Real-world examples of executor duties: asset distribution examples that actually happen

If you want usable examples of executor duties: asset distribution examples, skip the theory and look at how estates are actually handled. Here are a few realistic scenarios that mirror what probate lawyers see every week.

In a simple estate, the executor might collect two checking accounts, a used car, and a modest house. After paying the funeral bill and a credit card balance, the executor cuts three equal checks to the deceased’s children and signs a deed transferring the house into their names. In a more complex estate, the executor might be dividing a family business, retirement accounts, life insurance, and rental properties between a surviving spouse and children from a prior marriage, all while answering to a probate judge.

Those are the kinds of examples of executor duties: asset distribution examples we’ll unpack below, category by category.

Example of executor duties: distributing cash and bank accounts

Cash and bank accounts are usually the easiest example of executor asset distribution, but even here there are traps.

Imagine a will that says, “I leave $10,000 to my sister, and the rest of my estate to my son.” The executor’s duties for asset distribution in this situation typically include:

• Locating all bank and credit union accounts, including online-only banks.
• Moving funds into an estate account opened under the estate’s tax ID.
• Paying approved debts and final bills.
• Sending $10,000 from the estate account to the sister as a specific cash bequest.
• Distributing whatever remains (after taxes and expenses) to the son as the residuary beneficiary.

Now add a twist. One checking account is held jointly with the son, with rights of survivorship. That account usually passes outside the will, directly to the son, and is not part of the executor’s distribution duties. This is one of the best examples of why title and beneficiary designations can matter more than the wording in the will.

The executor still has to:

• Document which accounts are probate assets and which pass directly to others.
• Keep records in case another heir argues that the joint account was meant to be shared.

For a solid overview of how probate vs. non-probate assets work in the U.S., the Consumer Financial Protection Bureau has a helpful guide on managing someone else’s money: https://www.consumerfinance.gov/consumer-tools/managing-someone-elses-money/

Examples of executor duties: asset distribution examples for real estate

Real estate is where “easy” estates become complicated. Some of the most instructive examples of executor duties: asset distribution examples involve houses and land.

Scenario: One house, three siblings
The will says, “I leave my home equally to my three children.” The executor’s distribution work often looks like this:

• Get the property appraised as of the date of death (required in many U.S. states for tax and reporting purposes).
• Maintain insurance, pay property taxes, and secure the home.
• Ask the siblings: keep it, sell it, or have one buy out the others?
• If they agree to sell, the executor lists the house, signs the sales contract, and deposits the net proceeds into the estate account.
• After court approval if required, the executor distributes one-third of the net sale proceeds to each sibling.

Scenario: House to spouse, cash to kids
The will leaves the house to a surviving spouse and cash to adult children. But most of the wealth is tied up in the house. The executor may need to:

• Work with the spouse and children to decide whether to refinance, sell, or accept smaller cash gifts.
• Sell other assets (investments, vehicles) to free up cash for the children.
• Document all decisions to show that the executor treated beneficiaries fairly and followed the will.

This is a good example of how executor duties in asset distribution can turn into negotiation and problem-solving, not just paperwork.

For state-specific rules on handling real estate in probate, many U.S. states publish guides through their court systems. For instance, see the California Courts self-help probate section: https://www.courts.ca.gov/selfhelp-probate.htm

Investment and retirement accounts: examples include tricky beneficiary rules

Some of the best examples of executor duties: asset distribution examples involve investment and retirement accounts, because the will is not always the final word.

Scenario: 401(k) with a named beneficiary
A 401(k) names the spouse as beneficiary. The will says, “I divide all my property equally between my two children.” The executor’s duties here are limited:

• Notify the 401(k) plan administrator of the death.
• Provide a death certificate if needed.
• Confirm that the 401(k) passes directly to the spouse under the plan’s beneficiary designation.

The 401(k) is not part of the probate estate, so the executor does not divide it between the children, even if the will says “all my property.” This is a classic example of how beneficiary forms override the will for many accounts.

Scenario: Brokerage account in the estate
A taxable brokerage account has no transfer-on-death (TOD) designation and thus falls into the estate. The executor may need to:

• Get a date-of-death valuation of all securities.
• Decide, with legal or tax advice, whether to sell investments or distribute them in-kind.
• Keep detailed records of gains and losses for the estate’s income tax return.
• Distribute either cash (after selling) or the actual shares to beneficiaries in the percentages the will specifies.

The IRS provides current guidance on estate and inheritance tax thresholds here: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

Modern examples of executor duties: digital assets, crypto, and online businesses

By 2024–2025, a growing share of estates includes digital assets. These newer examples of executor duties: asset distribution examples can be surprisingly time-consuming.

Scenario: Cryptocurrency wallet
The will leaves “all remaining assets equally to my children,” and the deceased held Bitcoin in a hardware wallet.

The executor’s duties may include:

• Locating any hardware wallets, seed phrases, or exchange accounts.
• Working with a tech-savvy professional if needed to access the wallet securely.
• Valuing the crypto as of the date of death using a reliable price index.
• Deciding whether to sell the crypto and distribute cash, or assign specific coins or fractions to each beneficiary.
• Documenting the transaction for tax reporting, since sales can trigger capital gains or losses for the estate.

Scenario: Online store or influencer income
The deceased ran a profitable online shop or had ad revenue from a YouTube channel. Real examples of executor duties here include:

• Notifying platforms (Shopify, Etsy, YouTube, Patreon, etc.) of the death.
• Preserving login credentials and financial records.
• Collecting outstanding payments and transferring them to the estate account.
• Arranging a sale of the business, if the will directs it, or winding it down.
• Distributing the net value of the business to beneficiaries.

These are some of the best examples of how executor duties have evolved with technology. A will that ignores digital assets can leave the executor scrambling.

