Real examples of executor duties: managing estate assets

The best way to understand executor work is to walk through real examples of executor duties: managing estate assets in everyday situations. Picture an executor stepping into a house that hasn’t been touched since the funeral. The mail is stacked on the table, the car is in the driveway, and no one knows the login for the investment accounts. That executor’s duties start immediately.

In a typical estate, examples include securing the home, forwarding the mail, inventorying personal property, and freezing or retitling financial accounts. If there’s a mortgage, the executor has to decide whether to keep paying it, refinance, or arrange a sale. If there’s a retirement account with named beneficiaries, the executor needs to coordinate with those beneficiaries and the plan administrator, even though the account may not pass through probate.

Each of these situations shows a different example of executor duties: managing estate assets while also following state probate law, the will’s instructions, and basic fiduciary standards.

Examples of executor duties: managing real estate and the family home

Real estate is usually the most sensitive—and valuable—asset in an estate. For most families, the best examples of executor duties: managing estate assets show up around the house.

An executor typically has to:

• Secure the property right away. That may mean changing locks, setting up security systems, or asking a neighbor to keep an eye on things. If the deceased lived alone, the executor should remove or safeguard prescription medications, firearms, cash, and jewelry to reduce the risk of theft.
• Maintain insurance and utilities. Homeowner’s insurance must stay active, and the insurer may need to be notified that the owner has died. Heat, electricity, and water often need to stay on to prevent damage. This is a classic example of executor duties: managing estate assets not for growth, but to prevent loss.
• Decide whether to sell, transfer, or distribute the property. If the will directs a sale, the executor hires a real estate agent, orders an appraisal, and manages repairs or staging. If the home is left to a specific beneficiary, the executor arranges for a deed transfer.

A real example: An executor in California overseeing a $600,000 home had to coordinate roof repairs before listing the property. The estate paid for the repairs, but the executor documented bids, invoices, and the final sale price to show the court and beneficiaries that the decisions were reasonable and in the estate’s best interest.

For guidance on real estate and probate, many executors look at resources from state court systems, such as state judiciary or probate court websites, which outline local procedures and forms.

Financial accounts: practical examples of executor duties

If you want concrete examples of executor duties: managing estate assets, look at what happens with bank and investment accounts after someone dies.

In a typical estate, the executor will:

• Locate and list all accounts. That includes checking, savings, CDs, brokerage accounts, and sometimes cryptocurrency wallets. This often involves reading bank statements, tax returns, and online dashboards.
• Notify financial institutions of the death. Banks usually require a death certificate and proof of the executor’s authority (letters testamentary or similar documents) before they will freeze or retitle accounts.
• Open an estate bank account. This is where the executor deposits incoming funds—like final paychecks, refunds, or sale proceeds—and from which they pay estate expenses. Mixing estate money with personal funds is a classic way for executors to get into legal trouble.
• Manage investments conservatively. If the deceased held volatile stocks or crypto, the executor generally has a duty to avoid speculative trading. A good example of executor duties: managing estate assets here is shifting part of a risky portfolio into more stable holdings while probate is pending, after getting legal or financial advice.

In 2024–2025, more estates include online-only banks and digital investment platforms. Executors increasingly need to track down assets through email alerts, password managers, or tax forms like 1099s. The IRS provides guidance on handling a decedent’s final tax return and estate income tax obligations, which directly affect how the executor manages and reports financial assets (IRS – Filing the Final Return of a Deceased Person).

Vehicles, valuables, and everyday property: more real examples

Not every asset is a house or a brokerage account. Some of the most concrete examples of executor duties: managing estate assets come from ordinary things—cars, furniture, collections, and personal items.

Consider how an executor might handle:

• A car with an outstanding loan. The executor confirms the loan balance, keeps insurance active, and decides whether to keep, sell, or surrender the vehicle. If the will leaves the car to a child, the executor works with the DMV to transfer title and may need to negotiate with the lender.
• Jewelry and collectibles. For higher-value items—watches, art, rare coins—the executor typically gets a professional appraisal. That valuation affects both estate taxes (for larger estates) and equitable distribution among beneficiaries.
• Household contents. The will might direct that “all personal property” be split among children. A practical example of executor duties: managing estate assets here is creating a written inventory, assigning estimated values, and organizing a selection process or sale, while documenting who received what.

In one real-world case, an executor managing an estate with valuable sports memorabilia arranged for a specialized auction house to sell items. The executor then provided the beneficiaries with a detailed report: item description, hammer price, auction fees, and net proceeds. That level of documentation is not just good practice; it’s part of managing estate assets with transparency.

Digital assets: modern examples of executor duties

In 2025, ignoring digital property is a mistake. Some of the best examples of executor duties: managing estate assets now involve online accounts and data.

Executors may have to:

• Access cloud storage and email to locate financial statements or contracts.
• Manage online payment accounts like PayPal or Venmo that hold real money.
• Close or memorialize social media accounts according to platform policies.
• Deal with cryptocurrency wallets, which can be lost forever without keys or seed phrases.

A practical example: An executor discovers that the deceased ran a small online store. The executor must shut down the website, resolve open orders, refund customers if necessary, and transfer any remaining balance from payment processors to the estate account. That is a concrete example of executor duties: managing estate assets where the “asset” is partly digital infrastructure and customer trust.

