What is the primary difference between a trustee and a personal representative?

The primary difference highlighted in the correct answer is that a trustee is responsible for managing a trust, while a personal representative administers an estate. A trustee holds and manages assets placed in a trust, ensuring that the terms of the trust are carried out for the benefit of the beneficiaries according to the instructions set forth by the grantor. The trustee has a fiduciary duty to act in the best interests of the beneficiaries.

In contrast, a personal representative (often referred to as an executor or administrator) is appointed to oversee the probate process after someone has passed away. Their responsibilities include settling debts, distributing assets to heirs, and ensuring compliance with the rules governing estate administration. This role is typically necessary when the deceased has a will or an estate that requires formal probate proceedings.

Understanding this distinction is crucial because it reflects the different purposes and contexts in which these roles operate within estate planning and administration.