Executor of a will: Managing an estate from probate to distribution

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Handle the details; keep the process moving.

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A close relative has died, and you’ve been named executor of the estate—the person responsible for settling the deceased’s finances, property, and other assets. It’s a role that comes with legal responsibilities and can take months to complete.

Some estimates suggest settling an estate can involve hundreds of hours over more than a year, depending on its size and complexity. Although executors may be paid reasonable compensation—often up to 5% of the estate’s value—you aren’t required to accept the role.

If the individual who died has a surviving spouse, your role may be limited, as most or all of the estate may transfer directly to the spouse. But if you’re settling the estate of a parent, sibling, or other relative, you’ll be responsible for carrying out the terms of the will, if one exists.

If you’re writing your own will, choosing the right executor is just as important. The person you choose should be able to manage details, work with the court, meet required deadlines, and carry out your wishes. The role can be demanding, so it may not always make sense to choose a family member or default to the oldest child.

An executor is the person named in a will to manage and settle an estate. The role typically involves working with a probate court, which oversees the legal process of validating the will and distributing assets.

As executor, you act as a fiduciary, meaning you’re legally required to act in the best interests of the estate and its beneficiaries. In some cases, you may need to take an oath or obtain a bond from the court as part of that responsibility.

If you don’t want to serve as executor, you can decline the role through the probate court. That option may make sense if you live far away, expect the process to be complex, or have other work or family commitments. If you decline, the court will appoint a replacement so the process can continue.

Serving as an executor involves a significant amount of paperwork and administrative work. Requirements vary by state, and many executors work with an attorney to help manage court filing and other legal steps. In some states and localities, legal representation may be required depending on the circumstances.

You’ll also need to keep detailed records throughout the process, including financial statements, bills, and receipts that show money flowing into or out of the estate. These records are used to prepare a final accounting for the court.

You’ll need to identify and determine the value of all assets in the estate. Using financial records such as bank statements, vehicle titles, and real estate deeds, create a spreadsheet and record the fair market value of each item. In some instances, you may need professional appraisals for items such as vehicles, antiques, and collectibles.

Assets owned jointly with another individual typically pass directly to the surviving owner and aren’t included in the estate. Your list should include any money owed to the person who died, such as a personal loan or outstanding paycheck.

Social Security benefits are handled differently. Payments are issued one month in arrears, and no benefit is paid for the month of death. For example, if someone dies in July, a payment received in August (for July) must be returned.

Once you’ve identified the assets, you may need to transfer them into the name of the estate so they can be managed or sold. State law may also affect how certain assets (such as a home) can be handled during probate. As assets are collected or sold, keep a running record of their value to track the estate’s total.

For example, if an estate includes a checking account with $5,000, a savings account with $20,000, and a car valued at $7,500, the total estate value would be $32,500 after combining the accounts and selling the car.

As executor, you’re responsible for identifying and paying the estate’s outstanding debts, which may include credit card balances, loans, final rent, and utility bills. Debts are paid from estate funds and should be recorded as part of the estate’s accounting.

If the estate includes real estate, any ongoing home expenses such as mortgage payments, utilities, insurance, and property taxes are handled differently depending on state law. In some states, the property may transfer directly to heirs, who may be responsible for these costs soon after the owner’s death. In others, the executor may take control of the property and pay expenses from estate funds during probate.

If the example estate had a credit card balance of $1,200, funeral expenses of $3,500, and $500 in unpaid utility bills incurred before the death, those costs would reduce its total to $27,300 from 32,500. Keeping a running total and reconciling it with the estate’s bank statements can help ensure accurate accounting throughout probate.

The estate may need to file taxes for the year of death, depending on the person’s income. If assets in the estate generate income during probate—such as interest, dividends, or rental income—or if assets such as a home are sold in a later year, additional tax filings may be required. Any taxes owed are paid out of the estate, and any refunds become part of the estate. 

After debts and taxes are paid, the court reviews the estate’s final accounting and approves the plan for distributing assets to beneficiaries and heirs according to the will.

For example, if the estate receives a tax refund of $1,200 and pays the executor $2,000 for their services, the final estate value would be $26,500 ($27,300 + $1,200 − $2,000). If there are four heirs, each would receive $6,625.

In some cases, heirs may be asked to sign a written agreement confirming that they accept the final accounting. Once assets are distributed, the executor can request that the court formally close the estate.

Serving as executor involves legal and financial responsibilities that can take time to complete. Staying organized, keeping clear records, and getting help when needed can make the process more manageable.

In addition to the executor’s responsibilities, it often falls to family members to notify friends and neighbors, make funeral arrangements, or clear out a home. When possible, it can be helpful to share these tasks.

Executors are typically entitled to reasonable compensation, and it’s appropriate to seek professional help if the role becomes too complex or time-consuming.