Responsibilities and Roles of an Estate Executor in Pennsylvania

Being named the executor of an estate is both an honor and a serious legal responsibility. In Pennsylvania, the role of an executor (also known as a personal representative or administrator) is to ensure that a deceased person’s final wishes are carried out according to the terms of their will, or in the absence of a will, according to Pennsylvania’s intestacy laws. This guide outlines the primary duties and obligations of an executor in Pennsylvania, along with some tips for handling the responsibilities effectively.

Filing the Will and Opening Probate

One of the first tasks of an executor is to file the will with the Register of Wills in the county where the deceased resided. This step is necessary to initiate the probate process, which is the legal procedure of administering the deceased’s estate.

If the deceased did not leave a will, the estate will be administered under Pennsylvania’s intestacy laws, and the executor (called an administrator in this case) will be appointed by the court.

Gathering and Protecting Estate Assets

Once probate is opened, the executor is responsible for identifying, locating, and protecting the estate’s assets. These assets may include:

• Real estate (homes, land, rental properties);
• Bank accounts (checking, savings, certificates of deposit);
• Investment portfolios (stocks, bonds, retirement accounts);
• Personal property (vehicles, jewelry, art, collectibles); and
• Life insurance proceeds, if payable to the estate.

The executor must take steps to safeguard these assets, which may involve changing locks on the deceased’s home, maintaining property insurance, and securing valuables. This responsibility also includes determining the value of these assets, which may involve obtaining appraisals.

Notifying Beneficiaries and Heirs

The executor must inform all named beneficiaries (those named in the will) and heirs (those entitled to inherit under Pennsylvania intestacy law) that the estate is being probated. They should be kept updated on the process, and the executor should remain available to answer questions about the status of the estate.

Paying Debts and Expenses

The executor is also responsible for paying any valid debts the deceased owed. Before making distributions to beneficiaries, the executor must ensure that all outstanding bills, including funeral expenses, medical bills, and legal fees, are paid. The executor must also notify known creditors and, in some cases, publicly announce the estate’s opening in a local newspaper to inform potential creditors.

The executor is responsible for determining the validity of a creditor’s claims and paying them from the estate’s assets.

Handling Tax Matters

Several tax-related responsibilities fall on the executor:

• Final Federal Income Tax Return: The executor must file the deceased’s final federal income tax return for the year in which they passed away.
• Pennsylvania Inheritance Tax: Pennsylvania imposes an inheritance tax on most transfers of property from the deceased to beneficiaries. The tax rate depends on the relationship between the deceased and the beneficiary. The executor must file and pay the inheritance tax on behalf of the estate. This tax is due within nine months of the date of death, although there is a discount for paying within three months.
• Federal Estate Tax: While most estates will not owe federal estate taxes, the executor should verify whether the estate exceeds the federal estate tax exemption threshold.

It is highly recommended to work with a professional to ensure all tax filings are handled correctly.

Managing Estate Accounts

The executor must open an estate bank account to manage funds. This account will be used to pay estate-related expenses, settle debts, and eventually distribute remaining assets to beneficiaries. Any money collected from the deceased’s accounts, income, or the sale of estate assets should be deposited into this estate account.

Distributing Assets to Beneficiaries

Once all debts, expenses, and taxes have been paid, the executor can distribute the remaining assets to the beneficiaries according to the will. If there is no will, distribution must follow Pennsylvania’s intestacy laws.

Distributions must be made carefully and legally, and executors should provide an accounting to the beneficiaries, showing how the estate was handled, including all payments made and how the remaining assets will be divided.

Filing a Final Accounting

In Pennsylvania, the executor is generally required to file a final accounting with the court. This accounting details the estate’s assets, all debts paid, expenses incurred, and the proposed distribution to beneficiaries. The final accounting provides transparency and gives beneficiaries the opportunity to review the estate administration.

Closing the Estate

After the final accounting is approved and all assets have been distributed, the executor’s last step is to officially close the estate. This involves filing the necessary paperwork with the Register of Wills and the court to indicate that all responsibilities have been fulfilled.

Once the estate is closed, the executor’s duties are complete, and they are no longer legally liable for the estate.

Executor’s Legal Duties and Liability

As an executor, you are a fiduciary, meaning you have a legal obligation to act in the best interests of the estate and its beneficiaries. This includes:

• Acting honestly and in good faith;
• Avoiding conflicts of interest; and
• Managing estate assets with care.

If an executor fails to fulfill their duties properly, they may be held personally liable for any losses suffered by the estate or the beneficiaries. For example, failing to pay estate debts, mishandling assets, or making improper distributions could lead to legal action against the executor.

Compensation for Executors

Pennsylvania law allows executors to receive “reasonable compensation” for their services. The amount of compensation varies depending on the complexity and size of the estate. Executors should keep detailed records of the time spent and the work performed to justify the compensation requested. Compensation is subject to court approval and must be paid from the estate’s assets.

Conclusion

Being the executor of an estate in Pennsylvania comes with significant responsibilities, from filing the will to distributing assets and closing the estate. While the role can be complex and time-consuming, executors who follow proper legal procedures and seek help from professionals—such as estate attorneys and tax advisors—can effectively manage the process.

If you’ve been named an executor, it’s essential to understand your duties and seek professional guidance when needed to ensure you meet all legal obligations and avoid potential pitfalls. Handling an estate properly is a meaningful way to honor your loved one’s wishes and protect the interests of the beneficiaries.

About the Author

Bill Hutcheson works with clients to ensure that their wishes are carried out after their passing. His experience includes drafting wills, powers of attorney, and living wills. Bill is keen on preparing a comprehensive estate plan that is custom-tailored for each client’s own unique situation, which he achieves through various non-probate planning tools. He often draws upon his experience and knowledge as an investment professional prior to his legal career to understand the non-probate instruments his clients readily have at their disposal in preparing a comprehensive estate plan. In addition to Bill’s guidance in estate planning, he also has significant experience in administering estates upon the decedent’s passing. Bill steers Executors and Administrators through the labyrinth of state and local statutes related to the administration process. Regularly, Bill ensures the estate’s assets are properly distributed, debts are paid, and taxes are filed. Bill and his team focus heavily on the timeliness of proper filings required by an estate’s Executors, Administrators, and Trustees, as well as ensuring they meet all of their fiduciary duties and standards. Lastly, when disputes arise amongst an estate’s stakeholders, Bill defends and/or pursues the rights of his respective clients’ positions related to the estate in question.