ARQ Wealth Advisors
December 25th, 2024
When creating an estate plan, two of the more critical decisions you need to make are who to name as the executor and who you want as the trustee.
The executor performs the short-term function of seeing that your will is executed according to your wishes. At the same time, the trustee is responsible for overseeing the trust and carrying out its instructions over the long term. Both are vital to the proper execution of your estate plan.
Since the functions of an executor are straightforward and guided by law, it’s easy to appoint a family member or close friend. Typically, executors are paid a stipend to cover their time and expenses. You could also select family members or close friends as the trustee. However, because the trustee is responsible for overseeing, managing, and distributing the family’s assets, conflicts could arise among family members. This is why some people prefer to pay a professional trustee to manage their trusts.
Executors and trustees are vital in ensuring your estate’s smooth and efficient disposition.
If you’re like most people who combine their wills with a living trust or other types of trusts, you’ll need both an executor and a trustee—the executor to oversee the execution of your will and a trustee to manage and administer your trust. Choosing the right people to fill those roles is essential for your peace of mind. Few people understand your financial and family circumstances better than your financial advisor, making them the ideal partner for assessing your needs and identifying the best approach to choosing your executor and trustee.
ARQ Wealth Advisors, Arizona
