An executor plays a crucial role in the administration of a deceased person’s estate, but for most people this role is shrouded in mystery. 

“An executor is the person designated in the will to carry out the deceased person’s wishes. This is often a close family member or another trusted individual,” explains the Texas State Law Library. “In estate administration, the court must first approve the executor. The executor will then collect and distribute the estate property. This is almost always done with the help from an attorney.”

If there is no will, the personal representative is called an “administrator.” If there is a will but the executor can’t serve for any reason, the court will also appoint an administrator.

This comprehensive guide will explore the responsibilities of an executor, how to choose one, and what to expect if you’re named as an executor yourself.

What is an Executor and Who Can Serve as One?

An executor is an individual appointed to administer the last will and testament of a deceased person.

This role involves managing the affairs of the estate, ensuring that the deceased’s wishes are carried out, and that assets are distributed to the intended beneficiaries.

“Being an executor is a serious job that comes with legal responsibilities. Executors must act in the best interest of the estate and its beneficiaries, and they are responsible for following a significant number of rules, as well as interacting with probate courts, lawyers and accountants,” advises New York Life.

The executor is usually chosen by the person who wrote the will. In Texas, Section 304.001 of the Estates Code lists potential candidates in order of priority.

“In most cases, it will be an executor listed in the will, a spouse, a beneficiary or a family member. If nobody initiates administration, a creditor or another interested party may also qualify,” says the Texas State Law Library.

Here is the priority order for courts to choose an executor according to Texas code:

1. The person named as executor in the decedent’s will or the person designated as administrator as authorized under Section 254.006
2. The decedent’s surviving spouse
3. The principal devisee of the decedent
4. Any devisee of the decedent
5. The next of kin of the decedent
6. A creditor of the decedent
7. Any person of character residing in the county who applies for the letters
8. Any person who is not disqualified under Section 304.003
9. Any appointed probate administrator

Executors and administrators must meet certain requirements. The following persons are generally disqualified from serving:

• Incapacitated persons
• People with a felony conviction
• Out-of-state residents without a Texas agent or attorney
• Corporations that are not authorized to serve as fiduciaries in Texas
• Persons found unsuitable to serve by the court

The Executor’s Role and Duties

The executor’s primary responsibility is to carry out the instructions laid out in the will and manage the deceased’s estate. This process can be complex and time-consuming, often lasting several months or even years. Here are some key duties of an executor:

• Initiating the Probate Process: The executor must file the will with the probate court and obtain legal authority to act on behalf of the estate.
• Identifying and Securing Assets: One of the first tasks is to locate and collect all of the deceased’s assets, including financial accounts, real estate and personal property.
• Helping with Final Arrangements and Notifying Heirs: Executors may be tasked with helping with burial arrangements and notifying heirs and beneficiaries.
• Managing the Estate: The executor is responsible for maintaining and protecting the estate’s assets until they can be distributed. This may involve paying mortgages, insurance premiums and other ongoing expenses, as well as upkeeping estate property. In this role, the executor may even be called upon to sue on behalf of the deceased.
• Paying Debts and Taxes: Before distributing assets to beneficiaries, the executor must settle any outstanding debts and tax obligations of the estate.
• Distributing Assets: Once debts and taxes are paid, the executor distributes the remaining assets to the beneficiaries as specified in the will. This may require organizing estate sales.
• Maintaining Records: Throughout the process, the executor must keep detailed records of all transactions and may need to provide an accounting to the court or beneficiaries. After 15 months under Texas code, any party involved in the probate proceedings can ask the executor for a detailed accounting report. Additional requests may be made every 12 months.

Choosing an Executor for Your Estate

Selecting the right executor is a critical decision in estate planning. Here are some factors to consider:

• Trustworthiness and Integrity: The executor will have significant control over your estate, so choose someone you trust implicitly to act in the best interests of your beneficiaries.
• Financial Responsibility: Managing an estate often involves handling substantial sums of money. Select someone who is financially literate and organized.
• Availability and Willingness: Being an executor can be time-consuming. Ensure your chosen executor has the time and willingness to take on this responsibility.
• Impartiality: If family dynamics are complex, consider choosing a neutral party who can remain unbiased in potential conflicts.
• Legal and Organizational Skills: While not mandatory, basic understanding of legal and financial principles can be beneficial. At minimum, the executor should be well-organized and detail-oriented.
• Strong Communication Skills: The executor will need to interact with beneficiaries, lawyers, accountants and the probate court. Good communication skills are essential for navigating these interactions effectively.

To appoint your executor for your estate, you will need to name them in your will and discuss the role with them to ensure they are willing to take on the responsibility.

It’s typical to name an alternate executive in case your first choice is unable to serve.

What to Do if You Are Named as an Executor

If you have been named as an executor, here’s what you need to know:

• Understand Your Responsibilities: Familiarize yourself with the duties outlined above. Remember, you have a fiduciary duty to act in the best interests of the estate and its beneficiaries.
• Decide to Accept or Not: Being an executor is a significant responsibility. Consider your ability to fulfill the role before accepting. If you’re unable or unwilling, you can decline, and an alternate will be appointed,
• Seek Professional Help: Don’t hesitate to seek assistance from professionals such as attorneys, accountants, or financial advisors. Their expertise can be invaluable in navigating complex estates.

Many people do not realize it, but executors can be paid for their time in handling the estate.

“Texas allows an estate representative to receive a reasonable compensation for their work. The executor’s fee is paid from the estate funds and counts as income for tax purposes,” says the Texas State Law Library. “Section 352.002 of the Estates Code caps the fee at 5 percent of the estate’s market value, excluding cash, certain bank accounts and life insurance. The court may increase or reduce the compensation based on specific circumstances.”

Sometimes the executor’s fee is specified in the will, in which case the payment can exceed the amount allowed by the statute.

Best Practices for First-Time Executors

Being named a first-time executor for someone’s estate can be overwhelming at first, but take a deep breath and follow these best practices for success:

• Stay organized: Keep meticulous records of all estate-related activities and transactions.
• Communicate regularly: Keep beneficiaries informed about the progress of estate administration to avoid misunderstandings.
• Be patient: The probate process can be lengthy. Remain patient and diligent throughout.
• Understand your limits: Don’t hesitate to seek professional help when needed.
• Act impartially: Treat all beneficiaries fairly and avoid conflicts of interest.
• Safeguard assets: Take immediate steps to secure and protect estate assets.
• Learn about the process: Familiarize yourself with probate laws in your jurisdiction.

The role of an executor is crucial in ensuring a deceased person’s final wishes are carried out efficiently and accurately. Whether you’re choosing an executor or have been named as one, understanding the responsibilities involved is essential.

If you need assistance with estate planning, including selecting an executor or understanding your duties as an executor, B Sloan Law is here to help.

Our experienced team can guide you through the complexities of estate administration, ensuring that you make informed decisions that align with your wishes or fulfill your responsibilities as an executor. 

Contact B Sloan Law today to schedule a consultation for focused, comfortable and personalized estate planning.