Does that portion of the estate go to your sibling’s surviving spouse or children or to the other siblings? So, unlike an executor, a trustee may be serving in his role for a long, long time. A Powerful Exercise to Surface the Values You Want to Pass on to the Next Generation, 5 Tragic Mistakes People Make When Leaving Assets to Their Pets, 5 Things Every New Mother Needs to Know About Wills, New Legislation Could Mean the End of Estate and GSTT Taxes What This Means for You and Your Family, 5 Mistakes Made by Successor Trustees (and How to Prevent Them), Better to Play it Safe: Proactive Estate Planning and Cognitive Impairment. In fact, choosing the same person … One of the most important is the selection of your executor or successor trustee. Does a Dynasty Trust Make Sense for Your Family? 2 Happy), Conservation Easements: Preserving a Heritage With Tax Benefits, Disaster Preparedness Month: How to Prepare for Whatever May Come Your Way, How to Help Your Loved Ones (and Assets) Avoid Probate, How to Protect Your Family When You and Your Spouse Work in the Same Business, How to Minimize the (Voluntary) Federal Estate Tax with Portability, Trust Funding: Setting Your Trustee Up for Success, How to Protect Your Great Ideas or Works for Your Family, We All Need a Yearly Checkup: Your Estate Plan Does Too. The executor carries out the terms of the will and sees the estate … Typically, states use the same guidelines for executor fees when determining trustee fees. In the event of the trustmaker’s death, the trustee or successor trustee typically distributes the property and assets to the beneficiaries and closes down the trust. Sometimes this can involve drama, emotional support, and other sticky situations. yes, you do, and here is why. As executor or trustee, you must also make sure individual income tax returns and estate tax returns are filed. People often confuse executors and trustees. To avoid hurt feelings or being accused of playing favorites, you may be tempted to name all of your adult children to be co-successor trustees. Understanding the difference between is essential to estate planning. Executor vs. trustee: What’s the difference? 5 Things to Consider, Three Tips for Talking About Your Estate Plan During the Holidays, Investment, Insurance, Annuity, and Retirement Planning Considerations, Warning: Don’t Let Creditors Inherit from You, Caution: Creditors Now Have Easy Access to Inherited IRAs, 5 Reasons to Protect Your Retirement Accounts Now, Why receiving an inheritance changes your estate plan, Estate Planning Considerations for Benefits Open Enrollment, The More You Know: Reverse Mortgages & Estate Planning, Trusts -The Swiss Army Knife of Estate Planning, What Estate Planning Awareness Means For You, Big “Life Changes” Often Mean Big “Estate Plan Changes”, Why Joint Tenancy Should Not Be the Go-To Plan for Newlyweds, 5 Tips for Successfully Receiving an Inheritance, Do It Now! Executor v. Successor Trustee- After Your Death. Did you or a loved one make any of these five critical estate planning mistakes? (Where and how the person wants to be buried, or where they want to be cremated, etc.). (Are You Making It, Too? Doris Duke’s Trustee Bilked Estate for $1M: How Well Do You Know Yours? Discretionary Trusts – How to Protect Your Beneficiaries from Bad Decisions and Outside Influences. Executors and trustees perform similar functions, though one major distinction is the time commitment that may be required. When to Involve Adult Children in the Estate Planning Process, Preventing a Will Contest & Preserving Peace in the Family, Problems with Using Joint Accounts as a Vehicle for Inheritance. Should I Transfer My Home to My Children? Importance of Properly Revoking Powers of Attorney, Why Your Heirs or Beneficiaries May Receive a Smaller Inheritance Than You Thought, Seven Ways to Avoid Family Fights over Your Property, Avoiding Financial Grief: How to Protect Your Significant Other from Frozen Accounts, How to Handle Savings Bonds in Estate Planning and at Death. How Often Do You Update Your Estate Plan? An executor and a trustee are similar in that they both have a duty of absolute care to the beneficiaries of the estate/trust, but their roles in respect of the beneficiaries are quite different. Help! Upon the trustee owner’s death, the successor trustee will distribute the assets held in the trust to the named beneficiaries and subsequently close down the trust, similar to an executor, but without the burden of court ordered probate. Organize Information for Your Family in the Event Something Happens to You. The executor and successor trustee can be the different people, but do not have to be. AB Trusts – Do You Need to Get Rid of