When You Are Called to Serve
An executor (called a "personal representative" in many states) is the person named in a will to manage the estate after someone dies. If you have been named, you are not required to accept. But if you do, you take on a legal duty to act in the best interest of the estate and its beneficiaries.
570
average hours an executor spends settling an estate
16 mo.
average time to settle an estate from start to close
46%
of executors didn't know they were named until after the death
This guide walks you through the process from beginning to end. It is not a substitute for legal advice, every estate is different, and state laws vary significantly. But it will give you a clear framework for what to expect, what to do first, and when to call a professional.
The First 48 Hours
The immediate period after a death is overwhelming. These are the priorities, not everything needs to happen at once, but these should not wait.
Locate the will.
Check the decedent's home (safe, desk, filing cabinet), their attorney's office, and any safe deposit box. You need the original, not a copy.
Obtain death certificates.
The funeral home typically orders these. Request 10-12 certified copies, banks, insurers, courts, and government agencies will each require an original.
Secure the property.
Lock the home. Collect mail. Protect valuables. If the home will be vacant, ensure it remains insured and that utilities stay on.
Notify immediate family and close friends.
This is personal, not legal. Handle it before the administrative work begins.
Care for dependents and pets.
If the decedent had minor children, elderly dependents, or pets, make sure they are safe and cared for immediately.
Do not distribute any assets.
No matter how clear the will seems, do not give anything away yet. Debts and taxes must be addressed first.
Do not pay debts from your own funds.
All estate expenses, including funeral costs, utility bills, and mortgage payments, are paid from estate funds, not your personal accounts. Open an estate bank account as soon as you receive your letters testamentary.
Understanding Probate
Probate is the court-supervised process of validating a will, paying debts, and distributing assets. Not every estate goes through probate, but if the decedent owned property in their own name (not in a trust, not with a beneficiary designation, not jointly held), probate is required.
When Probate Is Not Required
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Trust assets. Property held in a revocable living trust passes according to the trust terms. No court involvement needed. (See our companion guide, A Guide for Successor Trustees.)
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Joint tenancy property. Assets owned as JTWROS or TBE pass automatically to the surviving owner.
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Beneficiary designation assets. Life insurance, retirement accounts, annuities, and POD/TOD accounts pass directly to the named beneficiary.
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Small estates. Most states allow simplified procedures for estates below a threshold (varies by state). Often a simple affidavit is sufficient.
Even with a trust, probate may be needed.
If the decedent had a trust but failed to transfer some assets into it, those unfunded assets may still require probate. This is why estate plans include a "pour-over will", to sweep remaining assets into the trust through the probate process.
The Probate Timeline
File the will with the probate court
Most states require filing within 30 days of death. Submit the original will, a death certificate, and a petition for appointment as executor.
Receive Letters Testamentary
The court issues a document confirming your authority to act. Every bank, insurer, and institution requires this before they will work with you.
Notify beneficiaries, heirs, and creditors
Send formal notice to all beneficiaries and heirs. Publish a notice to creditors in a local newspaper. Send direct notice to known creditors.
Inventory and appraise assets
File a complete inventory of estate assets with the court. Obtain appraisals for real estate, business interests, and valuable personal property.
Creditor claims period
Creditors have a limited time to file claims, typically 4 to 6 months. Review, accept, or reject each claim. Pay accepted claims from estate funds.
File tax returns and pay taxes
File the final income tax return (1040), estate income tax (1041), and federal estate tax (706) if applicable.
Distribute assets and close the estate
Prepare a final accounting. Distribute remaining assets per the will. Obtain receipts from beneficiaries. Petition the court to close the estate.
Your Responsibilities
As executor, you are a fiduciary. This means you have a legal obligation to act in the best interest of the estate and its beneficiaries, not in your own interest.
Locate and secure all assets
Identify every asset: real estate, bank accounts, investments, retirement accounts, insurance, vehicles, business interests, personal property, and digital assets. Check tax returns and bank statements for accounts you may not know about.
Open an estate bank account
Apply for a federal EIN at irs.gov (free). Open a checking account in the name of the estate. All income and expenses flow through this account. Never commingle estate funds with personal funds.
Pay valid debts and expenses
After the creditor claims period closes, pay debts in state priority order: funeral expenses, administrative costs, taxes, secured debts, then unsecured debts.
Manage assets prudently
Maintain property (insurance, upkeep, mortgage). Manage investments conservatively. Collect income owed to the estate. This is not the time for aggressive investment decisions.
Keep detailed records
Document every transaction, decision, and communication. You will need to prepare a final accounting for the court and beneficiaries.
Communicate with beneficiaries
Keep beneficiaries informed of progress and timelines. Silence breeds suspicion. Regular updates prevent most disputes.
Distribute assets and close the estate
Once debts, taxes, and expenses are paid, distribute remaining assets per the will. Obtain signed receipts. File a final accounting and petition for discharge.
Personal liability is real.
If you distribute assets before paying all debts and taxes, you can be held personally liable. If you mismanage estate assets or breach your fiduciary duty, beneficiaries can sue you. The most common causes: premature distributions, missed tax deadlines, commingling funds, and failure to properly notify creditors.
Tax Obligations
Tax compliance is one of the executor's most important responsibilities. You do not need to prepare these returns yourself, but you need to understand what is required.
| Return | Form | When Required | Deadline |
|---|---|---|---|
| Final personal income tax | 1040 | Always | April 15 of year after death |
| Estate income tax | 1041 | Estate earns $600+ | April 15 or fiscal year-end |
| Federal estate tax | 706 | Exceeds $13.61M (2024) | 9 months after death |
| State estate tax | Varies | Depends on state | Varies by state |
| Gift tax return | 709 | Decedent made reportable gifts | April 15 of year after death |
The Stepped-Up Basis
When someone dies, most assets receive a "stepped-up" cost basis equal to fair market value on the date of death. This eliminates capital gains tax on appreciation during the decedent's lifetime. For example, stock purchased for $10,000 and worth $100,000 at death has a new basis of $100,000, the beneficiary owes no capital gains if they sell immediately.
