Nicholas Scheibner is quoted on this topic in an article in NJMoneyHelp.com by Karin Price Mueller, originally published on March 19, 2020.
A 30-second read by Nicholas Scheibner, CFP®:
- When it comes to estate planning, there are two roles that many people confuse. “Executor” and “Trustee”.
- The executor is the person, usually one, who is tasked at executing the will. This person will probate your will, distribute funds to beneficiaries, and file your final tax return. An attorney may also act as an executor.
- A trustee is the person, (or persons/or bank/or lawyer), who is responsible for the assets within a trust.
- The executor and the trustee do not have to be the same person.
- It is very important to note: any beneficiaries listed on life insurance policies or retirement accounts supersedes the wishes of the will.
- The trustee will then follow the rules of the trust, as per your wishes, and distribute the funds as per your instructions.
- If your children are listed as beneficiaries, those accounts will go directly to them without the need to go through probate, which means following the instructions of the will.
- Talk to your estate planner to set up the correct documents and speak with your financial advisor to ensure your listed beneficiaries are still the person or persons you desire.
For any questions on estate planning, please contact your Baron Team or an estate planning attorney.
Disclosure: This is a general communication being provided for informational purposes only. It is educational in nature and not designed to be advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction. Past performance is no guarantee of future results. Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice. Please consult your tax planning professional for personal tax advice.