When handling estate matters, the terms “trustee” and “administrator” often come up. While both manage assets, they serve different roles. Understanding these differences can clarify their responsibilities in estate planning and administration.
What is a trustee?
A trustee manages assets held in a trust. The grantor, or the person who created the trust, chooses the trustee. Trustees follow the instructions in the trust document and act in the best interests of the beneficiaries. Their tasks include investing assets, paying bills, and distributing funds as outlined in the trust’s terms.
What is an administrator?
An administrator oversees an estate when someone passes away without a will. The court appoints the administrator to manage and distribute the deceased’s assets. Their role involves collecting assets, paying debts, and distributing the remaining property to the rightful heirs. Unlike a trustee, an administrator follows state laws, not specific instructions from a trust.
How does an executor fit into this?
An executor is similar to an administrator, but they handle estates when there is a will. The will names the executor, who follows its instructions to manage and distribute the assets. While the role is close to that of an administrator, an executor works directly based on the will’s details.
Why understanding these roles matters
Understanding the distinct roles of trustee, administrator, and executor empowers you to make informed decisions in your estate and administration planning. With this clarity, you can confidently choose the right approach to manage and distribute your assets, ensuring the state respects your wishes and you leave your loved ones with the necessary support.
