How to be the Executor of an Estate
Last Updated: February 12, 2025
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Key Takeaways:
- An executor is appointed in a Last Will and Testament by the testator
- The executor’s duties start once a testator has died
- The executor uses estate funds to pay the estate’s outstanding debts and bills
Table of Contents
- What is an executor of an estate?
- Duties and responsibilities of an executor
- Accepting the role as an executor
- What can’t an executor do?
- Differences between an executor and a trustee
- Differences between an executor and a Power of Attorney
- Executor qualifications by state
- How to settle an estate
- What are some disputes that occur with executors?
- Do you get paid to be an executor?
- What's Next?
What is an executor of an estate?
In any Last Will and Testament, there are two prominent roles:
- Testator: The party who created the Last Will and Testament
- Executor: The party selected by the testator to execute the Will after their passing
The executor has a pivotal role. They are responsible for settling a deceased person’s estate as their Will states. The executor will distribute the assets and carry out a testator's wishes after they’ve passed away.
What is the difference between a personal representative and an executor?
The terms personal representative and executor are often used interchangeably. Some states use the term executor, whereas others have switched to “personal representative.” Both of these titles have the same responsibilities and duties.
For this article, we’ll use the term executor.
Duties and responsibilities of an executor
An executor has several essential duties following a testator's death. The executor will use the Will as a map for distributing assets and closing the estate. These responsibilities include:
| Communicate with beneficiaries | The executor should notify the testator’s loved ones and beneficiaries of their death. The executor will also have to communicate with the beneficiaries following the death to distribute assets and discuss funeral and burial arrangements. |
| Collect and inventory assets | The executor should complete an inventory of the testator’s valuable assets, including real estate, vehicles, jewelry, art, collectibles, and more. This will help accurately estimate the estate's worth so the executor can pay off debts and divide the assets appropriately. |
| File for probate, if necessary | Probate is a legal process that establishes the executor's authority and that the Will is a valid legal document. Though common, not all deaths require probate. Whether you must file for probate is dependent on the following:
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| Apply for benefits | Collect benefits that do not already have a named beneficiary, such as pension, Social Security, and military benefits, to distribute as the Will dictates. |
| Pay off debts | After the testator’s death, the executor is responsible for settling debts or outstanding bills. Debts must be paid before distributing assets. |
| File tax returns | File the appropriate tax returns and government documents for the deceased and their estate. These include:
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| Distribute assets | Use the Will to determine whom the assets will be distributed to. |
| Close estate | After completing your duties as an executor, it’s time to close the estate. File all the records and evidence confirming the estate has been accurately distributed, and outstanding debts have been paid. Once the payments are completed, the estate bank account can be closed. |
What is the liability of an executor?
The executor is responsible for paying the testator's debts and taxes with funds from the estate and distributing the estate assets appropriately and according to the Will. An executor is a fiduciary, meaning they must act for the benefit of the estate and beneficiaries while fulfilling their duties.
The executor pays the testator's debts and taxes out of the estate. The executor can be held personally liable if they are negligent, make errors, or mismanage the estate, for instance, by failing to file tax returns on time. Creditors and beneficiaries can also sue the executor for a breach of fiduciary duty if the executor doesn't successfully complete all their duties.
If you are a co-executor, communicate with the other person (or people) to ensure you are all on the same page and can work together when the time comes.
Accepting the role as an executor
An executor’s role is challenging for several reasons. The executor must usually fulfill their duties while grieving, and Wills can lead to potential conflicts or disputes. Therefore, reviewing and understanding an executor's responsibilities is critical before agreeing to the job. If you accept the responsibility, discuss the estate plan with the testator and understand their wishes, End-of-Life Plan, and estate.
Make sure you know the following:
- Where the Will is located
- Where essential documents (such as property deeds, marriage certificates, and insurance policies) are located
- If they have designated an alternate executor or co-executor
- Bank account information
- The location of any valuable assets or trusts
- The name and contact information of the beneficiaries
- Funeral and burial preferences
- If a funeral home has been contacted
- If there is a preferred lawyer or accountant to handle the estate
It’s important to note that you do not have to serve as an executor if you’ve been appointed as one. Many reject this role for several reasons, including proximity, stress, and other commitments.
If you think you’ll be unable to fulfill your duties and wish to reject your role, you can sign and notarize a Renunciation of Nominated Executor form. If an alternate executor is named, the responsibilities will be passed to them. If there are no alternate executors named or available, then the court will appoint an executor to fulfill the duties.
What can’t an executor do?
Executors have a lot of responsibility, but they also have some limitations. Knowing what an executor cannot do before accepting the role is important. Some top limitations include:
- Moving assets or managing the estate before the testator dies
- Altering the distribution requests of the testator
- Signing the Will if the testator has not signed it
- Stopping beneficiaries from contesting the Will
Differences between an executor and a trustee
A trustee is an individual responsible for holding authority, responsibility, money, or assets for another individual in trust. Both executors and trustees are responsible for managing and distributing the assets of another person. However, there are some key differences between an executor and a trustee. These include:
| An executor: | A trustee: |
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Differences between an executor and a Power of Attorney
There are also some challenges when determining the difference between an executor and attorney-in-fact, listed in a Power of Attorney document. Some of the main differences are:
| An executor: | An attorney-in-fact: |
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Executor qualifications by state
The criteria and qualifications of executors vary by state. If an executor is underage or otherwise unable to act and no alternate executor has been named, the probate court will appoint one.
