Can a Power of Attorney Manage Assets After the Principal’s Death in North Carolina? - Pennsylvania
The Short Answer
In Pennsylvania, a power of attorney generally does not give the agent ongoing authority to manage a person’s assets after the principal dies. After death, control typically shifts to the decedent’s personal representative (executor/administrator) acting under probate authority, not the POA.
However, Pennsylvania law can protect certain actions taken under a POA after death if the agent (or a third party) acted in good faith without actual knowledge of the death.
What Pennsylvania Law Says
As a general rule, a POA is an agency relationship tied to the principal’s lifetime. Once the principal dies, the estate becomes a separate legal administration, and the person with authority to gather, safeguard, and distribute probate assets is the court-recognized personal representative (executor/administrator), not the POA agent.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 5605.
This statute establishes that the principal’s death does not revoke or terminate the agent’s authority as to an agent or other person who, without actual knowledge of the death, acts in good faith under the power, and those actions can bind the principal’s successors in interest.
Why You Should Speak with an Attorney
While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: If probate is needed, delays in getting the right person appointed can create financial risk (missed bills, frozen accounts, tax issues) and can trigger disputes over who should serve.
- Burden of Proof: If an agent used the POA around the time of death, the key issue often becomes whether the agent (and any bank or buyer) had actual knowledge of the death and whether the transaction was truly in good faith under 20 Pa.C.S. § 5605.
- Exceptions: Not all assets are controlled the same way at death (for example, jointly owned property, beneficiary-designated accounts, and trust assets may pass outside probate). Determining what the POA could touch (if anything) versus what the estate controls can require a careful title-and-beneficiary review.
Trying to handle this alone can lead to rejected transactions, allegations of improper self-dealing, or estate litigation—especially if other heirs believe the agent acted after death without authority.
Get Connected with a Pennsylvania Attorney
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.