This article is for informational purposes only and is not intended as professional advice; always consult your qualified advisors before making business decisions.
When managing a loved one’s estate or assisting them with legal and financial matters, it’s important to understand the distinct roles of a Personal Representative and Power of Attorney. While these roles may appear similar, they operate at different times and under different legal authorities. In the article below we’ll share some of the high points regarding this topic as a general guide for understanding; as always, much more detailed information is available and should be considered (along with the advice of a qualified professional).
Many people mistakenly believe that granting someone power of attorney also gives that person authority after their death. This is not the case in Colorado, Nebraska, or Kansas—or any U.S. state. Once a person dies, the power of attorney becomes invalid, and only a court-appointed personal representative can handle estate matters.
A Power of Attorney (POA) is a legal document that allows an individual (the principal) to appoint another person (the agent or attorney-in-fact) to act on their behalf during their lifetime.
A Durable POA is a document that stays in place even when the principal is incapacitated, and only goes away when the principal dies, the document is revoked, or the agent is unwilling/unable to serve.
KEY POINTS:
Financial POA: Also known as General Durable Power of Attorney. With a financial POA, you give your agent the authority to act on your behalf in matters of your finances, assets and property during your lifetime.
Medical POA: Specifically for healthcare decisions.
Limited POA: Also known as a Special Power of Attorney. This type of POA can be created for any purpose, but typically is limited to a very narrow set of circumstances.
A Personal Representative (PR) is the person appointed to manage a deceased person’s estate through the probate process. This appointment is made via the decedent’s will or, if no will exists, by a court. Also called an ‘Executor’ in some states.
KEY POINTS:
Colorado, Nebraska and Kansas are all similar in their rules and approaches, with some state-specific nuances. It is important to fully understand the laws of your state before making important decisions.
Jaimee Mollohan – Director of Sales & Marketing
When you’re planning your estate or assisting a loved one, it’s essential to have an understanding about the roles played by both a POA for lifetime decisions and a PR for after death. It is also important to note that spouses do not need to have the same POA/ PR – the designation is per individual and completely at the discretion of the principal. Understanding the above information helps ensure your affairs are managed smoothly and according to your wishes.
