instead, their assets must be settled through probate or trust administration.

The law shifts responsibility to the executor or personal representative, who acts with court oversight. This keeps things fair for creditors, beneficiaries, and others with an interest in the estate.

An Example of This Scenario

Let’s examine a hypothetical situation involving a woman named Elaine, who gave her niece power of attorney to handle her household bills and bank deposits while she recovered from surgery. The arrangement worked well, and Elaine remained mentally sharp for several years. When she passed away, her niece continued paying bills and moving funds using the same document.

A few weeks later, the bank discovered that the account had been accessed using a POA that was no longer valid. The funds were frozen, and the family had to appear in court. The niece’s actions were well-meaning, but because the document expired at death, she was no longer authorized to use it.

Health Care Powers of Attorney Also Expire

A power of attorney for health care, sometimes called a medical POA, follows the same rule. It gives someone the ability to make medical decisions when the principal is incapacitated. But once death occurs, that document no longer applies.

After death, decision-making authority may fall to a person named in an advance directive or pre-arranged funeral instructions. If no such document exists, the family may need to follow the default rules set by state law. In North Carolina, the next-of-kin order of priority appears in G.S. § 130A-420, and this outlines who may make decisions when no written directive is in place.

Additional Reading: Power of Attorney For a Minor

What if You Are Named Executor Too?

Sometimes, the same person is named as both agent under a POA and executor of the estate. But even in those cases, the roles are legally distinct. Being the agent under a power of attorney does not mean you automatically have the right to act after the person dies.

You must wait for the probate court to officially appoint you as executor. Until that happens, you cannot access accounts, sell property, or handle official matters related to the estate. If the deceased had no will, someone must apply to be the personal representative under intestate rules.

What Should You Do After Someone Passes?

If you held power of attorney and the principal has died, the first step is to stop using the document. Notify any institutions where it was on file, including banks, insurance companies, and government agencies. They will need a death certificate and formal documents from the probate court before releasing any information or funds.

If you are named as executor, you must submit the will to the probate court and request official appointment. That process grants you the authority to manage the estate. Until then, no one has legal control over the deceased person’s property.

Contact an Estate Planning Attorney to Arrange a POA

If you are named in someone’s power of attorney, make sure you know what it does and when it ends. And if a loved one has passed, speak with a probate attorney to understand your next steps. Bespoke Estate Planning helps clients in both Carolinas, and whether you need a Myrtle Beach estate planning lawyer or someone to help with trust formation in Wilmington, NC, give us a call.