Executor Duties: Navigating the First 90 Days of an Estate

When someone names you as the executor of their will, they are placing enormous trust in you to settle their final affairs. Serving as an executor is both an honor and a significant responsibility. Executors are responsible for safeguarding assets, communicating with beneficiaries, paying debts and taxes, and ultimately distributing the estate. While the duties of an executor can span months or even years, the first 90 days are crucial. Early actions set the tone for the administration of the estate, help prevent legal problems, and reassure loved ones that the estate is being handled properly.

This comprehensive guide explains the duties an executor should focus on in the first three months following the death of the person whose will they are executing. We’ll walk through step‑by‑step tasks, offer illustrative examples, and answer common questions. By understanding the process, you can approach your role with confidence and avoid costly mistakes.

Accepting the Role and Understanding the Will

The executor’s responsibilities begin as soon as the testator (the person who made the will) passes away. The first step is to confirm that you are indeed the named executor and understand the terms of the will.

1. Locate the Will and Important Documents

You should locate the original signed will and any codicils (amendments) as soon as possible. The will might be stored in the deceased’s safe, file cabinet, safe‑deposit box, or with their attorney. Also gather other critical documents:

• Death certificate: You’ll need several certified copies to provide to banks, insurance companies, and government agencies.

• Trust documents: If the deceased created a trust, you’ll need the trust instrument and any amendments.

• Financial records: Bank statements, investment account statements, retirement account information, property deeds, mortgage statements, and tax returns.

• Personal records: Birth and marriage certificates, Social Security numbers, life insurance policies, and any pre‑arranged funeral or burial instructions.

2. Read and Understand the Will

Carefully read the will to understand the decedent’s wishes. The will may include:

• Specific gifts (e.g., “I give my diamond ring to my granddaughter”).

• Residual gifts (e.g., “I leave the rest of my estate to my son and daughter in equal shares”).

• Appointment of guardians for minor children.

• Instructions about funeral arrangements or charitable donations.

If the will references a trust or if you have questions, consult with an estate attorney. Understanding the intent of the will reduces confusion later on.

3. Decide Whether to Accept the Role

Being an executor is optional. If you don’t feel you can serve (because you live far away, your work schedule is demanding, or you’re concerned about family conflicts), you can decline the appointment. In that case, the next named alternate executor can serve, or the court can appoint someone.

Once you accept, you take on fiduciary duties to act in the best interests of the estate and beneficiaries. It’s wise to document your acceptance with the court when you file the will for probate.

Opening the Estate and Securing Assets

The next stage involves petitioning the probate court to open the estate and taking steps to protect estate property.

4. File the Will and Petition for Probate

You (or your attorney) will file the will with the probate court in the county where the deceased resided. Along with the will, you’ll submit a petition for probate, asking the court to formally appoint you as the executor. The court may require you to sign an oath and, in some cases, post a bond to protect the estate.

Once the court issues letters testamentary (also called letters of administration or letters probate), you’ll have legal authority to act on behalf of the estate.

5. Secure the Estate’s Assets

As soon as you have authority, secure all estate property to prevent loss, theft, or damage.

• Real estate: Change locks if necessary, verify insurance coverage is up to date, and make sure utility payments continue so the property is maintained. If the home is vacant, consider using timers on lights and notifying neighbors.

• Vehicles: Remove vehicles to a safe location, ensure they’re insured, and store keys securely.

• Personal property: Inventory and secure valuable items such as jewelry, art, collectibles, firearms, and digital assets (e.g., cryptocurrency wallets).

• Financial accounts: Notify banks and financial institutions of the death. Freeze or close individual accounts, open an estate account, and transfer funds from individual accounts into the estate account once you’re authorized.

