The Main Difference Between Executor and Trustee That Matters To People
Shawn Breyer
March 31, 2021
What’s the difference between executor and trustee?
After reading this article about the difference between executor and trustee, you’ll know which one is right for you.
One manages your estate for your beneficiaries.
The other sells your estate off.
Let’s dig in.
When the courts appoint an administrator to an estate, they can choose anyone. This includes creditors or third-party companies. Meaning you and your family lose all control over the estate.
If you want to create a will for your estate or file a petition to become the administrator of an estate, fill out the form below for a free consultation. Free consultations are first come first serve. We always run out of slots. Make sure you get yours locked in now.
Difference Between Executor And Trustee
Both executors and trustees manage and distribute assets.
Executors distribute assets according to the terms of a will after the death of the testator. This is a limited responsibility, with a lot of work in a short period.
A trustee manages a trust for the entire life of the trust. This may begin during the trustor’s lifetime. It can continue for many years after their death. The responsibility could last for decades and requires long-term management of assets. A trustee does not report to a court.
The main difference between executor and trustee is that how they manage the estate.
An executor manages a deceased person’s estate to distribute his or her assets according to the will.
But a trustee is responsible for administering a trust.
A trust is a legal arrangement in which one or more trustees hold the legal title of the property for the benefit of the beneficiaries.
What Is A Trustee In A Will?
A trustee gets named in the documentation of your trust.
This is the person who handles distributing trust assets to beneficiaries.
They distribute assets according to the terms of the trust.
A trustee is required to:
Manage the trust assets during the life of the trustor and after their death. Management of the trust lasts for as long as the trust is in existence. This is an extensive responsibility. It involves making decisions about investments and long-term management of property. It also includes maintaining insurance on property and vehicles.
Manage a bank account for the trust.
Maintain records of the trust.
Pay the bills of the trust.
Distribute the trust assets according to the terms laid out in the trust. And at the time indicated for distribution. This can include making payments on behalf of beneficiaries. It also means making payments directly to them if indicated in the trust.
What Is An Executor?
An executor is named in your last will.
This is the person who handles distributing your estate to your beneficiaries.
They have to distribute your estate according to the terms set out in your will.
An executor is required to:
Get a copy of the will and file it for probate with the probate court
Appear in court on behalf of the estate and get a grant of probate
Notify all interested financial institutions of the death
Open a bank account for the estate
Pay the bills and taxes of the estate
Inventory all the assets of the estate
Manage all the property of the estate and keep it in good condition until it can get distributed
Distribute the estate’s assets to the beneficiaries named in the will
Close out the estate with the probate court
What Is The Trustee Role?
A trustee takes legal ownership of the assets held by a trust.
They assume fiduciary responsibility for managing those assets and carrying out the purposes of the trust.