Information on Powers of Attorney
There are two types of powers of attorney. One is for health care and the other is for financial affairs. All powers of attorney are automatically revoked when the person giving it dies.
Attorney Tom Olsen: When we do powers of attorney for our clients, we do two types. We do one for healthcare, one for financial purposes, including preparing tax returns. So, you cannot use healthcare to do financial business. Number two, power of attorney's can only be used while that person is alive once that person passes away, they are automatically revoked. It is as if they had been ripped up and they cannot be used anymore. If you need to take care of business for somebody after they pass away, then you need to open up a probate estate for them and be appointed as the executor personal representative.
Chrissy: And I think to, Tom, that brings up a point. We get this question quite a bit. Just to clarify for people, that often when somebody is doing these legal documents and again a healthcare power of attorney, a financial power of attorney and for example, that they are doing their will at the same time. That person who is in charge on the power of attorneys, could be the same person that is in charge after that person passes away, but now they're doing it in a different role. So, the power of attorney documents cease you can longer use those but now you can be in charge, as for example, the personal representative under the will and you be using that document to now transact business including opening up a probate.
Attorney Tom Olsen: You got it.