The executor (or personal representative) has broad powers but also strict legal limits. Here is what heirs should know.
An executor (called a "personal representative" in some states) is the person responsible for managing a deceased person's estate through the probate process. They're named in the will, or appointed by the court if there's no will. The executor has a fiduciary duty — a legal obligation to act in the best interest of the estate and its beneficiaries, not in their own self-interest.
Manage estate assets. Open an estate bank account, collect debts owed to the deceased, manage investments during probate, maintain real estate, and keep insurance current.
Pay debts and expenses. Pay the deceased's outstanding bills, funeral costs, attorney fees, court filing fees, and other legitimate estate expenses from estate funds.
File taxes. File the deceased's final income tax return and the estate's income tax return. Pay any taxes owed from estate funds.
Sell property. Sell real estate, vehicles, investments, or other assets when necessary to pay debts or distribute the estate — though some states require court approval for real estate sales.
Distribute assets. Once all debts, taxes, and expenses are paid and the court approves, distribute the remaining assets to beneficiaries according to the will or state law.
Use estate funds for personal expenses. Estate money belongs to the estate, not the executor. Using it for personal purposes is a breach of fiduciary duty and potentially criminal.
Change the terms of the will. The executor must follow the will as written. They cannot add or remove beneficiaries, change distribution amounts, or modify any instructions.
Unreasonably delay distribution. While executors need time to properly administer the estate, unnecessarily delaying distributions to beneficiaries can be grounds for removal.
Sell assets below fair market value. Selling estate assets at a discount — especially to themselves or family members — violates fiduciary duty. Transactions must be at arm's length and for fair value.
Ignore creditors. The executor is required to notify known creditors and publish notice for unknown creditors. Distributing assets without properly addressing debts can make the executor personally liable.
If an executor is acting improperly, delaying the process unnecessarily, or breaching their fiduciary duty, beneficiaries can petition the court for an accounting (a detailed report of all estate transactions), for the executor's removal and replacement, or for sanctions. An experienced probate attorney can advise you on the best approach for your specific situation.
Disclaimer: This page is for general informational purposes only and does not constitute legal, financial, or tax advice. Probate laws, timelines, and costs vary significantly by state and by individual circumstances. We strongly encourage you to consult with a qualified attorney or financial advisor for guidance specific to your situation. First Heritage Funding is not a law firm and does not provide legal services.
Yes. In most states, executors are entitled to reasonable compensation for their work. Some states set specific fee schedules (often a percentage of the estate value), while others leave it to the court to determine what is reasonable. An executor who is also a beneficiary may choose to waive compensation.
Yes, and this is very common. Many people name a family member — often an adult child — as both executor and beneficiary. The executor must still fulfill their fiduciary duties to all beneficiaries, not just themselves.
There is no universal deadline, but most states expect estates to be settled within one to two years for straightforward cases. Courts can intervene if an executor takes unreasonably long. Complex estates with tax issues, property sales, or disputes may take longer.
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