What do Executors and Trustees do?
Their roles in managing your Will and estate.
When you decide to plan for the future and make a Will, there are two words you may hear repeatedly: Executor and Trustee.
It’s important to know exactly the part each might play in dealing with your estate, so let’s look at the two roles and the differences between them.
What Does an Executor do?
An executor is a person you choose to carry out your instructions after you die. Their main job is to make sure the intentions that you have set out in your Will are followed.
Anybody over 18 can be an executor, but it’s best to choose someone you really trust – such as a relative, friend or work colleague. You can have more than one Executor if you feel help would be needed, or as a backup just in case.
If someone becomes an executor, there are several responsibilities that come with the role, even if you are dealing with a relatively simple Will. They include:
- Registering your death
- Making funeral arrangements
- Notifying banks, insurance companies and mortgage providers
- Calculating and paying any taxes or debts owed
- Contacting all beneficiaries of the Will – even if they’re long-lost friends or relatives.
Even if the Will in question is straightforward, there is quite a lot of work to do. It can take more than a year in some cases to complete all the legal and financial requirements involved in administering someone’s estate.
What Does a Trustee do?
The biggest difference between a trustee and an executor is that a trustee is needed only if your Will stipulates that some of your estate will go into a Trust.
Once that happens the trustee, or trustees, is responsible for the assets that have been put into that Trust.
There are many types of Trust, but overall, their purpose is to protect certain assets – usually in the form of property or finances – and the beneficiaries involved.
The trustee’s role may vary slightly depending on the nature of the Trust. But in all cases, trustees are expected to be impartial, fair and reasonable as they carry out their duties.
These will typically include:
- Managing the Trust’s assets efficiently
- Keeping records of the Trust’s activities
- Reviewing the Trust’s finances annually
- Making sure any taxes owed are paid.
Differences Between Executors and Trustees
As you can see, executors and trustees have plenty in common. They both exist to ensure that the legal intentions enshrined in your Will are carried out as you wished. In many cases, executors will also be trustees, if needed, as they are ‘trusted persons’.
The main difference between the two however is in the length of the role. Once the deceased’s estate has been fully distributed to the beneficiaries, an executor’s job is usually done. A trustee, however, may have to devote time over several years, even decades, to ensure the Trust established in your Will works well for its beneficiaries.
The two roles should not be confused with a Lasting Power of Attorney (LPA). This is a legal measure that appoints one or more people to make decisions on your behalf if you lose the capacity to do so through an accident or illness.
An LPA applies only during your lifetime – though it is entirely possible that the people you invite to make those decisions for you will be close enough to you to be your trustees or executors too.
Your Next Step
It’s so important that you get your affairs in order – and sometimes the terms and language around making a Will can be confusing.
If you require more information about the roles of executors and trustees, contact Will Power today. Our team of expert consultants will be happy to talk you through your options and advise on the course of action that is right for you.
