Power of Attorney Vs Executor of Estate
When someone close to us dies, we have to go through the process of dealing with their estate. This can be a difficult time, and there are many things that need to be done in order to wrap up their affairs. One of the most important decisions that need to be made is who will act as executor of the estate. This is a complex role, and it’s important to understand what it entails. In this article, we will discuss the difference between a power of attorney and an executor of an estate, and we will help you decide which one is right for you.
What is an estate executor?
An executor assists a person in carrying out their last wishes. However, a power of attorney allows the designated individual to make decisions on their behalf while they are still living. It is one of the simplest ways to conceptualize the main distinctions between a power of attorney and an estate executor.
Selecting an executor is a necessary step in creating a will. Usually, this is a relative or close friend, but others prefer to choose a qualified executor, like a lawyer or corporate trustee.
The executor is responsible for completing your financial commitments and executing your desires as specified in your will. Tasks assigned to the executor include:
- Paying any outstanding taxes and filing the deceased person’s taxes.
- Paying any remaining debt.
- Paying for the funeral.
- Distributing assets and/or money to the will’s beneficiaries.
- Setting any trusts that the will specifies.
- Maintaining thorough records of each transaction.
What is the power of attorney?
A power of attorney is a document with legal force that bestows the authority to handle your finances, assets, and property and make decisions on behalf of someone you trust. This individual is referred to as your attorney in the majority of America. The signer must be mentally competent to enforce the power of attorney.
In the United States, powers of attorney often fall into one of two categories:
General power of attorney: it terminates if you are mentally incompetent and permits your attorney to handle your assets and money while you can do so. It could be restricted to a specific job or time frame.
A lasting or ongoing power of attorney enables your financial and property management to be handled by your lawyer if you lose mental capacity. This power of attorney may start as soon as you sign the paperwork or if you become mentally incapacitated.
Your lawyer can handle your assets and finances; they do not own them. These are the things they can do for you:
- Signing cheques
- Banking transactions
- Selling or buying real estate on your behalf
- Buying goods
However, they cannot change your beneficiary in a life insurance policy, create a will on your behalf, or give another person power of attorney.
What is the Difference Between a Power of Attorney and an Executor of Estate?
What Are Some of the Duties of a Power of Attorney?
A power of attorney is a legal document that gives someone else permission to act on your behalf in certain circumstances. A power of attorney can be used for financial and medical decisions, such as consenting to medical treatment.
You can revoke a power of attorney at any time by notifying the person who has been given this authority in writing. You should also notify any third parties, such as banks or brokers, who may have been dealing with the person acting under the power of attorney.
There Are Two Types of Powers of Attorney:
- Durable: Durable powers of attorney remain in effect even if you become incapacitated.
- Non-durable: Non-durable powers of attorney are only valid as long as you have the mental capacity to make your own decisions.
The purpose of a power of attorney is to allow someone else to make decisions on your behalf when you are unable to do so yourself. This could be due to physical incapacitation, mental incapacity, or even just being out of the country and unable to make decisions in a timely manner.
What Are Some of the Duties of an Executor?
Some of the duties of an executor include: collecting assets, paying debts and taxes, and distributing assets according to the terms of the will. The executor also has a duty to keep accurate records and report any changes in asset value or income from assets during the administration of the estate.
The role of executor is typically filled by a close relative or friend of the deceased, but it can also be filled by a professional such as a lawyer or accountant.
When Should I Appoint an Executor?
It is advisable to appoint an executor in your will. An executor is a person who will be responsible for administering your estate after you die. The executor’s duties include:
- locating and inventorying your assets;
- paying your debts and taxes;
- distributing your assets to beneficiaries; and
- filing necessary court documents.
You can name more than one executor, and you can also name alternate executors in case the first choice is unable or unwilling to serve. You should appoint someone you trust to carry out these duties, as they can be time-consuming and complicated.
If you have been named as an executor of an estate in Las Vegas, it is important that you understand your responsibilities. If you have questions or need assistance, please contact a qualified attorney.
What Happens if There Is a Dispute Between the Power of Attorney and Executor of an Estate Over How to Handle the Estate?
If there is a dispute between the power of attorney and executor of an estate, the court will ultimately decide how to handle the estate. However, it is always best to try to resolve the issue between the two parties before involving the court. If you are unable to reach an agreement, you may need to seek legal advice.
If you are unsure about whether you should appoint a power of attorney or an executor, you should speak with an experienced estate planning attorney Las Vegas. Roger Giuliani can help you understand the difference between these two roles and determine which is right for your unique situation.
For more information on how https://probateattorneyvegas.com/ can help you with Power of Attorney Vs Executor of Estate, please contact us at (702) 388-9800, or visit us here:
The Giuliani Law Firm
500 N Rainbow Blvd #300, Las Vegas, NV 89107