Selecting The Right POA or Executor

Selecting Your Executor

The role of executor is often assigned without fully understanding its scope. People typically choose:

• A trusted friend or family member

• A bank or fiduciary institution

• A professional executor

  
  

What many don't realize is that executorship involves two distinct areas of responsibility:

1. Financial/Legal Management

   1. Handling assets, finances, and tax obligations

   2. Managing legal documentation and estate settlement

2. Personal Property Management

   1. Clearing out the deceased's home

   2. Managing personal belongings (selling, donating, or distributing)

   3. Handling sentimental items with care

This dual nature creates potential gaps: A bank or fiduciary executor won't sort through personal belongings, while a friend might struggle with complex financial decisions. Understanding this distinction when you select your Executor and POA helps avoid delays, unexpected costs, and unfulfilled wishes.

You can also consider carving out specific aspects of the roles & responsibilities to different people or professionals. This can work as long as one individual is named "Executor" and there is written directive regarding the roles & responsibilities of others that they are to oversee.

For instance, Tight Ship Advisors' experience as Executor and/or POA in a professional capacity can flex between being named as the Executor with all the responsibilities of financial, legal, and personal property matters, or working in support of a differently designated Executor to manage specific tasks like account closures and property distribution. Regardless, the primary goal should be the protection of estate & ensuring that your wishes are carried out with precision and care.

Understanding Power of Attorney (POA)

A critical distinction: While Executor acts after your passing, POAs activate during life events like illness or accidents. Your choice of POA deserve equal consideration and again, may not be qualified or just simply the right person, to perform all the duties included. Who checks all the boxes for you?

Health Care POA:

• Must be available on short notice and be “bedside” for the long haul

• Becomes your sole medical decision-maker when you are unable – this person CANNOT BE OVERRIDDEN by a spouse, child, friend or family member. 

  • Will your loved ones be aware & know to stand aside?

• Must know your care preferences intimately.

• Must handle immediate medical decisions & coordinate with healthcare providers & coordinators in a timely fashion.

• Evaluates care facilities & scenarios – rehab/post-acute care, home based care and so forth. 

Financial POA:

• Manages your finances during incapacity. 

• Pays bills and handles financial decisions.

• Protects your financial interests.

Final Thoughts & Notes:

Selecting The Right POA or Executor For Your Will / Estate is definitely not a one size fits all decision. Consider appointing the same person for both health and financial POA. This ensures your medical decisions align with financial capabilities.  Example – upon discharge from the hospital you need continued care.  You’ll want your POA to be thoughtful in balancing your finances along with selecting a post-acute care center that meets the standards of care you need and also providing your for spouse at home. 

Establish clear communication channels between your POA and executor if they're different people. This coordination is essential for seamless care and estate management.  We all have an ongoing obligation to maintain thorough and up-to-date records that include account access information so the individuals that take on our Executor or POA responsibilities can do so efficiently, safely and in the manner we request.