Debunking the Myths...Who is in Charge When Mom Dies?

What, exactly, is the difference between a Power of Attorney, an Executor or a Trustee? Aren’t they all basically the same thing? . . . NO, they are not.

What, exactly, is probate? Should we avoid it? . . . Maybe.

Do I need a Will or a Trust? . . . It depends

Confusion reigns when it comes to these terms, and the powers associated with each of them. Here’s a brief glossary of some of the basics:

Power of Attorney (attorney-in-fact): Grants authority to another person to act on your behalf (sign your name) during your life. Power terminates at death.

Durable Power of Attorney: Same as Power of Attorney but the power continues in the event you become mental incapacitated at any time. Power terminates at death.

Executor (Personal Representative): The person named in your Last Will & Testament who will be in charge of your “estate”.

Estate: All of the stuff (property, money, bank accounts, etc.) that you owned in your name alone at your death.

Probate: The process of administering your estate and appointing your executor or personal representative. The process requires a Court to grant authority to your executor, and may be “supervised” by the Court, or “unsupervised” depending on the circumstances.

Trust (Living Trust): A separate legal entity that you can create to own your estate. If you have a “living” trust (created during your lifetime), and have properly funded the trust, your estate will not go through the probate process.

Don’t be a victim of misinformation – the circumstances that happened to your neighbor’s-cousin’s-daughter’s-husband’s-mother might not be the same as yours. Talk to a qualified professional and get the real facts.

Hunter Law Office, PC helps families protect their assets against loss from the unforeseen (and foreseen) events in life that inevitably take us off course. We are unique in that our practice is focused on each individual client . . . we design a plan around you and your family . . . because that’s what Estate Planning is supposed to be!