Being named as the executor of someone's will is an honor, but it's also a significant responsibility. Many people don't realize what the role actually involves until they're in the middle of it -- often while grieving the loss of a loved one.
If you've been named executor of a Texas estate, here's a practical guide to what you need to do, in what order, and where the pitfalls are.
What Is an Executor?
In Texas, the executor (also called an "independent executor" if the will grants independent administration) is the person responsible for managing the estate after someone dies. Your job is to carry out the wishes expressed in the will -- collecting assets, paying debts, and distributing what's left to the beneficiaries.
Step 1: Locate the Original Will and File It with the Court
Texas law requires the original will to be filed with the county clerk in the county where the deceased person lived within four years of death. A copy is not sufficient for probate.
You'll also need to file an application to probate the will, which formally asks the court to validate the will and appoint you as executor.
Step 2: Get Appointed by the Court
Even if the will names you as executor, you don't have legal authority until the court officially appoints you. Once the will is admitted to probate and you're appointed, you'll receive Letters Testamentary -- the legal document that proves your authority to act on behalf of the estate.
With Letters Testamentary, you can:
- Access the deceased person's bank accounts
- Contact insurance companies and retirement plan administrators
- Manage and sell real property
- Deal with creditors
Step 3: Notify Creditors and Beneficiaries
As executor, you have a duty to:
- Notify all known creditors of the death and the probate proceeding
- Publish notice to unknown creditors (if required by the court)
- Notify beneficiaries named in the will of their interest in the estate
Creditors generally have a limited time to file claims against the estate. In Texas, the statute of limitations depends on the type of claim and when notice was given.
Step 4: Inventory and Appraise the Estate
Within 90 days of qualification (receiving Letters Testamentary), you must file an Inventory, Appraisement, and List of Claims with the court (unless the will waives this requirement or all beneficiaries agree to waive it). This document lists:
- All assets of the estate and their fair market value
- All debts and claims against the estate
Getting accurate appraisals -- especially for real estate, business interests, and valuable personal property -- is important both for the court and for the beneficiaries.
Step 5: Manage the Estate's Assets
While the estate is being administered, you're responsible for protecting and managing the assets. This includes:
- Keeping property insured and maintained
- Managing bank accounts and investments prudently
- Collecting debts owed to the estate
- Continuing to operate a business if the will directs it
- Filing the deceased person's final income tax return and any estate tax returns
Step 6: Pay Debts and Expenses
Before distributing assets to beneficiaries, you must pay:
- Funeral expenses
- Estate administration costs (court fees, attorney fees, appraiser fees)
- Valid creditor claims
- Federal and state taxes owed
Texas law sets a priority order for paying claims when the estate doesn't have enough assets to cover everything. Following this order is important -- paying a lower-priority creditor before a higher-priority one can make you personally liable.
Step 7: Distribute Assets to Beneficiaries
Once debts are paid and the estate is settled, you distribute the remaining assets to the beneficiaries according to the terms of the will. Get written receipts or releases from each beneficiary to protect yourself from future claims.
Step 8: Close the Estate
After all assets have been distributed and all obligations met, you can close the estate. In an independent administration (the most common type in Texas), you typically don't need court approval to close -- but keeping thorough records of every transaction is essential.
Common Mistakes Executors Make
- Acting before being appointed: You have no legal authority until the court issues Letters Testamentary
- Commingling funds: Estate money must be kept separate from your personal accounts
- Distributing assets before paying debts: Beneficiaries may need to return assets if creditor claims are unpaid
- Missing tax deadlines: The final income tax return and any estate tax return have strict deadlines
- Not keeping records: Document every transaction, decision, and communication
You Don't Have to Do It Alone
Texas law allows executors to hire attorneys, accountants, and other professionals to assist with estate administration -- and the estate pays for these services. At WG Law, we guide executors through every step of the probate process, from filing the will to distributing the final assets.