Choosing the Right Executor and Trustee: A Cautionary Case Study

When drafting a Will, most people carefully consider how to divide their estate; who receives what, when, and under what conditions. Yet one of the most critical decisions is often overlooked: who to appoint as your Executor(s) and Trustee(s).

These roles carry significant legal and ethical responsibilities. Executors and Trustees do not just handle paperwork; they may control substantial sums of money and must act solely in the best interests of the beneficiaries. Failure to do so can lead to serious, even criminal, consequences.

Executor vs Trustee: What is the Difference?

In many Wills, especially those involving young beneficiaries or conditions on inheritance (e.g. receiving funds at age 25), the same individual is often appointed as both Executor and Trustee:

• An Executor is responsible for administering the estate: collecting assets, paying debts, and distributing what is left to the beneficiaries.
• A Trustee, however, is responsible for holding and managing money or assets on behalf of others, often minors, for an extended period. 

The Trustee has a duty to act in the best interest of the beneficiaries, keep records, invest money prudently, and never use the funds for their own benefit. Unfortunately, not everyone upholds these responsibilities.

A Cautionary Reminder: Misused Inheritance 

A recent case in South Wales underlines the risks of appointing the wrong person/people as Executors and/or Trustees.

Katherine Hill and her father, Gerald Hill, were appointed Trustees of a £50,000 inheritance left to Katherine’s daughters, Gemma and Jessica Thomas, by their grandmother. The funds were to be held in trust until the girls turned 25 or wished to buy a house.

Instead of protecting the money, the Trustees spent it within a year on mortgage payments, personal expenses, and shopping trips. When one of the daughters tried to access her inheritance, it had vanished.

Katherine was sentenced to 30 months in prison and ordered to repay the full amount. Gerald received a suspended sentence and a £6,000 penalty.

This case serves as a powerful reminder: Trustees are not owners of the funds, they are custodians. Their sole duty is to preserve and manage the assets for the beneficiaries, in accordance with the Will.

Key Responsibilities of a Trustee

Trustees, particularly when holding funds for minors, must ensure the inheritance is:

• Held in an appropriate bank account
• Invested appropriately
• Not used for personal benefit
• Distributed only under the Will’s terms

If uncertain about any aspect of their duties, Trustees should seek legal advice without delay as mismanagement can result in both civil liability and criminal prosecution.

Choosing the Right Person/People

When preparing your Will, it is essential to consider not just who will inherit, but who will manage the process. Your Executors and/or Trustees should be:

• Honest and financially responsible
• Impartial and trustworthy
• Capable of handling long-term duties
• Willing to seek legal support when needed

If no suitable individual(s) comes to mind, appointing a professional Executor and/or Trustee, such as a solicitor, can provide reassurance and protection for your beneficiaries.

If you need advice on drafting your Will, fulfilling your duties as an Executor or Trustee, or understanding your legal obligations, our Private Client team is here to help. We offer clear, tailored guidance to ensure your affairs are managed with confidence and care.