When an individual passes away, the authority granted by a power of attorney ceases to be effective. Powers of attorney are legal instruments that grant a designated agent the authority to make decisions on behalf of the principal (the individual who granted the power).
However, this authority is only valid while the principal is alive. Once the principal has passed away, the power of attorney is automatically rendered null and void.
What Steps Should Be Taken After Someone Dies?
Upon the principal's death, the following steps involve looking into the person's will or trust.
These documents are crucial in determining the distribution of the deceased's assets and the management of their estate.
Will
A will is a legal document outlining how an individual’s property and assets should be distributed after death. It also names an executor, who is responsible for carrying out the terms of the will.
Trust
Unlike a will, a trust can take effect during the grantor's lifetime and continue after death. A trust designates a trustee who manages the assets held within the trust according to the terms set forth by the grantor.
If the deceased did not leave behind a will or a trust, the management and distribution of the estate will be governed by the laws of the state where the person resided. This process is known as intestate succession.
In Nevada, for example, state laws will determine who inherits the property, and the court will appoint an administrator to handle the estate.
Key Points to Remember
Power of Attorney: Becomes invalid upon the death of the principal.
Will: Specifies the distribution of assets and names an executor.
Trust: Manages assets according to the trust document’s terms, often without the need for probate.
Intestate Laws: Apply if there is no will or trust, and the estate is distributed according to state statutes.
Understanding these distinctions is crucial for anyone planning or managing an estate after a loved one's death.
Proper planning with legal documents like wills and trusts can ensure that the individual's wishes are honored and that the estate is managed efficiently.
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