Originally published: February 15, 2019 | Last updated: January 12, 2026
What Is an Executor and What Do They Do?
An Executor (called a “personal representative” in some states) is the person given legal responsibility to settle a deceased person’s estate. When you write your Will, you name an Executor. If you do not, the courts appoint one.
An Executor’s core responsibilities include:
- Gathering assets — locating all bank accounts, investments, property, and possessions
- Paying debts and bills — settling outstanding obligations of the estate
- Filing tax returns — including final income tax and any estate tax returns
- Maintaining property — upkeep of assets (e.g., a house) until the estate is settled
- Distributing assets — transferring property and funds to beneficiaries as directed in the Will
- Managing trusts — distributing funds in accordance with any trust provisions
- Court appearances — representing the estate in probate proceedings
What Legal Terms Should an Executor Know?
| Term | Definition |
|---|---|
| Fiduciary | A person who acts for the benefit of another with a duty of care and trust. Executors, trustees, and personal representatives are all fiduciaries. |
| Testator | The person who made the Will. |
| Beneficiary | A person who receives property or income from the Will or trust, either immediately or at a later date. |
| Trustee | A person or entity that holds legal title to property for the benefit of another, acting according to trust terms. |
| Executor | The person or entity that settles the estate according to the Will. If there is no Will, they follow state intestacy laws. |
Can You Refuse to Be an Executor?
Yes. Being named in a Will does not obligate you to serve — even if you previously agreed. You can decline before starting or resign at any point during the administration. This is why Will-makers should always name alternate Executors.
Distributing an entire estate can be daunting. It is not unusual for people to resign once they understand the full scope of the task. If you resign, check the Will for a named successor. If none exists, a court proceeding may be needed to appoint a replacement.
Do Executors Get Paid?
Yes. Because being a fiduciary is time-consuming and demanding, compensation is appropriate. Payment is determined by:
- The Will itself — which may specify the amount
- State law — which may provide a fixed fee schedule or allow “reasonable” compensation based on estate size, complexity, and time spent
Executor fees are taxable income. Several states do not permit you to pay your own compensation without a court order — consult an attorney before writing yourself a check.
Many family Executors feel awkward about collecting fees and waive them. However, before doing so, understand the full scope of your duties and any tax implications of the waiver.
Can an Executor Be Sued or Held Personally Liable?
Yes. Errors or mismanagement can result in personal liability. Common pitfalls include:
- Missing tax deadlines — not paying taxes or filing returns on time
- Improper investments — choices that are too conservative, too speculative, or that favor one beneficiary over another
- Self-dealing — buying estate assets for yourself or a family member
- Poor communication — failing to keep beneficiaries informed about the administration process
Your best protection is to:
- Get professional advice early
- Communicate regularly with all beneficiaries
- Treat everything formally, as if you are not a related party
- Document all actions and decisions thoroughly
Where Should You Hold Estate Assets?
Open a dedicated investment account with a bank, trust company, or brokerage in the name of the estate or trust. All expenses and disbursements should flow through these accounts. Regular statements provide a clear audit trail and protect you if a beneficiary raises a complaint.
Do Executors Need to Hire a Lawyer?
Not always. Many Wills are routine, and the probate paperwork does not require specialized legal knowledge. However, you should consider hiring a lawyer if the estate involves:
- Disputes between beneficiaries
- Complex property issues
- Significant tax liability
- Business interests or unusual assets
For simpler estates, tools like MyLifeLocker from USLegalWills.com can help by providing a comprehensive inventory of the deceased’s assets, accounts, and obligations.
How Do You Close an Estate?
An estate can be closed when the Executor has:
- Paid all debts, expenses, and taxes
- Received tax clearances from the IRS and the state
- Distributed all remaining assets to beneficiaries
- Filed a final income tax return
- Reserved funds for any due but unpaid taxes or expenses
Some states require a court petition before distributing assets and closing the estate. Even where not required, it is good practice to have all beneficiaries sign a document — prepared by an attorney — acknowledging receipt of assets and approving your actions. This protects you from future claims.
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He has over 20 years of experience helping people to write their Will and other estate planning documents. He has been interviewed by many of the major news media outlets, and has contributed to articles in The New York Times, NY Metro Parents, U.S. News & World Report, and other leading publications. He has also contributed to a number of financial planning books.
Throughout his career, Tim has written extensively on the subject of Will writing and estate planning.
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