What Is the Difference Between an Estate Executor and A Trustee?

An executor’s job is to distribute assets under the probate court’s management, whereas a trustee may oversee an estate for many years and possibly for life.

Executors and trustees play vital roles in distributing assets following a person’s passing. Nevertheless, they are hugely different positions with diverse responsibilities.

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The difference between executors and trustees

Whereas executors and trustees each oversee and distribute assets, there are some vital differences between their roles.

Executors allocate assets in accordance with the conditions of a will, through the probate court’s management, following the passing of the testator. This is a restricted responsibility, with a lot of work in a short time.
A trustee oversees a trust for the whole life of the trust, which may begin throughout the trustor’s lifetime and can continue for a lot of years following their passing. The responsibility might last for decades and requires long-term overseeing of assets. A trustee usually doesn’t report to a court.

What is an executor?

An executor is appointed in your last will and is the individual that is responsible for distributing your estate to your beneficiaries in accordance with the conditions set out in your will. They are required to:

Acquire a copy of the will and present it for probate with the probate court
Be present in court on the estates behalf and acquire a grant of probate, enabling them to act on the estates behalf
Catalog all the assets of the estate
Give notice to all interested financial parties of the demise (like credit card companies and financial institutions)
Oversee all of the property of the estate and maintain it in good condition until it can be distributed
Open a financial institution account for the estate
Pay the taxes and bills associated to the estate
Allocate the estate’s assets to the beneficiaries designated in the will
Close the estate with the probate court

What Is a trustee?

A trustee is appointed in the documentation of your trust and is individual that is responsible for distributing trust assets to beneficiaries in accordance with the conditions of the trust. They are required to:

Oversee the trust assets throughout the life of the trustor (the trust creator) and following their passing, for as long as the trust exists. This is a comprehensive responsibility that involves making decisions concerning investments and long-term overseeing of property in addition to sustaining insurance on property and vehicles
Oversee a financial institution account for the trust
Keep records of the trust
Pay-out the bills of the trust
Allocate the trust assets in accordance with the conditions laid out in the trust, at the time indicated for Allocation. This can comprise of making payments on beneficiaries behalf, in addition to directly to them when indicated by the trust

How to select your executor or trustee

Who you decide on as the executor of your will or trustee of your trust is an important decision.

You should look for an individual you trust completely, that can oversee the responsibility and somebody who you are going to outlive.

It’s important to appoint a substitute for either role in case your initial choice is unavailable. Prior to you selecting some as an executor or trustee, it’s wise to speak with them and determine if this is a role they want to undertake.

A lot of people prefer to select a close family member like their spouse or their child. You can also consider trusted friends. It is plausible to use a firm that takes these roles should there be no one you feel comfortable with in your life, or if you don’t want to burden someone you care about.

By comprehending the difference between executors and trustees, you can make an informed decision in your choice of the individual that is going to oversee and distribute your assets.

Source:

What is the difference between an estate executor and a trustee?. LegalZoom. (n.d.). https://www.legalzoom.com/articles/what-is-the-difference-between-an-estate-executor-and-a-trustee

Arizona Family Law

Naming guardians in your will can be part of your estate plan. You may think you’re too young or don’t have enough money to justify the expense, but if you have children, you have priceless assets. There are many considerations when naming guardians for your kids. However, the process doesn’t have to be expensive or complicated.

There’s nothing better than the peace of mind you will have knowing you’ve protected your family at a time when they need it most. Let us help. Schedule a consultation or contact Ogborne Law, PLC of Arizona today.