What is the Difference Between Executor and Trustee?

The main difference between an executor and a trustee lies in their roles and responsibilities in managing a deceased person's assets. Here are the key differences:

• Executor: An executor is responsible for managing a deceased person's estate and distributing the assets according to the will of the deceased. Their main responsibilities include collecting and preserving the assets, paying debts and taxes, and distributing the remaining assets to the beneficiaries as specified in the will. The executor's role is finite and ends once the estate's assets are distributed and the court issues a release.
• Trustee: A trustee is responsible for administering a trust for the benefit of the trust's beneficiaries. 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. The trustee's role is ongoing and may last for many years or even for life. Their main responsibilities include managing the trust's assets, distributing assets according to the trust's terms, and making decisions for the benefit of the beneficiaries.

Both executors and trustees are considered fiduciaries, which means they have a legal obligation to act in the best interest of the will's or trust's beneficiaries.

Comparative Table: Executor vs Trustee

Here is a table highlighting the differences between an executor and a trustee:

Both executors and trustees are considered fiduciaries, meaning they have a legal obligation to act in the best interest of the estate or trust and its beneficiaries. They must follow the instructions outlined in the will or trust documents and keep records of all transactions. It is not uncommon for a person to be named as both executor and trustee in a will, as there can be some overlap in these roles.