Executor vs. Fiduciary — What's the Difference?
By Tayyaba Rehman & Fiza Rafique — Updated on April 5, 2024
An executor administers a deceased's estate, while a fiduciary holds a broader role of trust across various contexts.
Difference Between Executor and Fiduciary
Table of Contents
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Key Differences
An executor is specifically appointed in a will to manage and distribute a deceased person’s estate according to their wishes. This role is integral to ensuring that all financial obligations are met, and the remaining assets are distributed among the beneficiaries as stipulated in the will. Whereas a fiduciary, although it can include an executor, refers to a wider range of roles involving trust, such as trustees, guardians, and agents under power of attorney. A fiduciary is responsible for acting in the best interests of another person or group of people. This encompasses managing assets, making decisions in another’s best interest, and avoiding conflicts of interest.
The executor has the legal authority to make decisions pertaining to the estate, including paying debts and taxes, and distributing assets to the rightful heirs. The fiduciary relationship is based on trust and requires the fiduciary to act with utmost loyalty and care.
While an executor’s responsibilities are confined to the realm of estate administration after someone’s death, a fiduciary’s duties can be active in a variety of situations, not limited to estate matters. For example, financial advisors, trustees, and legal guardians all serve as fiduciaries in different contexts, managing assets or making decisions for others who cannot do so themselves.
The appointment of an executor is a specific process usually outlined in a will, and their role ceases once the estate is fully administered. In contrast, a fiduciary can be appointed through various legal documents and mechanisms, depending on the type of fiduciary and the needs of the person or entity requiring their services.
While the role of an executor is inherently time-limited, concluding with the closure of the estate, a fiduciary’s duties could be ongoing, potentially lasting for years or even a lifetime, depending on the nature of the fiduciary relationship and the needs of the beneficiaries.
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Comparison Chart
Definition
An individual appointed to administer a deceased's estate.
A person or entity with the duty to act in someone else’s best interest.
Scope of Role
Limited to estate affairs after death.
Broad, covering various trust-based roles.
Duration
Time-limited until estate is settled.
Can be ongoing, depending on the type of fiduciary relationship.
Appointment
Specified in a will.
Can be appointed through various legal documents.
Responsibilities
Managing estate, paying debts, distributing assets.
Acting in best interest, managing assets, avoiding conflicts of interest.
Compare with Definitions
Executor
Handles financial obligations, including paying debts and taxes.
The executor filed the final tax return for the estate.
Fiduciary
May manage assets, make decisions, or give advice.
She relied on her fiduciary to make key investment decisions.
Executor
Acts as the estate's legal representative during the administration process.
The executor negotiated with creditors to settle outstanding debts of the estate.
Fiduciary
Represents a broad category, including executors, trustees, and legal guardians.
The fiduciary ensured that the interests of the beneficiaries were always put first.
Executor
A person named in a will to manage the deceased's estate.
As the executor of her father’s will, she had to ensure all debts were paid before distributing the inheritance.
Fiduciary
Holds a position of trust and confidence.
The trustee’s fiduciary duty was to manage the trust assets prudently.
Executor
Responsible for fulfilling the deceased’s last wishes as stated in the will.
The executor organized a charity donation as the deceased had instructed.
Fiduciary
Avoids conflicts of interest in decision-making.
As a fiduciary, he disclosed all potential conflicts of interest to his clients.
Executor
Ensures assets are distributed according to the will.
He, as executor, divided the estate assets among the children and charities as directed.
Fiduciary
A person or institution required to act in the best interests of another.
As her financial advisor and fiduciary, he invested her funds wisely.
Executor
An executor is someone who is responsible for executing, or following through on, an assigned task or duty. The feminine form, executrix, may sometimes be used.
Fiduciary
A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person.
Executor
A person or institution appointed by a testator to carry out the terms of their will
The executors of the late John B. Smith
Hugh appointed him an executor of his will
Fiduciary
Of or relating to a duty of acting in good faith with regard to the interests of another
A company's fiduciary responsibility to investors.
Executor
A person who produces something or puts something into effect
The makers and executors of policy
Fiduciary
Of or being a trustee or trusteeship.
Executor
(Law) A person who is appointed by a testator to execute the testator's will.
Fiduciary
Held in trust.
