It is well understood that while dealing with someone’s property after their death, two major roles with various obligations may arise – successor trustee and executor. While these terms are often used synonymously, there are distinctions between them when it comes to estate planning. Understanding the key differences between these two roles is crucial for estate management and ensuring the wishes of the deceased are properly carried out.
What is a Successor Trustee?
A successor trustee is in charge of a living trust once the trustor is either dead or crippled by a disability. The living trust, also called the revocable trust, is an agreement under which a trustee takes responsibility for property for the benefit of the beneficiaries. Applicable where the original trustee is unable to serve due to death or physical disability, the successor trustee takes the mantle of the original trustee.
Key Responsibilities of a Successor Trustee
Administering the trust: The Successor Trustee safeguards the trust property to dispense it in terms of the trust deed.
Managing trust assets: They help manage and maintain accounts for the trust, paying for any expenses and tax issues related to the trust.
Protecting trust assets: This involves managing properties, including estates, availing insurance if required, and handling trusts, among others.
What is an Executor?
An executor is named in a will and is responsible for handling the property and affairs of the deceased, any of which are not in a trust. The successor trustee is only placed in charge of assets in the trust, while the executor is responsible for everything that is not in the trust.
Key Responsibilities of an Executor
Probate process: Lawyers are involved, especially when the executor is unable to manage the probate process, which is the process where a will is proved in court.
Paying debts and taxes: An executor, as much as possible, ensures that all debts that the decedent owes, including taxes and any liabilities they have left behind, are paid before distributions are made to the beneficiaries.
Distributing assets: Bills are paid after death, and after all the cash assets have been realized, the remaining assets are distributed amongst the beneficiaries (as set in the will).
Successor Trustee vs Executor: How Do Their Roles Differ?
Despite the similarities of both positions, including the fact that each of them oversees the assets of a deceased person, there are particular differences concerning the type of property they manage. The successor trustee manages the property in a living trust, and the executor takes care of all those estates which pass through probate and often through a will. Probate usually takes longer, as compared to the standard of assets in a trust, because the probate process is even more complicated.
So, it can be said that the successor trustee is appointed to manage trust-based assets, whereas the executor handles will-based assets, specifically through the probate process.
| Successor Trustee | Executor |
| Manages assets held in a trust | Handles assets that pass through probate (outside the trust) |
| No court involvement is generally needed | Involves the probate court and legal processes |
| Faster administration, often bypassing probate | The probate process can take longer due to legal requirements |
| Appointed to manage trust assets upon incapacity or death | Appointed to administer the will after death |
Who Can Be Both a Successor Trustee and Executor?
There are situations where the arrangements of the estate planning enable a single individual to work as both a successor trustee and executor. If a person is performing both jobs, then they look after the trust assets as well as the probate assets, managing the estate. However, in the way the person is chosen, it is crucial to have an idea of the various responsibilities related to each of these roles.
Why Selecting the Right Person is Important
Selecting the right person to act as successor trustee and/or the executor is very important for the effectiveness of an estate. They should be reliable, accountable, and a competent person to deal with the material and legal aspects. There may be conflicts of interest or simple disagreements, so if the estate is large, it might be helpful to have a professional or institutional trustee.
How to Choose the Best Course of Action for Your Estate Plan
Knowledge of the distinctions between a successor trustee and an executor is crucial when planning an estate. Both of these jobs play a large role in distributing your assets after your demise. Regardless of who you choose to appoint, they should be legally binding and smart enough to manage the legal and financial aspects of your estate.
Let Mucci Law Help You Protect Your Family’s Legacy
At Mucci Law, we specialize in estate planning, designating and protecting your family’s assets. From the appointment of a suitable successor trustee to assisting in probate matters, our team will be able to construct a solution according to the unique needs of each client. With years of expertise in estate planning, we will strive to secure your family’s future while protecting your peace of mind when dealing with complex legal procedures.
Connect with Mucci Law today to learn how we can assist you in estate planning or trust litigation!
FAQs about Successor Trustee vs Executor
1. Must I have both a successor trustee and an executor?
Not necessarily. If you make all your possessions or most of them go into trust, you may not need an executor, as the successor trustee will deal with all the distributions. However, for assets that are not included in the trust, an executor is required.
2. Can the successor trustee also manage the assets that are under probate?
No, the successor trustee is only responsible for the assets in the trust. An executor is in charge of assets that are under probate.
3. Who is an executor or successor trustee, and what happens if there is no executor or successor trustee?
If a will does not designate an executor, then the court will assign an executor on behalf of the deceased. Likewise, if there is no named successor trustee, anyone may apply to have the court make an order that someone take charge of the trust.
Abhishek Shah
