We recently came across an insightful article that we believe is highly valuable for our clients. With the author's permission, we are sharing it with you today. The article outlines key considerations before agreeing to serve as an executor or a successor trustee and highlights important factors to weigh when choosing an executor for your own estate.
Now, depending upon whether you have a will or a trust, you may have also heard the term successor trustee. What is the difference between these two terms "Executor" and "Successor Trustee?"
Executor
· Role: An executor is named in a will to manage the estate of someone who has died. The role is temporary, ending once the estate is settled.
· Duties: They handle tasks like gathering assets, paying debts and taxes, and distributing assets according to the will
· Court oversight: They usually work under probate court supervision, which ensures everything is done properly
Successor Trustee
- Role: A successor trustee is named in a living trust to take over management of the trust when the original trustee (often the trust’s creator) can no longer serve due to death or incapacity. Role could be ongoing, depending upon the trust terms
- Duties: They manage the trust assets, pay bills, and distribute assets to the beneficiaries as outlined in the trust, usually without court involvement
- Court Oversight: Typically, no probate is needed, so it’s a more private and streamlined process
Key Difference
- Executor: For wills, under court (probate) supervision
- Successor Trustee: For trusts, usually without court involvement
The same person can serve as both "Executor" and "Successor Trustee," but they're legally distinct roles with different responsibilities and authorities.
In recent years, we’ve observed several instances where families have encountered challenges in settling an estate due to issues with the chosen executor. For example, it’s common for families to appoint one or more of their children as executors. However, having multiple executors can lead to conflicts when they disagree on key decisions. We’ve also seen cases where none of the children are well-suited for the role, either because they lack the necessary skills or are simply not interested.
At some point, you may be asked to serve as the executor of someone's estate-likely a family member or maybe a close friend. If so, congratulations: That person clearly thinks highly of you and your ability to honestly oversee and coordinate one of life's key moments.
However, you might not want to say yes immediately. Being an executor is a task that comes with some serious responsibilities. The job involves a lot more than distributing money and property to the deceased's heirs. Additionally, you could face some risks if you mismanage your duties.
A better idea, in our opinion, is to learn what the job likely entails so you can make a clear-headed decision about whether to accept the role.
In this blog, we will discuss:
- The Multiple Responsibilities of an Executor
- Find and file the will
- Set up an estate bank account
- Identify the assets and liabilities
- Make notifications about the death
- Deal with active accounts and benefits
- Pay debts
- Handle the taxes
- Distribute bequests to the beneficiaries
- Be Aware of Potential Risks - Legal and Otherwise
- Person liability exposure
- Time commitments and constraints
- Angry heirs
- Take Your Time
- Consider a Professional Fiduciary
- Key Takeaways
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The Multiple Responsibilities of an Executor
The list of duties you'll be responsible for as an Executor can vary, sometimes significantly, on a state-by-state basis. In general, however, there are numerous important action steps that most executors are expected to implement or help move forward. Some of the more common ones are:
1. Find and file the will
When you file to the probate court, you are asking the court to confirm you as the personal representative of the estate. If you're confirmed, the judge will grant you authorization to act on behalf of the estate through certain documents. You'll provide these documents to financial firms, insurance companies and other institutions you deal with during the process.
2. Set up an estate bank account
Expenses of the deceased should be paid using money from that person's estate. You will set up an estate bank account, to which the deceased's bank accounts, and other cash assets will be transferred. This account is also where money paid to settle outstanding debts owed to the deceased will go.
3. Identify the assets and liabilities
One of your biggest roles is to identify and find all the assets of the deceased person. This can literally be a hunt that requires digging through old papers, storage bins, safe deposit boxes and so on-sometimes in multiple locations. You might also need to interview family members to learn about various assets and accounts that exist. The fact is not all assets are always described in a will. This part of the process might also involve getting physical items (jewelry, artwork) from family members or others who are currently in possession of them.