This is why date-of-death valuations are critical. Document the value of every asset as of the date of death.
Hire a CPA early.
The estate's CPA should be engaged within the first month, not at tax time. They will advise on the estate's fiscal year election, estimated tax payments, and whether to make distributions before year-end to shift income to beneficiaries.
Working with Professionals
You are not expected to do this alone. The estate pays for professional services, not you personally.
| Professional | When to Engage | What They Handle |
|---|---|---|
| Estate attorney | Immediately | Probate filings, creditor notices, disputes, final accounting |
| CPA / tax preparer | Within the first month | Final 1040, Form 1041, Form 706, stepped-up basis |
| Appraiser | Within 1-3 months | Real estate, business interests, collectibles, jewelry |
| Financial advisor | Immediately | Investment oversight, beneficiary rollovers, account transfers |
| Real estate agent | When property needs sale | Listing, marketing, sale (may need court approval) |
Handling Specific Assets
Real Estate
Secure the property immediately. Continue insurance, mortgage, property tax, and utility payments from estate funds. Transfer by executor's deed after debts and taxes are settled. If property must be sold, some states require court approval.
Bank and Investment Accounts
Notify each institution with a death certificate and letters testamentary. Sole-name accounts will be frozen until documented. Joint accounts with survivorship pass automatically. POD/TOD accounts pass to the named beneficiary.
Retirement Accounts
These pass by beneficiary designation, not through the will. The rules for inherited retirement accounts are complex and depend on the SECURE Act's 10-year distribution requirement. The CPA and financial advisor should handle this directly.
Life Insurance
File a claim with each carrier. Proceeds go to the named beneficiary, not the estate, unless the estate is named as beneficiary. Claims are typically paid within 30-60 days.
Business Interests
Check for a buy-sell agreement first, it may dictate what happens. If no buy-sell exists, you may need a business valuation. Consider whether the business needs to continue operating during administration.
Digital Assets
Check for a password manager or written list. Contact platforms to report the death. Every state has adopted RUFADAA, which governs your access. Cryptocurrency without access credentials may be unrecoverable.
Cancel subscriptions and recurring charges.
Review bank and credit card statements for recurring charges: streaming services, gym memberships, insurance premiums, subscription boxes, software licenses. Cancel each one and request refunds where applicable.
Common Mistakes
Most executor errors are preventable. These are the ones professionals see most often:
- 1
Distributing assets before paying debts and taxes. The single most common source of personal liability.
- 2
Missing filing deadlines. The will must be filed with court, tax returns on time, and creditor notices within required windows.
- 3
Commingling funds. Never mix estate money with your own. Every dollar flows through the estate bank account.
- 4
Poor record-keeping. If you cannot document a decision, you cannot defend it.
- 5
Failing to communicate with beneficiaries. Silence creates suspicion and disputes.
- 6
Not getting professional help early enough. The cost is paid by the estate, not by you.
- 7
Forgetting to formally close the estate. Without a court discharge, your liability remains open indefinitely.
Executor Compensation
Executors are entitled to compensation. The amount varies by state:
| Approach | How It Works | Examples |
|---|---|---|
| Percentage of estate | Statutory sliding scale | CA: 4% of first $100K. NY: 5% of first $100K. |
| Reasonable compensation | Court determines based on complexity | Typical range: 1-5%. National average: $13,000-$23,500. |
| Will-specified | The will sets the fee | Overrides state defaults. Can petition for more if work exceeds expectations. |
Executor compensation is taxable income. You may also be reimbursed for out-of-pocket expenses separately. Family members sometimes waive compensation, discuss the tax implications with the CPA first.
The Emotional Side
Serving as executor is administrative work layered on top of grief. You are managing legal deadlines, financial decisions, and family dynamics while processing the loss of someone close to you.
Give yourself permission to grieve while you work. Set boundaries on how many hours per day you spend on estate matters. Delegate tasks to family members and professionals. Communicate openly with beneficiaries about timelines. And if the burden becomes unmanageable, know that you have the right to petition the court to appoint a co-executor or to resign entirely.
Glossary
Beneficiary
A person or entity named to receive assets under a will, trust, or account designation.
Creditor claims period
The window of time (typically 4-6 months) during which creditors can file claims against the estate.
Decedent
The person who has died.
Executor / Personal Representative
The person named in the will to administer the estate.
Fiduciary duty
The legal obligation to act in the best interest of the estate and its beneficiaries.
Intestate
Dying without a valid will. Assets distributed per state law.
Letters Testamentary
A court-issued document confirming the executor's authority to act.
Pour-over will
A will that directs unfunded assets into the trust at death.
Probate
The court-supervised process of validating a will, paying debts, and distributing assets.
Stepped-up basis
Adjustment of an inherited asset's cost basis to fair market value at death.
This guide is provided for informational and educational purposes only. It does not constitute legal, tax, or financial advice. Estate administration is governed by state law and varies significantly by jurisdiction. Consult with an estate attorney and CPA before making decisions about probate filings, tax returns, asset distributions, or creditor claims.
If the decedent had a revocable trust, the companion Guide for Successor Trustees covers trust administration alongside probate. For personal wishes, funeral instructions, and document locations that supplement the legal plan, see the Letter of Instruction Template.