The executor’s role in relation to a trust is often misunderstood, as it differs significantly from their duties in a traditional probate case; while many people assume an executor automatically handles everything if a trust exists, that’s not always the case—the relationship is nuanced and dependent on how the trust is structured and what specific instructions the grantor (the person creating the trust) has laid out.
What happens to assets held *inside* the trust?
Assets properly titled in the name of the trust, such as bank accounts, real estate, and investments, bypass probate entirely; the trustee, not the executor, manages these assets according to the trust document’s instructions—the trustee has a fiduciary duty to act in the best interests of the beneficiaries, and is responsible for things like investment management, distribution of income, and eventual distribution of the principal—approximately 60% of estates with a value over $1 million utilize trusts to avoid probate, highlighting their effectiveness. The executor’s role concerning these assets is minimal, typically limited to confirming the existence of the trust and verifying that the trustee is fulfilling their obligations.
What does the executor do with assets *outside* the trust?
Often, not all of a person’s assets are transferred into a trust before their passing; these “orphaned” assets – things like a life insurance policy payable to the estate, or a bank account still in the deceased’s name—fall under the jurisdiction of the probate court, and it’s here that the executor steps in—their responsibility is to gather these assets, pay any outstanding debts and taxes, and then distribute the remaining assets according to the will (if one exists) or state intestacy laws—the average probate process can take anywhere from 6 months to 2 years, and costs can range from 3% to 7% of the estate’s value, emphasizing the benefits of effective trust planning. It’s a common misconception that once a trust is in place, everything is handled automatically—that’s simply not true.
I once worked with a family where the patriarch, Robert, had created a trust but failed to properly title his brokerage account into the trust’s name; after his passing, the account, worth over $300,000, became subject to probate, costing the family a significant amount in legal fees and delaying the distribution of assets to his grieving widow—had the account been properly titled, it would have bypassed probate entirely and been immediately available to his beneficiaries; it was a painful lesson demonstrating the importance of meticulous asset titling.
Can the executor and trustee be the same person?
Yes, the executor and trustee can be the same person, but it’s not always advisable; while it simplifies things on the surface, it creates a potential conflict of interest—the individual is simultaneously responsible for administering the probate estate *and* managing the trust assets—a prudent approach is to have separate individuals serve in these roles, or at least ensure the same person has clear guidance and understands their distinct duties—approximately 20% of estate plans utilize the same person as both executor and trustee, which may be suitable in straightforward cases, but requires careful consideration. I recall assisting a client, Maria, who appointed her son as both executor and trustee; initially, it seemed efficient, but he quickly became overwhelmed by the responsibilities, leading to delays and family disagreements—we helped her restructure the plan, appointing a professional trustee to manage the trust assets, relieving her son of that burden and allowing him to focus on settling the probate estate.
Another client, old man Hemlock, was convinced that trusts were too complicated and decided to go with a will only; he left his farm, his most prized possession, to his two sons, with instructions to divide it equally; unfortunately, he didn’t specify *how* it should be divided—should they physically split the land? Should one buy out the other? The resulting legal battle consumed years and cost a fortune—it was a heartbreaking example of how clear planning, even with a simple will, can prevent unnecessary conflict and preserve family harmony.
<\strong>
About Steve Bliss at Escondido Probate Law:
Escondido Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Escondido Probate Law. Our probate attorney will probate the estate. Attorney probate at Escondido Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Escondido Probate law will petition to open probate for you. Don’t go through a costly probate call Escondido Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Escondido Probate Law is a great estate lawyer. Affordable Legal Services.
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
● Free consultation.
Services Offered:
estate planning
living trust
revocable living trust
family trust
wills
banckruptcy attorney
Map To Steve Bliss Law in Temecula:
https://maps.app.goo.gl/oKQi5hQwZ26gkzpe9
>
Address:
Escondido Probate Law720 N Broadway #107, Escondido, CA 92025
(760)884-4044
Feel free to ask Attorney Steve Bliss about: “How do I choose someone to make decisions for me if I’m incapacitated?” Or “What are probate bonds and when are they required?” or “How do I fund my trust with real estate or property? and even: “Are student loans forgiven in bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.