What Is an Executor? Responsibilities and How to Carry Them Out
Processing the death of a loved one is difficult. Amid the swirl of emotions, there’s a financial aspect of that transition that also requires attention. It’s an executor’s job to manage that responsibility, distributing the wealth that someone spent a lifetime building.
If you’ve recently been appointed executor — or if you’re currently preparing your own will — you’ll need to know what the job entails. In this article, we’ll explore the role and responsibilities of an executor and walk you through what it takes to carry out those last wishes with dignity.
Executor — definition and importance
An executor is legally responsible for following the terms of a deceased person’s will. They carry out final wishes, pay any outstanding debts, and distribute the remainder of the estate, including everything left that the deceased person owned — cash, personal belongings, real estate, and so on.
Typically, the executor is named in the will. In fact, most wills list more than one potential executor, in order of preference. If the first cannot do the job for some reason, the second can step in, and so on.
If the will is unclear, or if none of the named executors can serve, the court will name an executor.
The responsibilities are significant — in some cases, executors can be held personally liable if they make mistakes managing the estate. The job also can take a substantial amount of time.
Executor responsibilities
An executor’s primary responsibility is following the last wishes laid out in the dearly departed’s will. One of the biggest tasks is ensuring that the estate’s assets and liabilities (debts) are fully accounted for and divided properly among the beneficiaries (the people named in the will).
Executors may also handle several other tasks, such as:
- Making funeral arrangements
- Informing loved ones, creditors, and the government of the deceased’s death
- Paying outstanding taxes and debts
- Collecting funds owed to the estate
- Managing and safeguarding the estate until it’s distributed
- Walking the estate through probate (if required) — the process of legally validating the will and the executor
You can name almost anyone over 18 as your executor, as long as they have no felony convictions. Ideally, they should be well-organized and prepared to handle financial and legal matters.
Most people choose trusted family members, close friends, and/or the beneficiaries of the will as executors or co-executors. You can also appoint certain professionals as executors, such as an accountant or lawyer.
If the testator is still alive, what should I do?
If you’re named executor of a will and the testator (the person whose will it is) is still alive, do what you can to get organized ahead of time. The more information you gather now, the easier it will be to locate important documents, people, and accounts later.
Start your preparations by:
- Writing down the names and contact information of the testator’s attorneys and financial professionals
- Gathering important financial information the testator would like to share, like the locations of their:
- Financial assets (bank accounts, investment accounts, etc.)
- Debts
- Insurance policies
- Real estate holdings
- Going over the will to ensure you understand which assets will pass to which beneficiaries
- If possible, discussing the will with the testator and the beneficiaries present can prevent unexpected surprises later
- Be sure you can identify each of the items named in the will, especially when it comes to personal possessions such as art or furniture
- Identifying where the original will and list of assets are stored, and how to access them when needed
- Discussing the testator’s last wishes for their funeral and cremation or burial
If I found out I’m the executor after the testator has passed away, what should I do?
If you learn that you’re an executor after the testator passes away, your first step is to get an official death certificate and locate the decedent’s attorneys and financial professionals. (The probate court or the official who notified you of the death may be able to help.)
Work with the probate court — and, ideally, an attorney — to get the documentation you need to carry out your duties. Banks, for example, will require documentation of your right to manage the estate before granting you access to accounts, safety deposit boxes, and so on.
You’ll also need to inform the deceased’s beneficiaries (people named in the will) and heirs (people who could inherit if there had not been a will). This isn’t just a matter of letting people know about the death — it’s a formal, legal process of notifying them that there’s a will and that you’re responsible for distributing the assets of the estate.
There are specific rules in each state about how these people need to be notified. Check with a lawyer in your state, or pick up the forms at your local probate court and follow the instructions carefully.
You’ll also need to notify certain government bodies such as the IRS, DMV, and SSA of their passing.
That said, not everyone feels comfortable acting as an executor. Being the executor of a will is especially difficult if you:
- Live far away
- Have a busy work or family life
- Are in poor health
- Feel overwhelmed by grief or an executor’s many responsibilities
Fortunately, you can easily step down and let the probate court appoint another executor.
How to execute the estate in 6 steps
Executing a will requires a lot of work, but preparation and setting expectations can help it feel less daunting. Though exact circumstances vary, the basic steps to executing an estate include:
- Get organized
- Walk through the probate process
- Notify heirs, beneficiaries, and creditors
- Inventory, appraise, and maintain the estate’s assets
- Manage the estate’s finances
- Distribute the remaining assets
Of course, it’s important to remember that executor responsibilities vary by state and by the complexity of your situation. For questions about your specific circumstances, it’s best to consult an attorney.
