Full question:
is agent of power of attorney responsible for debt of principal after principal dies my husband and i had power of attorney for my aunt who just died in a nursing home owing over 8,000 to them. are we responsible for this debt
- Category: Power of Attorney
- Date:
- State: Alabama
Answer:
Generally, an agent under a power of attorney is not responsible for the principal's debts after their death, unless the agent acted beyond their authority. For instance, if you signed a contract with the nursing home without proper authority, you might be liable.
Typically, relatives are not responsible for a deceased person's debts unless they co-signed or guaranteed a debt. If both parties signed a loan agreement, they remain liable even after one party's death. Additionally, if a relative signed a contract personally for hospital or nursing home care, they might be liable for those costs. However, if the contract was signed as an agent, personal liability should not arise.
Debts of the deceased should be paid from the estate's assets. Family members do not inherit debts unless they are co-signers or have a joint account. If the estate lacks sufficient funds, unsecured debts usually go unpaid.
Be aware that if you inherit property that secures a debt, such as a car or house with a mortgage, the debt transfers with the property. Secured creditors have priority in claims against the estate, meaning they are paid first from the estate's assets.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.