Executors, Trustees and Guardians - how they work together
What does each role entail?
Your Executors will administer your estate in accordance with the terms of your Will. They will establish the date of death values of your assets and liabilities, present this information to the Probate Registry and H M Revenue & Customs and follow the terms of the Will. Once the estate has been fully administered, the assets collected, liabilities and the costs of administering the estate paid, and those distributions which are outright made, the role ends.
Trustees will manage any ongoing trust in the Will, for example where a child does not inherit outright until they reach a given ‘vesting age’, say 25. During that period the Trustees will invest the inheritance, called a ‘Trust Fund’, so that it grows until the child reaches 25.
It is often the case, though not compulsory, for the Executors and Trustees to be the same people.
In the meantime, the Trustees will have discretion to release funds to the child. Once the child reaches the vesting age and the Trust Fund is fully distributed the role of Trustee ends.
Executors and Trustees can delegate their roles to appropriately qualified professionals. This is most likely to occur when the Executors and Trustees need investment advice.
Guardians are appointed to step into the pastoral side of being a parent, so love, care, affection, religion and morals. The role ends when the child reaches 18. Guardians are not involved in the financial side of providing for the children unless they are also appointed as Trustees.
How do Executors, Trustees and Guardians work together?
Once the estate is administered the Executors will transfer the Trust Fund to the Trustees. At this point, or earlier, the Guardians will have established broadly the amount needed to finance raising the child.
It will be the Trustees’ task to manage the Trust Fund in such a way to attempt to match the child’s financial needs. Distributions are likely to be made by Trustees to the Guardians on a quarterly basis.
When the child reaches 18 the Trustees will work with the child directly.