Executor in Estate Planning

An executor is the person named in a will to manage and settle a deceased person's estate. They collect assets, pay debts and taxes, and distribute what remains to the beneficiaries named in the will. The role carries a fiduciary duty, meaning you must act in the best interests of the estate and all beneficiaries at all times, not your own.

Think of an executor as a project manager for the legal and financial wind-down of someone's life.

Who Can Serve as an Executor

Most states require an executor to be at least 18 years old and have no felony convictions. Some states, including Texas, require the executor to be a resident of that state. Beyond the legal minimums, you want someone who is organized, trustworthy, and emotionally capable of managing administrative duties while navigating a period of grief for the family.

Executors are most commonly a spouse, adult child, sibling, or close friend. You can also name a professional fiduciary, such as a bank trust department or estate attorney, if your estate is complex or family dynamics make a personal appointment unworkable. Naming a backup executor is also important, as the primary choice may die before you, become incapacitated, or decline the role entirely.

How an Executor Gets Their Authority

Authority does not transfer automatically at death. The executor must file the will with the probate court, along with the death certificate and an asset inventory. Once the court validates the will, it issues a document called Letters Testamentary, which grants the executor legal power to access accounts, manage property, and act on behalf of the estate.

Without Letters Testamentary, banks and financial institutions cannot release account information or transfer funds to you. Getting this document is one of your first priorities after the funeral.

The Core Duties of an Executor

The executor's job is wide-ranging and can take anywhere from several months to more than two years depending on the estate's complexity. The duties generally follow this sequence:

1. Locate and file the will: Find the original will and file it with the local probate court. Notify all named beneficiaries and relevant legal heirs of the death.
2. Secure the estate's assets: Identify and protect all property the deceased owned, including real estate, bank accounts, investments, vehicles, and personal property. Create a formal inventory with appraised values where required.
3. Notify creditors and government agencies: Publish a notice to creditors in a local newspaper if required by your state. Notify the Social Security Administration, the post office, and financial institutions of the death.
4. Pay valid debts and taxes: Settle outstanding bills, mortgages, and loans from estate funds. File the deceased's final income tax return and any required estate tax returns. Taxes and secured debts are paid first; unsecured debts follow.
5. Distribute assets to beneficiaries: Once debts and taxes are settled, distribute the remaining assets exactly as the will directs. Keep detailed records of every distribution.
6. Close the estate: File a final accounting with the probate court, obtain court approval for the distribution plan, then formally close the case.

Executor vs. Trustee: Different Roles

An executor and a trustee are not the same thing, though the same person can hold both roles. An executor carries out the instructions in a will during the probate process, which ends when the estate is closed. A trustee manages assets held in a living trust, often for years or even decades after the original owner's death.

If the deceased created a living trust to avoid probate, many assets may pass outside the probate process entirely. In that case, the trustee distributes trust assets directly to beneficiaries, while the executor handles whatever remains in the probate estate.

Executor vs. Administrator: What Happens Without a Will

If the deceased dies without a will, the probate court appoints an administrator instead of confirming an executor. An administrator performs the same practical duties but distributes the estate according to the state's intestacy laws rather than the deceased's expressed wishes. Intestacy laws prioritize spouses, then children, then other relatives in a defined order. This is why having a valid will that names an executor directly is so important.

Fiduciary Duty: What You Cannot Do as Executor

Serving as executor puts you in a position of legal accountability. The duty of loyalty means you cannot use estate assets for personal benefit, pay yourself excessive compensation, or profit from business dealings with the estate. The duty of prudence requires you to manage property carefully and avoid unnecessary risk. A beneficiary can file a legal complaint in probate court if you breach either duty.

Specific actions that expose you to personal liability include distributing assets before all debts and taxes are paid, making unauthorized investments with estate funds, and failing to keep beneficiaries reasonably informed about the estate's progress.

Executor Compensation

Executors are generally entitled to reasonable compensation paid from the estate. Many states set statutory fees, often calculated as a percentage of the estate's value. For example, California sets fees on a sliding scale starting at 4% of the first $100,000 of the estate's value. If you are a family member serving as executor, you may choose to waive compensation, but that decision should be made with tax implications in mind, since executor fees are taxable income.

Professional services such as attorneys, accountants, and appraisers can also be hired and paid from the estate. This is not optional in complex estates where tax filings, real property sales, or business interests are involved.

Choosing the Right Executor for Your Estate Plan

The qualities that matter most in an executor are reliability, organizational ability, and the temperament to handle conflict. Family members often disagree during estate administration, and your executor needs to manage competing expectations without losing focus on their legal obligations.

Geographical proximity matters too. An executor who lives near the estate's assets can handle court filings, property management, and in-person meetings more efficiently than one who lives across the country. When proximity is a problem, consider naming a local co-executor or authorizing your executor to hire local professionals to assist.

Sources:
https://www.findlaw.com/estate/estate-administration/what-does-an-executor-do.html
https://www.metlife.com/stories/legal/executor-of-estate/
https://www.justia.com/probate/probate-administration/the-duties-of-an-executor-of-an-estate/
https://www.fidelity.com/learning-center/life-events/what-is-the-executor-of-an-estate
https://www.weisingerlawfirm.com/blog/2025/october/the-role-of-an-executor-in-estate-planning-dutie/