Alex What is a trustee vs executor?
An executor manages a deceased person’s estate to distribute his or her assets according to the will. A trustee, on the other hand, 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.
Who are the executors and trustees of an estate?
If assets in the estate are to be held on ongoing will trusts, the executors pass those assets to the trustees of the will trust, who then become the legal owners of the assets and manage them in accordance with the terms of the will trust.
Can a beneficiary question the executor of an estate?
Technically, the executor works for the beneficiaries. The executor of an estate — regardless whether it is a family member, friend or the deceased’s attorney — has a fiduciary duty to the beneficiaries to manage the estate in a way that promotes the best interests of the beneficiaries.
What’s the difference between a trust fund and an executor?
In a person’s will, the residuary estate is often called the “trust fund”. It is held by the trustees until it is distributed to the people who are going to inherit it. What do executors do? ensuring that your estate is dealt with according to the law; and carrying out your wishes as you have set them out in your will.
What can an executor of a will do?
There are limits on what an executor can and cannot do. If you’ve been named an executor, a couple basic rules of thumb are that you can’t do anything that disregards the provisions in the will, and you can’t act against the interests of any of the beneficiaries. Sounds pretty straightforward, right? Sometimes it is.
What’s the difference between an executor and a trustee?
Your will with Bequeathed creates a trust of the residuary estate, so that after the specific gifts are made, everything is passed to the trustees. More often than not, the executors and the trustees are the same people but their role changes from executor to trustee.
What are the guidelines for being an executor of a will?
If you have been named executor of a will or trustee of a trust, these guidelines can help you understand what’s expected of you in the process.
Technically, the executor works for the beneficiaries. The executor of an estate — regardless whether it is a family member, friend or the deceased’s attorney — has a fiduciary duty to the beneficiaries to manage the estate in a way that promotes the best interests of the beneficiaries.
Can a family member act as an executor or trustee?
A family member or friend can act as trustee or executor, but work alongside a corporate trustee who will guide on issues like tax, real estate and the assist with financial decisions.