Executor of an Estate and POA Terminology: What It All Means
At some point, you may find yourself acting as an executor of a loved one's estate or you may be granted power of attorney for that person and their estate. Although this is typically unfamiliar territory, being granted these permissions means that your loved one trusted you in helping sort out their estate upon their passing or while they're still with you to aid them in the process of dealing with their daily responsibilities. There may be a lot of terms associated with these appointments, which can get quite confusing, so let us help you navigate through your new role as an executor of an estate or power of attorney. When it comes to the terminology, here's what it all means.
Executor of an Estate
When someone is appointed an executor of an estate, he or she is responsible for handling the aspects of a loved one's estate upon their passing. This person is chosen by the deceased to administer the estate properly, ensuring that all belongings are accounted for and all of these assets are assigned to the correct parties. Some common terms you may hear when you're an executor of an estate include:
Beneficiary: Someone who is named as an inheritor of a person's belongings, monetary property, etc.
Custodian: Someone who is named by the deceased as the manager of a property if it is to be inherited by a minor.
Devise: Real estate that is left as a gift to someone upon their passing.
Grantor: Someone who is responsible for creating a trust.
Personal Property: All assets, excluding real property (real estate).
Tangible Property: Assets that can be touched.
Trustee: Someone with legal authority over the assets in a trust.
Although the list goes on, these are some of the more common terms you can expect to hear and read if you find yourself in this situation.
Power of Attorney
If you're granted power of attorney over an individual, this means that you are responsible for the legal decisions of someone who is still alive. This can range from their estate to their medical care, depending on the circumstances. It's important to note that a power of attorney ends with the death of the person who you were acting on behalf of. There are four types of power of attorney, which are:
General: Anything may be handled, such as managing their finances, housing, etc. by the principal (the person granted POA).
Durable: Another person is named to act on the principal's behalf.
Special or Limited: Only specific tasks may be handled by the principal.
Springing Durable: Occurs when the principal becomes incapacitated and someone else needs to step in as principal.
As you can see, there are many terms and many different circumstances that can arise when you're put in charge of an estate or of someone's day-to-day responsibilities. It's best to seek the help of a legal professional to ensure that you're handling everything correctly to have the most success with this process.
** reSettled Life is offering helpful, general information regarding these matters, not legal advice. It is advised to seek the help of an attorney to discuss all legal questions.