What is the difference between a trustee and an executor?

The main difference between a trustee and an executor is the purpose that each serves in Michigan Trusts and Estates Law. A trustee’s role is to manage property that is held in trust for the benefit of a person or group of people. On the other hand, an executor’s role is to manage the affairs of a deceased person and distribute his or her assets in accordance with the terms of a will. A trustee is appointed by a donor who sets up a trust. The donor might be the same as the beneficiary of the trust, or the donor might be a different person. Typically, a trustee is responsible for managing the trust property, investing it according to the donor’s wishes, and making distributions according to the trust documents. A trustee has a duty to act in good faith and to follow the terms of the trust. An executor is appointed by a will. The executor’s role is to manage the deceased person’s affairs and to carry out his or her wishes as expressed in the will. The executor is responsible for paying the deceased’s debts, filing tax returns, and distributing the assets according to the terms of the will. In Michigan, an executor must also obtain a court order certifying him or her as the executor of the estate before they can manage the funds and carry out their duties. In conclusion, a trustee is appointed by a donor to manage the trust and distribute its funds as the donor specifies, while an executor is appointed by a will to manage the deceased’s affairs and distribute the assets according to the terms of the will. In either case, it is the responsibility of the trustee or executor to act in good faith and to follow the terms of the trust or will.

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