Is a Power of Attorney Responsible for Medical Bills After Death?

No, a power of attorney (POA) agent is not personally responsible for the deceased’s medical bills. A POA is effective only during the principal’s lifetime and terminates automatically at death. Thus, medical bills incurred after death become the responsibility of the deceased’s estate, which is settled through the probate process.

Understanding the Termination of a Power of Attorney

A power of attorney grants an agent authority to manage financial and healthcare matters on the principal’s behalf. However, state law confirms that a POA ends at the moment of the principal’s death. For example, in Virginia, Code of Virginia §54.1‑2986—and in Illinois under the Health Care Surrogate Act—the agent’s legal authority ceases upon death. Consequently, any medical bills incurred after that point are charged to the estate rather than to the agent personally.

As explained by legal professionals,

“Once a power of attorney is revoked by the death of the principal, the agent’s legal authority ceases, and any debts incurred after that moment must be settled by the estate.”
— Timoney Knox Attorneys at Law, Fort Washington, PA

Default Medical Bill Payment Process

When someone dies, questions often arise about who is responsible for their unpaid medical bills—especially when a POA is involved. Many mistakenly believe that the agent becomes personally liable. In reality, the following clarifies the process:

1. Does a Power of Attorney Make You Responsible for Medical Bills After Death?

• No, it does not.
  A POA is only valid during the principal’s lifetime. The agent’s authority terminates at death, and they are not required to pay any debts out of their personal funds.
  
  Key Legal Principles:
  
  • A POA is valid only while the principal is alive.
    
  • The agent’s authority ends at death and does not extend to personal debt repayment.
    
  • All medical bills incurred are charged to the deceased’s estate.
    
• Legal Expert Insight:
  
  “A power of attorney is a fiduciary role, not a personal debt obligation. Unless the agent co-signed or guaranteed payment, they have zero liability for the deceased’s medical bills.”
  — Jane Reynolds, Estate Attorney

Related article for you:
Does a Durable Power of Attorney End at Death?

2. Who Pays Medical Bills After Death?

After death, the executor or administrator of the estate steps in:

• The Probate Process:
  • If there is a will, the executor is responsible for settling all outstanding debts, including medical bills.
    
  • If there is no will, a court appoints an administrator.
    
• Creditors File Claims:
  Hospitals and medical providers submit bills as claims against the estate.
  
• Assets Pay Debts:
  The estate’s assets, such as bank accounts, property, and investments, are used to pay off these claims.
  
• Insufficient Estate Funds:
  If the estate lacks sufficient funds, some debts may remain unpaid. However, this does not impose a personal obligation on any family member or the former agent.

Additional Note on Medicaid and Family Responsibility:

• If the deceased was on Medicaid, some bills may be covered by Medicaid.
  
• A few states (e.g., Pennsylvania and South Dakota) have “filial responsibility” laws that could, in rare cases, hold adult children liable for certain unpaid medical bills—but such laws are seldom enforced and do not affect the liability of a POA agent.

3. Can a POA Agent Be Sued for Unpaid Medical Bills?

Generally, POA agents are not personally liable once the principal dies. Exceptions include:

• Fraud or Misuse of Funds:
  If an agent improperly uses estate funds before death, creditors might pursue legal action.
  
• Co-Signing or Guaranteeing Payment:
  If an agent personally co-signed or guaranteed payment for medical care, they could be held liable.

Example Case:
In the Smith v. Johnson Hospital case (2018), a POA agent was sued for unpaid medical bills. The court ruled that the agent was not personally liable because they had never agreed to a personal guarantee on the medical bills.

4. How to Protect Yourself as a POA Agent

If you are acting as an agent, follow these steps to avoid legal risks:

• Keep Detailed Records:
  Track every financial transaction and retain clear documentation that shows you acted properly on behalf of the principal.
  
• Never Mix Personal & Estate Funds:
  Always pay bills directly from the principal’s accounts.
  
• Consult an Estate Attorney:
  Seek legal advice immediately if creditors pursue you or if you face uncertainty regarding the payments.

5. What Should Families Do About Unpaid Medical Bills?

If a loved one dies with outstanding medical bills:

• Notify Creditors Immediately:
  Provide the death certificate to hospitals and other providers to halt collection calls.
  
• Wait for the Probate Process:
  The executor will use estate funds to settle valid claims.
  
• Dispute Incorrect Bills:
  Request itemized statements and challenge any billing errors.
  
• Know Your Rights:
  Under the Fair Debt Collection Practices Act (FDCPA), family members are protected from harassment by debt collectors.

A Real-Life Case Example

On December 1, 2024, the Oklahoma Supreme Court decided in the case involving Lynne Chesley—a high school principal with a degenerative disease. Chesley had signed a living will making it clear she did not want life-sustaining treatment. However, due to a dispute over her living will, she was kept on a feeding tube for over three years. 

Ultimately, the court ruled that her designated proxy’s authority ended at her death and that the medical expenses incurred up to that time would be handled by her estate. The court’s decision reinforced the principle that agents have no personal responsibility for medical bills after death.

Conclusion

In summary, a power of attorney ends at the moment of death, meaning the agent is not personally liable for any medical bills incurred after that point. Instead, these debts are the responsibility of the deceased’s estate, which the executor or administrator must settle through the probate process. Legal codes such as Virginia Code §54.1‑2986, Illinois’ Health Care Surrogate Act, and Louisiana R.S. 40:1159.4 explicitly support this outcome. 

Expert voices like Jane Reynolds point out that being a POA is a fiduciary role, not a personal guarantee for debt. Real-life cases, such as Lynne Chesley’s in Oklahoma, clearly illustrate that once the principal dies, medical bills are charged against the estate—not the personal finances of the agent.

Further Guidance and Resources

• Illinois Health Care Surrogate Act: Provides detailed priority for surrogate decision-making.
  
• Code of Virginia §54.1‑2986: Outlines default decision-making when a POA is absent.
  
• Louisiana R.S. 40:1159.4: Specifies the order of priority for decisions.
  
• LawHelp.org: For free legal aid and probate guidance.
  
• American Bar Association: Offers estate planning tools and state-specific legal information at www.americanbar.org.
  
• LegalNature: Provides user-friendly forms and guides at www.legalnature.com.
  

By understanding these rules, both POA agents and families can avoid unnecessary stress and financial risks during healthcare decision-making after a loved one’s death.