Attorney-in-Fact

Attorney-in-Fact is basically the agent that you name in your power of attorney document. The term Attorney-in-Fact is specifically talking about the agent that you appoint to act on your behalf. There are, however, limits to that power. A Attorney-in-Fact is expected to make financial decisions in the highest standard of good faith, fair dealing, and undivided loyalty in making decisions for you. Attorney-in-Fact is also only permitted to act while you are still alive. Once you pass away, the Attorney-in-Fact has no power. The agent also only has control over the assets in the trust they are assigned to.
 

Executor

Executors are named in wills to make sure that all of your wishes are carried out through the probate process. The executor of your will makes sure that all of your beneficiaries see the assets you wish to give them; however, they only have power over what is in your probate estate. This means that your executor only has power over assets in your name alone, and they don’t have power over anything in a trust, held jointly, or in an account that utilizes designated beneficiaries.
 

Trustee

The trustee is the individual in charge of your trust. A trustee can serve both during your life and after your life, but their power is only over things that you put in your trust.
 

Attorney-in-Fact v. Successor Trustee- During Your Lifetime

If you are to become incapacitated, then your Attorney-in-Fact will take control over the assets that are put into your trust. This also means that the Attorney-in-Fact will only have control over the assets in your trust so if there are large amounts of assets missing then there may be problems if you are incapacitated and your agent doesn’t have access to manage those assets.
 

Executor v. Successor Trustee- After Death

Attorney-in-Fact power ends and the executor’s power begins whenever you pass. The executor then has power over everything in your probate estate and will then lead the probate process to see your wishes in your will completed.
 

Conclusion

All of these terms have distinct meanings in the estate planning process. Understanding which role does what will help whenever you are assigning them. The roles listed will play a large part in what will happen to your estate both during your lifetime and after. If you have any questions on what planning an estate looks like, please contact Providence Estate Planning and Elder Law today.