What can an executor not do?

An executor typically gets paid between 1% and 5% of the total value of the probate estate, though the exact amount depends primarily on state law and the terms of the will.

If the will specifies a specific flat fee or percentage, that instruction usually overrides standard rules. If the will is silent, compensation follows one of two main legal frameworks depending on the location:

1. Statutory Fee States (Sliding Scale)

Several states use fixed percentage schedules written into their probate codes. The percentage typically shrinks as the estate gets larger.

• California: Uses a rigid tier starting at 4% of the first $100,000, 3% of the next $100,000, and 2% of the next $800,000.
• New York: Calculates fees based on money received and paid out, starting at 5% of the first $100,000, 4% of the next $200,000, and 3% of the next $700,000.
• Florida: Generally presets 3% for the first $1,000,000 of the estate value.

2. "Reasonable Compensation" States

The majority of states (including Texas, Illinois, and Washington) do not have a fixed mathematical law. Instead, the probate court determines what is "reasonable" based on factors like time spent, the complexity of the assets, and local benchmarks (often defaulting informally to 2% to 4%).

Key Financial Details to Keep in Mind

• Tax Status: Unlike an inheritance (which is usually tax-free), an executor fee is legally considered earned income. It is subject to federal and state income taxes. Because of this, executors who are also the primary beneficiary often choose to waive their fee so they can receive the money tax-free as an inheritance instead.
• Extraordinary Fees: If the estate administration involves highly complex tasks—such as managing lawsuits on behalf of the deceased, overseeing a business, or handling messy audits—courts frequently allow additional "extraordinary fees" on top of the base pay.
• Expense Reimbursement: Separate from their actual compensation, executors are entitled to be fully reimbursed out of the estate funds for any direct out-of-pocket expenses (like parking, postage, or travel) incurred while settling the estate.

Yes, an executor can withdraw or transfer money from a deceased person's bank account, but only after receiving official legal authority from a probate court.

Requirements for Accessing the Account

• Legal Documentation: The executor must present a certified death certificate and Letters Testamentary (or Letters of Administration) issued by the probate court to the bank.
• No Early Access: Before the bank receives official notification and these legal documents, it typically freezes the account to block withdrawals, transfers, and debit card use.
• No Personal Use: An executor cannot withdraw cash for personal use or transfer the funds into a personal bank account. Doing so is illegal and can be treated as theft.

How the Process Works

• Estate Accounts: Executors commonly transfer the deceased person's funds into a dedicated estate bank account held in the name of the estate.
• Paying Obligations: Money from this account must be used strictly to settle approved estate expenses, such as final debts, taxes, and funeral costs.
• Final Distribution: Remaining funds are distributed to the rightful heirs or beneficiaries only after debts are paid and the probate process concludes or receives court approval.

You can review a detailed Executor Guide to Closing a Bank Account for step-by-step procedures on handling these financial assets.

The Executor vs Beneficiary Difference Guide shows that the executor holds legal authority to manage and control the estate during probate, while beneficiaries hold the equitable right to receive the assets.

Executor Power

• Control assets: The executor gathers property, pays valid debts, and handles day-to-day administration.
• Legal authority: They make decisions on behalf of the estate, such as selling property when needed to cover expenses.
• Fiduciary duty: They must follow the will and act fairly in the best interests of all beneficiaries; they cannot use power for personal gain.

Beneficiary Power

• Right to inherit: They are entitled to receive their designated share of the property.
• Right to information: They can request updates and financial accounts from the executor.
• Legal recourse: They can challenge actions, demand removal, or sue the executor in court for mismanagement or breaking fiduciary duty.

Summary

The executor has more administrative power to run the estate, but they do not own the assets and answer to the law and the beneficiaries.

Most executors take between 6 months to 1 year to fully finalize and close an ordinary estate, though there is rarely a single hard calendar deadline set by law. Instead, executors are legally required to complete their duties within a "reasonable time" while following specific state and probate court deadlines.

Users on Reddit agree that disbursal and finalization can span from 6 months to several years depending on individual circumstances.

General Timeline Based on Estate Complexity

• Simple Estates (3 to 6 months): Few assets, no real estate to sell, no family disputes, and an uncontested will.
• Average Estates (6 months to 1 year): Standard assets, a waiting period for creditor claims, and final tax filings.
• Complex or Contested Estates (1 to 2+ years): Multiple properties, business interests, hard-to-value assets, ongoing tax audits, or legal fights among heirs.

Key Factors That Delay Finalization

• Creditor Claim Periods: State laws require a waiting window (often 3 to 6 months) after notifying creditors before an executor can safely pay out inheritance.
• Taxes: Final individual income taxes and estate tax returns must be filed and cleared.
• Asset Liquidation: Selling real estate, vehicles, or business holdings takes time to complete properly.
• Disputes: Will contests or disagreements among beneficiaries freeze the distribution of assets.

What Happens If an Executor Drags Their Feet?

Executors have a legal obligation (fiduciary duty) to act in the best interest of the estate. If an ordinary estate remains unclosed past one year without a valid reason, beneficiaries can petition the probate court to demand a formal accounting, compel asset distribution, or request that the judge remove and replace the executor. You can read more about duties and matching fiduciary professionals via SmartAsset.

An executor generally cannot sell a house without probate if the property is titled solely in the deceased person's name, because the executor only gains legal authority to sell after the probate court formally appoints them.

When a House Can Be Sold Without Probate

An executor—or another designated person—can sell a home without going through probate only if the property qualifies for a legal non-probate transfer. This happens in specific situations:

• Living Trust: The property is held in a living trust, meaning the successor trustee manages or sells the home without any court involvement.
• Joint Tenancy: The house has a surviving co-owner with a right of survivorship, so ownership passes automatically to that person.
• Transfer-on-Death Deed: The owner signed a valid transfer-on-death or beneficiary deed before passing away, which assigns the house directly to a named beneficiary in states that allow it.

When Probate Is Required

If none of those non-probate arrangements apply, the property is part of the probate estate.

• Appointment Needed: An executor named in a will has no legal power to sign a sale contract or transfer a deed until the probate court issues official letters of authority.
• Title Requirements: Title companies will not close or insure the sale of a solely owned property without proof of court appointment.
• Independent vs. Dependent Administration: Once probate opens, an executor with "independent authority" granted by a will or state law may sell the house without individual court approvals for every step. Other states or dependent administrations require direct court supervision and permission before completing the sale.