Step 1: Get organized
Start by tracking down a copy of the will if you don’t already have one. If you don’t know where it is, the deceased’s family members or lawyers may be able to help.
You’ll also need at least 10-15 certified copies of the decedent’s death certificate. (Find out where to get it using the CDC’s Vital Records database.) You’ll need this document to prove the decedent’s passing and your authority to act on behalf of the estate.
Step 2: Walk through the probate process
Going through probate can sometimes take years and dozens of steps, but this section will condense it down to the essentials. In reality, not every estate goes through probate, as some states’ inheritance laws eliminate or expedite the process.
Still, you’re usually required to file the will with the probate court, even if the will doesn’t need to be formally probated. (Some states, for example, recognize self-proving wills, in which case the court’s involvement in formally recognizing the will and the executor is minimal, making that part easier.)
At this point, the court will appoint an executor according to the will.
Assuming that’s you, you’ll need to:
- Determine if probate is required
- Identify assets that do and don’t need to be probated
- Notify relevant parties of the ongoing case
- Appear in court to prove the will’s validity or settle disputes
- Distribute assets according to probate rules
Note that some executors may hire a lawyer for this process, particularly for large or complex estates.
Step 3: Notify heirs, beneficiaries, and creditors
Executors have a responsibility to notify certain entities of the deceased’s passing, such as:
- Heirs and beneficiaries
- Creditors
- Government entities like the SSA, IRS, DMV, and Postal Service
- Financial institutions (banks, insurance companies, investment firms, etc.)
- Other entities with ties to the estate, like utility companies, landlords, and employers
Contacting these entities allows them to make or release claims to the estate, fulfill end-of-life obligations (like paying out insurance policies), or cancel contracts and licenses. You should also contact the major credit bureaus and add a death notice to the deceased’s credit report.
Step 4: Inventory, appraise, and maintain assets
As the executor, you’re also responsible for locating, inventorying, and appraising the assets and debts of the deceased’s estate. In other words, you have to figure out the estate’s finances. (Typically, this occurs under the purview of the probate court.) The court — and you — will use this information to properly evaluate and distribute the estate’s assets.
Additionally, executors are required to secure and maintain the estate’s assets until they’re sold and distributed. For instance, you may arrange for maintenance and upkeep on real estate (paid for by the estate). You also may need to locate and protect personal property, heirlooms, and the contents of any safety deposit boxes.
Step 5: Manage the estate’s finances
A key focal point, especially for beneficiaries, is the management of the estate’s finances. Every situation is different, but the executor should be prepared to:
- File an income tax return for the estate
- Pay any relevant federal or state estate taxes
- Pay any relevant property taxes until the property has been distributed
- Track down any incoming payments like life insurance or final paychecks
- Pay off or dispute outstanding debts like credit card bills
- Make essential payments, like mortgage and utility bills, until the estate is settled
- Help beneficiaries access benefits like life insurance, annuity, or Social Security payments
While that sounds like a lot, you can make the process a little easier by opening a bank account for the estate. Then, all incoming and outgoing payments can be routed through a single account.
Step 6: Distribute the remaining assets
One of the very last steps executors take is actually distributing remaining or non-probate assets to heirs and beneficiaries.
If there’s an ironclad will in place, this process is relatively simple — just follow the deceased person’s final wishes. Otherwise, you may have to follow rulings from the probate court or state intestacy laws.
Along the way, be sure to have the beneficiaries acknowledge in writing that they’ve claimed their inheritance and what they received.
Final thoughts
Executing a will is a final chance to honor the wishes and memory of your loved one — but that doesn’t make it easy. It requires a lot of time, energy, and paperwork to get it right.
However, you can make the process a little easier by getting organized. Having all your documents and important contacts in one place simplifies the process when the time comes.
Ultimately, that can ease some of the stress that accompanies mourning — and celebrating — the memories, experiences, and accomplishments of a life well lived.
Quicken has made the material on this blog available for informational purposes only. Use of this website constitutes agreement to our Terms of Use and Privacy Policy. Quicken does not offer advisory or brokerage services, does not recommend the purchase or sale of any particular securities or other investments, and does not offer tax advice. For any such advice, please consult a professional.