What is the difference between a trustee and a representative?

What is the difference between a trustee and a representative?

If you create a trust, you name a person to be the “trustee” of the trust. The trustee is duty bound to follow the instructions in the trust instrument and the law governing trusts. The person whom you nominate to settle you estate is your “personal representative,” sometimes called your “executor”.

Are personal representatives trustees?

A PR may become a trustee of property passing under the terms of the Will or the intestacy rules which is to be held on continuing trusts. and the remainder of the estate has been distributed then, in respect of any property not immediately distributable, they, or others appointed by the testator, may become trustees.

Who has more power executor or trustee?

If you have a trust and funded it with most of your assets during your lifetime, your successor Trustee will have comparatively more power than your Executor. “Attorney-in-Fact,” “Executor” and “Trustee” are designations for distinct roles in the estate planning process, each with specific powers and limitations.

What is the difference between personal representative and executor?

A personal representative is appointed by a judge to oversee the administration of a probate estate. In most cases, the judge will honor the decedent’s wishes and appoint this person. When a personal representative is nominated to the position in a will, he’s commonly called the executor of the estate.

Does a trustee get paid?

Most trustees are entitled to payment for their work managing and distributing trust assets—just like executors of wills. Typically, either the trust document or state law says that trustees can be paid a “reasonable” amount for their work.

Who should be appointed as a trustee?

Depending on the type of trust you are creating, the trustee will be in charge of overseeing your assets and the assets of your loved ones. Most people choose either a friend or family member, a professional trustee such as a lawyer or an accountant, or a trust company or corporate trustee for this key role.

What is a trustee in a will?

The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.

What does a trustee do when someone dies?

The successor trustee is charged with settling a trust, which usually means bringing it to termination. Once the trustor dies, the successor trustee takes over, looks at all of the assets in the trust, and begins distributing them in accordance with the trust. No court action is required.

What does it mean to be a trustee in a will?

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. If that’s the case, you can’t use the money for anything else.

Who is the trustee of a trust or personal representative?

A Trustee. The person who creates a trust is called the trustmaker, or sometimes the grantor. The trustee oversees day-to-day management of property owned by the trust for the benefit of its beneficiaries. As with a personal representative, the trustee can be a person, an institution, or both may serve as co-trustees.

Who is the trustee of a revocable living trust?

The trustee oversees day-to-day management of property owned by the trust for the benefit of its beneficiaries. As with a personal representative, the trustee can be a person, an institution, or both may serve as co-trustees. The trustmaker, trustee, and beneficiary of a revocable living trust are often the same person.

Can a court appoint a personal representative to an estate?

Unlike a trustee, a court can appoint a personal representative to an estate if someone dies before specifying their own personal representative. Similar to a trustee, a personal representative can be a person, institution, or combination of both.

How is a trustee named in a will?

A trustee is named by an individual who creates a living trust in much the same way a testator — the person writing a will — can name a personal representative for his estate.