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What is the difference between Power of Attorney and Executor of Estate?

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As a matter of fact, Powers of Attorney and executors of estates have very different roles to play. A person with a higher standard of life and ownership of property. And business appoints caretakers and binds them legally to make decisions for him or her. While the Executor basically performs all the chores and wishes in regards to finance, transfer of power, etc after the person dies. Check out this guide for all the details on the difference between a Power of Attorney and an Executor!

Well, not everyone is familiar with legal terms, suits and processes. But when it comes to your money, inheritance and property, the concepts of Power of Attorney and Executor are a must to know.

These two things are of high importance legally when you get older. And are unable to help themselves or unable to make financial decisions regarding investments, bill paying, etc. A thought might just cross your mind about who will transfer your money. And property to your family after you die, and how will it happen?

To answer these questions, you need to know about the Power of Attorney and Executor.

What is power of attorney?

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Power of attorney is a legal agreement that binds a person to make decisions regarding finance, paying bills, rents, insurance, investments etc for a person who is now unable to do it due to their age or disability. The person who owns everything is known as a Principal. The Principal agrees to allow the attorney to take all or many decisions for the principal’s life and finances. In addition, the attorney is responsible to pay the bills, check the investments and other stuff for the principal.

The principal has the right to deny a few of many decisions for the attorney. But has to clear it in the Power of Attorney agreement. The attorney has the right to make payments on the behalf of the principal, has access to the accounts. And can make multiple decisions in the interest of the principal.

Remember that the power of attorney is only allowed to make those decisions until the principal is alive. The principal can anytime change the attorney if he or she does not find him or her to be of any good.

What is an Executor?

The Executor is basically the person who follows the will of the deceased principal. And takes care of the transfer of finance, property, tax reports and returns, and other such assets of the principal. Only after the Chancellor dies can the executive begin to exercise his authority. He or she does not have the right to make any decision until the principal is alive.

The principal can change his or her will a number of times. And can also change the Executor if he or she does not find the person suitable for the job. After the death of the principal, only the court has the right to change the Executor. If they find that he or she is not performing the allotted duties in an ethical way.

Of course, the Executor takes care of the money, accounts, transfer of property, business. And power to the nearest family members. Or the members who have been mentioned on the will by the principal.

What exactly makes power of attorney different from the executor of an estate?

Both of them basically perform almost the same roles. The difference is just between the life of the principal. Until the principal is alive, the power of attorney takes care of the decision-making. Once the principal is deceased, the executor takes care of the final wishes. And other such stuff of the principal.

See Also…

How To Start A Medical Home Care Business: Things I Wish I’d Known Earlier(Opens in a new browser tab)

The Intermediate Guide to How To Start A Private Home Care Business(Opens in a new browser tab)

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