By: Robert S. Meyring*
Attorney at Law
Originally published in January 2007 edition of Smyrna-Vinings BrightSide News.
What is the difference between an executor and a trustee as used in wills and estate planning?
An executor is one who carries out the instructions and directives in the will. The executor is named in the will, chosen by the surviving family or appointed by a probate court if needed. When there is no will (called intestacy), there is no executor. Instead the person who would oversee the handling and distribution of property from the intestate estate is called an administrator. You could say the administrator does the same activities as the executor, just without the will instructions.
A trustee is a person or institution appointed to hold and distribute your money or property for the benefit of another according to your instructions. For example, a will can say: “Half of my money shall be paid to my brother Jim to hold for the benefit of my children and to be paid in equal shares to each of my children when they reach 21 years of age.” Trusts like this are often written into the wills of spouses with young children. Jim is the trustee here. The quoted instructions are directed at the executor who may or may not be Jim. If the creation of a trust arises from a will, an executor is often the one to set it up. Trustees must be willing or compensated. Trusts must have property or money to distribute.
In future columns we will discuss trusts in more detail. I will show that trusts are one of the most versatile tools for estate planning, for management of assets or for the current assistance or protection of your loved ones.
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