You've been named executor. Now what?
First, we're sorry you're going through this. Being named executor can feel like a lot, especially when you're grieving. From locating the will and protecting property to navigating probate, insurance and the final paperwork, here's your step-by-step Texas guide.
One thing at a time.
Here's where to begin.
Being named executor is an important responsibility. You may need to manage property, communicate with beneficiaries, handle outstanding bills and navigate the probate court, all while dealing with a loss.
You don't have to figure it all out at once. This guide explains the usual steps in a Texas estate administration and when professional guidance can help.
First, an important distinction.
Being named executor in a will is not the same as being appointed by a court. Before taking control of estate assets or making distributions, find out whether probate is necessary and what legal authority you need.
Start with what matters most.
Your first priorities are immediate family needs, funeral arrangements and keeping important property and documents safe. You don't need to settle the entire estate this week.
Certified copies may be needed by banks, insurance companies, retirement plans and other organizations. Ask the funeral director how to obtain them.
Check known document storage locations and contact the attorney who prepared the estate plan, if there was one. Keep the original document safe.
Arrange for basic property protection, care for pets and prevent urgent damage. Avoid disposing of belongings or making ownership decisions prematurely.
Keep documents, contact details, receipts, account statements and notes from important conversations together.
What about funeral expenses?
Keep detailed receipts and ask an estate attorney how reasonable funeral expenses may be handled by the estate. Don't assume every expense will be reimbursed or that you must personally pay the deceased person's outstanding debts.
The will names you. The court appoints you.
If a formal estate administration is needed, you'll generally apply to the appropriate Texas probate court. An estate attorney can help determine which procedure fits the estate and guide you through filing.
Begin the probate process.
The application usually identifies the deceased person, the will, relevant family information and the person seeking appointment.
Confirm the appointment.
The court reviews the application and required proof. If approved, the named executor may be appointed, subject to legal qualifications.
Complete the required steps.
The appointed executor must satisfy applicable requirements, such as taking an oath and providing a bond if one is required.
Your proof of authority.
Once issued, these court documents help establish your authority when dealing with banks, title companies and others.
Is there a deadline to probate the will?
Texas generally has a four-year period for admitting a will to probate, subject to important exceptions. Don't wait until the deadline approaches to seek advice.
TEXAS STATE LAW LIBRARY: PROBATE ↗Some estates qualify for a different procedure that doesn't involve appointing an executor. An attorney can explain whether a simplified approach is available.
You're appointed.
Now get organized.
Once you've received the necessary authority, your role generally involves identifying estate property, protecting assets, notifying the appropriate people and maintaining accurate records.
Secure and protect estate property.
Identify real estate, vehicles, valuables, financial accounts and other property belonging to the estate. Arrange necessary maintenance and make sure appropriate insurance remains in place.
Keep estate finances separate.
An estate bank account may be appropriate for receiving estate funds and paying authorized expenses. Avoid mixing estate money with personal funds. Keep records of every transaction.
Understand the notice requirements.
Texas law requires certain notices to beneficiaries and creditors. For example, a general creditor notice is ordinarily published within one month after letters are issued. Other notices have different deadlines.
Prepare an inventory.
Texas generally requires an inventory, appraisement and list of claims before the 91st day after an executor qualifies, unless an extension or a permitted alternative applies. Work with your attorney on the details.
Keep beneficiaries informed.
Communicate clearly about the process, expected next steps and significant developments. Avoid promising distributions before debts, taxes and other obligations have been addressed.
Make a list. Then make a plan.
One of the biggest jobs is figuring out what the deceased person owned, what they owed and which assets actually belong to the probate estate.
Homes and other property.
Locate deeds, mortgage statements, tax records, insurance policies and any existing leases. Maintain the property while ownership is being resolved.
Banking and investments.
Identify checking, savings, brokerage and retirement accounts. Check whether an account has a surviving joint owner or designated beneficiary.
Cars, trucks and more.
Locate titles, registrations, loan information and insurance documents. Ask about the appropriate transfer process before selling or retitling a vehicle.
What happens to the business?
Review ownership agreements, business records, insurance and any succession plan. Business interests may require specialized advice.
Not everything passes through probate.
Certain life insurance proceeds, retirement accounts, payable-on-death accounts and other assets may pass directly to designated beneficiaries. Review the actual documents rather than assuming the will controls every asset.
Before anything gets distributed.
An executor may need to identify valid debts, pay authorized estate expenses and address applicable tax obligations before distributing property.
Review statements, loan documents, medical bills, tax notices and other financial records.
Texas has specific rules for creditor notices, claim deadlines and payment priorities. Consult the estate's attorney before paying disputed claims.
The deceased person's final income tax return, estate income tax returns and other filings may apply. An accountant can help determine what's required.
Don't distribute all available funds while bills, taxes or administration expenses remain unresolved.
Do you inherit the deceased person's debts?
Generally, an executor doesn't become personally responsible for the deceased person's debts merely by serving in the role. However, mishandling estate assets or making improper distributions can create personal liability.
What happens to the house?
Real estate can be one of the most complicated parts of an estate, especially when family members have different expectations or the property has a mortgage.
Protect the property.
Arrange appropriate maintenance, monitor for leaks or damage and review the property's insurance arrangements.
Who actually owns it?
Examine deeds, survivorship agreements and any transfer-on-death deed. Texas community property rules may also matter.
Stay on top of payments.
Contact the loan servicer through the appropriate legal process and discuss the estate's options with your attorney.
Understand your authority.
The will, court orders, estate administration type and applicable law affect whether and how the property can be sold.
Call the insurance company before a home sits vacant.
Vacancy and changes in occupancy can affect property insurance. Tell the insurer about the death and ask what coverage or policy changes may be needed while the estate is being administered.
Finishing the job, carefully.
Once debts, taxes and administration expenses have been addressed, the estate may be ready for final distributions. The exact process depends on the type of administration.
Review the will, applicable court orders and any other relevant legal requirements with your attorney.
Arrange deeds, vehicle titles, financial transfers and other documentation as appropriate.
Maintain clear records of what was distributed, to whom and when. Obtain receipts where appropriate.
Determine whether a final accounting, court approval, closing affidavit or other formal steps are needed.
How long does all this take?
There's no single timeline. An uncomplicated independent administration may move differently from an estate involving disputes, real estate, tax issues or court supervision. Your attorney can help establish realistic expectations.
Oh yeah.
Insurance.
Insurance is an important part of settling an estate, whether you're locating existing policies, filing a claim or protecting property during probate.
Life insurance
Locate existing policies and contact the insurers. Benefits generally go to designated beneficiaries rather than through probate, unless the estate is the beneficiary or another exception applies.
Homeowners insurance
Notify the insurer of the death and explain whether the home is occupied, vacant, being rented or prepared for sale. Ask how to maintain appropriate coverage.
Auto insurance
Review policies covering estate vehicles. Ask about permitted drivers, coverage during probate and what happens when a vehicle is sold or transferred.
Rental or business insurance
If the estate owns rental properties or a business, review existing policies and any changes needed to maintain coverage during administration.
What about your own coverage?
Inheriting a home, taking over a business or receiving other significant assets may change your personal insurance needs. Review your protection before making changes.
Hey Charley can help review available insurance options for inherited property and changing coverage needs. Your estate attorney should guide decisions about legal authority, ownership and distribution.
A lot to handle.
One less thing to worry about.
Managing an inherited home or reviewing insurance after a major life change? Let Charley take a look at your coverage options.
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