Being named executor of an estate is both an honor and a significant responsibility. This guide covers everything you need to know.
What Is an Executor?
An executor (or "personal representative" in some states) is the person named in a will to manage the deceased person's estate. Your job is to:
- Locate and protect assets
- Pay valid debts
- File necessary tax returns
- Distribute remaining assets to beneficiaries
Should You Accept the Role?
Before accepting, consider:
- Time commitment: Expect 6-18 months of work
- Complexity: Large or contested estates require more effort
- Location: Managing an estate remotely is challenging
- Relationships: Being executor can strain family dynamics
You can decline. The court will appoint an alternative executor.
Your Legal Duties
As executor, you have a "fiduciary duty" to the beneficiaries. This means:
Duty of Loyalty
Always act in the beneficiaries' best interests, not your own.
Duty of Care
Make prudent decisions. Get professional advice when needed.
Duty to Account
Keep detailed records of all transactions.
Duty of Impartiality
Treat all beneficiaries fairly.
Step-by-Step Executor Checklist
Phase 1: Getting Started
- Locate the original will
- File with probate court
- Obtain Letters Testamentary
- Open an estate bank account
- Notify beneficiaries in writing
Phase 2: Gathering Assets
- Inventory all assets
- Get appraisals for valuable items
- Secure real estate
- Collect money owed to the estate
- Manage investments prudently
Phase 3: Paying Debts
- Notify creditors (publish notice if required)
- Review and validate claims
- Pay debts in proper order
- File final income tax return
- File estate tax return if required
Phase 4: Distribution
- Get releases from beneficiaries
- Distribute specific bequests
- Distribute remaining estate
- File final accounting with court
- Close the estate
What You Can Be Paid
Executors are entitled to compensation, typically:
- Percentage of estate value (varies by state)
- Hourly rate
- "Reasonable" compensation
Keep time records if billing hourly.
Common Executor Mistakes
1. Distributing Assets Too Early
Wait until all debts are paid and tax issues resolved.
2. Not Keeping Records
Document everything. You may need to justify decisions.
3. Mixing Personal and Estate Funds
Always use the estate bank account.
4. Missing Tax Deadlines
File the final 1040 by April 15 and estate tax return within 9 months.
5. Not Getting Professional Help
Complex estates need attorneys and accountants.
How Settled Helps Executors
Settled organizes all 67 executor tasks into categories with deadlines. You'll never wonder "what do I do next?" Try it free for 30 days.