Trustee vs. Personal Representative: What’s the Difference?
Trustee vs. Personal Representative: What’s the Difference?
Estate Planning for Blended Families: Ensuring Fairness and Clarity
When planning your estate, it’s essential to understand the key roles involved in executing your wishes. Two of the most important roles are the trustee and the personal representative. While both are responsible for managing assets and ensuring that your estate is handled properly, their responsibilities and authority differ significantly. Understanding these differences can help you make informed decisions when setting up your will or trust.
What is a Trustee?
A trustee is the person or institution appointed to manage a trust. Unlike a will, which takes effect after you pass away, a trust can be active during your lifetime and beyond. The trustee is responsible for:
- Managing and distributing assets according to the trust’s terms
- Overseeing financial investments and property within the trust
- Acting in the best interest of the beneficiaries
- Handling any legal or tax-related matters associated with the trust
Trustees often have long-term responsibilities, as some trusts continue to operate for years, providing financial stability to beneficiaries.
What is a Personal Representative?
A personal representative is an individual or entity named in a will to carry out the deceased’s final wishes. Their duties include:
- Collecting and valuing assets
- Paying outstanding debts and taxes
- Distributing assets to beneficiaries according to the will
- Handling probate proceedings, if necessary
Unlike a trustee, a personal representative’s role typically ends once the estate has been fully settled.
Key Differences Between a Trustee and a Personal Representative
- When They Act: A trustee can act during and after the life of the trust creator, whereas a personal representative’s responsibilities begin only after death.
- Main Responsibility: The trustee manages trust assets, ensuring they are distributed according to the trust’s terms, while the personal representative settles the estate and distributes assets as outlined in the will.
- Duration of Role: A trustee’s role is ongoing, often lasting years, while a personal representative’s duties typically conclude once the estate has been settled.
- Legal Authority: Trustees have authority over the trust and its assets, while personal representatives have authority over the estate as outlined in the will.
- Court Involvement: Trustees generally operate with minimal court involvement, as trusts often avoid probate. Personal Representatives, however, need to frequently go through the probate process to distribute assets.
Which Role Do You Need?
Many people require both a trustee and a personal representative to ensure their estate is handled properly. If you have a trust, you will need a trustee to oversee it. If you have a will, you will need a personal representative to administer your estate after you pass away.
Choosing the right person for these roles is crucial. Trustees and personal representatives should be responsible, trustworthy, and capable of handling financial and legal matters. Many people opt for estate planning attorneys or professional fiduciaries to take on these roles to ensure everything is executed correctly.
Local Estate Planning Services in Massachusetts & New Hampshire
If you are in Andover, Massachusetts, or Rye or Manchester, New Hampshire, KLG Estate Planning can help you navigate the complexities of wills and trusts. Our experienced estate planning attorneys will guide you through the process and help you choose the right individuals for these essential roles.
Take the Next Step in Protecting Your Legacy
Planning your estate is one of the most important steps you can take to protect your loved ones. Whether you need assistance with setting up a trust, drafting a will, or selecting a trustee or personal representative, KLG Estate Planning is here to help. Contact us today to schedule a consultation and secure your family’s future.