Accountancy

Who is Executor?

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The executor is someone who administers the will of the deceased person. The primary role of this person is to execute the last wishes and manage the financial affairs of the deceased person. Generally, anyone can appoint his executor before his death. In case if he is not appointed earlier, then the court or the testator can appoint him after his death.

To become an executor, the person must acquire a copy of the will of the deceased person. The executor must submit the photocopy of this will to the local probate court to gain authority on this matter.

After becoming an executor, the person must maintain the property until it is distributed among heirs. During this period he should build communication with other governmental agencies and inform everyone about the death of the person.

Who is Trustee?

According to the legal term, a trustee is an individual or a group of people who administers assets for the benefit of others. The trustee holds the legal title until the asset or the property is handed over to the beneficiary. He also holds the right to decide for the best interest of the beneficiary. By default, he gets the fiduciary accountability to the recipients.

There are various purposes where a trustee can be appointed. Generally, they are appointed for charity, pensions and retirement plans, trust funds, bankruptcy cases, etc. As the authorized person of the trust, the primary duty of the trustee is to manage all the assets for the trust.

Main Differences Between Executor and Trustee

• According to legal terms, an executor is someone who oversees the will of the departed person; while the trustee is an individual or a group of people who administers assets for the benefit of a third party.
• The executor has to be appointed by the local probate court. But, a trustee can be appointed by an individual, court, or by any financial institution.
• An executor has to follow the term of the will and distribute & transfer the belongings of the deceased person to the heirs. On the other hand, the primary duty of the trustee is to follow the term of the trust document and oversee and maintain the asset of the designated trust.
• The executor begins his work after a person passed away to comply with his will. However, the trustee can work for charity, pensions and retirement plans, trust funds, bankruptcy cases, etc.
• The duration of the executor job is short, while the duration of the trustee job can be extended.
• In most cases, the executor does not take fees for this task. On the other hand, the job of the trustee can be non-profit, but most trustee takes agreed upon fees or salary for this task.