Generally, an executor administers the estate of the person who died, while a trustee administers a trust for the benefit of the named beneficiaries. A guardian makes decisions for minor children of the person who died or for an incapacitated adult.
Trustees hold legal powers such as managing assets, making investment decisions, distributing funds to beneficiaries, and ensuring compliance with trust terms and laws.
An executor is the person who will help execute the plan you laid out in your last will and testament. A trustee is responsible for managing a trust on behalf of its beneficiaries.
A trustee is a person who takes responsibility for managing money or assets that have been set aside in a trust for the benefit of someone else. As a trustee, you must use the money or assets in the trust only for the beneficiary's benefit.
As previously mentioned, trustees generally cannot withhold money from a beneficiary for no reason or indefinitely. Similarly, trustees cannot withdraw money from a trust to benefit themselves, even if the trustee is also a beneficiary.
An executor does not possess the power to overrule or change the terms established by a trust; these roles carry separate responsibilities. An executor's role consists of overseeing and closing an estate as per its will's instructions without disrupting or interfering with their independent functions as trustee.
It is not unusual for the successor trustee of a trust to also be a beneficiary of the same trust. This is because settlors often name trusted family members or friends to both manage their trust and inherit from it.
A trustee must abide by the trust document and the California Probate Code. They are prohibited from using trust assets for personal gain and must act in the best interest of the beneficiaries. Trust assets are meant for the benefit of the trust beneficiaries and not for the personal use of the trustee.
Some wills contain “testamentary trusts” to be funded after your death. Such wills name one or more trustees in addition to a personal representative. The personal representative and the trustee named in such wills are sometimes the same person.
While beneficiaries do not have the power to unilaterally override a trustee, they have rights and legal avenues to challenge a trustee's actions if they believe those actions are contrary to the trust's terms or their best interests.
Being a trustee is also a role that can be quite time consuming, more so than most people assume. Depending on the nature of the estate, being a trustee can require quite a few hours, which can be hard to come by if the trustee also has a full-time job, a family, and/or other obligations.
Typically, a revocable trust with clear provisions for outright distribution might conclude within 12 to 18 months. However, in simpler cases, the process can take an average of 4 to 5 months without complications.
If you are a trustee of the deceased: If your loved one set up a living trust, the checking account may be held in the name of the trust. If you are named as the successor trustee (the person who assumes control of the trust after the initial trustee dies), you should notify the bank that the initial trustee has died.
A trustee typically has the most control in running their trust. They are granted authority by their grantor to oversee and distribute assets according to terms set out in their trust document, while beneficiaries merely reap its benefits without overseeing its operations themselves.
Executors can use the money in the estate in whatever way they determine best for the estate and for fulfilling the decedent's wishes. Typically, this will amount to paying off debts and transferring bequests to the beneficiaries according to the terms of the will.
A beneficiary can sue a trustee for breach of fiduciary duty if the trustee fails to distribute trust assets as required by the trust instrument. When a trustee accepts an appointment, a “fiduciary” relationship is created between the trustee and the trust's beneficiaries.
Trustees are personally liable for all decisions they take in that capacity, and their liability is not automatically limited to the value of the trust fund. Typically, the trust deed will limit trustees' liability in some way and these clauses should be checked, as well as any existing trustee insurance.
Serving as the trustee of a trust instills a person with significant power. They have access to all the trust assets, but with a catch: They can only use those assets to carry out the instructions of the trust.
Yes, a trustee can also be a beneficiary of a trust. It's fairly common for a trust beneficiary to also serve as trustee. For example, in a family trust created by two spouses, the surviving spouse will almost always serve as both a trustee and beneficiary.
An executor is responsible for settling a will, while a trustee is responsible for managing and distributing assets in a trust. If you have been named as either an executor or trustee, it's important to consult with an experienced attorney.
The trustee generally has the authority to withdraw money from a trust to cover the cost of third-party professionals, as well as any other expenses arising as a result of administration.
The answer would be the decedent's heirs, who may consist of their surviving spouse, children, grandchildren, parents, siblings, and nieces and nephews, among others. To put it simply, even when there is no will, the administrator does not have the authority to decide who gets what.
Anyone 16 and over (18 for an Unincorporated Association or Charitable Trust) who is not 'disqualified' can be a Trustee. The reasons for disqualification were set down by the Charities Act 2011, and were designed to prevent people convicted of financial crimes, or who made serious financial errors, becoming trustees.
Q: Can an Executor Withhold Money From a Beneficiary in California? A: Executors do not have the authority to act outside the guidelines stipulated in the will. An executor cannot withhold money from a beneficiary unless they are directed to do so through a will or another court-enforceable document.