When you start thinking about estate planning, the terminology can feel overwhelming fast. Trustee, executor, power of attorney—these terms get used often, and they carry a lot of weight. But they don’t all mean the same thing. Understanding the difference helps you make smarter decisions about who should fill each role in your plan.
What Is an Executor?
An executor is the person responsible for carrying out the instructions in your will after you pass away.
Your executor files your will with the probate court, notifies creditors, pays outstanding debts, and distributes assets to your beneficiaries according to your wishes. It’s worth noting that an executor’s authority only begins after death, and after appointment by the court, and only applies to assets that pass through your will. Accounts with named beneficiaries or assets held in a trust fall outside their scope.
What Is a Trustee?
A trustee manages assets held inside a trust—either during your lifetime, after your death, or both, depending on how the trust is structured.
If you establish a revocable living trust, you’ll likely serve as your own trustee while you’re alive, with a successor trustee stepping in if you become incapacitated or pass away. Unlike an executor, a trustee’s work often happens outside of probate court. This can mean a faster, more private transfer of assets to your beneficiaries—one of the key reasons many Ohio families choose to incorporate a trust into their estate plan.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that authorizes someone (called your agent) to make decisions on your behalf while you’re still living.
In Ohio, a durable power of attorney remains in effect even if you become incapacitated, making it a critical component of any comprehensive estate plan. There are different types of POA. A financial POA allows your agent to manage bank accounts, pay bills, and handle property transactions. A healthcare POA (sometimes called a healthcare proxy) authorizes someone to make medical decisions if you’re unable to do so yourself.
Why these Definitions Matter
Each role serves a different purpose and operates at a different stage of your life or estate plan. You may need all three—and the people best suited for each role aren’t always the same person. Choosing carefully and making your intentions clear in your documents is what protects your family when it matters most.
If you have questions about structuring your estate plan or choosing the right people for these roles, James Bart Leonardi, LLC is here to help. Contact our office today at 844-435-9226 to schedule a consultation.
