The terms “executor” and “trustee” are often used together and sometimes interchangeably, but there is a distinction between the two offices. Very often the same person is appointed to both offices in a Will, and this adds to the blurring of the two roles.
The executor is responsible for the administration of the testator’s estate following his or her death. In basic terms, the executor’s responsibilities include locating and securing the testator’s assets, paying the debts and liabilities of the estate, and distributing any remaining assets of the estate in accordance with the instructions set out in the Will. Generally, if a testator’s estate is not overly complex and complexities do not emerge during its administration the estate may be distributable within one year of the testator’s death. This period of time is often referred to colloquially as the “executor’s year”.
While every estate requires someone in the role of executor, not every estate requires someone in the role of trustee. A trustee is only required where the testator’s estate is not immediately distributed outright to the beneficiaries, and the whole or part of the estate is to be held in trust pursuant to the provisions of the Will. As the word suggests, a trustee’s role is to administer any ongoing trusts. Unlike the executor’s role which is generally completed within a year or two of the testator’s death, a trustee’s responsibilities can continue for many years, particularly if the trust relates to a young child or is held for the lifetime of the beneficiary.
When deciding who to appoint as an executor and/or trustee, a testator should consider many factors. Included in these factors is the candidate’s familiarity with the testator’s personal affairs, understanding of finances and the relevant assets, place of residence, and his or her age (particularly if the potential exists for extended testamentary trusts).
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