Difference Between Personal Representative & Trustee: Estate Administration Honolulu, Hawaii

by Cashman Law You Earned It. We Protect It.

If you are in the process of your estate planning, chances are you have come across the terms “personal representative” and “trustee.” If you thought that both are the same thing and used interchangeably, you are at the right place on the internet.

Designing a will is crucial to the success of your estate planning and administration. Our expert Hawaii estate litigation attorney shares the difference between the two terms and the distinctive features you must know about them in this article.

PERSONAL REPRESENTATIVE VERSUS TRUSTEE WITH HAWAII ESTATE LITIGATION ATTORNEY

Personal representative is usually appointed by a court or the will's creator to oversee the entire administration of an estate when someone dies with or without a will without transferring the property ownership to a living trust.

Either a person, institution or a combination of both, in case the decedent fails to appoint an owner/ caretaker, the state dictates the probate judge who to appoint as a personal representative.

It is either the surviving spouse or the closest family member in most cases. The most important responsibility of the personal representative is that it is the duty to provide notice to creditors. This is important as it gives the creditors ample time to file a claim against an estate.

On the other hand, a trustee is named by the individual who creates a living trust in much the same way as a testator. A trustee is responsible for the disposition of assets in a trust. The job of a trustee is to oversee the day-to-day property management owned by the trust for the benefit of its beneficiaries.

The term “trust” refers to the revocable living trust that can be amended multiple times during the life of a trustor. The responsibilities of a trustee on the demise of the owner aren’t different from the ones he/ she carries out while living. Some of the duties include:

● Paying estate taxes, debts, and expenses

● Ensuring proper retrieval and flow of benefits from life insurance and retirement plan

● Filing all necessary tax returns

● Paying appropriate federal and state taxes

● Administration and distribution of the assets to respective beneficiaries

As a trustor, one can choose anyone to act as the trustee.

It is possible to appoint either a trust or a will to direct your property into trustworthy and reliable hands. A simple will is all one needs to carry out all the responsibilities in some cases. However, a comprehensive estate plan with a revocable living trust should also have a will. If you are looking for reliable, professional guidance, our Hawaii estate litigation attorney can help you through the process. Dial 808.460.0436 to set up an appointment and have a discussion.

Author’s bio: The article differentiates between a trustee and a personal representative in estate planning.