Have you ever wondered what really happens to a Power of Attorney (POA) once someone passes away? Many folks assume the authority continues, but that is not how it works.

At Peach State Wills and Trusts^©, we help Georgians tackle questions just like this every day. Today, we'll clear up the confusion surrounding POA at death, especially when there is no will in place, and explain how matters wind up being handled in the absence of formal estate planning.

The Power of Attorney Ends at Death

A Power of Attorney is designed for circumstances during the principal's lifetime. As soon as the principal dies, that POA is no longer valid. Even if it was a durable POA, that authority ends right away upon the principal's death.

In other words, neither a durable POA nor a non-durable POA can extend beyond the principal's passing. The agent may have had full authority to pay bills or manage finances while the principal was living, but after the individual dies, the agent has no legal standing to act any further.

This automatic termination protects the deceased person's estate from any ongoing actions that were never intended to apply after death. Instead, the role of handling affairs transfers to other parties, such as an estate executor or administrator, depending on the situation.

What Happens When There Is No Will?

When someone in Georgia passes away without a valid will, the legal term for that is “dying intestate.” This means that their property distribution will follow Georgia's rules of intestate succession, which lay out how assets should be distributed to close relatives.

Under these rules, the closest living relatives—often a spouse, then children, then parents, and so on—are the ones who will receive the property. This occurs only after settling the final debts or taxes. The probate court oversees this entire process, including appointing an administrator to settle affairs.

Broadly speaking, Geogia's laws look at whether the deceased is survived by a spouse, children, or other next of kin. The share for each relative will depend on the deceased's family structure. To clarify how assets are separated among relatives, the court will review the family tree, confirm the rightful heirs, and ensure that property or funds reach them according to the law.

●        The spouse typically inherits alone if there are no children.

●        If there are a spouse and children, Georgia law divides assets among them, with the spouse's share being at least one-third.

●        If there is no spouse or descendants, then parents or siblings could inherit by following the standard order of next of kin under Georgia law.

This order helps establish predictability, but it might not align with what the deceased would have chosen. That is one major reason why creating a thorough will or trust is so valuable.

Once the probate court identifies qualified heirs, an official estate administrator will be appointed. This person has the authority to gather all assets, pay estate expenses, and distribute property according to state law.

The Role of the Estate Administrator

The administrator acts as the person in charge of the deceased's affairs, although they must still report and answer to the probate court. An administrator's duties can be divided into three main responsibilities:

●        Locating and gathering all of the deceased's assets

●        Paying valid debts, final taxes, and any relevant expenses

●        Distributing any leftover estate property to the rightful heirs

Carrying out these tasks usually involves submitting paperwork to the probate court, notifying certain individuals or businesses of the death, and keeping track of every expense or claim made against the estate. The administrator also has to be mindful of any deadlines or filings the court might set.

Budgeting of estate finances can be a major component of the job. There may be insurance payouts, mortgage obligations, or outstanding liabilities that must be settled. By following Georgia's probate rules, the administrator helps maintain a clear chain of ownership and ensures each person's inheritance is handled appropriately.

Who Can Serve as Estate Administrator?

When a person dies without a will, Georgia law provides a priority list of who can serve as the estate administrator. Typically, the surviving spouse is first in line if willing and able and provided that there was not a divorce case pending or action for separate maintenance. After that, one or more other heirs of the estate or the person selected by the majority of the heirs, followed by any other eligible person, then any creditor of the estate, and then the county administrator.

In some cases, where there are no debts and all heirs agree on a division of assets, there might be a streamlined option. If everyone consents and no creditors object, certain heirs can request that the probate court declare that no formal probate is necessary. This is often referred to as an order of no administration necessary, though it is only an option in specific situations.

Ultimately, the court is the final voice in choosing an administrator. The chosen person must meet the court's standards and confirm a willingness to act with integrity and fairness throughout the probate process.

What if There Is No Power of Attorney When Someone Dies?

Many people believe that a POA remains valid after death or that the absence of a POA at the time of death creates added confusion. In truth, a POA only applies during the principal's life. Whether or not someone dies with a valid POA, once they pass away, their property goes through probate if needed.

What truly matters is whether the deceased had a will or not. If they left behind a valid will, the designated executor will handle asset distribution as the will instructs. If they did not leave a will, the court will apply the intestate rules and name an administrator. Either way, the powers of a POA are not applicable after the principal is gone.

This is an important point for every family to understand. If a loved one dies, there is no additional authority or influence gained from a POA document once that person's life ends. The next step is to open probate (if needed) and follow Georgia's formal laws for settling the estate.

The Significance of Estate Planning

A Power of Attorney can be helpful if you become incapacitated, but it is not a plan for distributing property after death. That is why a will, trust, or both are essential pieces of a complete estate plan. Drafting a will outlines who will inherit your home, finances, or any cherished personal possessions. Creating a trust can also reduce courtroom delays or help manage privacy concerns.

Estate planning in Georgia offers peace of mind. It helps avoid arguments among family members, lowers the likelihood of costly legal fights, and ensures your wishes are carried out. By making these arrangements in advance, you take the stress off your loved ones during a challenging time. You also gain more control over how things are resolved once you are gone.

This planning offers more than just dividing assets. It can include designating a guardian for minor children, specifying decisions for health care if you cannot speak for yourself, or naming backup executors if your first choice is unwilling to serve. Taking these proactive steps can make a big difference in overall outcomes for your heirs.

Reach Out for Assistance with Georgia Estate Planning and Probate

We know that questions about final affairs can feel overwhelming or delicate. Whether you want to set up a will or trust or you are dealing with a probate matter, we can help explain your options. Give us a call at 678-344-5342 or visit our website to learn more. Also, you can download our free guide to estate planning in Georgia HERE, no strings attached.

We take pride in guiding Georgia families through practical steps so that you can feel reassured about how your estate or your loved one's estate is handled. Contact us to talk through your hopes for the future and to understand the best way to handle a situation without a will.