Choosing an Executor or Trustee: The Key to a Smooth Estate Plan

Even the best estate plan can unravel without the right person (or entity) to fulfill your wishes. Learn how to pick the right executor or trustee for your estate. Avoid family conflicts and protect your legacy with our expert tips.

Table of Contents

1. Introduction

2. Executor vs. Trustee: Key Differences

3. Roles & Responsibilities

4. What to Consider When Choosing an Executor/Trustee

5. Common Mistakes & Pitfalls

6. Real-Life Examples

7. Will Starter Kit (Free Download!)

8. Additional Resources & Next Steps

9. Relevant Government Links

10. Conclusion & Disclaimer

1. Introduction

In previous blogs, we’ve explored the Last Will and Testament, various Trusts, and the fundamental role these documents play in estate planning. However, even the best estate plan can unravel without the right person (or entity) to fulfill your wishes.

• Executors are appointed in a Will to manage and distribute your estate after death.

• Trustees are designated to oversee trust assets and ensure beneficiaries receive the funds or property under the trust's terms.

Making the wrong choice—someone unorganized, unwilling, or incapable—can lead to delays, family disputes, and even legal battles. This blog post will guide you through the differences between executors and trustees, their core responsibilities, and how to choose someone who’s truly up to the task.

For a broader look at Wills, see Understanding the Last Will and Testament; for trusts, see Living Trusts & Other Trusts: Pros & Cons.

2. Executor vs. Trustee: Key Differences

Although both roles involve managing parts of your estate, they differ in scope, timeline, and authority.

Key Takeaway

In short, an executor settles the “one-time” affairs of an estate after someone’s death (via a will), whereas a trustee might work with assets during and after someone’s life, depending on the trust’s structure.

3. Roles & Responsibilities

3.1 Executor’s Duties

1. Locate and File the Will
• Present the will to the appropriate probate court for validation.
2. Identify & Gather Assets
• Inventory all estate property, bank accounts, investments, and personal belongings.
3. Pay Debts & Taxes
• Notify creditors, settle outstanding debts, and file final income or estate tax returns.
4. Distribute Assets
• Transfer property to beneficiaries according to the will’s instructions.
5. Close the Estate
• After all debts are paid and distributions are made, the final paperwork to close the estate must be filed with the court.

3.2 Trustee’s Duties

1. Fund & Manage Trust Assets
• Ensure real estate, investments, bank accounts, and other assets are properly titled in the trust’s name.
2. Follow Trust Terms
• Disburse income or principal to beneficiaries based on the trust’s rules (monthly, annually, or upon specific milestones).
3. Investment & Accounting
• Invest trust assets prudently; keep accurate records of income, expenses, and distributions.
4. Communicate with Beneficiaries
• Provide statements or updates on trust performance and confirm their needs if it’s a discretionary trust.
5. Tax Filing & Compliance
• Depending on local laws, the trustee may have to file trust tax returns and comply with relevant regulations.

4. What to Consider When Choosing an Executor/Trustee

Picking the right individual or entity is crucial. Here’s what you should evaluate:

4.1 Trustworthiness & Integrity

• Honesty is non-negotiable; they’ll handle money, property, and legal documents on your estate’s behalf.
• A questionable track record with finances or personal obligations may raise red flags.

4.2 Organizational Skills

• Record-keeping is a big part of estate administration.
• Executors and trustees must track debts, income, distributions, and deadlines—often under time pressure.

4.3 Financial Literacy

• They don’t have to be financial geniuses, but a basic understanding of investments, taxes, and accounting helps, especially for a trustee who may manage assets over the long term.

4.4 Location

• Being local can help an executor deal with probate courts, real estate agents, or banks.
• However, living abroad isn’t an automatic disqualifier—though it might create logistical challenges.

4.5 Availability & Willingness

• Handling an estate can take months or even years (for complex trusts).
• Choose someone who has the time and is willing to devote effort, or consider a professional if that’s not feasible.

4.6 Impartiality

• Ideally, you want someone who won’t be swayed by family disputes or personal biases.
• If sibling rivalry or blended family issues are a concern, a neutral third party (like a trust company) might be a safer bet.

4.7 Professional vs. Personal

• Family or Friend: More personal knowledge of beneficiaries, possibly no fees.
• Corporate Trustee or Attorney: This person offers Professional expertise and impartial administration but charges fees.

5. Common Mistakes & Pitfalls

1. Choosing the Oldest Child by Default
• Age or birth order doesn’t necessarily equal competence. Pick the most capable, not the eldest.
2. Appointing Someone with Conflicts of Interest
• If there’s a feud or strong bias, that person might not manage the estate fairly, risking lawsuits or family breakdown.
3. Failing to Name a Successor
• Your first choice might decline or pass away before you do. Always name backups in your will or trust.
4. Ignoring Location or Residency Rules
• Some states/provinces/countries have restrictions on out-of-state executors or special bond requirements.
5. Not Discussing It in Advance
• Surprising someone with an executor/trustee role can lead to unwilling or unprepared administrators.
6. Overlooking Corporate Trustee Options
• If your estate is complex or you have a high-risk family dynamic, a professional trustee can help you avoid bias or mistakes.

