If you’ve started working on your estate plan, you’ve likely run into a few important titles: Executor, Trustee, and Power of Attorney. They sound official—and they are—but they can also sound a bit confusing. What do these people actually do? And more importantly, who should you choose for each job?
At our San Diego law firm, Leeran S. Barzilai, A Prof. Law Corp., we find that clients feel much more confident once they understand these key roles. Think of them as different hats, each worn for a specific purpose in protecting you and your family. Let’s break them down in plain English.
The Executor: Your Posthumous Project Manager
Imagine you’ve left a detailed list of instructions for a big, important project, but you won’t be there to see it through. You’d need someone dependable to step in. That’s your Executor.
Named in your Last Will and Testament, your Executor is the person the probate court authorizes to “execute” your final wishes after you pass away. They’re the point person for wrapping up your affairs. This means gathering your assets, paying any remaining debts and taxes, and eventually distributing what’s left to your heirs—all according to the rules of your Will and under the supervision of the probate court. It’s a significant responsibility that begins after your passing.
The Trustee: The Hands-On Manager of Your Trust
Now, let’s say you’ve set up a Trust, like a revocable living trust, which acts as a private vessel to hold your assets. Someone needs to be at the helm, managing those assets according to your specific instructions. That’s your Trustee.
You can be your own Trustee during your lifetime, but you’ll name a successor to take over if you become unable to manage things yourself or after you die. Unlike an Executor, a Trustee’s role can be active both during your life (in case of incapacity) and after. Their main job is to manage the assets inside the trust—investing, protecting, and distributing them to your beneficiaries as you’ve directed, all without the need for court involvement. It’s a role built on ongoing stewardship and trust (hence the name).
The Power of Attorney: Your Stand-In While You’re Here
Life is unpredictable. What if an illness or accident makes it temporarily impossible for you to handle your own bills, investments, or medical choices? This is where a Power of Attorney (POA) comes in.
A Power of Attorney is a powerful legal document that grants someone you choose (your “Agent” or “Attorney-in-Fact”) the authority to act on your behalf while you are still alive. There are two main types:
- Financial Power of Attorney: This lets your agent handle practical matters like banking, paying bills, or managing property.
- Healthcare Power of Attorney (Advance Directive): This allows your agent to make critical medical decisions based on your known wishes if you can’t communicate.
The crucial thing to remember? A Power of Attorney’s authority evaporates the moment you pass away. At that point, the baton is passed to your Executor or Trustee.
How They Work Together in Your Plan
So, you might have one person writing checks as your Financial Agent under a Power of Attorney one day, and then a different person (or sometimes the same trusted individual) stepping into the shoes of Trustee to manage long-term assets the next. After a death, the Executor settles what’s in the Will, while the Trustee seamlessly continues managing what’s in the Trust.
Choosing the right people for these jobs is one of the most personal and critical decisions you’ll make. It requires forethought and a clear legal strategy to ensure there are no gaps or conflicts.
Clarity is the Foundation of a Strong Plan
At Leeran S. Barzilai, A Prof. Law Corp. in San Diego, we don’t just draft documents—we build understanding. Our goal is to help you create an estate plan where everyone knows their role, so your wishes are honored without confusion or delay.
If the difference between an Executor, Trustee, and Power of Attorney still feels a little fuzzy, let’s talk. We’re here to provide the clarity and confidence you need to protect what matters most.
Ready to define your circle of trust? Contact our San Diego office today for a compassionate and clear conversation about your estate plan.
No comment