Final answer:
The executor is the person administering the estate, which would be Alabaster, not Baxter. Alabaster can be both the executor and a beneficiary of the estate. Not all assets may pass through the estate if other transfer mechanisms were in place.
Step-by-step explanation:
In regard to the scenario where Baxter has passed away and named Alabaster as the person to manage his assets according to his will, several aspects need to be addressed. Firstly, the roles of executor and trustee are often confused. Baxter is the decedent (the person who has passed away), and it is not possible for him to be the executor. The executor is the person responsible for administering the estate, and that role would be assigned to Alabaster if named in the will. A trustee, on the other hand, is a person responsible for managing the assets held in the trust.
Regarding the option that Alabaster cannot be a beneficiary simply because he is managing the estate, that statement is incorrect. It is entirely possible for an executor or trustee to also be a beneficiary of the will or trust, as long as they comply with the legal and ethical regulations associated with managing the estate.
While Alabaster's legal obligations would include transferring assets to the beneficiaries, that is not typically the first step. Before distribution, the executor usually has to take care of other responsibilities, like paying debts and taxes, and sometimes managing the assets before they are distributed to the beneficiaries.
Lastly, not all of Baxter's assets are likely to pass through his estate if he had established mechanisms such as joint tenancies or named beneficiaries on accounts that allow for transfer on death, which bypass probate.