A Personal Representative and a Power of Attorney are both individuals who play significant roles in managing someone’s affairs. However, they serve different purposes and have distinct legal statuses:
Personal Representative:
- They are also known as an Executor or Administrator. A Personal Representative is designated by a court or named in a Will to manage the affairs of a deceased person’s estate.
- Their primary responsibilities include gathering and managing the deceased party’s assets, paying debts and taxes, and distributing any remaining assets to the beneficiaries according to the applicable laws per the deceased person’s wishes.
- A Personal Representative’s authority is granted through the legal process of probate (court-supervised estate administration), and they have a fiduciary duty to act in the estate’s and its beneficiaries’ best interests.
Power of Attorney (POA):
- A Power of Attorney is a legal document that provides an individual (the agent or attorney-in-fact) permission to act on behalf of another person (the principal) in various financial, legal, or healthcare matters.
- There are different types of Powers of Attorney, such as:
- General Power of Attorney: Imparts broad authority to the agent to handle financial and legal affairs on behalf of the principal.
- Limited or Special Power of Attorney: Gives specific, limited powers for a particular purpose or within a specified timeframe.
- Durable Power of Attorney: Remains in force even if the person becomes incapacitated.
- Medical Power of Attorney (Healthcare Proxy): Authorizes the agent to make healthcare decisions for the person if they are unable to do so.
- The agent’s authority can be effective immediately upon signing (unless specified otherwise). It can be revoked by the principal if they have the capacity to do so.
In summary, a Personal Representative deals with the affairs of a deceased person’s estate, while a Power of Attorney handles various matters on behalf of a living individual who may need assistance or representation in specific areas of their life. Both roles involve significant legal responsibilities but serve distinct purposes and operate under different legal frameworks.