Yours? Who Should Be Your Successor Trustee For Your Revocable Living Trust? The executor and successor trustee can be the different people, but do not have to be. If I Don't Have an Estate, Do I Really Need to Consider Estate Planning? : Learn How These Special Trusts Can Help Reduce Income Taxes, Modernizing an Outdated Estate Plan: What to do with a Confusing, Old Trust, Have You Considered a Dynasty Trust for Your Family’s Estate? Estate Planning - Why Me, Why Now, and Is a Will Enough? Failure to do so may result in liability to you as the executor or trustee or to the heirs who receive distributions from the estate. Upon your death, your Attorney-in-Fact’s power ceases and your Executor’s power, assuming he or she is appointed by the Probate Court, commences. An executor, usually called a trustee, is responsible for administering all property and assets in accordance with the specifications of the trust. More Often Than Your Resume? Estate … Upon your death, the successor trustee will distribute the assets held in the trust to your named beneficiaries and subsequently close down the trust, similar to an executor, without the burden of probate. ESTATE PLANNING ATTORNEYS: CALL GATEVILLE LAW FIRM TODAY AT 630-780-1034 Sean Robertson and Gateville Law Firm are experienced attorneys that assist families and business owners with their Trust and estate planning decisions. You’re not alone - but you still need a plan. When the executor’s duties to the trust end, then the trustee’s duties begin. Do I Really Need Advance Directives for Health Care in Wisconsin? What is Asset Protection and Do I Need It? An … I didn’t mention this in the list above, but as an Executor or Trustee, you will typically be involved closely with the heirs/beneficiaries. Three Legal Things to Do After a Scary Health Diagnosis, Estate Planning Tips for Someone Who Is About to Go in for Major Surgery. There are several other factors to keep in mind when comparing the role of a trustee vs. the role of an executor: The trustee must carry out the wishes of the deceased as he or she outlined in the trust instrument. While they do have legal recourse against the estate, they do face significant legal fees in probate court to collect on the debt. Home DNA Tests - A Bump in Your Estate Plan, Kids Going Away To College? document.write(new Date().getFullYear()) Who should I pick to be a successor trustee? Scott Royal Smith is an asset protection attorney and long-time real estate investor. Some things to consider when choosing your executor or successor trustee: • The process of closing an estate can take a very long time, so you want to choose someone who will be committed to following through. When Marcus Baker’s* grandfather asked him to be executor of his will and a successor trustee of his trust, Marcus didn’t hesitate. If the estate must probated in court, as will typically occur if there is only a will, then as executor you are required to notify creditors of the probate court action and of the assets of the estate. As for unsecured creditors, you should notify them of the passing of your loved one. Or Do I Need Both? Family members or close friends may suddenly find themselves carrying out the duties of a successor trustee or executor/executrix (also referred to as Estate Administrators) after the death of a loved one. Give us a call today so we can help you select your executor and trustee, Estate Planning for High Net Worth Individuals, Estate Planning for Non-Traditional Families. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth. Four Easy to Avoid Mistakes People Make at Tax Time, Four Estate and Legacy Planning Tips for the Suddenly Wealthy. Seeing an Estate Planner? Do You and Your Family Know Where the Documents Are? The biggest difference between an executor and a trustee is the duration of the role. 5 Steps for Coordinating Plans Across Generations. Four Steps to Stop Mail Addressed to a Deceased Person, Five Things You Need to Know About the Recently ABLE Act, 5 Reasons Why Uncle Bill May Not Make a Good Trustee, Financial Firms Roll Out Form Aimed at Stopping Financial Elder Abuse, Estate Planning Basics for Newlyweds – How to Get Prepared for the Unexpected, Escape From a Bad Trust: 5 Strong Reasons to Decant Your Trust. If the Trust was established correctly and if it was properly funded (the trust owns the assets of the deceased person), then you will not need to go to court to get approval to administer the estate. To be valid, a trust must identify the following: the trustor, the trustee, the successor trustee, and the trust beneficiaries. The fees can either be charged as a percentage of assets or as a percentage of transactions associated with money moving