When serving in the executor role, you may find that the deceased created trusts during her lifetime or even through her will. So you are curious about your role as an executor vs. the role of the trustee. To understand the similarities and differences, we’ll start by talking about the executor role and the trustee role. Then we’ll compare the two. And finally, we’ll explore a frequently asked question—who has more power: executor or trustee?
An executor helps with the final administration of a deceased person’s estate. An executor follows the will and state laws to complete the tasks necessary to close the estate and distribute any assets to the estate’s beneficiaries.
A trustee manages assets of a trust. There are several different types of trusts and therefore trusts can be used for many purposes. The documents establishing the trust should say what type of trust it is.
An executor and a trustee both have documents that are used to govern what they can and cannot do. The will and the trust document give instructions about what must be done.
An executor and a trustee both have responsibilities that they must execute appropriately and can be held accountable if they do not act as they should.
But where an executor’s work only begins after the will-writer dies, a trust can be established and become active during the lifetime of the person who establishes it.
Both the executor and the trustee have to follow the instructions they receive in the trust document or will. In the case of a will, beneficiaries are named and what each beneficiary is to receive is outlined. In the case of a trust, the type of trust and how the assets can be used are outlined.
Both the executor and the trustee usually have some discretion under which they can operate, but they may not do whatever they want. For example, in the case of a will giving all personal property to three siblings, but not specifying exactly what each sibling is to have, the executor may create a fair procedure so each sibling can have an equal chance to select items of personal property they would like to receive. Or in the case of a trustee of a trust that is designed for an individual’s personal support, the trustee can use her discretion in determining if an item requested fits within the personal support realm.
Neither an executor nor a trustee can simply do whatever they want. If an executor or a trustee goes rogue, so to speak, they can be held responsible and can face penalties for their misdeeds.
Their powers are different, but likely can be considered equal. They are governed by documents giving instruction and must act without wrongdoing. They cannot make unilateral decisions without regard for their role or the people they serve.
Executor.org is a valuable tool designed to help executors. There are many steps in the process and numerous executor duties, and we are there to break down each one so you can succeed in the executor role. We also provide great tips for assembling a team of experts who can help you. With Executor.org by your side, completing the executor responsibilities will be easier.