Executor, Administrator, And Trustee: Whats The Difference?

Executor, Administrator, And Trustee: Whats The Difference?

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When it comes to settling your estate after youve passed away, exactly which fiduciaries will be in charge depends on the type of estate plan you leave behind.

Last Will and Testament

If your estate plan is centered on a Will (and you havent established a Living Trust), then an Executor will be in charge of settling your estate. Your Executor will most likely be the person you name in your Will to carry out the administration of your estate, and he or she will need court permission to begin his or her duties. Why? When you die leaving a Will, your estate goes through the probate process. And, probate is court-controlled. So, your Executor cant take any action on behalf of your estate until he or she is officially appointed by the probate judge.

No Estate Plan

If you pass away without an estate plan, but you leave behind property titled in your name, that property will generally still need to go through the probate process before it can be distributed to your heirs. The person appointed by the probate court to manage this process is called an Administrator, and the Administrator of your estate is likely to be a family member or friend who comes forward and asks to be given the job. Generally, an Administrator has more of an obligation than an Executor to report to the court and to get the probate judges permission before taking certain actions.

Revocable Living Trust

What if the centerpiece of your estate plan is a Revocable Living Trust? In this case, youll name a Successor Trustee when you set up your trust, and this is the person who will step in to administer your Trust when you pass away. Since a properly funded Revocable Living Trust avoids probate, theres no court involvement. Your Trustee simply has the authority to manage and distribute the trust assets, as long as he or she follows the rules set forth in the trust.
What if some of your property is left out of your trust, and has to go through probate? Then your Trustee will have to coordinate the administration of your trust with either your Executor (if you have a Pour Over Will in addition to your trust) or the Administrator of your estate (if you leave behind a trust but no Will).

About the Author:
Cheryl David is a leading provider of expert estate planning guidance in Greensboro, NC. For more information on trustee and other estate planning services, visit our website.



Article Originally Published On: http://www.articlesnatch.com


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