What Is the Role of an Executor in Estate Planning?

Executors play a key role in ensuring a person’s estate plan is followed when they die. Sometimes called a personal representative, the executor of a will is appointed to distribute an estate’s assets to beneficiaries according to the will’s directions. Executors have a fiduciary duty to act in the best interests of the decedent (deceased person) and their beneficiaries.  

This article will explain what an executor is and does. If you have been appointed as an executor or anticipate these responsibilities in the future, consider speaking with an estate planning lawyer about how to navigate the process effectively. 

What Is an Executor? 

“The executor is someone who has power to distribute the proceeds under a last will and testament,” says Jay E. Michael, an estate planning and probate attorney in Columbus, Ohio. Executors are appointed by the testator, or person who created the will. If the testator didn’t appoint an executor in their will, the probate court will appoint one. 

There can also be multiple co-executors. This often happens when a testator appoints all their children as executors instead of just one. Co-executor arrangements tend to complicate the probate process. For example, sibling co-executors may not live near one another, making collaboration difficult. There will also be more legal documentation and paperwork, and some siblings may have no interest, time, or aptitude for dealing with the estate. Additionally, siblings appointed as co-executors may not get along, leading to disputes.  

To avoid these issues, some co-executors may agree to give up their role, leaving the executor’s role to just one individual. Or all appointed co-executors could waive their appointment and appoint someone else instead. 

Executors vs. Other Estate Planning Representatives

The executor’s role is similar to but different from other common estate planning representatives: 

• Trustees. An executor is an individual who executes a will. “A trustee, on the other hand, is a person who would distribute assets under the inter vivos or [living trust] of an individual. Whether an executor or trustee, that person has a duty to follow what the will or the trust says in ordering the distribution to children, parents, family members, friends, charities, or whatever the case may be,” says Michael.  
• Administrators. “When you don’t have a will, the person in Ohio is named the administrator. Administrators make certain that the proceeds of your estate are distributed pursuant to how [your state’s] statute of descent distribution orders it to be transferred, which may be different from how the person who passed away wanted.” 

How Do You Appoint the Executor of an Estate? 

Appointing an executor is straightforward. When you create a will, you simply name the executor in the will. The executor should be someone you trust. They should be honest, organized, and familiar with your situation. Ultimately, their job is to carry out your last wishes. 

The executor’s job can be complex and time-consuming, so you want to appoint someone you feel will be willing to take on the job and be capable of competently handling it. Testators often appoint a sibling, spouse, close friend, or their adult children. It’s a good idea to also appoint an alternate or successor executor. This “backup” person will take on the executor duties if the first person you appoint can’t or refuses. 

Keep in mind that state laws bar some individuals from serving as executors. For example, minors (individuals under 18) and convicted felons cannot serve as executors. Your state may have additional restrictions on who can or cannot be an executor. But beyond these basic legal requirements, the choice is up to you. 

What Are the Responsibilities of an Executor? 

An executor’s job includes several essential tasks: 

Guides the Estate Through the Probate Process

The executor initiates the probate process by filing a copy of the testator’s last will and testament with the local probate court. The executor may also need other documentation, such as the individual’s death certificate and an inventory of estate assets. 

Depending on the type of estate planning the decedent used, probate may not be necessary. If probate is required, the executor may have to take the estate through formal probate procedures depending on the size of the estate and state law. If the estate qualifies as a small estate, the executor may be able to select an expedited probate process. 

The executor not only initiates the probate process, but they also see the process through to its conclusion. This may involve making court appearances on behalf of the estate. 

Ensures Assets Are Accounted For

The executor ensures that all remaining assets of the estate are accounted for. Estate assets are everything the decedent owned, including:

• Financial assets such as money, bank accounts, stocks, etc. 
• Real estate 
• Life insurance policies 
• Retirement accounts 
• Other personal property, such as cars, furniture, and art 

Distribute or Dispose of the Estate Property

It’s the executor’s job to distribute estate assets to beneficiaries. If any property is left after assets have been distributed and debts settled, the executor must dispose of it. 

Settles the Debts of the Estate and Pays Remaining Bills and Taxes

The executor must contact all the decedent’s creditors (such as banks and credit card companies) to ensure all debts are discharged. Additionally, estates must file income tax returns from the beginning of the year until the date that the individual died. Depending on the total value of the estate and tax avoidance strategies used, estate taxes may also be due. Finally, the executor can set up bank accounts to pay off any remaining bills or receive payments from others. 

Makes Funeral Arrangements

Finally, the executor may be involved with making or finalizing funeral arrangements. 

Get Help from an Estate Planning Lawyer

If you’ve been appointed an executor, have questions about the process, or are overwhelmed with legal forms and procedures, consider speaking with an estate planning attorney. An attorney can assist you through the entire process, from legal paperwork to court appearances.  

Look for an estate planning attorney in the Super Lawyers directory for legal help.