When you decide to create a power of attorney, you should carefully consider the roles and responsibilities of both your agent and your executor. It is best to choose different people for these two roles because each has a different set of responsibilities and can prove to be overwhelming. Here are a few tips to make the process as simple as possible. Once you have selected the people to act as your agent, you should decide on who will serve as your executor.
Choosing an agent in a power of attorney
There are two main ways to designate an agent in a power of attorney: as an executor or as an agent. The executor is the person who will manage your assets after your death and through probate. They may be the same person or they may be different people, but both roles carry significant responsibilities. It’s important to make sure your power of attorney agent understands the differences between the two roles and what the responsibilities are.
Generally, it’s best to appoint a successor agent. If the original agent becomes incapacitated, another agent will take over their responsibilities. In some cases, an original agent might be challenged as incompetent and/or not competent to perform the duties. Having a backup agent is vital if your POA is challenged. In some cases, the person contesting the POA will argue that the person who signed it did so under duress.
Identifying an executor in a power of attorney
Identifying an executor in a will is an important part of estate planning. It identifies someone to handle your affairs and make decisions after your death. It may be the same person, or you may name a different person to handle your health care, business affairs, and estate after your death. However, you should make sure you are appointing the person who has the appropriate authority to make decisions in your name.
The last will and a power of attorney name the person who will oversee the process of fulfilling your will and trust. These documents are signed in front of witnesses and state that the executor is authorized to make decisions in your name. An attorney is a person designated by the owner to make decisions on your behalf. Depending on the power of attorney, this person can do everything from selling your car to paying your bills.
Responsibilities of a power of attorney
If you’re planning to appoint one person as both an executor and a power of attorney, you’ll want to carefully consider the difference between these roles. Although they both have significant responsibilities, they do not overlap until you pass away. Typically, an agent is chosen to manage your affairs while you’re still alive, while an executor manages your estate after you pass away.
A power of attorney also called an attorney-in-fact, is a legal appointment that provides an agent with authority over specific areas of life, such as your financial affairs or healthcare. The attorney-in-fact assumes their position at the time of the assignor’s death or until the power of attorney is revoked. An attorney-in-fact will be responsible for the tasks laid out in the power of attorney until the assignor dies or until the power of attorney is revoked.
Choosing an executor if your agent is unavailable to serve
If your estate plan names an agent to handle the administration of your estate, you should choose an alternate agent. While your agent should have a proven track record and be available to oversee the administration of your estate, there are some things you can do to make sure that the agent acts as an impartial, competent third party. These tips will help you pick the right person to represent your estate when your agent is not available.
First, choose someone you trust and who shares your values. The executor of your living will have your life in their hands. It is crucial to choose someone who has a solid reputation and can act with your best interests in mind. Additionally, you should choose a backup agent just in case your agent becomes unavailable. Having a second agent is a good idea, too, as you never know when one of your co-executors may become unavailable for some reason.
