Being named as an executor (or personal representative) in someone's will is a significant responsibility. Executors manage the deceased person's estate, pay debts and taxes, and distribute assets to beneficiaries. Understanding these duties helps executors fulfill their role properly and avoid personal liability.
Initial Steps After Death
An executor's duties begin immediately after the death. Early priorities include locating and securing the will, arranging funeral and burial (often in consultation with family), securing the deceased's property and assets, and notifying relevant parties of the death.
You don't have legal authority until the court appoints you. File the will with probate court and petition for appointment as executor. Once appointed, you receive "letters testamentary"—your proof of authority to act.
Inventory and Secure Assets
Create a comprehensive inventory of the estate's assets, including real estate, bank accounts and investments, vehicles and personal property, life insurance and retirement accounts, and business interests. Value assets as of the date of death—you may need professional appraisals.
Secure assets from loss or theft. Change locks if necessary. Maintain insurance on property. You're responsible for preserving estate assets.
Open an Estate Account
Open a bank account in the estate's name. Deposit estate income and pay estate expenses from this account. Don't commingle estate funds with personal money—this creates liability and accounting nightmares.
Notify Creditors
Most states require publishing notice to creditors in a newspaper and directly notifying known creditors. This starts a deadline for creditors to file claims—typically 3-6 months. Claims filed after the deadline are generally barred.
Review claims for validity. Pay legitimate debts from estate assets. If assets are insufficient to pay all debts, priority rules determine which creditors get paid first.
Pay Debts and Taxes
Executors must pay the deceased's final debts, including final income taxes (federal and state), estate taxes if applicable, property taxes, medical bills and funeral expenses, and outstanding credit accounts.
File the deceased's final income tax return. Large estates may require federal estate tax returns (Form 706). Some states have separate estate or inheritance taxes.
Manage Estate Assets
During administration, you may need to actively manage assets—collecting rent from real estate, managing investment portfolios, operating a business, or maintaining property until sale or distribution. Act prudently—the same standard expected of professional fiduciaries.
Distribute Assets to Beneficiaries
After paying debts and taxes, distribute remaining assets according to the will. Document distributions carefully. Get receipts from beneficiaries acknowledging what they received.
Don't distribute assets too early. If you distribute before all debts are paid and the estate lacks funds to pay later-discovered debts, you may be personally liable.
Provide Accountings
Executors must account for all estate activity—money in, money out, assets managed, and distributions made. Beneficiaries have the right to see accountings. Courts may require formal accountings before closing the estate.
Keep meticulous records. Save receipts, statements, and documentation for everything. Poor record-keeping creates problems even when you've done nothing wrong.
Close the Estate
Once all debts are paid and assets distributed, petition the court to close the estate. File final accountings showing everything was handled properly. The court will discharge you from further responsibility.
Executor Compensation
Executors are entitled to reasonable compensation for their services. State law or the will may specify the amount—often a percentage of estate value. You can waive compensation if you prefer, particularly if you're also a beneficiary.
Personal Liability
Executors who breach their duties face personal liability. Mismanaging assets, paying debts incorrectly, distributing prematurely, or self-dealing can result in surcharge—being required to repay losses from personal funds.
Act carefully, document everything, and seek professional help when uncertain.
Getting Legal Help
Most executors benefit from legal guidance. Probate attorneys help navigate procedures, ensure compliance with legal requirements, and protect you from liability. The estate typically pays for legal fees, not you personally.