What Is an Executor?
An executor is the person named in a will to carry out the deceased person's final wishes and settle their estate. When there is no valid will, or the will names no one able to serve, the probate court appoints an administrator instead. The two roles do nearly identical work, but they are appointed differently and hold slightly different legal documents. Collectively, both are known as the estate's personal representative.
Becoming an executor is not automatic. Even if you are named in the will, you must be formally appointed by the probate court before you have legal authority to act. That authority is granted through a court document that lets banks, brokerages, and other institutions recognize you as the person in charge.
Executor vs. Administrator
| Executor | Administrator | |
|---|---|---|
| Appointed by | Named in the will, confirmed by the court | Appointed by the probate court |
| Requires a will | Yes | No (used when there is no will) |
| Court document | Letters Testamentary | Letters of Administration |
| Authority | Distributes assets per the will | Distributes assets per state intestacy law |
Both roles owe a fiduciary duty to the estate and its beneficiaries, meaning they must act honestly, in good faith, and in the estate's best interest rather than their own.
The Executor's Responsibilities, in Order
Estate administration follows a fairly consistent sequence. Working through it in order keeps you organized and reduces the risk of mistakes.
- Locate the will and death certificate. Order several certified copies of the death certificate; you will need them repeatedly. If you are unsure where to begin, a what to do when someone dies checklist covers the first days.
- File the will with the probate court in the county where the deceased lived, and petition to be appointed.
- Obtain your authority. The court issues letters of testamentary (or letters of administration), your proof that you may act for the estate.
- Get an EIN for the estate from the IRS and open an estate bank account. Never mix estate funds with your own.
- Inventory and value the assets — real estate, accounts, vehicles, personal property, and business interests — as of the date of death.
- Notify institutions and agencies. Contact banks, insurers, credit bureaus, and government offices; for example, you should notify Social Security promptly to stop benefit payments and report the death.
- Notify creditors and beneficiaries. Most states require publishing or mailing notice so creditors can submit claims within a set window.
- Pay valid debts, expenses, and taxes from estate funds.
- Distribute the remaining assets to beneficiaries.
- File a final accounting with the court and close the estate.
A detailed executor duties checklist can help you track each item as you go.
Getting Letters of Testamentary
Letters of Testamentary are the linchpin of the whole process. Until the court issues them, financial institutions will refuse to release information or funds. To get them, you file the original will and a petition, attend a brief hearing in many states, and sometimes post a bond. Once issued, keep several certified copies; each institution you deal with will want its own.
Paying Debts and Taxes
Debts are paid from the estate, not from your own pocket, and they follow a priority order set by state law — funeral costs and administrative expenses typically come first, followed by taxes and secured debts, then unsecured claims. If the estate cannot cover everything, lower-priority creditors may go unpaid, but you should never distribute assets to beneficiaries before valid debts and taxes are settled.
Tax obligations can include the deceased person's final income tax return, an income tax return for the estate itself, and, for larger estates, a federal or state estate tax return. When in doubt, consult a tax professional.
Distributing Assets and Executor Fees
Once debts and taxes are resolved, you distribute what remains according to the will (or state intestacy law if there is no will). Get signed receipts from beneficiaries and file your final accounting with the court.
Executors are entitled to reasonable compensation, but how it is calculated varies widely by state. Some states set a percentage of the estate's value, others allow "reasonable" fees subject to court approval, and some let the will specify the amount. Tools such as EstateWrap can help you keep the records these calculations depend on. Fees are taxable income to you, so many family-member executors waive them.
Personal Liability and Timeline
Because you owe a fiduciary duty, you can be held personally liable for losses caused by negligence, self-dealing, or paying beneficiaries before creditors. Protect yourself by keeping meticulous records, communicating with beneficiaries, following the statutory order of payment, and seeking professional advice for complex issues.
Most estates take six months to a year to settle, though contested wills, hard-to-value assets, tax filings, or real estate sales can stretch that to two years or more. Working methodically through each duty is the surest way to close the estate cleanly and avoid liability.