Will trustee vs executor?
An executor manages a deceased person's estate to distribute his or her assets according to the will. A trustee, on the other hand, is responsible for administering a trust. 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.
Who has more power executor or trustee?
An easy take-away: Trustees have power of Trust assets both during and after your lifetime; your Attorney-in-Fact has power over your non-trust assets during your lifetime; and your Executor has power over your Probate assets upon your death.
Can the executor and trustee be the same person?
Sometimes, it might make sense to name a single person as both the executor and trustee, or to make sure that both parties get along with each other since they'll likely have to work together to settle the estate.
Can an executor and trustee be a beneficiary?
The short answer is yes. It's actually common for a will's executor to also be one of its beneficiaries. This makes sense, as executors are better able to perform their duties when they are familiar with the decedent's situation.
Can a beneficiary override a trustee?
Can a Beneficiary Override a Trustee? No, beneficiaries generally cannot override a trustee unless the trustee fails to follow the terms of the trust instrument or breaches their fiduciary duty.
Who is the best person to be a trustee?
A good Trustee should be someone who is honest and trustworthy, because they will have a lot of power under your trust document. The person you choose to act as a Trustee should also be financially responsible, because they will be handling the investments for the benefit of your beneficiaries.
Who is best to be an executor of a will?
Family members as executors
If there's someone in your family who you think will handle the job well, it can be a good idea to have them as an executor. For example, it's common to name one of your children, a niece or nephew or an adult grandchild.
What powers do trustees have?
Normally, a Trustee will have the following powers: to invest the Trust assets; to deal with land; to delegate certain matters to an agent or nominee; to insure the Trust's property; to make advances of capital to beneficiaries; to provide for beneficiaries who are under age; and to lend funds to beneficiaries.
Can a trustee withhold money from a beneficiary?
Generally speaking, a trustee cannot withhold money from a beneficiary unless they are acting in accordance with the trust. If the trust does not indicate any conditions for dispersing funds, the trustee cannot make them up or follow their own desires.
Can two people be executor of a trust?
People usually designate one person to serve as the executor of their will, but it is also possible to designate two or more co-executors. Most lawyers advise that one executor is best, as it avoids potential disputes, but there are situations where it may make sense to appoint co-executors.
What are the three roles of a trustee?
The trustee must distribute the property in accordance with the settlor's instructions and desires. His or her three primary jobs include investment, administration, and distribution.
What happens if an executor spends all the money?
If your suspicions are correct and the executor is stealing from the estate, the executor may face several consequences such as being removed as executor, being ordered by the court to repay all of the stolen funds to the estate, and/or being ordered by the court to return any stolen property to the estate.
How does a beneficiary get money from a trust?
The trustee can transfer real estate to the beneficiary by having a new deed written up or selling the property and giving them the money, writing them a check or giving them cash.
Who has the most power in a trust?
Technically, assets inside a Trust are owned by the Trust itself. They are managed and controlled by the named Trustee, who owns the legal title to said assets. The Trustee will also act on behalf, and in the best interest of, the Trust's beneficiaries.
Why a beneficiary should not be trustee?
However, you should be aware of some downsides to naming a beneficiary as the trustee. Making one of the beneficiaries the trustee can potentially create conflict with the other beneficiaries.
Can an executor remove a beneficiary from a trust?
Can an Executor Remove a Beneficiary? As noted in the previous section, an executor cannot change the will. This means that the beneficiaries who are in the will are there to stay; they cannot be removed, no matter how difficult or belligerent they may be with the executor.
Is there any downside to being a trustee?
A trustee can end up having to pay taxes out of their own personal funds if they fail to take action on behalf of the estate in a timely way. Of course, they can also face criminal liability for such crimes as taking money out of a trust to pay for their own kids' college tuition.
Does trustee have a lot of power?
A trustee has all the powers listed in the trust document, unless they conflict with California law or unless a court order says otherwise. The trustee must collect, preserve and protect the trust assets.
Why would someone want to be a trustee?
Most people agree to act as successor trustee because they feel a sense of loyalty to the person who asked them. In many cases, the trustee is either a beneficiary of the trust, a close friend or relative, or the deceased person's accountant or other adviser.
Which child should be my executor?
In most cases, parents should simply name the child most likely to be a good executor. And children who are hurt that someone else was named as executor should know that I have had more than one client who had a clear favorite among his children, and yet named a different child to be executor.
Who is normally the executor?
In most cases, the executor of a will is going to be the deceased person's spouse, especially if their estate is being left to the spouse, according to Morgan. If the estate is going to the children, then the child getting the majority of the property will be named executor of a will.
What is the main duty of an executor?
An executor is legally responsible for sorting out the finances of the person who died, generally making sure debts and taxes are paid and what remains is properly distributed to the heirs.
Who pays trustees?
Trustee fees don't come directly out of the grantor's pocket. Instead, they're paid out of the trust's assets. Depending on what you specify in the trust document, they can be paid once per year or biannually, though it's more common for trustee fees to be paid quarterly.
Can a trustee give power to someone else?
As a general rule, a trustee may not delegate discretionary functions to an agent, because those responsibilities were appointed to the trustee by the grantor. Only the trustee can act for the trust. A trustee may, however, delegate ministerial functions.
What is the 120 day rule for trusts?
The Timeline for Challenging a California Trust
Once a beneficiary or heir receives this notice, they have only 120 days to contest the trust. If they wait more than 120 days, their challenge will be dismissed without consideration, and they will be forever barred from attempting another contest.
