What is the difference between an Executor and a Trustee in a Will?

The Executor and Trustee are two distinct roles in a Will, though the same person can be appointed to serve in both capacities. Their responsibilities differ based on timing and purpose:

• The Executor steps in after the testator's death to carry out the instructions in the Will and to handle the estate’s legal and financial matters.
• The Trustee only comes into play if the Will creates a trust (i.e. testamentary trust) to manage those assets for the long-term benefit of the beneficiaries.

When is a Trustee needed?

A Will does not always require a Trustee. If the Will simply distributes assets outright, then only an Executor is needed. The Executor can handle all distributions directly and wrap up the estate once everything is done, even if it may take some time for the estate to be settled.

However, if the Will creates a trust (i.e. testamentary trust), such as when there is a need to hold assets on trust for a child until he turns 21, or to distribute payout staggered over time, then a Trustee is required. The Executor will transfer the relevant assets to the Trustee, who will manage and distribute them according to the trust terms.

The same person can be appointed as both Executor and Trustee, or they can be different people.

Role of the Executor

The Executor's role begins when they choose to act after the testator's death. The Executor is responsible for administering the estate, including:

• Applying for the Grant of Probate
• Locating and securing the deceased's assets
• Paying outstanding debts, taxes, expenses
• Distributing the assets to beneficiaries (or to the Trustee, if there's a trust)

The Executor's role is temporary and concludes once the estate is fully distributed. During the administration period, any income earned (e.g. rental income, dividends) belongs to the estate, not to the Executor, and is typically paid to the estate’s name. Likewise, any necessary expenses or payments will be paid from the estate. If the estate takes a prolonged period to be settled, the Executor will manage it during this time.

Role of the Trustee

The Trustee takes over once the Executor transfers him/her the assets that are meant for the trust created under the Will. The Trustee’s responsibilities include:

• Managing trust assets (e.g. cash, property, investments)
• Making payouts to beneficiaries based on the Will’s terms (i.e. testamentary trust)
• Keeping proper records
• Acting in the best interests of the beneficiaries

This role is long-term. While the Executor’s role concludes after probate and distribution, the Trustee’s role is ongoing and continues until the trust terminates.

How do the Executor and Trustee work together?

1. The Executor applies to the court for the Grant of Probate, submitting the Will and the schedule of assets. He can engage a lawyer to assist with the application.
2. The Executor then administers the estate, e.g. locating and accounting for the deceased’s assets, pay off any expenses, and distribute the estate according to the Will.
3. If the Will creates a trust i.e. testamentary trust, the Executor transfers the relevant assets to the Trustee. Once all assets are accounted for and fully distributed, the Executor's job is done.
4. The Trustee then takes over, managing the trust assets and making distributions to beneficiaries as per the trust terms (e.g. when each beneficiary reaches a specific age or condition).
5. Once the trust ends, the Trustee pays out any balance of the trust to the Remainder Beneficiaries.

If non-professional Trustees are appointed (e.g. friends or family), it is up to them how to manage, as long as they act in the best interests of the beneficiaries and keep proper records.