One of the best ways to identify assets and liabilities as an executor is to have the deceased person's mail forwarded to you. That way, you'll receive documents such as statements for investment accounts, bank accounts and the like. Also reach out to the person's financial advisor, CPA and attorney (if relevant) to gather this information.
Note: Some assets require probate, while other assets are non-probate. Probate assets are any assets that pass by the person's will. Non-probate assets are directly transferred to heirs, circumventing the need to go through the court process. Examples of non-probate assets include:
- Joint and survivorship property
- Life insurance benefits with beneficiaries on file
- Qualified retirement benefits and individual retirement accounts with beneficiaries on file
- Revocable and irrevocable trusts
A key part of your job here is to protect and maintain the property. That might mean securing valuable art, ensuring that insurance policies don't lapse or selling highly volatile equity positions.
You'll also search for creditors to which the deceased owes money, as those bills will be paid from the estate and must be paid before any assets pass to the heirs.
4. Make notifications about the death
You'll need to let the beneficiaries named in the will and other potential heirs know about the death (as set out by state law). Inform the creditors, too. You also may need to place an ad in a newspaper to inform unknown potential heirs and creditors about the existence of the estate (this varies by state).
5. Deal with active accounts and benefits
Contact the deceased's cable company, credit card providers, subscription services and other providers and close or cancel the accounts. If the deceased was receiving Social Security benefits, you'll want to alert the Social Security Administration. And if the deceased was receiving defined benefit pension payments, the checks will need to go to the designated beneficiary (or will need to cease, depending on the benefit chosen at the start).
6. Pay debts
You'll pay the deceased's debts from the estate's funds. You are not personally liable. And once notified, creditors can make claims to the estate to get paid. As the executor, you determine the validity of those claims, paying the legitimate ones, and declining those that appear to be illegitimate (if you reject a claim, be aware that you may end up in a court battle).
Other expenses to be paid might include funeral costs, probate and administrative fees, and property taxes.
7. Handle the taxes
You're also responsible for having the assets valued for tax purposes and to determine whether estate taxes are owed. You'll prepare and file a federal and/or state estate tax return, and perhaps an estate income tax return, as well as a personal income tax return covering the final year of the deceased's life. Note: Executors commonly work with attorneys, who help prepare and file probate documents as well as tax returns.
8. Distribute bequests to the beneficiaries
This task comes after the bills and creditors have been paid, and after the beneficiaries sign a release saying that you've done your job as executor satisfactorily. At that point, you will see that the beneficiaries get what they're supposed to according to the will. It's possible that you'll be involved in helping fund trusts that are required by the will.
Note: The process is time-consuming and could take up a significant chunk of your life (depending on the complexity of the estate).
For your efforts, you are (in most cases) entitled to receive a fee. The amount depends on a range of factors, including, but not limited to, instructions in the will and the state in which the person died. You can also choose not to be paid.
Be Aware of Potential Risks - Legal and Otherwise
Another important consideration: Being an Executor can expose you to lawsuits and put you into the middle of family fights.
For example, if you are the executor of an estate, or if you're thinking about making a family member the executor of your estate, be aware that there are many legal and fiduciary responsibilities that go with the position. A complication can be as commonplace as accurately filling out the appropriate forms. Estate administration requires familiarity with the process, applicable statutes and tax forms. Even if you're extremely financially savvy, you may not be at all familiar with the elements of what it takes to be an effective executor.
Some of the key risks or hurdles you could encounter include the following.
Personal liability exposure
You must pay creditors and any tax bills before distributing inheritances to heirs or other beneficiaries. Flip the order, and you can be held personally liable for payments owed. So be crystal clear with beneficiaries about the steps you must take before they get their assets. And generally, all beneficiaries should receive distributions at the same time in a pro rata fashion.
Family members named as executors, for example, may not have the knowledge to ensure the process goes smoothly. The consequences can include exposing the estate to litigation as well as increasing the estate's tax liability.
