What They Do, Why They Matter, and How to Choose the Right Ones

Estate planning is about more than just writing a will, it’s about ensuring your legacy is carried out clearly, efficiently, and in the best interests of your loved ones. Two of the most important roles in this process are your executor and your trustee. Though their responsibilities may overlap in certain situations, they serve distinct functions that can significantly impact how smoothly your estate is managed.

In this article, we’ll explore what executors and trustees do, who can take on these roles, how to choose wisely, and common pitfalls to avoid.

‍

What Is an Executor?

An executor is the individual or institution named in your will to manage your estate after you pass away. This is the person who ensures your final wishes are fulfilled according to the legal instructions setout in your will.

Primary Responsibilities of an Executor:

• Locating and securing all assets
• Paying final bills, taxes, and debts
• Applying for probate, if necessary
• Managing financial accounts and property during estate administration
• Distributing assets to beneficiaries as outlined in the will
• Keeping clear records and communicating regularly with beneficiaries

Executors are also responsible for handling logistical details such as notifying government agencies and financial institutions of your death and possibly arranging your funeral if no other instructions are left.

‍

‍

What Is a Trustee?

A trustee is responsible for managing any trusts you establish, either during your lifetime or through your will. While an executor handles the entire estate, a trustee’s duties are more focused: they manage assets held in a trust for the benefit of named beneficiaries.

Primary Responsibilities of a Trustee:

• Managing investments and assets within the trust
• Ensuring distributions are made according to the trust terms
• Balancing the interests of different types of beneficiaries (e.g., income vs.     capital beneficiaries)
• Complying with legal, tax, and fiduciary obligations
• Maintaining detailed records and providing annual reports (if required)

Trusts may be used to provide for minor children, loved ones with disabilities, or heirs who may benefit from staggered inheritances overtime. Trustees must act in the best interest of beneficiaries and make prudent decisions with the trust’s assets.

‍

Who Can Serve as Executor or Trustee?

The roles of executor and trustee can be filled by:

• A family member or close friend
• A professional, such as a lawyer, accountant or other advisor
• A trust company or corporate fiduciary

You may appoint co-executors or co-trustees if your estate is complex or you want shared decision-making. It’s also possible(and common) for the same person to serve both roles—though in complex estates, separating the roles can be helpful for clarity and accountability.

Qualities to Look For:

• Trustworthiness and integrity
• Organizational skills and financial literacy
• Impartiality, especially in blended families or complex dynamics
• Availability and willingness to serve

Before naming someone, always speak with them to ensure they are willing and able to take on the responsibility.

‍

Common Pitfalls to Avoid

1. Improper Structure

• Failing to fully fund a trust
• Not updating trust terms to reflect changes in family or tax law
• Overlooking attribution rules that can lead to unintended tax consequences

2. Family Dynamics

• Naming a family member who lacks impartiality or financial experience
• Creating confusion or disputes by not clearly communicating your intentions

Tip: Choosing a neutral professional or corporate executor can help avoid conflict, especially in high-net-worth or blended family situations.

3. Lack of Support or Guidance

Even the most capable and well-intentioned individuals can run into challenges without proper guidance. Managing an estate that includes complex assets, like a private business, real estate, or international investments, requires specialized knowledge. That’s why it’s often wise to involve professionals, such as financial advisors, lawyers, or trust companies, who can help ensure everything is handled smoothly and according to your wishes. Their expertise can make a significant difference in avoiding delays, costly mistakes, or family disputes.

‍

‍

When Should You Consider a Professional?

A professional executor or trustee—such as a lawyer, accountant, or trust company—may be the right choice when:

• Your estate is large or complex
• There are potential family disputes
• You have cross-border assets
• The trust involves vulnerable beneficiaries or unique investment decisions

Professional executors bring experience, neutrality, and efficiency. However, they do charge fees, which should be weighed against the value of the service they provide.

‍

Executor vs. Trustee – Key Differences Summary

• Role:
  
   
  • Executor: Administers the entire estate.
   
  • Trustee: Manages assets held in trust for beneficiaries.
 
• Purpose:
  
   
  • Executor: Carries out the instructions in the will and ensures the estate is settled.
   
  • Trustee: Oversees the trust in accordance with its terms and manages it over time.
 
• Timeline:
  
   
  • Executor: Role typically ends once the estate is fully distributed—usually within 6 to 18 months.
   
  • Trustee: May serve for many years, even decades, depending on the trust’s duration.
 
• Duties:
  
   
  • Executor: Locates assets, pays debts and taxes, applies for probate, distributes remaining assets to beneficiaries.
   
  • Trustee: Invests and manages trust assets, makes distributions according to the trust, maintains records, ensures compliance with legal and fiduciary obligations.
 
• Appointed By:
  
   
  • Executor: Named in the will.
   
  • Trustee: Named in the will or in a separate trust agreement.
 
• Replaced By:
  
   
  • Executor: Can be replaced by the court if unable or unwilling to serve, or if alternatives are named in the will.
   
  • Trustee: Can be replaced by a named successor trustee or by the court if necessary.

‍

‍

How Matco Financial Can Help

At Matco Financial, we understand that naming an executor or trustee is not just a legal decision—it’s a financial one with long-term implications. With over 30 years of experience in estate and trust planning, our team helps you:

• Identify the right individuals or institutions for the job
• Integrate executor and trustee planning into your broader estate strategy
• Coordinate with legal professionals to ensure all documents align
• Provide support and guidance to appointed executors or trustees after death

‍