What is the difference between an executor and a successor trustee?

At some point in your life, someone may ask you to take on the role of executor to their Last Will and Testament or to be named as successor trustee to their trust. Here is a brief guide to these different roles and what responsibilities they entail from NJ estate planning attorneys.

What is an executor? 

An executor can be named in a Last Will and Testament or appointed by the court, and their job is to manage the financial affairs of the deceased. In the case of estates that require probate, the court will grant the executor authority to administer the estate to the executor. For smaller estates, you will not require this additional authority from the court. Responsibilities that fall under the role of executor will include:

  • Securing, cataloguing and creating an inventory of the property of the deceased, including their home and furnishings.
  • Having these assets valued.
  • Notifying heirs and beneficiaries.
  • Filing of the deceased’s last tax returns and any back taxes.
  • Paying any bills of the deceased out of the estate.
  • Distributing the estate to the heirs and beneficiaries.

What is a successor trustee? 

Essentially, a successor trustee fulfills the role of the trustee in the event of their death or inability to continue as trustee. Responsibilities that fall under this role include:

  • Cataloguing and inventorying the assets of the trust.
  • Having the trust’s asset’s valued.
  • Notifying heirs and beneficiaries.
  • Paying any bills in the name of the trust.
  • Getting a tax identification number for the trust.
  • Filing any tax returns for the trust, if needed.
  • Distributing the trust’s assets to the heirs and beneficiaries.

While both roles sound familiar, there are differences between them – most notably, that if an asset is held outside of the trust (so, in the name of the deceased), it is the responsibility of the executor, and if it is held in the name of the trust, it is the responsibility of the successor trustee. This means that the role of executor and successor trustee can be held by the same or different people.

Speak to an estate planning attorney today

Legal guidance can be of great assistance when you are administering an estate or a trust, especially if you have limited knowledge of this complex legal process. NJ Estate Planning attorney and expert, Frank Campisano, can provide you with expert legal advice and personal guidance to save you time and money.

Frank Campisano can also assist you with all aspects of your own estate plan, from drawing up your Last Will and Testament to Living Trusts, medical directives and Power of Attorney documents. For more information on setting up or changing an estate plan, please contact us or visit today.

How to choose the best legal guardian for your children

As a parent, the care and wellbeing of your child or children is a priority and, as unpleasant as it is to think about, this extends to their care in the event of your or their other parent’s death. This means that naming a good legal guardian is essential, says New Jersey estate planning attorney Frank Campisano – but what exactly does this mean?

Firstly, if you don’t name a legal guardian in your Last Will and Testament, the courts of the State of New Jersey will appoint custody to someone of their choosing. There is no guarantee at all that your child will go to a family member or loved one of your preference, so it’s vitally important that this decision is kept in your hands rather than in those of the court’s.

Secondly, the surviving parent has a right to custody of children if the other parent dies, something that is not always a desirable situation. With the right legal advice, you will be able to plan ahead and nominate the best possible guardian for your child.

Here is some more information on choosing a legal guardian:

  • Legal guardianship applies to children under the age of 18 years old and your chosen guardian must be properly named in your Will in order to claim custody.
  • It’s best if you and the other parent name the same guardian in both your Wills in order to avoid legal complications.
  • Ensure that you also name a back-up guardian in the event that your first choice is unable to take on the responsibility.
  • Remember to specify each individual child under 18 by name in your Will when assigning guardianship, or the court is free to choose guardians for any unnamed children.
  • Specify if you would like your children to live together.
  • You can name co-guardians in your Will, for example, by giving guardianship to a couple rather than an individual.
  • If you are able, it’s a good idea to include financial planning in your Will to assist your children’s guardian in the event that they take on custody of your child.
  • Remember to involve your chosen guardian or guardians in this process. They should be fully informed of your decision and happy to take on this important role.

Straightforward, affordable estate planning with NJ attorneys 

Frank Campisano has over 30 years of experience in New Jersey estate planning law. We can assist you in creating a Last Will and Testament, Power of Attorney and medical directives as well as set up trusts appropriate to your specific needs. Contact Frank today, for expert estate planning advice.

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