Executor
A person who carries out or performs something.
Fiduciary
Of or consisting of fiat money.
Executor
A person who carries out some task.
Fiduciary
Of, relating to, or being a system of marking in the field of view of an optical instrument that is used as a reference point or measuring scale.
Executor
(computing) A component of a system that executes or runs something.
Fiduciary
One, such as an agent of a principal or a company director, who has a duty of acting in good faith with regard to the interests of another.
Executor
(legal) Someone appointed by a testator to administer a will; an administrator.
Literary executor
Fiduciary
(legal) Relating to an entity that owes to another good faith, accountability and trust, often in the context of trusts and trustees.
A fiduciary contract
A fiduciary duty
Executor
(obsolete) An executioner.
Fiduciary
Pertaining to paper money whose value depends on public confidence or securities.
Executor
One who executes or performs; a doer; as, an executor of baseness.
Fiduciary
(non-standard) Accepted as a trusted reference such as a point, value, or marker; fiducial.
Executor
An executioner.
Delivering o'er to executors paw The lazy, yawning drone.
Fiduciary
(legal) One who holds a thing in trust for another.
Executor
The person appointed by a testator to execute his will, or to see its provisions carried into effect, after his decease.
Fiduciary
(theology) One who depends for salvation on faith, without works; an antinomian.
Executor
A person appointed by a testator to carry out the terms of the will
Fiduciary
Involving confidence or trust; confident; undoubting; faithful; firm; as, in a fiduciary capacity.
Fiduciary
Holding, held, or founded, in trust.
Fiduciary
One who holds a thing in trust for another; a trustee.
Instrumental to the conveying God's blessing upon those whose fiduciaries they are.
Fiduciary
One who depends for salvation on faith, without works; an Antinomian.
Fiduciary
A person who holds assets in trust for a beneficiary;
It is illegal for a fiduciary to misappropriate money for personal gain
Fiduciary
Relating to or of the nature of a legal trust (i.e. the holding of something in trust for another);
A fiduciary contract
In a fiduciary capacity
Fiducial power
Common Curiosities
How is a fiduciary appointed?
A fiduciary can be appointed through various legal documents, including wills, trusts, and power of attorney agreements.
Who can serve as a fiduciary?
Individuals, banks, and professionals who can legally act in another’s best interest, depending on the specific duties required.
Can an executor be considered a fiduciary?
Yes, an executor is a type of fiduciary, as they are trusted to manage the deceased's estate in the beneficiaries' best interests.
Is the role of an executor time-limited?
Yes, the role of an executor concludes once the estate is fully settled.
Who can be an executor?
Any competent adult can be named an executor in a will, though some opt for professionals like attorneys or accountants.
What is an executor?
An executor is a person appointed by a will to manage and distribute a deceased person's estate according to the will's instructions.
What does a fiduciary do?
A fiduciary acts in the best interest of another person or group, managing assets or making decisions with loyalty and care.
What is the difference in scope between an executor and a fiduciary?
An executor’s scope is limited to estate administration after death, while a fiduciary’s role can vary widely, including managing investments, acting as a guardian, and more.
What responsibilities do fiduciaries have to their beneficiaries?
Fiduciaries must act loyally, avoid conflicts of interest, and manage the assets or decisions in the beneficiaries' best interests.
What legal powers does an executor have?
An executor has the power to pay debts, sell property, and distribute assets according to the will.
Can a fiduciary role be permanent?
Some fiduciary roles, like certain types of trustees, can be ongoing and may last for an extended period or even a lifetime.
Are fiduciaries paid for their services?
Yes, fiduciaries can be compensated for their duties, though the specifics depend on the legal documents governing the fiduciary relationship.
What happens if there is no executor named in a will?
If no executor is named, the court will appoint someone to serve as the administrator of the estate.
How is a fiduciary different from a power of attorney?
A fiduciary relationship can be established through a power of attorney, but a fiduciary's role is broader and based on trust to act in the best interest, whereas a power of attorney is a document that grants someone legal authority to act on another's behalf.
Can the role of an executor be contested?
Yes, beneficiaries or interested parties can contest the appointment of an executor if they believe the executor is unfit or not acting in the estate's best interest.
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Written by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
Co-written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
