When planning an estate or managing the affairs of a deceased loved one, it is essential to understand the roles of an executor and a trustee.
While both positions involve handling assets and ensuring the deceased’s wishes are carried out, their responsibilities, powers, and functions differ significantly.
In this comprehensive guide, we will explore the differences between an executor and a trustee, their respective duties, and who has more authority in estate administration.
What is an Executor of a Will?
An executor is a person or institution appointed in a will to handle the estate of the deceased.
Their primary responsibilities include:
- Probate Process: Submitting the will for probate and obtaining a grant of probate.
- Debt Settlement: Paying off outstanding debts and taxes from the estate.
- Asset Distribution: Ensuring the rightful beneficiaries receive their inheritance.
- Legal Responsibilities: Handling legal claims or disputes related to the estate.
Executors act in a legal and fiduciary capacity to uphold the instructions in the will and ensure the deceased’s assets are managed accordingly.
Learn more about the role of an executor: What is an Executor of a Will?
What is a Trustee of a Will?
A trustee is a person or entity assigned to manage a trust created within a will or a separate trust document.
Their role involves:
- Trust Management: Overseeing assets placed in a trust for specific beneficiaries.
- Ongoing Asset Distribution: Distributing funds or assets based on the trust terms.
- Investment Decisions: Managing and growing trust assets for the benefit of heirs.
- Legal Compliance: Ensuring the trust operates within legal parameters and adheres to the deceased’s instructions.
Unlike executors, trustees may be responsible for managing assets over a long period, especially in cases where beneficiaries are minors or require structured distributions.
Considering setting up a trust? Speak with the probate solicitor for advice.
Key Differences Between an Executor and a Trustee
Criteria | Executor | Trustee |
Appointment | Named in a will | Named in a trust or will |
Duties | Settles debts, distributes assets | Manages and distributes trust assets |
Duration | Limited to estate settlement | Ongoing for trust duration |
Legal Authority | Governed by probate court | Operates under trust law |
Power Scope | Handles assets within the will | Manages assets in a trust |
Who Has More Power: Executor or Trustee?
The authority of an executor ends once the estate has been fully administered and assets distributed to the rightful heirs.
However, a trustee’s role continues as long as the trust remains active.
A trustee generally has more long-term control over assets, while an executor has temporary legal power during probate.
Can One Person Be Both an Executor and a Trustee?
Yes, it is possible for an individual to serve as both an executor and a trustee, but the responsibilities of each role must be handled separately.
If you are drafting a will or trust, it’s important to consider whether the same person should manage both duties or if separate individuals would be better suited to handle these roles.
When Should You Appoint an Executor and a Trustee?
- If you have a simple estate, an executor may be sufficient.
- If you wish to provide ongoing financial support (e.g., for minors or dependents), appointing a trustee is crucial.
- If your estate involves trusts, tax planning, or asset protection, a trustee may play a more prominent role.
If you need assistance with estate planning, Probate Central offers expert guidance. Contact us today to ensure your estate is structured to meet your needs.
Frequently Asked Question (FAQs)
- Can an executor also be a trustee?
Yes, one person can serve both roles, but the responsibilities must be handled separately to ensure proper estate management.
- What happens if there is no executor or trustee named in a will?
If no executor is named, the court appoints an administrator. If no trustee is named, the court may appoint one or direct assets to be distributed according to intestacy laws.
- Does a trustee have to go through probate?
No, a trustee manages assets held in a trust, which typically bypasses the probate process, unlike an executor who must go through probate.
- Can beneficiaries remove an executor or trustee?
Yes, under certain legal grounds such as misconduct or failure to perform duties, beneficiaries can petition the court to remove an executor or trustee.
- How do I choose the right executor and trustee?
Consider their financial acumen, trustworthiness, availability, and willingness to take on the role. Professional services can also assist in appointing executors and trustees.
Ready to plan your estate with confidence? Get a free quote or call Probate Central at 020 4515 5210 for expert advice tailored to your needs.