Qualifications usually include the following: an executor cannot have a felony record, must be a citizen of the United States, and must not be incapacitated.
Additional state laws regarding executor criteria can be found in the table below:
It's essential to follow the testator's wishes regarding specific gifts or property. For example, try to avoid selling gifts unless there are no other assets that can cover debts.
How to settle an estate
Your duties as an executor begin as soon as a testator passes away. Though these responsibilities may seem overwhelming, the testator elected you because they believed in your ability to execute their last wishes and adequately distribute their estate.
As the executor, you should communicate any necessary details to the beneficiaries and collaborate with co-executors. The order of your responsibilities may change based on the testator’s estate.
Step 1: Find and review the Will
After the testator passes away, locating and reviewing the Will is crucial. You can decide whether to hire a lawyer or complete your duties without professional legal help.
Most deaths require the executor to file for probate. This is dependent on the value of assets and state laws. The probate process confirms that the deceased Will is valid and allows you to continue with your executor duties. Smaller estates may not require probate, but the executor is responsible for filing the Will with the court.
After finding the Will, one of the executor’s top priorities at this stage is organizing guardianship for surviving minors or pets. The Last Will and Testament should indicate guardianship requests.
Step 2: Obtain a copy of the death certificate
Obtain a copy of the death certificate. This is required to verify the testator’s death for financial and probate purposes. If you need assistance applying for a death certificate, most funeral homes can help facilitate this process.
If state laws give the executor this authority, an executor may be responsible for organizing end-of-life wishes and funeral arrangements.
If you are responsible for these arrangements, you will begin preparing to handle the remains and service after applying for the death certificate.
Step 3: Secure assets
The executor is responsible for protecting and securing assets until they are distributed to each beneficiary. This includes (but is not limited to) the testator’s safety deposit box, real estate properties, business interests, vehicles, and valuable goods.
Once the deceased’s assets are secure, the executor must do the following:
- Conduct an inventory of the items and get an appraisal if needed
- Determine any non-probate assets, including life insurance policies with a listed beneficiary or jointly owned assets with a surviving partner
- Notify beneficiaries as per the testator’s state requirements
- Notify creditors of the executor’s passing
Step 4: Manage finances
An estate bank account is a good tool to manage the testator’s debts and assets. A bank can help an executor open and manage this account with a death certificate, a copy of the Will, and proof of probate. You can collect all wages, dividends, and Social Security funds in the estate account to clear any of the testator’s bills or outstanding debts.
Step 5: Pay debts
The executor is responsible for closing the testator’s bank account and canceling all subscriptions, credit cards, and utilities. The executor must also inform all necessary parties of the testator's death, such as banks, brokers, tenants, landlords, doctors, the post office, and the Social Security Administration.
Step 6: Settle the estate
After the debts, professional fees (such as a lawyer and accountant), and bills are paid, you can begin to settle the remainder of the estate. The testator may have outlined reimbursement for the executor for the time and expenses incurred during the estate closing.
The executor is responsible for filing the deceased's last income tax return and state and federal estate taxes.
Step 7: Disperse the estate according to the Will
After the executor has paid the deceased debts, the estate can be distributed to the appropriate beneficiaries outlined in the Last Will and Testament. Follow the Will carefully when allocating the estate to the beneficiaries, as conflicts over inheritance are common among grieving relatives, and the executor is responsible for correct distribution.
The executor must remain unbiased and fulfill the testator’s wishes to the best of their ability.
Step 8: Close the estate
After the assets have been delivered to the proper beneficiaries, the executor can close the estate and the estate bank account. All records, including receipts for final accounting purposes, should be filed accordingly.
Both the court and the beneficiaries should receive a statement of accounts. Once a final report has been given to the probate court, the court will release the executor of their duties and close the estate.
What are some disputes that occur with executors?
There are typically two circumstances that can cause disputes or challenges for an executor. These are:
- Co-executors: If there are co-executors, conflict can arise between them about how to carry out their responsibilities or if one executor refuses to help make decisions.
- Intrusive heirs: An heir may claim their contents from a deceased person’s home against the deceased wishes. The executor, who is bound by the requests of the deceased, must secure and redistribute the assets.
Do you get paid to be an executor?
The Will may specify how much you will get paid as an executor, and the probate court will usually follow the wishes in the Will. If the Will does not specify executor compensation, then it will be determined by state law. State law usually uses one of these payment structures:
- A percentage of the estate, where the executor will get a percentage of the total value of the estate
- A percentage of the transactions, where the executor will receive a commission on the money the estate pays out and receives
- Hourly rate
- Flat fee
- Reasonable compensation based on the size and complexity of the estate
What's Next?
After you’ve closed the estate, your duties as an executor end. Following your duties as an executor, consider who you’d trust to complete this task for you and how you’d like your estate handled. If you haven’t already, appoint an executor in your Last Will and Testament and write your funeral wishes in your End-of-Life Plan.
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