There are many similar benefits to using wills and trusts. Although the roles of executors and trustees are similar, there are a few differences that affect how the plans are carried out. Understanding the main differences is how people select the right type of estate plan in Texas.
Wills
An executor works with a will while a trustee works with a trust. A will is a written plan that states the desired outcome of a person’s belongings. The executor may have control of the assets after the person dies. A will states the beneficiaries who will receive the person’s money, property or belongings but only after his or her death.
Estates
An executor accepts, manages and administers the estate of a person after death. Similarly, a trustee manages and administers a trust for the beneficiaries but is not required to wait until after the trustor’s death. In addition, an executor often works directly with the probate court, but a trustee is not required to appear in court and seek legal representation.
Trusts
While a trustee can have access to the assets as soon as the trust is created, a trust is designed to promote financial responsibility as part of estate planning. This agreement states how and when the beneficiaries can spend the funds.
Estate planning starts by selecting a will or trust and continues with understanding an executor’s or trustee’s duties. An executor works with the terms of a will and administers an estate after the testator’s death. A trustee manages the terms of a trust after a person dies or after the beneficiary reaches a certain age.