what is more important power of attorney or executor

The executor settles financial affairs and oversees the probate

process after you die, while someone who holds power of attorney can make financial and medical decisions on your behalf during your lifetime, which can extend to when you’re incapacitated.

Full Answer

What is the difference between executor and power of attorney?

Oct 28, 2019 · An executor is someone who oversees and administrates the process of fulfilling a will or trust, making sure your will is properly carried out after your passing. An executor’s job begins after you’ve passed away. Someone with a power of attorney gets to work while you are still alive, yet unable to make choices for yourself.

Who has more power the power of attorney or executor?

What is more important power of attorney or executor? How Do the Two Roles Differ? The most salient difference between the executor and the agent is when the two roles take effect. Power of attorney is relevant to situations in which you are alive but unable to make your own decisions. Your executor’s duties begin only after you have died.

Do I need both a power of attorney and an executor?

Oct 31, 2021 · A power of attorney is a document that is valid only during the life of the principal (the person creating it). It gives authority to another person, called the attorney-in-fact (some states call this an agent), to make financial or business decisions for the principal. There are several types of powers of attorney documents.

Is a power of attorney and the executor the same?

Nov 10, 2021 · The biggest difference between an executor and an attorney-in-fact is that the latter’s power to act on behalf of the principal exists only while the principal is still alive; once she or he dies, then all power to manage the estate of the deceased person passes to his or her executor under the Will.

Estate Planning Documents

When a person creates an estate plan, their attorney will usually recommend that they execute several documents at the same time, so that they have complete protection. These usually include a will, a health care advance directive, and a power of attorney. A living trust might also be included.

The Role of an Executor

A last will and testament is a document that directs how a person’s (called the testator) belongings and assets will be distributed after their death. The will names beneficiaries, the people who will receive those bequests. Someone has to actually carry out the testator’s directions and ensure that the beneficiaries receive their bequests.

The Role of an Attorney-in-Fact

A power of attorney is a document that is valid only during the life of the principal (the person creating it). It gives authority to another person, called the attorney-in-fact (some states call this an agent), to make financial or business decisions for the principal.

About Author

Brette Sember is a former attorney and author of books including The Complete Divorce Guide, The Complete Divorce Organizer & Planner, and The Empty Nest Financial Guide. Her website is BretteSember.com.

What is an executor of a Will?

An executor carries out the wishes designated in an individual’s Last Will and Testament, (often called a “Will” for short), after their death. An executor is named in the written Will by the testator, who is the person to whom the Will belongs.

What is a power of attorney?

A power of attorney (POA) is a legal document granting an individual, known as an “agent-in-fact” or “attorney-in-fact” or a “personal representative,” the legal right to make medical or financial decisions for another person, known as the principal, during the principal’s lifetime.

What is the difference between a will executor and an attorney-in-fact?

The biggest difference between an executor and an attorney-in-fact is that the latter’s power to act on behalf of the principal exists only while the principal is still alive; once she or he dies, then all power to manage the estate of the deceased person passes to his or her executor under the Will.

Can an executor and an attorney-in-fact be the same person?

Yes, you can appoint the same person to be your Will executor and your attorney-in-fact. Many people choose this avenue since it’s a natural transition between making decisions for you in life and then carrying out your wishes after death.

Considerations for choosing an executor

When choosing an executor, it’s important to choose someone who is up for the responsibility of handling the administrative paperwork it demands as well as fulfilling the wishes expressed by you in your Will.

Considerations for choosing an attorney-in-fact

It is absolutely vital that you choose carefully when appointing your attorney-at-fact in a POA agreement. This individual will have the power and accessibility to make crucial financial decisions on your behalf, which makes trusting this person a crucial component. Choose someone who is in good legal standing to be making these decisions for you.

What is the difference between an executor of a will and a power of attorney?

An executor of a will and a person with power of attorney are both persons appointed to help another person manage their finances and affairs when they cannot. A power of attorney handles affairs while someone is alive, while an executor of a will handles affairs after someone's death.

Who holds the power of attorney for the principal?

The agent holds the power of attorney for the principal. By default, a power of attorney grants the agent broad power to take almost any action that the principal can take. The agent essentially steps into the principal's shoes and makes important decisions.

What is a durable power of attorney?

Those that continue after the principal's incapacity are called durable powers of attorney. As long as the principal has capacity, they can revoke their power of attorney at any time. All powers of attorney terminate when the principal dies.

Why does the court change the executor of a will?

A court changes the executor if the executor does not act in the deceased's best interests and in accordance with the deceased's will. A common estate-planning question is whether an executor or power of attorney is necessary. In most cases, the answer is that both are necessary because they do different jobs.

What happens when a person dies with a will?

When a person dies with a will, someone must carry out the directions in the will after their death. For example, if a will leaves a certain amount of money to a survivor, someone needs to transfer the funds from the deceased's account to the survivor's account. That person is called the executor of the will.

How can a principal narrow the powers of an agent?

The principal can narrow the powers of the agent by drafting a more limited power of attorney. The type of actions an agent can take may be limited, or the agent's powers might be limited to a single event or time period.

Can you change the executor of a will if there is no executor?

During their lifetime, a person can amend their will to change the executor.

How power of attorney works

With a power of attorney (POA) you can grant someone the authority to make decisions on your behalf. The person you choose is called your agent or attorney-in-fact, and what they’re allowed to do depends on what powers you give them.

Role of the estate executor

The executor is in charge of handling your estate and ultimately distributing the assets to your chosen beneficiaries. Executors are nominated in your will, which contains instructions pertaining to who you want to get your things.

Can power of attorney and executor be the same person?

It's legal and common to choose the same person to act as executor and hold power of attorney. You could, for example, name a spouse or adult child to be executor in your will and name them agents for your medical and financial POAs. Just make sure whoever you choose is trustworthy and capable of carrying out your wishes.

What is the name of the person who takes care of your affairs after you die?

And that you need both. An Executor is the person you name in your Will to take care of your affairs after you die. A Power of Attorney names a person, often called your agent or attorney-in-fact, to handle matters for you while you are alive. Generally speaking, your Power of Attorney ceases to be effective at the moment of your death.

What documents do you need to be a surrogate?

The main two legal documents people use to authorize a surrogate to handle things for them are Wills and Powers of Attorney . It’s important to understand that these documents work in different time frames. And that you need both. An Executor is the person you name in your Will to take care of your affairs after you die.

What happens when you are no longer able to handle your affairs?

When you are no longer able to handle your affairs yourself due to incapacity or death, someone is going to need the authority to step in and take care of things for you. You can choose who you want to act on your behalf when you are no longer capable yourself.

Can an executor act for you while you are alive?

Even though named in your Will, y our Executor has no authority to act for you while you are alive. This means that people need have both a Power of Attorney (Agent) to give someone authority to act for them during life, and a Will (Executor) to name someone to wind up your affairs after you are gone. For more information on Powers of Attorney see ...

Can a power of attorney be effective after death?

Generally speaking, your Power of Attorney ceases to be effective at the moment of your death. Your agent can only take care of your affairs while you are alive. After your death, your Executor should take over. In order to get authority, your Executor must file a death certificate, your Will, and other legal papers with a court official in ...