Key Takeaways
- Settling an estate means gathering the deceased person’s assets, paying their debts and taxes, and distributing what’s left to the right people.
- The executor named in the will (or a court-appointed administrator) does this work, and owes a legal duty to act honestly and carefully.
- Not everything goes through the estate: accounts with beneficiaries, jointly owned property and trust assets pass directly.
- Open a separate estate bank account and keep detailed records of every dollar in and out.
- Don’t distribute property until debts, taxes and the creditor claim period are handled.
The executor’s role
The executor (also called a personal representative) is responsible for winding up the deceased person’s financial life. It’s a fiduciary role: the executor must act in the best interests of the estate and its beneficiaries, not their own. If you’re choosing an executor for your own will, see how to choose an executor.
Executor checklist
Phase 1: Get started
- Find the original will and any trust documents
- Order certified death certificates; see how many you need
- Decide whether probate is needed; see what is probate?
- File with the probate court and get official letters giving you authority
- Get an employer identification number (EIN) for the estate from the IRS
- Open an estate bank account
Phase 2: Find and protect assets
- Secure the home, vehicles and valuables; keep insurance in force
- Inventory bank, investment and retirement accounts, real estate and belongings
- Identify assets that pass outside the estate (beneficiary designations, joint ownership, trusts)
- Get appraisals where required
Phase 3: Notify and pay
- Notify institutions, government agencies and creditors; see who to notify
- Publish a notice to creditors if your state requires it
- Review claims and pay valid debts from estate funds, in the priority your state sets
- File the final personal income tax return, estate income tax returns, and an estate tax return if required
Phase 4: Distribute and close
- Prepare an accounting of everything received and paid
- Distribute remaining property to beneficiaries, getting signed receipts
- File closing documents with the court
What goes through the estate, and what doesn’t
| Asset | Handled by executor? | How it passes |
|---|---|---|
| Accounts and property in the person’s name alone | Yes | Under the will or state law |
| Life insurance and retirement accounts with beneficiaries | No | Directly to named beneficiaries |
| Payable-on-death and transfer-on-death accounts | No | Directly to named beneficiaries |
| Jointly owned property with survivorship | No | To the surviving owner |
| Assets in a living trust | No, the successor trustee handles them | Under the trust’s terms |
| Debts and final bills | Yes | Paid from estate assets |
Common executor mistakes
- Paying beneficiaries before debts and taxes are settled
- Mixing estate money with personal money
- Paying debts from your own pocket
- Missing court or tax deadlines
- Not keeping beneficiaries informed
Frequently asked questions
There’s usually no fixed deadline, but executors must act with reasonable diligence. Most simple estates take several months; complex ones can take a year or more.
Usually yes. Executors are generally entitled to reasonable compensation under state law or the will, though many family members waive it.
Generally no, as long as they act properly. An executor can become personally liable if they distribute property before paying valid debts or taxes.
Often yes, especially if the will grants that power or the court approves. Rules depend on the will and state law.
Beneficiaries can ask the executor for an accounting and, if needed, ask the probate court to review the executor’s actions.
Keep reading
- What to Do When Someone Dies: A Step-by-Step ChecklistA clear checklist for the first 24 hours, the first week and the months after a loved one dies: who to call, what documents you need and how the estate gets settled.
- How Many Death Certificates Do You Need?Most families need several certified death certificates. See who requires a certified copy, how many to order, and how to get more later.
- Who to Notify When Someone Dies: A Complete ListA complete checklist of who to notify after a death: government agencies, banks, insurers, credit bureaus, employers, utilities and online accounts.
- Are You Responsible for a Parent’s Debts After They Die?In most cases, children don't inherit a parent's debts. Learn how debts are paid from the estate, the exceptions, and what to say when collectors call.
- How to Find a Will, Bank Accounts and Life Insurance After a DeathDon't know if your loved one had a will or life insurance? Where to look, free search tools for lost policies and unclaimed money, and what to do if nothing turns up.
Don’t leave your family guessing
Put your health care wishes in writing with a living will, HIPAA release and medical authorization. The No Brainer Box adds a last will, a revocable trust and health care and financial powers of attorney.
- Answer a few simple questions online
- Download your completed, ready-to-sign forms
- Sign them and keep copies in your account
This guide is general educational information written by the No Brainer Forms Team. It is not legal advice, and No Brainer Forms is not a law firm. Laws and signing requirements vary by state; for advice about your situation, talk to a licensed attorney in your state.