Because laws on digital assets vary, many executors consult resources from law schools or legal aid organizations that discuss the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), which many U.S. states have adopted.

Business interests and rental properties: complex examples of executor duties

When the deceased owned a small business or rental properties, the job becomes more complex. These situations offer some of the most demanding examples of executor duties: managing estate assets.

For a small business, an executor might have to:

• Keep the business running temporarily to preserve value—paying employees, renewing licenses, and fulfilling contracts.
• Hire a professional manager or accountant to stabilize operations.
• Decide, in line with the will and any shareholder agreements, whether to sell the business, transfer it to a co-owner, or wind it down.

For rental properties, examples include:

• Collecting rent and paying mortgages, property taxes, and insurance.
• Communicating with tenants about the owner’s death while respecting lease terms.
• Handling security deposits properly if the property is sold or transferred.

Real example: An executor for an estate with three rental units in Ohio continued to collect rent for six months while the properties were listed for sale. The executor kept detailed ledgers of rent received, repairs paid, and net income, which later supported the estate accounting filed with the probate court.

For guidance on fiduciary duties in managing business or investment assets, executors can look to educational materials from law schools and bar associations, such as those linked through university legal clinics or state bar probate sections.

Tax, debt, and paperwork: behind-the-scenes examples of executor duties

Some of the most important examples of executor duties: managing estate assets never show up on a real estate listing or bank statement. They happen on tax forms, spreadsheets, and court filings.

Executors typically must:

• File the deceased person’s final income tax return and possibly an estate income tax return if the estate earns income during administration. The IRS explains these duties in detail on its estate and gift tax pages and in publications for fiduciaries (IRS – Estate and Gift Taxes).
• Pay valid debts and dispute or reject improper claims. This might involve negotiating medical bills, credit card balances, or personal loans. An example of executor duties: managing estate assets here is timing payments so that the estate remains solvent and has cash available for taxes and administration.
• Prepare an inventory and accounting for the probate court. That means listing every asset, its value at the date of death, and tracking every transaction—income, expenses, distributions.

A practical example: In a mid-sized estate with \(450,000 in assets and \)60,000 in debts, the executor created a detailed spreadsheet showing the initial inventory, payments to creditors, sale proceeds from a condo, and final distributions. When a beneficiary questioned a medical bill, the executor could point to the invoice, the payment, and the court-approved accounting.

Risk management: how good executors protect themselves

Every example of executor duties: managing estate assets has a risk side. Executors are fiduciaries, which means they can be held personally liable if they mismanage property or ignore legal requirements.

Smart executors protect themselves by:

• Getting clear authority from the court before selling or transferring major assets.
• Keeping meticulous records—emails, receipts, bank statements, appraisals.
• Communicating regularly with beneficiaries to reduce suspicion and conflict.
• Hiring professionals (attorneys, accountants, real estate agents) when the estate is large or complex.

Legal aid organizations and court self-help centers often publish plain-language guides for executors, explaining these duties and the concept of fiduciary responsibility. For example, the U.S. courts and many state courts provide probate self-help information that frames an executor’s job as protecting the estate for all interested parties, not just “getting it done.”

When in doubt, an executor should treat every decision as if a judge and an unhappy beneficiary will review it later. That mindset turns vague instructions into clear, defensible examples of executor duties: managing estate assets with care.

FAQs: Common questions and examples of executor duties

Q: What are some common examples of executor duties: managing estate assets in a simple estate?
In a straightforward estate, examples include securing the home, notifying banks of the death, opening an estate account, paying funeral expenses from estate funds, canceling subscriptions, and distributing a few bank accounts and personal belongings to named beneficiaries. Even in a simple case, the executor still needs to file an inventory and final accounting with the probate court in many states.

Q: Can you give an example of how an executor handles a house with a mortgage?
Yes. Suppose the deceased leaves a house to two children, but there is a $200,000 mortgage. The executor continues paying the mortgage from estate funds while the children decide whether to keep or sell the property. If they sell, the executor works with a real estate agent, pays off the mortgage from the sale proceeds, and then distributes the remaining equity according to the will. That’s a textbook example of executor duties: managing estate assets while balancing debt and inheritance.

Q: What are examples of executor mistakes when managing estate assets?
Common mistakes include using personal accounts instead of an estate account, making early distributions before paying taxes and debts, selling assets to family members for less than fair market value without proper documentation, and failing to maintain insurance on a vacant home. These errors can expose the executor to personal liability and can delay closing the estate.

Q: Does an executor manage assets that pass outside probate, like life insurance?
Generally, assets with named beneficiaries—such as life insurance or retirement accounts—pass directly to those beneficiaries and are not probate assets. However, the executor often helps by providing death certificates, coordinating with insurers or plan administrators, and confirming that beneficiaries receive what they are owed. While the executor may not control those funds, this support role is still a practical example of executor duties in the wider context of managing estate-related assets.

Q: Where can I find more information on legal responsibilities for executors?
Authoritative sources include the IRS pages on estates and fiduciary income tax, state court probate self-help sites, and educational materials from law schools and bar associations. These resources explain, in plain language, how to translate the legal duty of a fiduciary into everyday examples of executor duties: managing estate assets responsibly.