Most people choose just one person to be the executor of an estate and one person to be the trustee of a trust. However, you can choose more than one. Before you make that decision, you should carefully consider the people you choose. Choosing people who do not get along could cause your estate to spend years in probate or delay settlement of your trust.
Are the Executor and Trustee the Same Person / Position?
No, an executor and trustee are not the same position but they might be the same person. The executor administers your estate while it is in probate. As soon as probate ends, if there is a trust, the trustees of the trust take over management of the trust.
If you die intestate – without a will – the court appoints an administrator of your estate whose position is like that of an Executor, i.e., he or she administers and settles the estate. In many cases, when someone dies intestate, the court names a spouse or a child as the administrator, unless the family declines the appointment or the heirs are unable to agree on who the administrator should be. When the family is unable to agree on an administrator, a neutral third party is typically named as administrator. The executors manage your estate while it is in probate. As soon as probate ends, the trustees of the trust take over management of the trust. If you do not have a trust, you will not have trustees. If you die intestate – without a will – the court appoints and administrator of your estate. In most cases, it will be a spouse or a child, unless your immediate family declines the appointment.
Pros and Cons of Having Multiple Executors
If you can find two or more people who work well together, having multiple executors can be beneficial, especially if you have two or more people with very different strengths. However, if the executors do not get along and fight over every decision, your estate could be in probate for years, which eats away at your assets in fees and costs. When choosing your executors, you should consider the respective strengths as well as the potential disagreements prior to making the decision to name co-executors versus successive executors.
Pros and Cons of Having Multiple Trustees
As with executors, you can have more than one trustee. If the trust is structured properly, it will prevent fighting between the trustees, as they must follow the instructions of the trust. Having a second trustee ensures that the trust is timely managed in the event one of the other trustees cannot perform his or her duties due to an illness, trip or other personal reasons. Within the trust, you can specify whether the signature of one trustee is sufficient to act or if all co-trustees must sign documents to transact business. Allowing the signature of one trustee to transact business can provide a more efficient settlement of a trust.
In many cases, a trust names one person, but also names a second – and sometimes a third person, successors – to take over the trustee duties if the first person cannot manage the trust or dies. Naming successor trustees alleviates having a court appoint a trustee should something happen to the first trustee.
Contact an Estate Planning Attorney
If you are ready to create an estate plan, including creating and funding a trust, contact Grissom Law, LLC at 678.781.9230 to schedule a consultation.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.