Executor vs Attorney
[What’s the difference?]
In your estate plan you will nominate people you know + trust to important roles. Two of those roles are your “executor” and “attorney”
These roles perform different duties and at different times…for one, your executor only steps in post-death whereas your attorney acts during your lifetime.
This blog covers the role of executor and attorney, why they’re important, and how to find the best person for the job.
So what does an executor and attorney actually do?
Executor
Nominated in your Will
Role starts after your death
Manages your deceased estate
Pays your liabilities + calls in your assets
Distributes your estate per the terms of your Will
Defends any litigation against your estate
Attorney
Nominated in your Enduring Power of Attorney
Role starts if you lose capacity (can no longer make your own decisions)
Role ends on your death
Attorney makes decisions on your behalf
Types of decisions depend on the terms in your Enduring Power of Attorney
Decisions may be personal matters (eg. health care, where you live) or financial (eg. buying or selling assets)
A “good” executor or attorney
Who is a good candidate to be your executor or attorney?
This is different for everyone. It depends on who’s in your VIP circle, your values + preferences, asset structure, and other personal circumstances.
You might have the same person in both roles or different people.
The biggest of big ticket items…your executor and attorney should be someone you trust completely. [we don’t like to deal in “shoulds” but trust here is critical…]
Executor
Trust them to…
Carry out your wishes
Act in good faith in handling your estate
Understand their legal obligations + duties
Be available to manage your estate
Seek external advice when needed
Follow your directions + guidance when appropriate (written in your Letter of Wishes)
Attorney
Trust them to…
Act in your best interests
Put your rights and needs first when making decisions for you
Respect your wishes, values, + preferences
Understand their legal obligations + duties
Be available to make decisions for you
Be confident in discussing your care with care providers
Make sound decisions under pressure
Seek external advice when needed
Who to appoint as your executor and attorney is part of the overall strategy of your estate plan. So too are the the terms included in your Will and Enduring Power of Attorney to give your executor and attorney the powers and authorisations they may need to appropriately deal with your estate and make decisions. As part of the estate plan journey, we give our clients advice and guidance on what the best arrangement may look like for our client and the options available to achieve their goals for their estate plan.
If you want more information please contact us or download The Complete Estate Plan Guidebook below.