Executor
Also called Personal representative, Executrix
The person or institution named in a will, and approved by the probate court, to settle a deceased person’s estate.
What it means
An executor gathers the deceased person’s assets, notifies creditors, pays valid debts, final bills and taxes, and then distributes what remains according to the will. Many states use the broader term personal representative. If there is no will, or the named executor cannot serve, the court appoints someone, often called an administrator.
The role is a fiduciary duty: the executor must act in the best interest of the estate and its beneficiaries, keep records and avoid mixing estate money with their own. Duties often include opening an estate bank account, filing the final individual income tax return and any estate tax return, and reporting to the court. Executors may be paid a fee set by the will or state law, and can usually hire an attorney or accountant at the estate’s expense.
Example
Suppose an executor finds a $300,000 estate with $20,000 in final medical bills and credit card debt. After paying those debts and $10,000 in court and legal costs from estate funds, they divide the remaining $270,000 among the three named heirs, $90,000 each.
How it’s used
- Choosing who will settle an estate when writing a will
- Understanding the duties after being named executor
- Knowing who to contact about a deceased person’s accounts
Good to know
- Executors are generally not personally liable for the deceased’s debts, but paying heirs before valid creditors can create liability, so the order of steps matters. Rules vary by state.
Related terms
Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.