Financial Word of the Day: Executor

Larry Jones
Jun 21
2 min read

Updated: Sep 26

What Is an Executor—and Why You Need One in Your Financial Plan

When it comes to managing your money, most people focus on living well—earning, budgeting, saving, investing. But what happens after you're gone? That's where a critical player steps in: the executor.

Definition

An executor is the person named in your will to manage your estate after you pass away. Their job? Handle your final financial affairs—think debts, taxes, and dividing up your assets to the people (or causes) you care about.

But this isn't just a ceremonial title. The executor is the quarterback of your financial legacy. They make sure everything in your will is executed (hence the name). From closing bank accounts to selling property, from filing a final tax return to settling debts—it's all on their shoulders.

Real Talk: What Does an Executor Actually Do?

Here’s a snapshot of an executor’s to-do list:

Locate and manage assets
Contact beneficiaries named in the will
Pay off debts, including credit cards, medical bills, or loans
File final income and estate taxes
Distribute what's left according to your will
Work with probate court (if necessary)
Keep records of every transaction

It’s a blend of financial management, legal paperwork, family communication, and a whole lot of patience.

A Quick Example

Let’s say Lisa passes away, leaving behind a home, two bank accounts, and some credit card debt. Her will names her cousin Joe as the executor. Joe’s job is to:

Notify the court and start the probate process.
Use Lisa’s bank accounts to pay off the credit card debt.
Sell her car and distribute the proceeds evenly to her three children, just like the will says.
File her final taxes.
Keep receipts, bank records, and correspondence in case any family member has questions later.

Joe’s not making decisions based on personal opinion—he’s legally bound to carry out the wishes written in the will.

Who Should You Choose?

An executor should be:

Trustworthy
Organized
Level-headed under pressure
Able to handle potential family drama
Willing to work with an attorney or CPA if needed

You can name a spouse, an adult child, a sibling, or even a professional like an estate attorney. And yes—executors can be paid for their time and effort (and honestly, they earn it).

Warning: What If You Don’t Name One?

If you die without a will (or name no executor), the court appoints someone. That could be a family member you wouldn’t trust to watch your dog—much less manage your estate. And worse? It can delay the whole process, add extra court costs, and stir up tension among loved ones.

Final Takeaway

Choosing your executor is one of the most underrated money decisions you can make. It’s not fun or flashy—but it’s wise. Your financial legacy deserves a smooth handoff, not a chaotic mess.

So if you haven’t written a will or named an executor yet… it’s time. Speak the language of money—even after you’re gone.