What is the difference between an executor and a trustee?

What is the difference between an executor and a trustee?

Executors are the people who organise your affairs after your death. Trustees are people who run the trust that your will creates. But it isn’t quite that simple: sorry. And it’s no wonder that people sometimes get confused about this. We can try to explain it by answering some of the different ways that people ask, such as:

What are the duties of a trustee under a will?

Not all Wills will create trusts, but where a bequest creates a trust, the trustee is obliged to discharge their duties in acting as trustee under a Will. The duties are owed to the beneficiaries of the trust and are onerous and far reaching.

How many executors do I need for a will trust?

So if you are considering creating a will trust in your will, you should think about appointing at least two executors so that they can then be the trustees of the will trust. In theory you can have as many executors as you like, but only four can apply for probate.

Can an executor of an estate open a bank account?

Executors should open a new bank account just for the purpose of managing the estate. Most banks are used to dealing with executor accounts, which remain open until the whole estate is dealt with. The executors must apply for a grant of probate. Only when that is done can they go on to distribute your estate as instructed by the will.

The role of Executor is often completed over a short duration, whereas a Trustee may have ongoing responsibilities for many years to come. When choosing your Executors and Trustees, consider the roles and whether in your case, a separate Trustee should be appointed for the ongoing responsibilities after the initial administration.

Who is the executor of a living trust called?

The ‘Executor’ of a Trust – The Trustee. The person who serves as the “executor” of a living trust is called the successor trustee. Most of us are at least vaguely familiar with the role of executor of an estate.

What is the role of a trustee in a will?

However, where a Will establishes a trust or trusts within it, the person nominated as executor will often have to take on the role as trustee of those trusts. The role of a trustee may include: When a trust is created by a Will, the role of a trustee may continue for an extended period as nominated by the testator.

What is a successor trustee and what do they do?

That person is the successor trustee. When the trust grantor dies, the successor trustee steps in to gather and safeguard trust property, reads the terms of the trust document to determine who should inherit what, and then transfers trust property to the trust beneficiaries.

What are the duties of a trustee of a trust?

Whatever kind of trust is created by a will, the trustees have a number of duties and powers. Some of those are described by the trust document – which is often the will itself. The trustees must act in accordance with the terms of the trust, and the law.

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