Being named executor is a job, not an honor, and it comes with personal exposure if you do it badly. You are handling other people's money under court supervision, and the standard you are held to does not soften because you are grieving.
Most of the job is unglamorous. All of the liability comes from the parts people skip.
- Marshal the assets, meaning find everything, secure it, and take control of it in the estate's name
- Value what you found, with real property appraised by the probate referee and an inventory filed with the court
- Give notice to heirs, beneficiaries, and creditors, and document that you did
- Pay valid debts, expenses, and taxes in the correct priority before anyone inherits
- Account for every transaction and petition the court for approval to distribute
Note what is not on that list. Deciding who deserves what. Renegotiating the will because it is unfair. Keeping the peace among siblings. You may end up doing that last one, but it is not a duty and the court will not thank you for it.
Where personal liability starts
It starts at commingling. The moment estate money touches your personal account, every subsequent transaction is suspect and you are explaining your own bank statements to a beneficiary's attorney. Open an estate account with its own tax ID and run everything through it.
It continues at early distribution, at unpaid taxes, at an uninsured property, and at self-dealing. Buying an estate asset yourself without full disclosure and court blessing is the fastest route to a surcharge, and it does not matter that you paid what you honestly thought it was worth.
The word is surcharge
When a court finds an executor caused a loss, it can order that person to repay the estate personally. That is a surcharge. It comes out of your own money, it is not covered by anything, and it is usually accompanied by removal. Executors hear about it for the first time at the worst possible moment.
The executor is entitled to the same statutory fee the attorney gets. On a $1,000,000 estate that is $23,000. It is taxable income to you, and where you are also a beneficiary, taking it can move money into a taxed column that would otherwise have arrived untaxed as an inheritance. Run that math before you decide, and be aware the other beneficiaries will have opinions about the answer.
“I always ask a new executor how much time they have. Not because I am being polite. A person working two jobs with a toddler will not get the inventory done, the case will drag for an extra eight months, and everyone will blame each other. It is fine to decline the appointment or to ask the court to appoint someone else.”
Delia Vasquez-HartRecords to keep from day one
- Every bank statement for the estate account, unbroken, from opening to closing
- Receipts for anything you spent, including mileage to the courthouse and the storage unit padlock
- Copies of every notice you sent, with proof of mailing
- Written communications with beneficiaries, because verbal updates evaporate and email does not
Questions we get asked
Can I be removed as executor?
Yes, on petition by an interested person, for mismanagement, conflict of interest, or failure to perform. Removal petitions get filed more often than people assume.
Am I liable for the decedent's debts personally?
No, not simply by serving. You become exposed by mishandling estate assets, not by the existence of the debt.
Do I need a bond?
Often the will waives it. Without a waiver, or where the court requires it anyway, the estate pays a premium based on the value administered.
Can two people serve together?
Yes, co-executors are allowed and both must generally act together. In a family where two siblings do not agree, that arrangement guarantees a stalemate. I usually advise against it.
Before you file anything, open a dedicated estate bank account and start a single spreadsheet of receipts and disbursements. If you would like us to review the first ninety days of your handling, bring the account statements to a consultation.