Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
A power of attorney and a trustee are two distinct legal roles that serve different purposes in estate planning and financial management. While both involve acting on behalf of another party, there are important differences in their scope, duration, and responsibilities.
A power of attorney (POA) is a legal document that gives someone (known as the “agent” or “attorney-in-fact”) the authority to act on behalf of another person (the “principal”) in private affairs, business, or legal matters. The scope of a POA can be broad or limited, depending on how it is written. Some key aspects of a power of attorney include:
It is typically used for financial and healthcare decision-making
The agent’s authority usually ends if the principal becomes incapacitated, unless it is a durable power of attorney
The principal can revoke the POA at any time while they have mental capacity
The agent’s role ends upon the death of the principal
In contrast, a trustee is a person or entity appointed to manage assets held in a trust for the benefit of others (known as beneficiaries). Some important characteristics of a trustee include:
The trustee’s authority is governed by the terms of the trust document
Their role continues even if the trust creator (grantor) becomes incapacitated or dies
Trustees have a fiduciary duty to manage trust assets in the best interests of the beneficiaries
The trustee’s responsibilities may last for many years, depending on the trust’s terms
While both roles involve managing assets for others, a power of attorney is generally more limited in scope and duration compared to a trustee. A POA is often used for immediate needs or specific transactions, while a trustee has ongoing responsibilities for managing trust assets and distributions to beneficiaries over time. Understanding these differences is crucial for proper estate planning and asset management.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.