05 Mar Trustee vs. Executor: What’s the Difference?
When you’re entering the realm of estate planning, there can be a lot of information thrown at you. Unfamiliar terms can get confusing. Who does what can be easily misunderstood. We’re here to explain things clearly, to help you feel more confident when making choices about your estate plan. Let’s examine the differences between a trustee and an executor, when and why you would need to appoint them, and how they each serve their roles.
Trustee vs. Executor
Both trustees and executors play important roles in estate planning, but they have very different roles and responsibilities.
Executor → Commonly referred to as a “personal representative,” this is the person who settles the estate and completes the probate process after someone passes away. They have many responsibilities, including notifying creditors and beneficiaries of the death, paying taxes, and distributing inheritances. You would appoint this person when you write your will. They will be responsible for administering your estate and they must follow the directions you set out in your will.
Trustee → This is the person who manages the assets in a trust. You would appoint a trustee when the trust is first created. If you choose to act as trustee during your lifetime, you will need to appoint a successor trustee to handle those responsibilities in the future. They will have a fiduciary duty to act in the best interest of the trust and will make decisions and distributions on its behalf.
Trusts are designed to last for several years—or even several decades—and trustees are appointed to manage the assets the trust is funded with. They follow the directions the creator of the trust has laid out. They’ll manage the assets and perform distributions when appropriate.
Trustor → The person or entity (business, group, organization, or family) who opens and funds the trust. The “trustor” or “grantor” can be you as an individual, you and your spouse if you’re married, or even your family as a group.
Do you need both an executor and a trustee?
The executor’s role is to settle an estate after the death of its owner. They cover essential tasks like paying debts, closing accounts, completing probate requirements, and distributing inheritances to the heirs. A trustee is only required if a trust is part of the estate plan.
The role of trustee (or successor trustee) can be ongoing for years after the grantor’s death. For example, funds held in trust for a minor will need a trustee to manage them until the beneficiary reaches a certain age or milestone. Other grantors may write instructions for incremental distributions to provide a lifetime income for their beneficiaries rather than having them inherit a large sum all at once.
Can the same person be both executor and trustee?
Yes, in Arizona the same person can be both an executor and a trustee. In fact, it’s not uncommon for the same individual to hold both roles. One competent individual can handle both the settlement of the estate (as executor) and the ongoing management of the trust (as trustee).
Keep in mind that each role requires different responsibilities and potential time commitments. Some people choose separate individuals for each role in order to divide the duties. Appointing two different people for these roles can also be advantageous if the estate is complex or large, and in situations when the estate owner prefers an uninvested third party.
Estate Planning Attorney in Glendale, AZ
You don’t have to navigate estate planning or trust administration all on your own. With professional guidance you can make sure your estate plan is bulletproof and that your trust is managed competently. Not sure if your estate will avoid probate? The experienced attorneys at the Phelps LaClair office in Glendale can help you prepare all of the necessary legal documents. Call us at 480-892-2488 today to get started with a free consultation.
Images used with permission under the Creative Commons license for commercial use (02.25.2025). Photo by Dulcey Lima on Unsplash.