How Does a Financial Power of Attorney End at Death and How Can Heirs Sell Jointly Inherited Property?

Detailed Answer

In New Mexico, a financial power of attorney (POA) gives an agent authority to handle your finances while you’re alive. When you die, that authority ends immediately. The agent must stop managing your assets at the moment of your death and notify any institutions where the POA was used.

After death, your estate moves into probate under the NMSA 1978, § 45-3-303. The court appoints a personal representative (also called an executor or administrator). Only that personal representative can collect assets, pay debts, and distribute property to heirs.

If you left real estate jointly to multiple heirs—often as tenants in common—each heir owns a percentage. To sell the property, all co-owners must agree to the sale. If they cannot agree, any co-owner may file a partition action in district court under NMSA 1978, § 42-6-1. The court can order a physical division of the land or a forced sale with proceeds divided by ownership share.

Steps for heirs to sell jointly inherited property:

1. Confirm the POA has ended by obtaining the death certificate.
2. File for probate so the court appoints a personal representative.
3. Transfer title from the decedent’s name into the names of the heirs or the estate.
4. Obtain all co-owners’ signatures on the listing agreement and sales contract.
5. If co-owners disagree, file a partition action under § 42-6-1 to force division or sale.

Helpful Hints

• Keep the death certificate and probate documents handy when contacting banks or title companies.
• Review the will or trust for any specific instructions on real estate sale.
• Consult an attorney to avoid mistakes in partition filings and property transfers.
• Consider mediation if heirs cannot agree on sale terms before pursuing court action.
• Confirm that all inheritance-related taxes are paid before closing a sale.