An executor takes care of your estate after you have passed on, and someone with power of attorney handles things for you while you are still among the living.
The executor of the estate and the power of attorney are two separate legal documents and can act on your behalf in your presence or absence. Both will have some boundaries and can serve different purposes. However, many believe the power of attorney and the executor of the estate are the same and share similar responsibilities. Yes, the same person can handle both roles, but they are different.
We will know the main difference between the executor’s duties and durable power of attorney in the following. You can go through the article, understand the difference, and find a trusted person for your specific tasks.
The executor will make your financial decisions after your death. You will have to mention the executor of your will to manage your finances and other responsibilities. The power of attorney document becomes meaningless when the party dies, but the executor in the will handles the financial matters after the death. However, the person must choose the executor in the Last Will to take such responsibility.
The decedent’s estate plan will decide the role of the executor. According to the rule, the executor will represent the estate in the probate court. In addition, the executor can perform other tasks, including filing for a death certificate, notifying all the creditors about the death, identifying the complete estate, and determining the total value of the assets.
On top of that, an executor can handle tax returns, payments, and other obligations. The executor will take care of the legal rights and handle all the legal matters. The legal authority will manage the properties of a decedent, including land, pet, automobiles, and homes.
The executor’s job is to manage and distribute the possessions after the probate process. However, an executor can only work within the will. The professional cannot change the terms of the Last Will and will have to work within the given guidelines.
There are different types of powers of attorney with specific responsibilities. Power of attorney is a legal document that authorizes the right person to act on your behalf. There will be defined parameters in that document. Moreover, there will be many separate documents with different responsibilities.
According to the American Bar Association, you can appoint someone to decide on your behalf. You will determine the power you want to give. For example, you can choose someone to manage your business transactions or healthcare decisions. The person can work on behalf of the document.
The responsibilities of a power of attorney will depend on the control you want to give. You can choose financial professionals for finance and legal professionals for legal issues.
In brief, power of attorney is a legal responsibility with limited power. It can be on anything, including personal care, legal advice, and financial help. Limited power of attorney restricts a legal authority to a few specific responsibilities.
In power of attorney, someone gives you legal authority to act on his behalf under restricted conditions. The objective is to serve the best interests under specific conditions and with limited power. You can get this authority for one day or a particular reason.
Apart from that, the power can take effect only when the situation comes in the future. For example, you can give responsibility for such an incident when you will have a poor mental capacity in the future. In that condition, your appointed legal authority can take charge and work as the springing power of attorney.
You can withdraw the power of attorney whenever you want. However, most states will require a legal process for such acts. Research the requirements and act accordingly to prevent a legal authority from deciding on your behalf.
From the above, you might have realized that executors and a power of attorney handle different things. The most noticeable difference between these legal powers is when they take effect. The executor of an estate will step in after your death if you mention the name in your last will.
The executor’s job will only begin when you are no more. However, executors cannot make decisions and work within your given terms, and the power of attorney will have no role after your death. A power of attorney can only work when you are alive. Moreover, a power of attorney will have a limited role.
You can give power of attorney to different professionals to handle specific jobs. It can be about your child care, health care, finance, and legal matters. You can also mention an incident when the legal authority can step in and work on your behalf.
In addition, you can withdraw the power of attorney whenever you want. However, your executor will take effect once you die, and the professional must file the death certificate. The legal authority will represent you in probate, a court procedure, and handle all your financial and legal matters. An executor can work only when you are not alive, and you will set the terms and conditions for the entire process even if you are not around.
Yes, an executor and a power of attorney can be the same person. Since one will work when you are alive and the other after your death, there will be no point in a collision. However, you will have to take extra caution when you share both responsibilities with the same person.
Power of attorney will have limited responsibilities, and you can have different legal documents for specific requirements. For example, you can hire someone for finance and another for legal matters. However, the executor will need years of experience to perform the job effectively. The legal authority has to manage all your financial and legal things, and experience can help with the best outcome. You can understand your requirements and decide accordingly.
The executor of the estate and the power of attorney are two different legal documents. They take effect under specific conditions. Know the boundaries of each and find a solution that fits your unique needs.