What you need to know if you鈥檙e an executor of estate duties
How to fulfill your legal obligation to someone's estate.
Article published: April 04, 2024
Have you been named executor of estate duties for someone?
Though that may seem like an honor, it鈥檚 usually a thankless assignment 鈥 and often a difficult one too. And you might be asking yourself, 鈥淲hat are my duties as executor of estate?鈥
As important as it is to know what an executor does, it鈥檚 more important to understand what an executor cannot do.
As executor of estate duties, you have the legal responsibility to pay the deceased鈥檚 taxes, debts and creditors 鈥 in the proper order 鈥 from estate assets and then to distribute the remainder according to the decedent鈥檚 wishes as expressed in a will or trust documents.
That typically involves a great deal of paperwork and deadlines 鈥 and all the while you might have to walk a tightrope to avoid getting embroiled in family squabbles. Worse, you could even be sued if you don鈥檛 handle everything correctly.
The core responsibilities of executors haven鈥檛 changed much over the past century, but meeting them has grown more complex. In the past, an executor of estate duties would typically find estate documents in the deceased鈥檚 filing cabinet or safe deposit box. Today, such items are increasingly stored digitally.听Even if you know their digital locations, you鈥檒l also needyou may not be able to access the documents without usernames and passwords, which you should never ask for or accept to access the documents. If you鈥檝e been named an executor for someone, ask right away where their important documents are kept, including wills, copies of financial statements, life insurance and annuity policies, homeowner鈥檚 and auto insurance policies and the names of their financial, legal and tax professionals. Be sure to ask for all of this in hard copy form rather than anything digital. Taking these steps in advance can make your job a lot easier later.
Laws in many states are unclear as to an executor鈥檚 ability to gain access to a deceased person鈥檚 digital property. Email providers often have terms that make it difficult for friends or family members 鈥 with or without executor authority 鈥 to open email accounts. Some email providers will delete听an account once they find out the account holder has died.
Here are four more things you need to know if you鈥檙e an executor of estate duties:
1. Pay creditors at the right time and the right order.
Don鈥檛 assume that the deceased鈥檚 bills, such as credit cards and utilities, must be paid as soon as they arrive. Other obligations 鈥 including federal and state taxes and funeral expenses 鈥 take priority. Paying routine debts before others can be a breach of fiduciary duty for which an executor can be held liable.
For example, an executor might not know that the estate owes federal income taxes. If he or she pays other expenses, there might not be enough money left to pay the taxes, and the executor could be required to pay them personally.
Before paying any creditors, we recommend consulting with an estate attorney听and tax professional who can help you in paying creditors in the proper order and time.
2. Keep control of assets.
Executors are charged with keeping all estate assets safe prior to distribution. In the days immediately following a death, visitors come and go, and household items can disappear. The executor听is typically required to secure all physical propertiesy and monitor its their safekeeping, which may mean simply locking the home or possibly having the locks changed if the situation requires it.
3. Consider real estate involvements.
Disposition of real property can be a difficult task. One beneficiary might want to sell the deceased鈥檚 house quickly, while another might want to keep it in the family 鈥 and may even be living in it. If there鈥檚 an agreement to sell, the executor must decide the listing price and the amount of sales commission the estate will pay.
If a real estate agent recommends making improvements to a property to help sell it, the executor needs to reach an agreement with heirs before spending money on improvements. A financial advisor and estate attorney can help an executor resolve such issues amicably; otherwise, the executor might need to seek assistance from probate court.
Executors should obtain homeowners insurance on the deceased person鈥檚 house until it鈥檚 sold, but be aware that insurance companies don鈥檛 like to cover vacant properties for extended periods because of the risk of fires, vandalism and other damage, so it鈥檚 likely to require a higher premium.
4. Avoid investing estate assets in the market.
If you鈥檙e tempted to invest the decedent鈥檚 assets in the stock market until you鈥檙e able to distribute the money 鈥 discuss this with the estate attorney.
You could be held liable for any losses. Remember that your job is to protect the assets 鈥 not attempt to increase them. If the decedent has money invested in one or more accounts, contact an estate attorney and financial advisor for guidance.
