Serving as an executor in Texas is a serious responsibility. This guide explains how a person becomes an executor, the duties involved, and how to avoid mistakes. You’ll also learn about estate administration, creditor notifications, and when legal help is needed.
What is an Executor?
An executor is someone named in a will to manage a deceased person’s estate. The executor must be approved by a court before acting. They are responsible for carrying out the wishes in the will and protecting the estate.
How Does a Person Become an Executor?
An executor, or personal representative, is named in a will and must be approved by a court. To start, they file the will and death certificate with the probate court. Usually, the will must be probated within four years of death.
A hearing is scheduled to determine the validity of the will and to assess the executor’s fitness to serve. The person (entity) named in a will is considered the most qualified to serve as executor, but may be disqualified for any of the following reasons:
- Incapacity (including minors)
- Felony conviction
- Non-resident of the probate state
- Corporation not authorized to act as a fiduciary
- The court finds them unsuitable
If everything is approved, the executor takes an oath and gets Letters Testamentary to manage the estate. An executor may need to post a bond if the will or court requires extra protection against mismanagement or conflicts. Executors can get reasonable pay, up to 5% of the estate’s value, and can recover costs for securing estate property.
The court reviews the executor’s qualifications and can disqualify anyone unfit, ensuring the estate is handled properly.
Muniment of Title
Probate of a will as Muniment of Title is a simpler process for estates without debt, except debt tied to real estate. It is often used when real estate is the main or only estate asset. For qualifying estates, no administration is needed, and an executor does not have to be appointed, even if named in the will.
What an Executor is Required to Do in Texas
The duties of executors include gathering and protecting estate property, collecting and settling debts, and distributing property in accordance with a will.
A testator can limit the court’s role by saying the estate should be administered independently. Independence lets the executor make decisions without court approval and settle the estate faster. Independent administration is also allowed if all beneficiaries agree.
Estate Asset Inventory
After getting authority, the executor usually has 90 days to list all estate property, including its value, and file it with the court.
The inventory will include all estate assets, even those that do not need to be transferred in probate because they are non-probate assets. Non-probate assets pass title to the asset upon death and are not subject to the terms of a will.
Notification of Creditors
Within 30 days of appointment, the executor must publish a notice to creditors in a local newspaper asking them to present any unpaid claims. Within 60 days, the executor must send certified or registered letters to all known secured creditors, such as those with real estate.
Notification of Beneficiaries
The executor must tell all known or found beneficiaries in the will within 60 days of starting probate and give them information about the probate and the will. Within 90 days, the executor must file a court form showing who was told and who was not, and why.
Establish an Estate Bank Account
Opening a separate bank account for the estate is not required by law, but it is an ethical duty. It helps the executor keep estate and personal money separate and creates a clear record of transactions for the court and beneficiaries.
Payment of Claims
Creditors of an estate may present claims to the executor or the probate court at any time while the probate remains open. The executor then has 30 days to determine whether to allow or reject a creditor’s claim. A claim that is not timely allowed or rejected by the executor is considered rejected.
The law prioritizes the payment of claims. Top priority is given to funeral expenses ($15,000) and the expenses of the last illness ($15,000), followed by estate administration expenses. A claimant whose claim was rejected has 90 days following the rejection to file suit on the claim with the probate court.
Distribute Residual Assets
The executor gives out the remaining estate assets after all bills are paid and the court approves the final accounting, if needed. For estates run independently, the executor should have a lawyer check that everything is done correctly before giving out assets.
The duties of executors in Texas include gathering and protecting estate property, paying debts, and distributing assets according to the will.
When an Executor Might Get into Trouble
Serving as an executor is an official responsibility. It is essential to keep this in mind when an executor is a family member and beneficiary, alongside other family member beneficiaries.
The law expects executors to do their job thoroughly and do it well. An executor can be removed and held liable for any resulting harm if they:
- Are careless with deadlines
- Perform their duties with insufficient diligence
- Fail to promote the best interests of the estate or beneficiaries
An executor must make a reasonable effort to collect estate property and take care of it like they would their own.
Executors have a duty to the estate and its beneficiaries. They must put the estate and beneficiaries first, even over their own interests, which can be tricky in family situations. Executors must also act fairly and honestly.
Any person interested in the estate can file a lawsuit to challenge an executor’s actions. An executor can be removed from service on the probate court’s initiative or in response to a motion filed by an interested party. If an executor is removed, the court will appoint a successor administrator. The estate often pays for the removal proceedings.
Independent Executors Beware
The probate court closely monitors dependent executors, thereby reducing their opportunity to go astray. Independent executors, on the other hand, have very little supervision and don’t expect to be accountable for every decision.
After a probate has been open for 15 months, any interested person can ask an independent executor for an accounting. This report shows the estate property and what the executor has done. Further requests can be made every 12 months.
Why Executors Should Seek Legal Advice
Serving as an executor can be complicated. Most executors have no training and need legal advice to handle the estate correctly and avoid mistakes. Our skilled Weatherford probate attorneys can spot problems, fix issues, prevent costly lawsuits, and protect the estate for the beneficiaries.
Don’t do it alone—contact our team today for trusted legal guidance and support.