Executor

An executor is the person legally responsible for validating the will and administering the estate of a deceased individual by ensuring rightful heirs receive any inheritance timely and fairly. An executor is generally named within one's last will & testament &/or formally appointed by the probate court.

While a last will & testament or other valid estate planning documents help an executor understand a deceased individuals last wishes, many individuals pass away without a will (aka intestate), in which case local intestacy laws will specify how their property should be distributed.

The responsibilities of an executor generally includes navigating the probate process, but also includes inventorying, managing & distributing any non-probate assets as a part of the broader estate settlement process.

An executor is the legal term referring to the person(s) in charge of administering an estate through probate. Simply put, think of an executor as the person you'd like to leave in charge of wrapping up life's loose ends by bringing a close to your personal and financial affairs after you pass away.

In some cases, multiple executors may be appointed to serve over the estate together in a co-executor arrangement.

While fairly straightforward to explain in theory, serving as an executor can feel a bit more challenging to unpack in practice, as the probate and estate settlement responsibilities vary situationally based upon a number of factors such as: where the estate is domiciled (located), local laws, type and value of assets, whether the deceased individual had a will or estate plan, as well as the number of and relationship between surviving heirs & beneficiaries.

Common duties associated with the role of an executor include: closing bank accounts, paying off debts, calculating & filing final income taxes or applicable estate tax returns, distributing remaining funds to beneficiaries.

Executors routinely interact with a handful of different individuals and institutions to facilitate collaborative communication among: surviving family members, heirs & beneficiaries, estate planning attorneys, CPAs or tax professionals, credit bureaus, government agencies, financial advisors, insurance representatives, probate clerks or judges, funeral professionals, real estate agents, & charitable organizations.

Other names you may hear for Executor

It's not uncommon for multiple executors to be selected to serve together as co-executors, particularly when children are named to manage or settle an estate.

In instances when the named executor is a female, the term executrix may also be used. Depending on one's location or region, the terms executor or executrix are also often informally called a personal representative or an administrator of the estate.

• Co-Executor(s)
• Personal Representative
• Administrator
• Executrix (females)
• Liquidator Canada (Québec)
• Solicitor— UK and Canada
• Professional Fiduciary
• Corporate Executor
• Agent for executor

A similar, but notably different role is a trustee, who is responsible for serving over any non-probate estate assets that pass outside of the executors control by means of a valid and properly funded trust.

While a trustee may or may not be the same person named or appointed as the executor, it's important to separate the roles, responsibilities & actions taken as an executor over estate assets from any similar actions taken during one's capacity as trustee of trust assets.

How & when to choose an Executor

One of the important decisions when writing a will is choosing who to trust in serving as the executor of your estate after you die. That said, many individuals either never write a will, don't keep it properly updated or otherwise have its' validity contested by surviving family members. In these situations a probate judge or probate clerk will generally step in to appoint a suitable executor on behalf of your estate based upon the established intestacy laws in your area.

Whether chosen by the testator or decided by the probate court, it's most common for the named executor to be a surviving spouse, adult child, sibling or other family member of the deceased, which makes sense due to their intimate knowledge of the individuals personal and financial affairs. Another frequent choice when naming an executor is that of a best friend or business partner, who similarly also has a good sense of one's affairs or similar approach to making important financial or legal decisions.

Some individuals also choose to name an institutional corporate executor, such as a bank or trust company, to serve as a contingent backup in the event any of the prior selected individuals pre-decease the testator or are otherwise unable or unwilling to serve upon the testators death.

Keep in mind that any person named or designated as an executor in a will does not have an obligation to serve in such capacity, and is reserved the right to decline to serve.

There are also some requirements for serving as an executor which may preclude certain individuals from being able to serve in the capacity of an executor.

Characteristics of an executor include:

The personality traits of an executor are best described as the general embodiment of a Fiduciary. Both innately and by nature of their responsibilities, common attributes associated with the characteristics of an executor include: 

