What is the Difference Between an Executor and a Trustee in New York?

In New York executors and trustees play distinct roles in estate administration. 

An executor in New York is named in the decedent's Last Will and Testament. This appointment is essentially confirmed by the Surrogate's Court when the will is probated. 

Simply put, the executor's job is to administer the estate of a deceased person, known as the decedent. Estate administration typically includes the following tasks:

1. collecting the decedent's assets

2. paying the decedent's debts, taxes, and expenses of administration

3. distributing any remaining property to the beneficiaries under the will

The executor's role is ephemeral. Once the estate is fully settled and the distributions are made, the executor's job is complete. 

Trustees, on the other hand, are named in a trust agreement. The agreement may be within the will (i.e., a testamentary trust), or it may take the form of a separate revocable or irrevocable trust. 

The trustee's job is to manage trust assets for the benefit of the beneficiaries according to the trust's terms. The trustee may be tasked with:

1. investing and safeguarding trust property

2. making income or principal distribution to beneficiaries as directed by the trust

3. filing income tax returns for the trust

4. continuing to administer the trust for years (sometimes decades)

The trustee's "job" is often ongoing and may last until a specified condition is met. For example, the trust agreement may state that when a beneficiary reaches a certain age the assets will be distributed to the beneficiary, or the trust may otherwise terminate by its term. 

In conclusion, while executors and trustees are both tasked with carrying out the decedent's wishes, their roles differ in terms of: (i) method of appointment; (ii) scope of work; (iii) duration of their role; and (iv) their basic purpose. 

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This document is designed for general information only. The information presented in this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client.

For further information please contact me at www.kmckernanlaw.com kevin@kmckernan.com or 718-317-5007.