Debt, taxes, and shortfall situations: when beneficiaries get less than expected

Another category of examples of executor duties: asset distribution examples involves bad news: there isn’t enough money to pay everyone and everything.

Scenario: Estate with more debt than assets
The deceased leaves \(50,000 in assets but \)80,000 in debt. The will promises gifts to several people, but the law requires certain debts to be paid first.

The executor’s duties typically include:

• Following state law priority rules for claims: administrative costs, funeral expenses, taxes, then unsecured creditors.
• Notifying known creditors and following the required claim process.
• Using estate funds to pay valid claims in order of priority.
• Informing beneficiaries that specific gifts in the will cannot be honored because the estate is insolvent.

This is a sobering example of executor asset distribution: the executor is not there to “make everyone happy,” but to follow the law and the will as far as the money allows.

Scenario: Tax-heavy estate
A large estate includes appreciated real estate and investments. Even if federal estate tax doesn’t apply (most U.S. estates are under the federal threshold), there may be state inheritance or estate taxes, plus income taxes on the deceased’s final return.

The executor must:

• Coordinate with a tax professional to file necessary returns.
• Reserve funds in the estate account to cover tax bills.
• Delay final distributions until tax liabilities are clear.
• If needed, sell assets to raise tax money, even if beneficiaries prefer to keep those assets.

The upshot: one of the most realistic examples of executor duties: asset distribution examples is simply saying “not yet” to beneficiaries until the executor knows what’s left after taxes and debts.

Blended families and conflict: real examples that test an executor’s judgment

Some of the hardest examples of executor duties: asset distribution examples involve blended families, estranged relatives, or vague wills.

Scenario: Second marriage, children from first marriage
The will leaves “the house to my spouse for life, then to my children,” and leaves bank and investment accounts to the children. The executor’s duties may involve:

• Setting up a life estate in the home for the spouse, with the children as remainder beneficiaries.
• Explaining to the spouse what they can and cannot do with the property (usually they can live there but not sell it outright).
• Ensuring property taxes and insurance are paid, sometimes from the estate or from a trust.
• Mediating expectations so children understand they inherit the house only after the spouse’s death.

This is a textbook example of how executor asset distribution can take years, not months.

Scenario: Vague personal property gifts
The will says, “I leave all my personal belongings to be divided fairly among my children.” That’s a recipe for arguments. Real examples of executor duties here include:

• Creating an inventory of jewelry, art, collectibles, and sentimental items.
• Setting up a process for selection, such as a rotation where each child chooses items in turn.
• Bringing in an appraiser if there are valuable items and using values to keep distributions roughly equal.
• Documenting who took what, in case disputes arise later.

None of this is glamorous, but it’s a very common example of what executors actually do when distributing assets.

2024–2025 trends shaping executor asset distribution

Executor work doesn’t happen in a vacuum. A few current trends are changing the landscape for examples of executor duties: asset distribution examples:

• Higher federal estate tax thresholds, but active state taxes: In the U.S., the federal estate tax exemption remains high by historical standards, so relatively few estates pay federal estate tax. But several states still impose their own estate or inheritance taxes, which can change how and when executors distribute assets.
• More use of beneficiary designations and TOD deeds: Financial advisors increasingly encourage clients to use transfer-on-death designations on accounts and real estate. That means more assets bypass probate, and the executor has a smaller, more focused estate to administer—but must coordinate with non-probate transfers.
• Growing digital and crypto holdings: As more people hold crypto and operate online businesses, real examples of executor duties now include tech-heavy tasks that didn’t exist 10 years ago.
• DIY wills and online templates: Executors are frequently dealing with poorly drafted documents. That leads to ambiguous gifts, missing executor powers, and more court involvement to interpret the will before assets can be distributed.

For a policy-level view of aging, estates, and financial decision-making, the U.S. National Institute on Aging offers resources on end-of-life planning: https://www.nia.nih.gov/health/end-of-life

FAQ: examples of executor duties and asset distribution

Q: Can you give a simple example of executor duties for a small estate?
A: Picture an estate with one checking account, one savings account, and a used car. The will leaves everything to one child. The executor gathers the accounts, pays the funeral bill from the estate, transfers the car title to the child, and then cuts a final check to that child from the estate account. That’s one of the cleanest examples of executor duties: collect, pay, distribute.

Q: What are common examples of executor mistakes in asset distribution?
A: Real examples include distributing assets before paying taxes and debts, ignoring beneficiary designations on retirement accounts, failing to get written receipts from beneficiaries, or giving one heir property that was supposed to be shared. Those mistakes can expose the executor to personal liability.

Q: Do executor duties always include selling the house?
A: No. A classic example of executor discretion is choosing whether to sell or distribute real estate in-kind. If the will directs a sale, the executor must sell. If it doesn’t, and beneficiaries agree to take the property directly, the executor can often deed it to them instead of selling, subject to court and state law requirements.

Q: Are there examples of executor duties that continue for years?
A: Yes. Long-running examples of executor duties: asset distribution examples include estates with ongoing lawsuits, long-term trusts for minor children, or life estates in real property. The executor (or a successor personal representative) may stay involved until the last asset is sold or transferred.

Q: Where can I find more detailed guidance on executor responsibilities?
A: Probate courts and legal aid organizations often publish plain-language guides. In the U.S., many state bar associations and court websites provide step-by-step overviews of executor duties. One starting point is the CFPB’s guides on managing someone else’s money: https://www.consumerfinance.gov/consumer-tools/managing-someone-elses-money/

Serving as an executor is less about abstract legal theory and more about managing a sequence of real-world tasks. By looking at these examples of executor duties: asset distribution examples, you can better anticipate the work involved, spot issues early, and know when to bring in a lawyer, accountant, or financial advisor to back you up.