What happens to power of attorney when someone dies in the UK?
When someone passes away in the UK, the legal and practical implications of their estate must be addressed. One important aspect of this process is the power of attorney. A power of attorney is a legal document that allows someone to make decisions on behalf of another person, known as the “attorney.” However, when the person who has given the power of attorney dies, the situation becomes more complex. This article will explore what happens to power of attorney when someone dies in the UK.
Understanding the nature of power of attorney
Before delving into the specifics of what happens to power of attorney when someone dies, it is crucial to understand the nature of a power of attorney. There are two types of power of attorney in the UK: enduring power of attorney (EPA) and lasting power of attorney (LPA).
An EPA is a legal document that allows someone to make decisions on behalf of another person if they become mentally incapacitated. This type of power of attorney can be used for both property and financial matters, as well as health and welfare decisions.
An LPA is similar to an EPA but is specifically for health and welfare decisions. It allows the attorney to make decisions regarding the person’s care, treatment, and living arrangements.
Revocation of power of attorney upon death
When the person who has given the power of attorney dies, the power automatically revokes. This means that the attorney no longer has the legal authority to make decisions on behalf of the deceased person. The attorney must cease all actions related to the power of attorney immediately upon the person’s death.
Transferring assets and liabilities
In some cases, the attorney may have been managing the deceased person’s assets and liabilities. When the person dies, the attorney must take steps to transfer these assets and liabilities to the appropriate beneficiaries or legal representatives.
This process may involve:
1. Notifying the relevant authorities, such as banks, utility companies, and government departments, of the person’s death.
2. Selling or transferring property and other assets as directed by the deceased person’s will or estate planning documents.
3. Paying off any debts or liabilities of the deceased person.
Role of the executor or administrator
The executor or administrator of the deceased person’s estate plays a crucial role in managing the estate after death. The executor is named in the deceased person’s will, while the administrator is appointed by the court if there is no will.
The executor or administrator is responsible for:
1. Collecting the deceased person’s assets.
2. Paying off any debts or liabilities.
3. Distributing the remaining assets according to the deceased person’s will or the laws of intestacy (if there is no will).
The executor or administrator may seek the assistance of the attorney in managing the estate, but the attorney’s role is limited to the extent that they were acting within the scope of the power of attorney.
Conclusion
In conclusion, when someone dies in the UK, the power of attorney they have granted to an attorney automatically revokes. The attorney must cease all actions related to the power of attorney and assist the executor or administrator in managing the deceased person’s estate. Understanding the implications of power of attorney upon death is essential for both the attorney and the deceased person’s family and friends.
