What is the difference between an executor and a trustee?

The roles of executor and trustee are similar in that they both have the responsibility to manage a person’s assets after they’ve passed away. However, there are some key differences between the two. An executor, or personal representative in Maryland, is an individual appointed by the court to administer the deceased person’s estate. They must identify and collect the deceased person’s assets, pay creditors, and distribute the assets to the designated beneficiaries. They are held to a high standard of responsibility, and must act in the best interests of the beneficiaries. A trustee, on the other hand, is appointed by the deceased to manage certain assets, such as a trust fund. They are responsible for managing the funds in accordance with the instructions included in the trust agreement, and for distributing the assets to the beneficiaries. The main difference between an executor and a trustee is that an executor is appointed by the court, while a trustee is appointed by the deceased directly. Another difference is that trustees must abide by the trust agreement, while executors need to act in the best interest of the beneficiaries and are not bound by someone else’s instructions. Ultimately, it is important to understand the roles of both executor and trustee when it comes to estate planning law in Maryland.

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What is the difference between an executor and a trustee?

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