A living trust and a durable power of attorney can both help during incapacity, but they do different jobs. A complete estate plan often uses both because neither document reaches every asset or decision.

The successor trustee

A successor trustee manages property governed by the trust when the conditions in the document are satisfied. That may include a home, investment accounts, or business interests properly transferred to the trust. The trustee’s authority is limited to trust property and the powers provided by the document and law.

The agent under a power of attorney

A durable power of attorney authorizes an agent to handle specified financial and legal matters for you. It may cover property outside the trust, tax matters, contracts, benefits, or other transactions described in the document. It generally ends at death.

Why the same person is not always required

Some people choose one trusted person for both roles. Others divide responsibility based on availability, skill, family relationships, or location. The important point is that the choices are deliberate and that backups are named.

Neither document makes health care decisions

Medical decisions are normally addressed through an advance health care directive. That separate document names a health care agent and records instructions or values to guide care.

Coordination prevents gaps

Gene Gleason helps clients identify which assets and decisions belong under each document so the plan works as a whole rather than as disconnected forms.

This article provides general information and is not legal advice.

Related from Gene: powers of attorney and health care directives · probate and trust administration. Questions about your own family? Please schedule a consultation with Gene.