Executor

What Is an Executor?

An executor is the person or organization appointed to carry out the instructions in a deceased person's will. The executor takes control of the estate, which is the collection of property the person owned at death, and works through the process known as probate until the estate is fully settled. Executors can be a relative, a friend, or a professional such as a bank or trust company. The person who made the will usually names the executor in advance, and a court often confirms the appointment.

What an Executor Does

Although the work varies by case, an executor's main tasks usually include:

• Locating and securing the deceased person's assets and important documents
• Creating an inventory of property and its value at the time of death
• Paying valid debts, funeral costs, and final taxes
• Filing required tax returns, including any estate tax owed
• Distributing the remaining assets to the beneficiary or beneficiaries named in the will

An executor owes a fiduciary duty to the beneficiaries, meaning they must act honestly, carefully, and in the estate's best interest rather than their own.

When No Executor Is Named

If a person dies without a valid will, the situation is called intestacy. In that case, a court generally appoints an administrator to perform similar duties, following the rules set by the jurisdiction. The role is comparable to an executor's, but the person is chosen by the court rather than by the deceased.

Why It Matters

Executors matter to investors because a stock, bond, or brokerage account held by someone who has died usually cannot be sold or transferred until an executor or administrator has legal authority to act. Understanding who holds that authority helps explain why estate settlements can take months.