Understanding Power of Attorney and Executor Roles

Understanding the roles of an Agent under a Power of Attorney (POA) and an Executor under a Last Will is essential to any well-structured estate plan. These designations serve different purposes at distinct times — a Power of Attorney allows someone to act on your behalf during your lifetime, while an Executor handles your affairs after death. Knowing how these roles function ensures that your wishes are carried out appropriately and that your estate is managed in accordance with New Jersey law. For personalized guidance, consult our experienced estate law attorneys at Puff, Sierzega & MacFeeters in New Jersey.

How Power of Attorney and Executor Roles Differ

Under a POA, your Agent is appointed to have certain powers and authority to act as an agent on behalf of the principal during the principal’s lifetime, and those certain powers and authority end immediately upon the principal’s death.  An Executor or Executrix, on the other hand, must first be appointed by the Surrogate’s Court once the decedent’s Will has been probated and qualifying paperwork has been duly recorded with the Surrogate’s Court.

Accordingly, the roles of the Agent under a POA and Executor or Executrix under a Will never operate at the same time, as the Agent under the POA operates during the lifetime, while the Executor or Executrix operates after death.

Understanding Agents Under a Power of Attorney

A Power of Attorney (POA) creates a legal relationship between a principal and an agent that remains in effect during the principal’s lifetime unless revoked. The principal nominates one or more agents and authorizes them to handle specific transactions or decisions on their behalf.

There are two primary types of Power of Attorney documents in New Jersey:

• General Durable Power of Attorney (Financial POA):
  Allows the appointed agent to manage the principal’s financial and legal matters, including paying bills, managing assets, and handling business affairs.
• Medical Power of Attorney (Healthcare POA):
  Authorizes the agent to make medical and healthcare decisions if the principal becomes unable to do so.

Having both types of POAs ensures that trusted individuals can act on your behalf in crucial matters. These documents provide peace of mind and may avoid the need for a guardianship proceeding, which can be lengthy, costly, and requires court approval when someone is deemed incapacitated or unable to manage their own affairs.

Executor or Executrix under a Will

An Executor or Executrix of an estate is nominated under the testator’s Will. An Executor or Executrix does not have legal authority to act in such a role during the testator’s life; instead, the Executor or Executrix becomes authorized to carry out the administration of the testator’s Will only after the Will has been admitted to probate through the County Surrogate Court. Once a Will is formally admitted to probate, the Executor or Executrix then proceeds with the estate administration pursuant to the directions of the decedent’s Will, and laws of the State of New Jersey.

There are many reasons why every adult who can sign a Will should have a Will, including but not limited to appointing a trusted person to handle and carry out the estate administration, avoiding bonding costs when an individual dies without a Will, and directing an individual’s estate to meet that individual’s goals and objectives.

Should you have any questions concerning POAs or Wills in the State of New Jersey, or any estate administrative questions, contact the law firm of Puff, Sierzega & MacFeeters.