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Understanding executors and powers of attorney

On Behalf of | Jul 30, 2020 | Elder Law & Estate Planning

When making an estate plan, identifying what a person wants to happen to their assets after they die is only one of the decisions they may need to make.

A thorough estate plan requires a person to determine who will have the responsibility of managing the distribution of assets after they die. In addition, a person may choose or need to have another person manage their affairs while they are still alive.

The role of an executor

When a person creates a will, they must also name someone to oversee things after they die and ensure the will terms are adhered to. SmartAsset indicates that this person is referred to as the executor of the estate.

An executor may need to manage a variety of financial transactions including filing income tax returns, paying creditors and more.

The role of a power of attorney

A durable power of attorney may manage the finances of a person while they are still living. A person may benefit from having a power of attorney if they are disabled or experience an injury that renders them unable to take care of their own money for any period of time.

As explained by Forbes, a person may name one or two people to act as their durable power of attorney. Having more than one PoA may provide a sense of security that the person may avoid being defrauded by their power of attorney. A PoA may make decisions regarding a person’s investments, assets, bills and more. The financial savvy of a person may be important when evaluating a potential power of attorney.

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