Example: Protecting Aunt Joan’s Home

Aunt Joan lived alone and passed away during the winter. Her nephew, Mark, was named executor. Mark immediately filed Joan’s will for probate, received letters testamentary, and ensured her homeowner’s insurance remained in force. He changed the locks to prevent unauthorized entry, set the thermostat to keep pipes from freezing, hired someone to shovel snow, and notified neighbors to keep an eye on the property. These steps prevented potential damage and gave Mark time to inventory household contents.

Notifying Beneficiaries, Heirs, and Creditors

6. Notify Beneficiaries and Heirs

Most states require that beneficiaries named in the will and the decedent’s heirs at law (people who would inherit if there were no will) be notified that the probate estate has been opened. Send a formal notice with the probate case number and your contact information. This notification starts the clock on time limits for contesting the will.

7. Notify Government Agencies and Other Institutions

You’ll also need to notify various institutions and agencies of the death:

• Social Security Administration: Report the death so benefit payments stop and survivors’ benefits can begin.

• Veterans Administration: If the decedent was a veteran, surviving spouses or dependents may be entitled to benefits.

• Life insurance companies: File claims for any life insurance policies. Provide death certificates and claim forms.

• Employers and unions: Report the death to terminate benefits and determine if any final pay or pension benefits are due.

8. Publish Creditor Notices

Probate laws often require you to publish a notice in a local newspaper inviting creditors to present claims against the estate. Creditors have a limited time (often three to six months) to file claims. This process provides finality; claims filed after the deadline can be barred.

Inventory and Manage Estate Assets

9. Create a Complete Inventory

Your next major task is to identify and value all estate assets. The more accurate your inventory, the smoother the estate administration.

• Real property: Get appraisals for real estate. Note mortgages and property taxes.

• Personal property: List major household items, vehicles, jewelry, art, collections, and digital assets. Specialized appraisals may be necessary for high‑value items.

• Financial assets: Obtain balances and statements for checking and savings accounts, CDs, brokerage accounts, mutual funds, and retirement accounts.

• Business interests: If the decedent owned a business or had partnerships, gather documentation on ownership interests, corporate records, and buy‑sell agreements.

• Debts and liabilities: List credit cards, loans, medical bills, and other debts. Include funeral expenses and final utility bills.

10. Open an Estate Bank Account

Once you have letters testamentary, you can open a bank account in the name of the estate (e.g., “Estate of James Doe, Deceased”). This account will be used to deposit incoming funds (like final paycheck, tax refunds, dividends, or proceeds from liquidated assets) and to pay estate debts and expenses.

Keep a detailed ledger of all income and expenses. Do not combine estate funds with personal funds. This segregation simplifies final accounting and protects you from allegations of mismanagement.

11. Manage Investment Assets and Collect Income

If the decedent owned stocks, bonds, or mutual funds, you may need to decide whether to liquidate these assets or maintain them during the probate process. Consult a financial advisor or attorney to ensure you’re acting prudently. You should also collect any dividends, interest, rental income, or business revenue and deposit these funds into the estate account.

Example: Handling Edward’s Investments

Edward passed away owning a diversified stock portfolio. His daughter, Carla, served as executor. With advice from Edward’s financial advisor, Carla maintained the portfolio rather than liquidating it immediately because the market was down. She monitored the investments, collected dividends, and eventually sold some positions to generate cash for distribution when market conditions improved. Documenting the advice she received helped show that she acted prudently and in the estate’s best interests.

Paying Debts, Expenses, and Taxes

12. Review and Pay Valid Debts

Once creditors submit claims, review each claim for validity. Disputed claims may require negotiation or court approval. Pay valid debts from the estate account. Common estate expenses include:

• Funeral and burial expenses.

• Medical bills not covered by insurance.

• Utilities and maintenance costs for estate property.

• Loans and credit card balances.

If the estate is insolvent (meaning debts exceed assets), you may need court guidance to prioritize claims.

13. File Final Tax Returns

An executor is responsible for filing:

• Final individual income tax return (Form 1040) covering January 1 through the date of death.

• Estate income tax return (Form 1041) if the estate generates more than a specified amount of income during administration.

