A power of attorney is a powerful planning document that enables you (the principal) to give another person (the agent or attorney-in-fact) the power to act for you while you are alive.
Because it is often prepared in the context of estate planning, many believe it gives their agents the power to continue acting after their death.
In South Carolina, the agency relationship created by a power of attorney document ends upon a person’s death as a matter of law.
What Does a Power of Attorney Do?
A power of attorney (POA) can convey a significant range of power to the person you appoint. This includes the ability to do the following on your behalf:
- Enter into real estate transactions;
- Enter into leases and purchase personal property;
- Buy bonds or other securities;
- Engage in banking transactions;
- Engage in business operating transactions;
- Handle insurance transactions;
- Engage in estate transactions;
- Make decisions concerning any claims you have or in which you may be involved;
- Make gifts or charitable donations;
- Manage any benefits you receive or are entitled to;
- Manage the financial aspects of your health care;
- Manage your retirement accounts;
- Handle your tax matters;
- Delegate any of the above responsibilities to a third party
Power of Attorney Documents
A POA document can be tailored to allow you to choose how specific or broad you would like the powers you give in order to suit your needs. An agent can also update a power of attorney over time as a principal’s needs change.
In South Carolina, language can be added to make these powers durable, meaning that once delegated, they remain in place even in the event of your incapacity. People frequently execute a power of attorney for this reason. They do not want to worry about what may happen should they become incapacitated or whether a loved one will have the ability to handle their affairs if they are no longer able to do so.
Power of Attorney After Death
That being said, a power of attorney expires upon your death. So, if you have entrusted a particular person with carrying out certain functions on your behalf while you were alive, those abilities cease when you pass away.
If you are concerned about maintaining continuity or making sure a particular person oversees your affairs upon your passing, the Hardy Law Firm can help you. Every person’s situation and needs are different, and state laws also vary. Connect with South Carolina estate planning attorney Kevin T. Hardy to help you understand South Carolina laws and customize a plan that meets your needs.