Loune-Djenia Askew, Esq.
Aug 23, 2024
When it comes to managing legal and financial matters, two terms often come up: Personal Representative and Power of Attorney. While they may seem similar, they serve very different roles.
When it comes to managing legal and financial matters, two terms often come up: Personal Representative and Power of Attorney. While they may seem similar, they serve very different roles.
What is a Personal Representative?
Sometimes called an executor, it is a person appointed by the court to manage the estate of someone who has passed away. Their primary duty is to make sure that the deceased’s wishes, as outlined in their will, are carried out. This includes tasks such as:
Collecting and valuing the deceased’s assets
Paying off any debts or taxes owed by the estate
Distributing the remaining assets to the beneficiaries as specified in the will
A Personal Representative’s authority begins only after the person’s death and the court's approval of their appointment.
What is a Power of Attorney (POA)?
A POA is a legal document that allows someone (the “agent” or “attorney-in-fact”) to make decisions on behalf of another person (the “principal”). Unlike a Personal Representative, a POA is effective during the principal’s lifetime. There are different types of POA, including:
General Power of Attorney: Gives the agent broad powers to manage the principal’s affairs.
Special or Limited Power of Attorney: Grants the agent authority over specific tasks, such as selling a property.
Durable Power of Attorney: Remains effective even if the principal becomes incapacitated.
Medical Power of Attorney: Allows the agent to make healthcare decisions if the principal is unable to do so.
The POA ends when the principal dies, at which point the Personal Representative (if appointed) takes over.
Key Differences
One of the main differences between a POA is the timing of their roles. A Personal Representative’s responsibilities only begin after the person’s death, whereas a POA is active during the principal’s lifetime. A Personal Representative is focused on managing and distributing the estate after death. In contrast, a POA has the authority to manage the principal’s affairs while they are still alive. A Personal Representative is primarily concerned with estate matters, while a POA’s role can extend to other aspects of the principal’s life, depending on the specific type of POA granted.
For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.
Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.