Executor vs trustee in New Zealand: what each one does

Written by Henry Smith · Reviewed by Smiths Insurance & KiwiSaver, licensed Financial Advice Provider (FSP712931) · Updated 2026-10-20 · Reviewed annually, or sooner if the rules it describes change.

An executor is the person named in a will to gather the estate, pay its debts and tax, and hand over what is left. A trustee is a person or company that holds property for other people under a trust, and must act reasonably and in good faith for all the beneficiaries. In New Zealand the two jobs are often given to the same person, and the trustee job only exists if the will sets up a trust (Community Law: Choosing an executor; Community Law: What is a trustee).

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What is the legal difference in one table?

	Executor	Trustee (of a testamentary trust)
Where the role comes from	Named in the will	Named in the will, which can create a trust (Wills Act 2007, s8(4))
When it starts	On death; authority is confirmed by a High Court grant of probate	After death, once the property the will puts in trust passes to the trustee (Community Law: legal ownership passes to the trustee)
Main job	Identify and gather the property, sell it if necessary, pay debts and tax, carry out the will's wishes as far as legally possible	Hold the trust property for the beneficiaries and distribute it as the will directs
How long it lasts	Public Trust says most estates settle within 9 to 12 months; govt.nz says a simple estate can take up to 6 months	As long as the trust runs, for example until a child reaches the age the will sets
Pay	Only if the will provides for it	Only if the will provides for it
Who can act	A person or a trustee company; probate cannot be granted to someone under 18	Not someone under 18, nor someone who lacks capacity or is bankrupt or insolvent
Governing law	Administration Act 1969 and the court's probate process	Trusts Act 2019

Sources: Community Law (both pages above); govt.nz: Wills, probate and estates; Public Trust: Estate administration, read 20 October 2026.

What does an executor do during the first months?

The executor deals with the estate as it stands on the day of death. Community Law lists the job as identifying and gathering the property, selling it if necessary, paying debts and tax, distributing what remains under the will, carrying out the will-maker's wishes as far as legally possible, and being responsible for the body, the funeral arrangements and the burial or cremation. Public Trust, describing its own work as a named executor, lists applying for probate, managing the estate's assets and debts, finalising tax, working with beneficiaries, finalising accounts, distributing the estate and accounting to beneficiaries. A named executor can accept, accept while paying a lawyer or trust company for some of the work, or refuse; if no named executor can or will act, an administrator is appointed instead (see letters of administration).

One practical point catches families out. Community Law says that whatever the will says about burial or cremation, the executor has the final say, and tikanga Māori must be considered. For more on the job itself, see what an executor does.

When does an executor become a trustee?

Only if the will holds property back. A will that says "everything to my partner" has no trustee. A will that says "to my children, held until each turns 25" creates a trust, and the person named as trustee takes over the held property once the estate is administered. Community Law says a trustee's role "may continue for some time, for example, where the will provides for children to benefit when they reach a certain age". A trust created by a will is a testamentary trust; our testamentary trust guide covers cost and when it is worth having, and the trustee of a will guide covers the trustee's day-to-day work.

What duties does a trustee carry under the Trusts Act 2019?

A trustee is governed by the Trusts Act 2019. Its mandatory duties, which a trust deed cannot remove, are the duties to know the terms of the trust (s23), to act in accordance with them (s24), to act honestly and in good faith (s25), to act for the benefit of the beneficiaries or a permitted purpose (s26) and to exercise powers for a proper purpose (s27). Other duties are defaults that a trust's terms can change (Trusts Act 2019, ss22 to 27, read 20 October 2026). The Act also presumes that a trustee will notify beneficiaries of basic trust information and give information on request (ss51 and 52).

How does personal liability differ?

Both roles can carry personal responsibility, and neither is a formality.

Executors. The Administration Act (s47) protects an administrator against certain claims for a distribution made properly more than 6 months after the grant, but only if no application or written notice of one had arrived. It is not a bar on earlier payment, and it is separate from the 12-month window for a Family Protection Act claim, which runs from the grant (Administration Act 1969, ss47 and 48; Family Protection Act 1955, s9; read 20 October 2026).
Trustees. Under the Trusts Act, s79, a trustee who gave notice to potential creditors and claimants, with a deadline at least 30 days later, and had no notice of a claim, is not liable for distributing without regard to unknown claims. It does not cover Family Protection Act or Testamentary Promises Act claims (Trusts Act 2019, s79).

Neither protection is automatic. Whether one applies to a particular distribution is a question for a lawyer.

Can the same person be both executor and trustee?

Yes. Community Law says the two roles "are often combined in a single person". It can work for a simple trust held for young children by an adult who knows the family. It suits less well when:

the trust will run for many years and the person may not be around, willing or able to act that long;
the beneficiaries and the trustee may disagree, for example a second partner and the children of a first relationship;
the trust holds a business, rental property or investments that need regular decisions.

In these cases some people name a family member as executor and a trustee company as trustee, or both together. Community Law's own advice is to ask before naming someone: consent is not legally required, but the person "might refuse the role after your death".

Tax is different too

Income an estate or trust earns is taxed in its own right. For trusts, Inland Revenue lists the rates on undistributed income from 1 April 2024 as 33% up to $10,000 a year and 39% above that. A deceased estate pays 33% in the year of death and the next three years, then is taxed as a trust. The page does not say which trust rate suits a testamentary trust, so ask an accountant (IRD: Trustee tax rates, read 20 October 2026).

How can beneficiaries hold them accountable?

Beneficiaries can ask for information and, if the answers are unsatisfactory, get legal advice. The Ministry of Justice suggests legal advice if you think you are a beneficiary but cannot get information, or if there is a dispute. Family members who think the will leaves them without adequate provision have 12 months from the grant to make a Family Protection Act claim, and the contesting a will guide explains who can claim. We did not find a plain-language official source on removing an executor or trustee, so we do not describe that process here.

Professional trustee or family member?

A trustee company charges for its work. Public Trust says its fees are "based on the work we do, not the value of the estate", with fixed fees for standard work plus hourly rates for extra work, and that for some services its fees are capped at 5% of the estate's total asset value plus the income it receives from it; special fees such as probate grants, property, business and legal services sit outside the cap (Public Trust: Pricing, read 20 October 2026). A family member may charge nothing, because Community Law says executors and trustees can be paid only if the will provides for it, but may lack time or neutrality. Community Law adds that it is "not recommended" to appoint a spouse, partner or children as executor because they may not be impartial.

Where life insurance fits

A life insurance payout is estate property only if it is payable to the estate; who is paid otherwise depends on who owns the policy and the insurer's terms. If cover is meant to provide for children, who holds that money matters as much as the will. Our guide to life insurance beneficiaries explains the owner and beneficiary choices.

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