Power of attorney vs executor of estate

Can an executor of an estate use a power of at? Can a power of attorney act as executor? What is a power of attorney document? Power of attorney is only effective while you’re alive and executors only assume responsibilities once you pass away.

However, you should keep in mind that these are both big jobs with a lot of responsibility.

Appointing the same person to both roles may be asking a lot of him or her. Power of Attorney is a legal document that gives an individual the authority to make decisions on behalf of someone else, often when the latter person has. A power of attorney is a legal document created by a testator authorizing an individual to perform actions on the testator’s behalf. A Difference in Roles The main difference between an agent with power of attorney and the executor of a will is that one represents a living person while they are alive , and the other represents a decedent’s estate while they are dead. This effectively means that one person can fulfill both roles.

The two do not intersect at any point. Revocation of Power of Attorney It is relatively simple to revoke power of attorney.

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. Someone who has Power of Attorney has the authority to make decisions for the principal, but is limited to what powers are outlined in the agreement. This is quite common, as often the person trusted to deal with someone’s affairs during their lifetime is the person trusted to do the same after their death. You likely have a household balance sheet, insurance coverage and a will.

These are important estate planning needs, but sometimes overlooked is naming an executor and assigning powers of attorney. Executor of estate vs. Let’s examine why having the right executor and making formal powers of attorney are important for your estate plan. This is not the case and it is therefore important to make sure you understand the difference between the two roles to enable you to put the correct measures in place to protect your own and your family’s. As with all aspects of your estate plan, changes should be considered periodically as your circumstances change.

An agent with power of attorney and the executor of a will are two distinct legal roles that arise under different documents and laws. Although the same person can serve as both your agent (also called attorney -in-fact) and your executor , there is no requirement to appoint a single person to serve in those capacities and no automatic process under the law for one position to transition into the other. In other words, someone acting on your behalf under a Power of Attorney can no longer do so when you die. That’s where an executor comes in. Following death, the executor can immediately secure assets, obtain access to bank accounts and other information held on the deceased.

This will make obtaining the Grant of Probate a simpler process compared to where a person has died intestate (without a valid Will).

The difference between an attorney-in-fact appointed to act under a power of attorney and an executor appointed to act under a last will and testament is literally the difference between life and death. An executor’s sole purpose is to administer your estate after death. The principal, or maker of a power of attorney, appoints an attorney-in-fact to handle her affairs during her lifetime.

Should you die, a power of attorney agreement is voided. Your agent cannot act in your name or represent you legally when you are dead. A last will and testament is a very different document from a power of attorney , and the testator (you) cannot grant anyone the power to execute it once you pass away.

In recognition of the time spent and the care taken to manage an incapable person’s property, or to administer an Estate, Ontario laws provide that compensation (or an allowance) may be payable. For example, a POA is often created in certain complex financial situations to allow a broker to trade assets of the person who creates the Power of Attorney. The role of power of attorney The roles and responsibilities differ from that of executors to a will. Real estate property is on both husbands and wifes name. Husband draws a will naming his son executor of the will and divides the property in half but is not recorded on the deed.

Form PA11: Apply for power of attorney (Will) The executor or beneficiary can apply to appoint a person to act as their representative.