What is an Executor and a Guardian?
Some of the terms used in estate planning can seem foreign or confusing the first time one comes across them, but they are critical terms to understand as they hold particular meaning in the laws and statutes of all states.
What is an executor?
The American Bar Association describes an Executor as: "An individual or bank or trust company that settles the estate of a testator according to the terms of the will, or if there is no will in accordance with the laws of the decedent’s estate (intestacy), although a person acting in intestacy may be called by a different name, such as administrator. (Also called "personal representative")." ¹
What is a Guardian?
In Covet planning documents, users are able to appoint a Guardian for their children (if the children are minors at the time of the user's death and have have no other surviving parent). The American Bar Association describes the duties of this type of Guardian in the following way:
"The guardian of the estate (or conservator in some states) may generally do the following for the ward:
- make financial decisions;
- enter into contracts
- estate planning;
- file lawsuits;
- sell real estate; and
- apply for government benefits." ²
More information about a guardian's duties can be found here.
Sources:
¹ https://www.americanbar.org/groups/real_property_trust_estate/resources/estate-planning/guidelines-individual-executors-trustees/
² https://www.americanbar.org/groups/senior_lawyers/resources/voice-of-experience/2010-2022/understanding-guardianship/
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