in or out of the trust. The Successor Trustee: “Executor” of the Trust. : New Choices and Opportunities for Tax Savings, Three Legal Strategies When Facing a Major Health Event: What You and Your Family Need to Know, 2018 Midterm Elections: What Do They Mean For Your Estate Plan? Why should I use an attorney to help with my Estate Planning? As executor or trustee of the estate, you have an obligation to guarantee that all creditors claims are paid from the estate. : Strategic Planning Guidance in Light of the Midterm Results, Estate Planning Projects to Tackle in the New Year, 3 Estate Planning Secrets the Wealthy Use That You Can Too! The successor Trustee generally has the same duties and responsibility of a Trustee. State laws can also specify how successor trustees … Hopefully the will or trust will state what shall occur in this instance. What Happens to Your Student Loan Debt When You Die? Isn't There Already a Law That Leaves Everything To My Wife and Kids? // ]]> Nennig Law Offices, LLC | Disclaimer | Website Design by Zola Creative The executor’s duties also include the requirement to obtain an accounting of assets by the trustee or trustees. The successor Trustee generally has the same duties and responsibility of a Trustee. An executor, also known as personal representative, has the authority to administer and distribute an estate. The executor and successor trustee can be the different people, but do not have to be. The assets of a trust will be transferred to beneficiaries at a later date than the rest of the estate, or will provide a long-term income stream for certain beneficiaries. Accordingly, the Executor role may be limited. Really. You can make it. Obviously, when you are giving someone this much power and discretion, you should choose someone with good common sense whom you trust completely. Designating the same person as the executor of your estate and your successor trustee will minimize expenses but naming different ones will not allow one single person to have unilateral control. 5 reasons to update your planning documents. Three Keys to Protecting Yourself from a Rogue Executor, Legal Paperwork Cheatsheet: A Guide to the Top 12 Must-Have Documents, Saying “I Love You” With Your Estate Plan, Three Tips for Protecting Your Important Legal Paperwork in a Natural Disaster. If I have considerable assets, should I consider Medicaid Planning? There are a number of common situations where you will need to go to court to obtain court approval in administering the estate. Why Not Just Go on NoloⓇ and Create Your Own Estate Planning Documents Cheaply? Revocable Trust vs. Irrevocable Trust: Which Is Best for You? What are the Powers and Duties of a Personal Representative? Can I Make Estate Plans Without My Spouse? The executor’s duties also include the requirement to obtain an accounting of assets by the trustee or trustees. Here’s What You Need to Do, The Only Constant in Life is Change: When Circumstances Change, So Should Your Estate Plan, Beyond Wills and Trusts: 3 Documents Everyone Needs, Reconsider Outright Inheritances: How to Protect Your Heirs and Your Legacy from Bad Decisions and Outside Influences, Planning for Blended Families: Second or Later Marriages and Divorce of Beneficiaries, The Flexible Protection of Trust-Based Planning, Why “I Love You” Wills Really Don’t Say “I Love You”, Estate Plans for College Students and Other Young Adults: Why It’s the Perfect Time to Set Your Kids Up for Success, Your Guide to Better Incapacity Protection in Your Estate Plan, Are You Familiar With Community Property Trusts? He or she will administer and settle your estate, performing the same types of duties as a successor trustee performs after your death. Is there anyway a disinherited child could receive an inheritance from an estate? A Living Will or Health Care Power of Attorney? You May Not Think You Need a Will But You Really Do. If I Don't Have an Estate, Do I Really Need an Estate Plan? Why Factoring Long-Term Care Into Your Estate Plan Pays Off, Dumb Ways to Leave an Inheritance to Children, Why a Trust Is the Best Option for Avoiding Probate, Who Is Your Beneficiary? The executor and successor trustee can be the different people, but do not have to be. An executor holds the role only until he or she distributes the deceased’s assets, while a trustee is committed for the duration of the trust, which can span years, if not generations. Agreeing to serve in this capacity is known as personal Representative work court. Be Left Out of Your estate, you should notify them of the estate individual! Now that we ’ ve been named as an executor of an Estranged Noncitizen Spouse Death! 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