Executors need to protect the value of the estate, as well as themselves, legally. An executor must, for instance, ensure the financial health of the estate. Say a stock portfolio, houses and artwork are part of the estate. It is important to protect the value of these assets before they are transferred to heirs. Failing to do so adequately can lead to the executor breaching their fiduciary responsibilities-and potentially create personal liability exposure.
Time commitments and constraints
Depending on the estate, the condition of the paperwork and how close you are geographically to the deceased, you may end up spending an onerous amount of time and effort tracking down documents, closing accounts, claiming benefits, dealing with tax forms and the like. Keep in mind that you may also need to meet strict deadlines on certain tasks, such as filing tax returns and filing the will. A survey by EstateExec, an online tool for executors, found that the typical estate takes about 16 months to settle and requires 570 hours of effort. Estates worth $5 million or more typically take 42 months to settle and 1,167 hours to complete. You won't be involved in all that work, of course, but you are expected to coordinate the efforts of the experts involved.
Angry heirs
As executor, you'll need to secure the estate's assets. That could mean, for example, that someone in the family will need to wait to get their hands on money or other items they want. This can create tension between you and that person. A good approach is to gather up and safeguard the deceased's assets as quickly as possible. Explain to heirs that legally you need to protect these assets for the time being. What's more, if someone removes items from their parent's home that are bequeathed to another person, the heir whose items were taken could potentially sue you.
One of the most effective ways to mitigate risks and confrontations is to keep extremely accurate records of the actions you take as executor. A detailed, itemized list of expenses you incurred in your role and the distributions you made during the process will help you demonstrate that you handled your duties accurately and responsibly. This not only helps you stay within the law but also can help you avoid being questioned by heirs and other beneficiaries about what you've done. You might even consider taking detailed notes of all conversations with lawyers, bankers, customer service agents and so on-in case you are confronted about any of your interactions.
Take Your Time
Asking to take some time to consider someone's request to be an executor may create some discomfort initially particularly if it's a family member or close friend who is asking. They might wonder how you could possibly consider refusing to be involved. However, you'll likely all be better off down the line if you take time to weigh the pros and cons and make the right decision for you.
Suggestion: Think carefully about what it takes to be an effective executor-and whether you possess the time, knowledge and temperament to do the job-before simply agreeing to take on this important role.
Consider a Professional Fiduciary
If there is not a clear choice to serve as the fiduciary of an estate, another option is to consider a Professional Fiduciary. A Professional Fiduciary is a trained expert who manages estate matters as part of their profession. They can offer an independent perspective that’s separate from family dynamics and typically have the experience to ensure a smoother estate settlement. While there is a fee for their services, working with a Professional Fiduciary can ultimately save time and reduce complications.
Key Takeaways
Remember these key takeaways when considering if you should say yes to being an Executor.
- Distributing assets and paying taxes and debts are typically just a few of the duties of an executor
- Executors could face potential risks - legal and otherwise
- Weigh the pros and cons of serving as executor to help you make a more clearheaded decision
- If there is not a clear choice for an executor in the family or with friends, consider using a Professional Fiduciary as the executor for the estate
We are not attorneys, and we do not provide legal advice. To help our clients make a smooth transfer of assets to their heirs, we work with our clients and their estate attorneys as a part of their comprehensive financial planning process.
We are here to help you make smart decisions to align your money with your goals so you can Enjoy the Journey.
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Our Financial Journey Partners office is based in San Jose, California. We have clients that live in many states across the country. If you have questions about your investments or financial situation, call us to schedule time to talk about your specific situation.
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ACKNOWLEDGMENT: This article was published by the VFO Inner Circle, a global financial concierge group working with affluent individuals and families and is distributed with its permission. Copyright 2025 by AES Nation, LLC.
Disclaimer. This is general advice and information that may vary based on the state in which the probate is occurring. Talk to an estate administration professional for specific guidance to determine what is accurate and relevant for your situation.