Equity and Trust Essay Example | Topics and Well Written Essays - 1500 words - 3

Equity and Trust - Essay Example Whether the person involved is a trustee or an executor depends on the manner in which the decedent held his/her property. A trustee is an individual or a firm that holds responsibility, authority and position over a property on behalf of or/and for the benefit of another (Free willWriting.com, 2013). In a broader term, a trustee could also refer to a person who sits on the Board of Trustees for a firm that works in the interest of and for the benefit of the general public. Although often set up for charitable reasons, a trust could also be set up for the benefit of individuals. Thus, the key types of trust are a will trust for the testators family and children, a pension trust, and a charitable trust (Free willWriting.com, 2013). The executor on the other hand is the person or the trust company mandated to settle the estate of a testator according to the provisions of the will. This paper advises Trevor and Tony, an executor and a trustee regarding the distribution of Sam’s (the decedent) wealth and the settling of his/her business affairs and debts according to the provisions of the will left. In his will, Sam outlines how his assets are to be distributed to the beneficiaries. First, Sam leaves his 20,000 shares in BT plc to his trustees on trust. He directs the trustees to hold the bulk of these shares for his sister Margaret and the remainder for his four grandchildren in whatever shares the trustees deem appropriate. Second, Sam directs that his bronze statue of a musician to be given to his daughter Fiona, who should keep it safely for her grandchildren. Third, he directs that his trustees distribute  £50,000 amongst the inhabitants of Greater London as the trustees deem appropriate. Finally, he directs that his executors distribute  £300,000 amongst his friends. Further, in case the executors doubt who Sam’s friends were, his wife should help in identifying his