The Complete Guide to the Duties of a Living Trust Executor
A living trust executor or trustee is the individual or individuals responsible for managing the assets in the trust, ensuring the grantor’s wishes are met.
This article will teach you about the role of a living trust executor, explain co-successor executors, go over revocable versus irrevocable trusts, and explain how DoNotPay can help you get your estate planning done in record time.
Role of the Living Trust Executor
The executor of a living trust, also called the trustee, is obligated to manage assets and the transfer of assets to beneficiaries after the grantor passes away.
The author or grantor of a living trust designates a trustee to implement the instructions listed in the document. Once the grantor can no longer oversee the trust, the trustee will be responsible for the following:
They are also responsible for the following:
- Figuring out the value of the assets that are in the trust, including the payout of any insurance
- Transferring the assets to the correct beneficiaries
- Establishing a fund to cover any taxes or expenses for the trust
- Filing tax returns
- Keeping a detailed report of the actions carried out
- Safeguarding assets
- Treating beneficiaries without bias
Can there be more than one executor?
Yes! You can make someone a co-trustee and even assign them specific roles if you want. You can assign multiple successor trustees if the trustee originally listed cannot perform their duties as well.
If there are no specific instructions on how your co-trustees should manage their roles, they will have to work together and be in mutual agreement at all times. If they have specific roles, they will have jurisdiction to make decisions about their own assigned tasks.
If you would like to create a living trust with another individual, you should create a joint revocable trust.
Roles Within a Trust Agreement
We’ve gone over the role of a trustee in a living trust, but how about the other parties involved? The table below explains more:
|Grantor||The author of the living trust and the owner of the assets (if creating a revocable trust). This person will still be alive when the trust becomes active. The grantor must determine what assets, individuals, and entities will be included in the trust and legalize the document.|
|Trustee||The trustee is also known as the executor. It is his or her job to carry out the grantor’s instructions in the trust and make sure all assets are properly transferred to beneficiaries in a timely and well-documented manner. They usually do not have any stakes in the assets themselves, but they may be compensated.|
|Beneficiaries||Beneficiaries are the individuals or organizations listed in the trust that will receive the assets previously owned by the grantor.|
|Residuary Beneficiaries||Residuary beneficiaries are beneficiaries that do not receive any specific assets. Instead, they will receive the remaining assets of the grantor that were not outlined in the trust.|
Revocable vs Irrevocable Trusts
Living trusts can be revocable or irrevocable. Revocable trusts can be altered at any point, while irrevocable trusts can only be changed after signing under special circumstances. Revocable trusts can be altered easily and are more flexible. Learn more about revocable trust status upon death, revocable trust taxes, or living trust versus wills by clicking the respective links.
Get a Revocable Living Trust With DoNotPay
- Log-in to DoNotPay and open the Revocable Living Trust product
- Provide the state you live in and what state you plan to get the document notarized
- Name your trustees and provide their home addresses
- Assign your beneficiaries and who will get what
- Review the completed living trust document and use our Notarize Any Document product to get it notarized
State Living Trust Guides
We’ve written comprehensive living trust guides by state. Find your state below to get started:
|Washington State||New Jersey||Louisiana|
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