Is A Power of Attorney Better Than An Executor?
Is a power of attorney better than an executor, and what’s the difference? Many people assume these terms are interchangeable or that one is more powerful than the other. However, each role has a different purpose in an estate plan.
Executor vs Power of Attorney Responsibilities
Let’s break down the differences and clarify duties.
What Is Power of Attorney?
A power of attorney is a legal document appointing someone (an “agent”) to handle financial, legal, and health care matters while you’re still alive but unable or unavailable to act for yourself. The terms for a POA can be broad or limited and may come in several forms, including:
- General POA — Covers different legal and financial decisions
- Durable POA — Stays valid if you become incapacitated
- Medical POA — authorizes decisions about your healthcare
The key is that a power of attorney only works if you’re still alive and ends automatically upon your death.
What Is an Executor?
An executor is the person, bank, or trust company named in your will to carry out your final wishes after death. They must oversee your estate during probate, which involves collecting assets, paying off debts and taxes, and distributing what’s left to heirs.
The key difference between an executor and a power of attorney is that the executor’s authority picks up where the POA left off, upon your death. Before you die, however, the executor has no power.
Is Power of Attorney Better Than Executor?
The answer to whether a power of attorney is better than an executor depends on the timing and decisions needing to be made. One isn’t better than the other, however. They only operate at different points in your life and serve entirely different purposes.
What’s a Power of Attorney Used For?
A POA is often used to protect your interests while you’re living, which is important if you become incapacitated or unable to manage your affairs. Your chosen “agent” can pay bills, access accounts, sign documents, and make critical decisions on your behalf.
What Is an Executor Used For?
An executor is often appointed to manage finances and make decisions after an individual’s death, with special duties that include gathering assets, settling debts, and ensuring the will is executed according to its terms.
Which One Should I Get: POA or Executor of My Estate?
Note that one person can serve as both your power of attorney and executor, but it’s not required. In some situations, it makes more sense to appoint a single trusted individual for both roles, while in other situations, it’s wiser to divide these responsibilities.
An estate planning attorney can help you decide whether to appoint a power of attorney, executor, or both. The Nicole Pavlik Law Firm can also draft and file official documents to ensure the correct information is available when needed.
Why Both Roles Matter in an Estate Plan
Having a POA and estate executor helps ensure your wishes are honored regardless of the situation. Even simple tasks, such as paying the mortgage or handling insurance claims, can become complicated without a power of attorney. And your estate could face tremendous delays or cause conflict without an executor.
Estate planning attorneys can draft documents to fit your life, family dynamics, and long-term goals. They’ll also help you choose the right people for each role, coordinate your will, POA, and healthcare directives for maximum protection, and steer you away from pitfalls and legal mishaps.
Protect Your Estate
Is a power of attorney better than an executor? The short answer is no. The long answer is that you could need both, depending on your circumstances. Each role serves a specific purpose, and an estate planning attorney can help you create both. Protect your assets and clarify your last wishes by scheduling a consultation with the Nicole Pavlik Law Firm today.