An executor collects everything the person owned, pays the valid debts and taxes out of the estate, and then distributes what is left to the people named in the will — under the supervision of a probate court. In most cases it takes somewhere between six months and a year, and it is administrative work rather than legal expertise: paperwork, deadlines, and keeping records.
The order matters more than anything else on this page. Debts and taxes come before beneficiaries. An executor who distributes the estate first and discovers a creditor afterwards has a real problem, and it is the one mistake that can reach their own money.
What are an executor’s duties, in order?
- File the will and open probate. The executor files the will with the probate court in the county where the person lived and petitions to be formally appointed. The court issues a document proving their authority — usually called letters testamentary. Banks and brokerages will ask for it before they release anything.
- Identify and value the assets. Bank and investment accounts, real estate, vehicles, business interests, personal property. Values are taken as at the date of death, which matters for tax later.
- Secure and manage them. Open an estate bank account, redirect mail, keep insurance on the house running, and never mix estate money with personal money.
- Notify creditors and pay valid debts. States set a window in which creditors must come forward, and it varies. Claims that arrive within it and hold up get paid from the estate.
- File the tax returns and pay any tax due. A final personal income tax return for the year of death, an income tax return for the estate itself if it earned money during administration, and an estate tax return in the rare cases one is required.
- Distribute what remains and close the estate. Specific gifts go to the people named; whatever is left over is the residuary estate and goes to whoever the residuary clause names. The executor then files a final accounting with the court.
Does the executor pay the debts and funeral costs themselves?
No. Debts, funeral costs and taxes are paid out of the estate, not out of the executor’s own pocket. Accepting the role does not make anyone personally liable for what the deceased owed, and if the estate cannot cover its debts it is insolvent — state law then sets the order in which creditors are paid, and some simply go unpaid.
Beneficiaries do not inherit the debts either. What they inherit is whatever survives the debts, which may be nothing.
There is one route by which an executor can end up personally on the hook, and it is worth knowing before you accept the job: distributing the estate to beneficiaries before the creditor period has closed and the taxes are settled. Do that, and a court can hold the executor responsible for what is still owed. Nobody is liable for someone else’s debts. An executor can be liable for their own mistake.
Does the estate have to pay estate tax?
Almost certainly not. Federal estate tax applies only to estates above the basic exclusion amount, which is $15 million for people who die during 2026, per the IRS inflation adjustments for 2026. A married couple can generally combine their exclusions. The overwhelming majority of estates owe no federal estate tax at all and never file the return.
State taxes are the part people miss, because the thresholds are far lower than the federal one:
- State estate tax — paid by the estate. Twelve states and the District of Columbia levy one: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont and Washington.
- State inheritance tax — paid by the person who receives the money, with rates that often depend on how closely related they were. Five states levy one: Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania.
- Maryland is the only state with both.
Which state applies usually follows where the person lived, though real estate can be taxed by the state it sits in. Check the rules for your own state rather than assuming, and get an accountant involved if the estate is anywhere near a threshold. Thresholds and rates change.
Do heirs pay capital gains tax on what they inherit?
Not on the growth that happened during the owner’s lifetime. Inherited assets generally get a new cost basis equal to their market value at the date of death, so decades of appreciation are wiped out for tax purposes. An heir who sells straight away typically owes little or nothing; an heir who holds for ten years and then sells owes capital gains on the growth since the death, not since the original purchase.
Traditional IRAs and 401(k)s work differently — that money was never taxed as income, so it does not get the same treatment and the withdrawals are taxable to whoever inherits them.
How long does being an executor take?
Six months to a year is typical, and it stretches from there. What lengthens it: real estate that has to be sold, a business to wind up, assets in more than one state, a missing beneficiary, or a will someone contests. Many states also require the creditor window to run its course before anything can be distributed, so even a simple estate has a floor.
Executors are entitled to reasonable compensation from the estate in most states, whether or not they are also a beneficiary. Family members often waive it.
Who should you name as executor?
Someone organised, still likely to be around, and able to stay civil with your family under pressure. The job is administrative — filing, chasing, record-keeping — so being good with paperwork counts for more than legal knowledge, and an executor can hire a lawyer or accountant out of estate funds when a question is beyond them.
Name a backup, because first choices decline more often than people expect. Ask the person first: an executor who finds out at the funeral is starting from behind. If the family is fractious or the estate is complex, a professional executor is worth the fee. There is more on the trade-offs in our guide to helping your executor before you die, and if you have just been appointed, what to do as a new executor covers the first steps.
Naming an executor is one decision inside a larger plan, and it is the one that determines whether the rest of it gets carried out. What end-of-life planning involves sets out the other pieces. With Myend you can name executors from your existing contacts, and the people you choose can be told what the role means before they ever have to do it.
This article is general information for readers in the United States, not legal, tax, or financial advice. Probate procedure, creditor periods, executor compensation and state death taxes all vary by state, and tax thresholds change — consult a licensed attorney or accountant in the relevant state before acting.
Last reviewed: July 2026