A checklist for an executor of estate
Before you begin serving as executor of estate, you should understand that most major legal and financial tasks don鈥檛 have to be handled immediately. Take a step back. Dealing with such matters at a time when you might be coping with a personal loss is difficult. In the days following death, you could be involved in helping arrange the funeral, collecting information for an obituary, contacting clergy and other urgent tasks.
When those tasks are completed, take time to get a clear understanding of the estate. And realize that you don鈥檛 have to do everything by yourself. But don鈥檛 ask other family members or friends to help. Instead, enlist the aid of three specialists: an estate attorney, your financial advisor and the deceased鈥檚 accountant. (Contact us if you need a list of estate planning attorneys in your area.) Some states let you appoint co-executors who have special expertise to serve alongside you.
It鈥檚 impossible to provide an all-inclusive checklist for executors. Each family situation is unique, and legal requirements vary from state to state. So here is a basic list to help get you started:
- Gather all the deceased鈥檚 important documents 鈥 starting with the will, if one exists.听Ideally, the decedent would have told you where to find all the legal, tax and financial documents you need. Don鈥檛 assume the decedent told you everything 鈥 look for bank safe deposit boxes, insurance policies and other items that can lead to unknown assets. Interview family members to help your search.
- Contact an estate planning attorney and tax professional. They can help you prepare and file the the deceased's will with the probate court.听Make yourself a few copies first.
- Get several certified copies of the death certificate. You鈥檒l need one every time you must provide proof of death (although you may find that a few institutions now accept copies).
- Notify the post office, utility companies, credit card companies, banks and other businesses听of the death so that recurring charges are stopped. Have the deceased鈥檚 mail forwarded to you.
- Notify the Social Security Administration, unions and any other organizations听that had been providing benefits to the deceased. Payments made after the date of death will have to be returned.
- Inventory all assets and have valuable items appraised.听The inventory is needed for probate court.
- Determine whether full probate is necessary听by totaling the value of property subject to probate and checking your state鈥檚 rules on what estates qualify for simplified procedures. An estate attorney can help you conduct a probate court proceeding if one is needed.
- If there鈥檚 a living trust, work with the trustee(s) to coordinate the appropriate tasks.听Executors are not always the trustees, so know where your responsibilities (and rights) stop.
- Notify the heirs and beneficiaries.听The estate attorney and probate court can help you. Stay in touch with them. See if the deceased鈥檚 state requires that they receive a copy of the will.
- Safeguard estate assets until you distribute them.听Never commingle estate assets with your own.
- Get the consent of beneficiaries before taking major steps.听Otherwise, they may suspect wrongdoing. Even during a lull in activity, let them know the status. Don鈥檛 startle them with surprise announcements.
- Collect all money owed to the estate,听such as the deceased鈥檚 final wages and insurance benefits. Deposit these funds in the estate bank account. (Yes, you need to create a bank account for the estate. Close the deceased鈥檚 accounts 鈥 once you鈥檙e sure that all recurring deposits and withdrawals are ended 鈥 and transfer the funds to the estate account.)
- Follow your attorney鈥檚 counsel to pay the estate鈥檚 bills in proper order.听You are not obligated to pay any of the deceased鈥檚 debts personally. Your attorney should have already determined if the estate will have enough money to pay all of its debts. But if youhave doubts once you鈥檝e begun addressing these debts, stop paying bills and ask your attorney for further guidance.
- File the decedent鈥檚 final income tax returns.听Consider hiring the deceased鈥檚 tax preparer to help.
- If the estate exceeds $13.611 million in value, work with the estate attorney and a tax professional to determine if filing a federal estate tax return is required. It鈥檚 possible that taxable lifetime gifts or other circumstances may have reduced the remaining estate tax exemption, so seek professional advice.
- Distribute the assets.听After all creditors are paid in full, pay remaining funds to the heirs and beneficiaries, including distribution of such items as furnishings, jewelry and other valuables.
- Congratulate yourself and breathe a sigh of relief.听You鈥檝e done a service to the deceased and their heirs.
1 IRS. (2023, November 27). Estate Tax. Retrieved March 1, 2024, from
The information regarding estate planning should not be construed as tax or legal advice and is for general informational purposes only.
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