• Responsible— the process of navigating probate and settling an estate includes a lot of time-sensitive and materially important tasks, and often lasts anywhere from 9-18 months. To be effective in their role, it's essential that an executor be capable of sustaining a high level of responsibility throughout the course of the entire process.
• Organized— serving as an executor means interacting with a lot of different individuals and inventorying access to a lot of different assets or accounts. After all, an executor is entrusted to organize & bring a close to everything one did during their lifetime. Managing a task this big requires an intentional approach to staying organized
• ‍Trustworthy— executors are entrusted with the ultimate responsibility of organizing and facilitating distribution of one's estate assets. As such, it's imperative that an executor maintains a level of transparency & accuracy with regards to documenting their actions in the form of understandable estate accountings, probate forms & inheritance reports
• Selflessness— serving as an executor requires making thoughtful decisions in the best interests of the testator, the estate and rightful beneficiaries. While personal or professional experience may help impact important decisions, when in doubt, an executor must consider "what would the [deceased loved one] do in this situation," as opposed to what they might ordinarily do for their own situation
• Stewardship— settling an estate usually takes around 9-12 months, but can often last years. It's a good idea to appoint someone with a general sense of stewardship to serve as executor so that they can prudently safeguard & invest any assets throughout that time period to prevent negative finanical loss of inheritance to rightful heirs
• Impartial— it's not uncommon for executors or co-executor(s) to also be beneficiaries of the estate. In situations when there are other beneficiaries, executors have a moral and legal obligation to remain impartial with decisions involving any actual or perceived conflicts of interest
• Loyal— both to you as the testator as well as heirs & beneficiaries. Many individuals keep financial decisions or affairs private, even from close friends or family. Trusting that your executor will respect and uphold any wishes for privacy after you're gone provides enormous peace of mind, now and eternally

Being named an executor is a great honor. But without the right help, it can also be quite the burden. It's really, really helpful to use automated tools & resources.

The job of the executor is an important one. Many times the testator will think they are bestowing an honor on the person they name as executor. They are, but in fact, that honor can also come in form of a time consuming and tedious responsibility.

When serving as executor, it's incredibly helpful to use automated tools & resources to help follow local laws, decrease personal liability and make the overall process faster and easier.

Roles and responsibilities of an Executor

1. Be appointed by a probate court
2. Find, file & validate last will & testament
3. Notify beneficiaries and interested parties
4. Open an estate bank account
5. Post notice to creditors
6. Inventory and appraise estate assets
7. Keep accurate records & receipts
8. Pay debts, taxes & valid creditor claims
9. Prudently manage estate assets
10. Facilitate distribution of assets among rightful beneficiaries

Executor compensation

Executors are tasked with a lot of work, and while it might be an honor to carry out the wishes of a loved one, most wills or estate plan documents recognize that an executor or any co-executors should be financially compensated for their efforts.

When a valid last will & testament exists, the allowable amount of executor compensation is typically provisioned within the terms of will.

In situations when an individual passes away intestate, most probate & estate laws provide an allowance for executor compensation to be paid before final settlement of the estate to help offset the time and efforts put into the responsibility of serving as an executor.

When multiple executors serve over an estate, the allowable executor compensation is generally shared across the applicable co-executors, including any hired attorneys or professional fiduciaries acting in an executor capacity.

Executor bond

In situations when an individual is surviving as the executor of probate estate domiciled in a different area than where they live, it's common for a probate bond, or surety bond, to be posted with the probate court to help ensure the executor will administer the estate with respect to local probate laws, procedures and process.

By requiring a probate bond, probate courts are able to incentivize an executor to finish the probate process in a timely fashion without abandoning responsibilities during the course of the estate settlement process.

Executor bonds also protect against fraud, errors, negligence, theft or misrepresentations made by the executor of the estate.

When Natasha and Ryan Bloom, happily married, met with an estate planning attorney to draft their wills, they appointed each other as the executors of their estate and as the guardians of their 3 young children. As a backup, they each decided to appoint Natasha's sister Kat as a backup co-executor and guardian of their kids, just in case something tragic happened to both of them at the same time.

As time when on, the Bloom family ended up living in 3 different states pursuing job opportunities, bought a home, bought & sold many cars, and invested a modest amount of savings into stocks and bonds. Late in life, Natasha and Ryan bought a family lake house to serve as central place for the kids and their families to gather during holidays and vacations.

Natasha and Ryan never updated their will or estate plan, so when they passed, Natasha's sister Kat was asked by the probate court to serve as the named executor over the Bloom estate. Kat mentioned she was willing to serve if necessary, but made the decision to ask Natasha & Ryan's now-adult children whether they would serve together as co-executors over their parents estate instead.

The three children agreed and each accepted being appointed as a co-executor over their parents estate. While the three children got a long well, they each had their own families, jobs and lived in different areas.

After struggling through a slow start, the three children decided to use Atticus to help organize the estate settlement process, streamline communication and coordinate responsibilities as they worked independently to locate and inventory assets, file appropriate notices, submit probate forms, generate estate accountings & coordinate filing of necessary tax forms.