6. Real-Life Examples

Family Bias & Disputes

• Situation: Linda names her eldest daughter, Sarah, as executor. Sarah is overwhelmed, plus her siblings resent her control over finances.
• Result: Delays, conflict, and unnecessary legal fees.
• Solution: If Linda had anticipated the family friction, she might have picked a neutral attorney or close friend with financial know-how or even a corporate executor.

Out-of-State Friend

• Situation: Mark chooses his best friend who lives overseas. The will goes into probate in Mark’s home state.
• Result: Complicated paperwork, potential need for a local attorney.
• Solution: Mark could have named his friend co-executor alongside someone local—or used a corporate or professional option for efficiency.

Corporate Trustee for a Complex Trust

• Situation: A high-net-worth individual sets up an irrevocable trust for tax benefits, requiring careful investment and tax filing.
• Result: They chose a trust company to manage it, ensuring professional oversight, consistent compliance, and minimal family drama.

7. WILL STARTER KIT (Free Download!)

Still unsure how to pick the right executor or trustee? Our FREE WILL STARTER KIT will help you:

1. Evaluate Personal Qualifications
• Integrity, financial literacy, communication skills.
2. Gauge Time & Availability
• Time commitment is often underappreciated.
3. Review Location & Residency Requirements
• Some jurisdictions limit out-of-state or non-citizen executors.
4. Professional vs. Personal
• Pros, cons, and cost implications.
5. Successor Planning
• How do you select backups if your first choice can’t serve?

Download the FREE WILL STARTER KIT

By systematically checking off each area, you’ll identify who’s genuinely fit to manage your estate’s complexities and keep the process as smooth as possible.

8. Additional Resources & Next Steps

• Communicate Early: Before finalizing documents, talk to your executor/trustee to confirm their willingness and ability.
• Review Periodically: If circumstances change—like your executor moves to another country or has health issues—amend your will or trust.
• Professional Advice: If your estate is large or complicated (international assets, special needs dependents, business ownership), consider a professional executor or trustee.

If you haven't already, check out our other blog posts on Will Essentials, on Trusts, and on deciding between a will and a trust. Coming soon: “Probate Explained: The Court Process and How to Simplify It!”

 9. Relevant Government Links

Because estate laws vary by jurisdiction, here are official links to help you explore further:

• United States
• American Bar Association – Wills
• American Bar Association - Guidelines for Individual Executors & Trustees
• IRS – Estate and Gift Taxes
• IRS - Estate Tax Information - Thresholds
• IRS - Information for Executors
• United Kingdom
• GOV.UK – Wills, Probate & Inheritance
• GOV.UK – Make a Will
• GOV.UK - How Inheritance tax works
• GOV.UK - Three phases of an executor's duties
• GOV.UK - Dealing with the estate of someone who's died
• GOV.UK - appoint the Public Trustee as the executor
• Australia:
• State Trustees – Wills & Powers of Attorney
• ATO – Trusts
• Moneysmart.gov.au – Wills & Powers of Attorney
• Moneysmart.gov.au - Paying for your funeral
• Australian Taxation Office - Inherited assets and capital gains tax 
• Canada:
• Government of Canada – What to do when someone dies
• Canada.ca – Estate Planning Overview
• Ontario.ca – Administering Estates
• Canada.ca – Represent someone who dies
• New Zealand:
• Govt.nz - Wills, Probate and Estates
• IRD – Trusts & Estates
• Govt.nz – What to organise before you die
• CommunityLaw.org.nz – Making a Will
• CommunityLaw.org.nz – Trustees and their duties
• CommunityLaw.org.nz – Choosing an Executor 

These resources provide country-specific guidance and up-to-date legal requirements.

10. Conclusion

Choosing an executor or trustee can make or break the success of your estate plan. Consider trustworthiness, organizational skills, and the logistical realities of the role. Sometimes, a professional or corporate trustee is a better option than a relative, especially if family conflicts are likely.

Disclaimer: This post is for general information and is not legal advice. Always consult a qualified attorney or solicitor in your jurisdiction to ensure you comply with local laws and align with best practices.

Next Steps:

1. Download our FREE WILL STARTER KIT for a detailed framework.
2. Consult an estate planning professional to finalize your choice if needed.
3. Please confirm with your chosen representative(s) that they’re on board.

By making a thoughtful, informed decision, you protect not only your assets but also the peace of mind of everyone involved.