When you name someone as the executor in your will, you’re giving them more than just a ceremonial title—you’re placing a huge amount of legal and financial responsibility in their hands. Their job kicks off the moment you pass away, and if they’re not up for the task, things can unravel fast.

Here’s what a good executor actually does, step by step. First, they have to locate and collect all your assets—bank accounts, retirement accounts, life insurance policies, real estate, investments, personal property, you name it. All of that needs to be tracked down and marshaled together. Once that’s done, they’re typically required to open a new estate bank account—this is where all the money gets pooled. Your old accounts get closed, and the estate account becomes the central hub for handling everything from paying off debts to distributing inheritances.

To do that properly, the executor needs to get an Employer Identification Number (EIN) from the IRS. Even though the estate isn’t a business, this EIN is like a Social Security number for the estate. It’s how the estate reports income and pays taxes. And yes, estates do have to pay taxes in certain situations, so that paperwork matters.

Now, about compensation. Being an executor isn’t meant to be charity work—they’re legally allowed to pay themselves a “reasonable” fee for their time. In many cases, that’s around $40 an hour, depending on the complexity of the estate and the local laws. But here’s where it gets slippery. That money is coming from the estate itself, meaning from what would eventually go to the heirs. So, if the executor isn’t careful or ethical, you can see how issues might pop up.

A responsible executor pays off any debts you left behind, from final bills to taxes to legal fees. Once that’s done, and everything’s accounted for, they’re free to start distributing the remaining funds and property to the heirs according to your will. Seems neat and tidy, right?

Now let’s talk about what happens when you pick the wrong person. A bad executor doesn’t have to be malicious. Sometimes, they’re just overwhelmed, disorganized, or slow to act. They ignore emails from the probate attorney, procrastinate on collecting assets, or delay filing necessary paperwork. This stalls the entire process and can leave beneficiaries waiting months—or even years—for what they’re owed.

But there’s a darker side, too. Say your executor is a sibling, and they open up the estate bank account, suddenly staring at $100,000 or more. Maybe they tell themselves, “I’ll just take a bit now—I’m entitled to it anyway—and pay it back once everything’s settled.” That might feel harmless at first, especially if they see themselves as just accessing their share early. But this is where things go sideways. They spend a little more. They stop tracking. They dip in again. Before long, they’ve gone well beyond their inheritance and now the estate is short, and the other heirs are rightfully furious. These cases happen all the time—and they don’t always involve outright theft, just a slippery slope of bad judgment.

Being an executor requires a steady hand, financial discipline, communication skills, and a basic understanding of legal obligations. This isn’t the job for your scatterbrained cousin who can’t return a text, or your sibling who treats money like a revolving door. You need someone dependable, preferably with a little financial savvy—or someone who’s smart enough to hire professionals to help them stay on track.

Choosing your executor is like choosing your financial quarterback for the final play. Pick someone who can hold the line, call the right shots, and not fumble the ball when it matters most.

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