• Estate or inheritance tax returns if the estate is large enough to trigger federal or state estate taxes.

Tax laws are complex; consult a tax professional. Missing deadlines or underpaying taxes can result in personal liability for the executor.

14. Executor Compensation and Expenses

Executors are entitled to reasonable compensation for their services. Fees may be set by state law or the will itself and are typically based on a percentage of the estate or a schedule. Keep records of hours spent and tasks performed. You can also reimburse yourself from the estate for out‑of‑pocket expenses such as postage, supplies, and travel associated with administering the estate.

Making Distributions and Closing the Estate

15. Intermediate Distributions

If the estate has sufficient assets and you’ve satisfied early debts and expenses, you may make partial distributions to beneficiaries. Obtain court approval if required. You should hold back enough funds to cover future taxes, claims, and closing costs.

16. Final Accounting

Before making final distributions, prepare an accounting that summarizes:

• Assets at the time of death and their values.

• Income received by the estate.

• Expenses and debts paid.

• Remaining assets for distribution.

Provide the accounting to beneficiaries and the court. Resolve any objections before distributing the remainder of the estate.

17. Distribute Remaining Assets

Follow the will’s instructions for distributing the final assets. Obtain receipts or signed releases from beneficiaries acknowledging they received their shares. This protects you from future claims.

18. Close the Estate

Once distributions are complete, file a petition to close the estate with the court. After the court approves, your duties as executor end.

Example: Completing Michael’s Estate

Michael, a widower with two children, died leaving a modest estate. His brother, Alan, served as executor. After paying off medical bills and credit card debt and selling Michael’s vehicle, Alan prepared an accounting showing the remaining assets—mostly cash and a savings bond. He made equal final distributions to Michael’s children, submitted receipts and the accounting to the court, and received an order closing the estate. Alan’s careful record‑keeping ensured the process was smooth and transparent.

Common Mistakes and How to Avoid Them

• Procrastinating: Delays in filing the will or notifying creditors can cause penalties or disputes. Start the process promptly.

• Commingling funds: Keep personal funds separate from estate funds. Use an estate account for all transactions.

• Poor communication: Keep beneficiaries informed about the process to avoid misunderstandings and potential challenges.

• Ignoring tax obligations: Missing tax deadlines can result in personal liability. Enlist help from a tax professional if needed.

• Misunderstanding fiduciary duties: As executor, you must act in the best interests of the estate and beneficiaries. Keep detailed records, seek professional advice when necessary, and avoid conflicts of interest.

Frequently Asked Questions

Do I need a lawyer to serve as executor? It depends on the estate’s complexity. Simple estates may not require professional help, but you may still benefit from a consultation to understand your duties. Large or complex estates, estates with significant debts, or estates with contentious family dynamics generally require legal guidance.

Can I be held personally liable for mistakes? Yes. Executors have fiduciary duties. If you mishandle estate assets or fail to pay taxes, you could be held personally responsible. Taking reasonable steps—keeping records, seeking professional advice—reduces this risk.

How long does probate take? The timeline varies. Simple estates can close within six months, while complex estates or contested wills can take a year or more. Delays often relate to property sales, tax issues, or litigation.

What if a beneficiary disagrees with my decisions? Beneficiaries can challenge your actions in court. Avoid problems by communicating openly, providing accountings, and obtaining court approval when required. Professional advice also helps support your decisions.

Conclusion

Serving as an executor is a serious responsibility. The first 90 days are packed with tasks—locating the will, securing assets, notifying heirs and creditors, inventorying property, opening an estate bank account, managing investments, paying debts and taxes, and preparing for distributions. By understanding your duties and following a structured process, you can honor the decedent’s wishes, protect the estate’s assets, and complete probate efficiently. If you feel overwhelmed, don’t hesitate to consult with attorneys, accountants, or financial advisors. With the right guidance and careful attention to detail, you can administer the estate successfully.