When creating an estate plan, much of the focus tends to be on “who gets what.” But just as critical is who makes it all happen. That’s the role of the Executor—the person (or institution) appointed in a Will to administer an estate after someone passes.
The choice of Executor carries significant weight. Not only are they responsible for carrying out the terms of the Will, but they must also navigate the probate process, settle debts, and manage relationships among heirs. For families, this can be a sensitive and emotional time, making the right Executor essential to minimizing conflict and ensuring a smooth settlement.
What Does an Executor Do?
The process usually starts when the nominated Executor files the Will and a petition for probate with the court. If approved, the court issues “letters testamentary” authorizing them to act.
Once officially appointed, an Executor’s duties typically include:
- Notifying beneficiaries and potential heirs
- Notifying known creditors and publishing notice to unknown creditors, as required by law
- Collecting, inventorying, and valuing assets (courts often require a formal inventory and appraisal)
- Paying outstanding debts, taxes, and final expenses (including obtaining an estate tax ID number and filing any required tax returns)
- Managing and distributing assets according to the Will
- Closing accounts and wrapping up the estate
Beyond paperwork, the Executor becomes the family’s point person—fielding questions, managing emotions, and keeping things on track. In families with existing conflicts, the right Executor can be the difference between a smooth process and ongoing disputes.
The role can also take months or even years, especially with complex estates or unique assets like businesses or property in multiple states (which may require ancillary probate in those jurisdictions). Beneficiaries may get impatient, so the Executor needs the time, patience, and commitment to see it through.
Who Should Serve as Executor?
While many people appoint a family member or close friend, it’s important to consider:
- Financial savvy: Executors often handle complex financial tasks. Someone who struggles with finances may not be the ideal choice.
- Location: If an Executor lives out of state, they may face logistical challenges depending on the jurisdiction. Some states require out-of-state Executors to appoint an in-state agent or post a bond, and a few restrict nonresidents unless they’re close relatives.
- Family dynamics: Old rivalries or personal biases can make an otherwise well-intentioned choice problematic.
In some cases, families may choose to appoint a third-party or institutional Executor, such as a bank or trust company, particularly when estates are large or family dynamics are complex. All Executors—whether individual or institutional—must be appointed by the probate court, and corporate fiduciaries must also be authorized under state law. These entities typically charge a fee, which is often a percentage of the estate, and their appointment may require court approval depending on state laws.
A Critical but Often Overlooked Decision
Choosing an Executor isn’t just a formality. It’s a decision that shapes how an estate plan is executed in real life. And yet, it’s one of the most overlooked aspects of estate planning.
At OneDigitalTrust, our estate planning platform helps individuals name an Executor with guidance along the way. For financial institutions, wealth advisors, and credit unions, we can help provide their clients with the tools to prepare these critical decisions—helping ensure estates are settled promptly and with care.