Responsibilities of an Executor or Trustee

Being named as an Executor or Trustee is an important responsibility. It is also one that many people do not fully understand until they are asked to take on the role.

If someone has named you, it does not simply mean, “You get to handle the money.”

You may be responsible for carrying out someone else’s wishes, managing assets, keeping records, communicating with family members, and making decisions during a difficult time.

Understanding what the job involves can help you decide whether you are willing and able to take it on.

What Does an Executor Do?

An Executor generally handles a person’s estate after they die. The specific responsibilities depend on the person’s Estate Plan and circumstances, but may include:

• Locating and protecting assets
• Gathering information about the person’s finances
• Paying valid debts, bills, and expenses
• Handling tax and other financial matters
• Working with attorneys, accountants, financial institutions, and others
• Keeping accurate records
• Communicating with beneficiaries
• Distributing assets according to the person’s Will and applicable law

The Executor is not simply deciding who gets what. Their job is to follow the person’s Estate Plan and properly handle the estate.

That can take time, attention to detail, and patience.

What Does a Trustee Do?

A Trustee manages property held in a Trust. The responsibilities can vary significantly depending on the type of Trust and the instructions contained in it.

A Trustee may be responsible for:

• Managing and protecting Trust assets
• Following the instructions of the Trust
• Keeping accurate financial records
• Paying appropriate expenses
• Making distributions to beneficiaries
• Communicating with beneficiaries
• Working with professional advisors when necessary

Some Trusts involve management of assets during a person’s lifetime. Others primarily address what happens after someone dies. Some do both.

That is why it is important for a Trustee to understand the particular Trust they are responsible for administering.

It Is More Than a Title

Being named as an Executor or Trustee does not mean you simply step in and make decisions however you think is best.

There are responsibilities that come with the role, and those responsibilities are generally tied to the person’s Estate Plan and applicable law.

You may have to make decisions that not everyone in the family agrees with. You may need to ask questions, gather information, keep records, and seek professional guidance.

And sometimes, you may have to say no to a request from a family member because it does not fit with the person’s wishes or the requirements of the Trust or estate.

That is a lot to ask of someone.

Should You Say Yes?

If someone asks you to serve as their Executor or Trustee, it is reasonable to ask questions before agreeing.

What exactly will you be responsible for? What does the Estate Plan say? What assets will be involved? Who will you need to work with? Will you have the time and ability to handle the responsibility?

You do not have to accept simply because someone trusts you enough to ask.

In fact, understanding the responsibility ahead of time can help you make a better decision—and can make things easier for everyone if you do accept.

Planning Ahead Helps Everyone

Choosing an Executor or Trustee is an important part of an Estate Plan, but so is making sure that person understands the role.

A good Estate Plan should not leave your family guessing about what you wanted or what needs to happen next.

The people you choose should know that they have been named and, when appropriate, have an opportunity to understand what they are being asked to do.

The goal is not to make things complicated. It is to make your wishes clear and give the people responsible for carrying them out the information they need.

The more your family understands before they need the plan, the easier it can be to put that plan into action when the time comes. Call or text us at 989-872-5601 to start the conversation today.