Estate Planning Terms Decoded. What is a ‘Successor Trustee’ or ‘Executor’?
If you’re planning to hire a lawyer to set up a Trust, or If you’ve reviewed estate planning documents and come across terms such as ‘Successor Trustee’ or ‘Executor’, you may have found yourself questioning their exact meaning and responsibilities. You’re not alone!
Let’s take a step back. When you set up a Trust, think of it like creating a bucket where you place your assets into. Your assets are things like your property, bank accounts, vehicles, etc. While you are alive you are still responsible for taking care of the things in your bucket. That makes you the Trustee.
A ‘Successor Trustee’ or ‘Executor’ is your backup person who steps in and takes care of your “bucket”, (or rather your Trust) when you can’t anymore. If you become seriously ill or pass away the successor trustees job is to carry out the instructions you’ve left in your Trust. This includes the following:
Handling important tasks like paying any outstanding bills and expenses related to the trust’s assets.
Managing or selling property owned by the Trust.
Maintaining open communication with the beneficiaries to keep them informed about the assets.
Making sure the assets are distributed to the people or organizations you’ve named, exactly as you planned.
Usually, the person you choose for this role is someone who you trust deeply. It could be a close family friend, a sibling, or an adult child (someone over 18) who you believe can handle the responsibility. You also have the option to appoint a professional trust company to take on the role, typically for a fee. If you have trouble deciding, a lawyer can help you determine what would be best for your specific situation.
It’s crucial you speak with a lawyer when setting up a Trust about your successor trustee, as you’ll need to understand how this role can impact taxes and other legal matters. Speaking with an attorney who can explain the role in great detail so you fully understand the responsibilities this person will have is important. This can make it easier to decide who to choose as your successor trustee.
Choosing the right successor trustee and hiring a lawyer means you’re ensuring your loved ones are taken care of and that your legacy is handled just the way you intended. At Surratt Law Practice, our goal is to execute a Trust with you so that you have peace of mind knowing your wishes will be well executed and carried out with no confusion.