Difference between Executor and Trustee
Entering the world of wills, trusts and executors can be confusing. One of the first questions that are often asked is what is the difference between an executor and a trustee? The executor is the person who oversees the drafting of the will, usually involved in going to court for probate. Meanwhile, a trustee is a person who oversees the trust. An essential difference between a trustee and an executor is each position's scope of authority and discretion. The trustee and the executor are legally bound to abide by the terms of the trust or probate. Also, they would be the indicated person to make payments to the beneficiaries following the trust or probate condition.
Executor
An executor is a person appointed to execute the will and the testament of the deceased. The primary responsibility of the executor of the inheritance is to follow the instructions and wishes of the deceased person. The executor is appointed by the individual who makes the will (testator) or by the court in cases not specified in advance.
Trustee
A trustee, on the other hand, is an individual or firm who owns and manages assets or property for the benefit of a third party. There are various purposes in which trustees can be appointed, such as charities, bankruptcy, trust funds, or certain types of retirement or pension. Trustees are trusted to make decisions in the best interests of the beneficiaries, and they often have fiduciary responsibilities, which means that they act in the best interests of the trustee in managing their property.
| Executor | Trustee | |
|---|---|---|
| Appointment | An executor is named in the testament or last will of the deceased. | Appointed in a trust document, like a living trust, to oversee the estate of a deceased person. |
| Responsibilities | Managing of issues that may arise from creditors, omitted heirs, and enduring the handing over of properties to the appropriate persons. | Avoids your family from going through probate court stress and difficulties. |
