Legal terms can be very confusing.
Two terms that are often confused are power of attorney and personal representative. Both give one person the ability to make financial transactions on behalf of another. The difference is in the timing.
One who has power of attorney for another may make financial decisions and transactions on behalf of that person while they are alive.
The personal representative, on the other hand, may make financial decisions and transactions on behalf of that person after the person’s death.
Minnesota law uses the term “personal representative” to describe the person appointed to administer the estate of a deceased person. This term includes an “executor,” who is appointed in cases where the decedent left a will, as well as an “administrator,” who is appointed when there is no will.
Two more terms one may encounter are conservator and guardian.
The role of conservator is similar to that of someone given power of attorney. In both cases, they give authority to They may make legal and financial decisions and transactions on behalf of a living person. The difference here is in how they are appointed. Power of attorney is given by the living person themselves before they become incapacitated. Conservatorship is appointed by the court when a person becomes incapacitated and no one has been given power of attorney for them.
A guardian also makes decisions on behalf of another. In this case, the decisions are health-related rather than financial.
To recap, here are the four terms with bullet point definitions:
Power of Attorney
- granted by the principal, grantor, or donor (of the power)
- granted before the principal is incapacitated
- effective while the person is still living
- pertains to legal and financial matters
Conservator
- granted by the court (must be done by a judge at a hearing)
- granted after the principal is incapacitated
- effective while the person is still living
- pertains to legal and financial matters
Guardian
- granted by the court (must be done by a judge at a hearing)
- granted after the principal is incapacitated
- effective while the person is still living
- pertains to health and medical matters
Personal Representative
- also known as executor if appointed by the decedent in a will
- also known as administrator if appointed by the courts because there is no will
- effective after the person has passed away
- pertains to legal and financial matters