What Does an Executor Do

Your parent named you executor in their will. Or maybe they died without a will and you need to petition to become the administrator. Either way, you're now responsible for winding down another person's entire financial and legal existence — and nobody gave you a manual.

Executor vs. Administrator

An executor is named in the will. Their authority comes from the will itself, but it must be formally recognized by the probate court through a Grant of Probate (called Letters Testamentary in the US). Until the court issues that document, the executor can't act.

An administrator is appointed by the court when there's no will. The court issues Letters of Administration, which grant the same authority an executor would have. Courts follow a priority order: surviving spouse first, then adult children, then parents, then siblings.

The duties are functionally identical. The only difference is the source of authority — a will versus a court appointment.

The Core Duties

Once you have your letters from the court, the job breaks down into five major responsibilities:

1. Inventory every asset. You need a complete picture of what the estate owns: bank accounts, investment accounts, retirement accounts, real estate, vehicles, personal property, life insurance policies, digital accounts, and business interests. Check the mail (forward it to your address), search filing cabinets, review tax returns, and contact employers about outstanding benefits.

2. Notify creditors and settle debts. Many states require you to publish a legal notice to creditors, giving them a deadline to file claims against the estate. The deadline and notice process depend on state law. You also need to contact known creditors directly. Debt priority is state-specific, so follow the applicable probate rules before paying claims.

3. Pay ongoing obligations. The estate may have a mortgage, property taxes, insurance premiums, and utility bills that continue accruing during administration. These get paid from estate funds, not your personal accounts.

4. File tax returns. You'll file the deceased's final personal income tax return (covering January 1 through the date of death) and a separate estate income tax return in the US if the domestic estate has gross income of at least $600 for a tax year or a nonresident alien beneficiary. In Canada, this includes the Terminal Return, with deemed disposition of capital property.

5. Distribute assets to beneficiaries. Once debts are paid and taxes filed, you distribute the remaining assets according to the will (or intestacy law if there's no will). Get signed receipts from each beneficiary. Then petition the court to close the estate.

What Executor Authority Actually Looks Like Day to Day

Banks, investment firms, insurance companies, and government agencies all require the same thing: your Letters Testamentary or Letters of Administration plus a certified death certificate. You'll show these documents dozens of times.

With these letters, you can:

• Open an estate checking account (required — never commingle estate funds with personal funds)
• Access and close the deceased's bank and investment accounts
• Collect life insurance proceeds payable to the estate
• Sell real estate or personal property
• File insurance claims
• Negotiate with creditors
• Redirect mail and manage subscriptions

For assets that require probate, you need these letters to administer the estate. Joint accounts with survivorship, beneficiary-designated assets, and property handled through a small-estate procedure follow separate rules. No national deadline governs when a court issues letters; timing depends on the local process and whether the petition is complete or challenged. Until then, focus on securing property and gathering documents.

Personal Liability Risks

The executor role carries real legal exposure. You can be held personally liable if you:

• Distribute assets to beneficiaries before paying all legitimate creditors
• Pay creditors out of priority order (paying a credit card before funeral expenses, for example)
• Mismanage estate investments or allow assets to deteriorate
• Commingle estate funds with personal accounts
• Miss tax filing deadlines

The safest approach: don't distribute anything to beneficiaries until all creditor claims have been resolved and all tax returns filed. Keep meticulous records of every transaction. Open a dedicated estate bank account and run everything through it.

Executor Compensation

Executors are entitled to compensation for their time. In states with statutory fee schedules, fees are calculated under the state's percentage schedule. For example, California uses a schedule based on the estate's value, while New York's schedule starts at 5% for the first $100,000 and steps down for higher amounts. In other states, executors can charge a "reasonable" fee, usually 1% to 3%.

Many adult children serving as executor for their own parent's estate waive the fee, especially if they're also a beneficiary. The compensation is taxable income, while the inheritance itself typically isn't.

You Can Decline

Being named executor in a will doesn't obligate you to serve. You can renounce the appointment before the court issues Letters Testamentary. If you've already been appointed, you can petition the court to be removed.

Reasons to consider declining: the estate is complex (business assets, real estate in multiple states, potential litigation), you don't have the time to manage it alongside work and your own life, or family dynamics make the role untenable.

If you decline, the court appoints the next person in the will's succession list, or — if the will doesn't name alternates — follows the intestacy priority order.

The Young Adult's Guide to Losing a Parent provides a structured executor walkthrough with timelines, document checklists, and templates for communicating with creditors and beneficiaries — designed for someone doing this for the first time.