The powers of a personal representative run from the moment of appointment to the moment the estate closes: taking control of the deceased person’s property, notifying and paying creditors, filing tax returns, selling assets when needed, representing the estate in court, and distributing what remains to the people entitled to it. Whether you were named in a will (executor) or appointed because there was no will (administrator), the probate court issues Letters Testamentary or Letters of Administration that prove your authority to banks, government agencies, and anyone else who asks. Every power listed below is paired with a duty, and misusing a power can make you personally liable for the loss.
Taking Control of Property and Filing an Inventory
The first thing a personal representative does is take physical and legal control of what the deceased owned. That can mean changing locks on a home, redirecting mail, moving valuables into secure storage, and contacting banks and brokerages to freeze or access accounts. You hold this property in trust for creditors and beneficiaries, not for yourself.
Then comes the inventory. You must compile a detailed list of every asset the deceased owned at the date of death, with the fair market value of each item as of that date: bank balances, investment accounts, real estate, vehicles, jewelry, and anything else of value. Under the framework followed in many states, the inventory is due within three months of your appointment or within a few months after the first publication of notice to creditors, whichever is later. If you later find property that was left off, you file a supplemental inventory. Any interested party who asks is entitled to a copy.
Accuracy on the inventory matters. It becomes the baseline for every accounting you file later, and failure to protect or properly account for estate property can leave you personally on the hook for the loss.
Handling Creditor Claims and Paying Debts in Order
You are responsible for letting creditors know the estate exists. In most states that means publishing a notice in a local newspaper announcing your appointment and the deadline for claims. The claims window is generally about four months from the first publication, though it varies by state. Creditors who miss it are usually barred. You can also send direct written notice to known creditors, which may trigger a shorter individual deadline for them.
Once the window closes, you review each claim and decide whether to pay it, reject it, or negotiate. If the estate cannot cover every debt, you must follow a priority order set by state law. Most states rank obligations in roughly this sequence:
- Administrative costs: court fees, attorney fees, and other expenses of running the estate.
- Funeral and burial expenses.
- Family protections: homestead allowances, family allowances, and exempt property for a surviving spouse or dependents.
- Federal debts and taxes, including income taxes.
- Medical expenses from the final illness.
- State and local debts and taxes.
- General unsecured debts, such as credit card balances and personal loans.
Pay a lower-priority debt before fully satisfying a higher one and you can be personally liable for the shortfall. Within a single priority class, no creditor gets preference over another.
Filing the Estate’s Taxes
You must file the deceased person’s final individual income tax return, covering January 1 through the date of death. If the deceased was married, you can file a joint return with the surviving spouse for that year.
If the estate earns income during administration, from interest, rent, or investment gains, you also file a separate fiduciary income tax return on Form 1041 for the estate itself.1Internal Revenue Service. Estate Tax
Larger estates face an additional return. For 2026, a federal estate tax return is required when the gross estate plus adjusted taxable gifts made during the deceased person’s lifetime exceeds $15 million.2Internal Revenue Service. Whats New — Estate and Gift Tax Form 706 is due within nine months of the date of death, with a six-month extension available. Missing a required return or underpaying can trigger penalties and interest that come out of the beneficiaries’ shares, and in some situations the representative becomes personally liable for the unpaid tax.
Selling Estate Property
A personal representative generally holds the same power over estate property that an outright owner would, but held in trust. You can list real estate, sell vehicles, liquidate investment accounts, or run an estate sale for household goods. Converting assets to cash is often the only way to pay debts, cover taxes, or divide value among several beneficiaries entitled to shares of something that cannot be physically split.
The authority has limits. In many states you must give beneficiaries advance written notice before selling real estate, often at least 15 days ahead. If a beneficiary objects, you may need court approval to go through with the sale. Some states also distinguish between representatives with full independent authority and those with more limited authority who need a court order before selling real property at all.
Every sale must be at fair market value. Selling to yourself, a family member, or a business associate at a discount is self-dealing, and it exposes you to personal liability. Proceeds go into the estate’s bank account and stay tracked until the final accounting is approved.
Distributing What’s Left to Beneficiaries
After debts, taxes, and administrative expenses are paid, you distribute what remains. If there is a valid will, you follow it: specific gifts to the people named, residual estate divided as directed. If there is no will, state intestacy law controls, typically starting with a surviving spouse and children.
Distribution can mean drafting new deeds, retitling vehicles, transferring retirement accounts to named beneficiaries, or writing checks. Each person must receive exactly what they are entitled to, and you need documentation showing the court that every asset was accounted for.
Partial distributions before the estate is fully closed are allowed in many jurisdictions, as long as you keep enough back to cover remaining debts, taxes, and expenses. Distribute too much too early and an unexpected obligation can land on you personally. Once distributions are complete, you file a final accounting and petition the court to close the estate. Approval releases you from further obligation and, where one was required, discharges the surety bond.
Acting for the Estate in Court
The personal representative is the legal face of the estate. You can file lawsuits on the estate’s behalf, whether to collect a debt owed to the deceased, pursue a wrongful death claim, or recover property someone is improperly holding. You also defend the estate against claims brought by others, including creditors contesting a rejected claim and anyone challenging the will.
To handle this work, you have authority to hire attorneys, accountants, appraisers, investment advisors, and other professionals, paid from estate funds rather than your own. You can rely on their recommendations without conducting an independent investigation, though you remain responsible for acting reasonably overall and for signing settlements, appearing in court, and making the final calls.
Getting Paid for the Work
Personal representatives are entitled to compensation. The amount depends on the state. Most states use a “reasonable compensation” standard, and the probate court weighs factors like the complexity of the estate, the time you spent, any special skills you brought to the role, and how efficiently you administered the estate. A representative who increases the estate’s value or saves it money can justify a higher fee; a simple estate handled with minimal effort pays less.
A smaller group of states set compensation by statute, using a sliding percentage of the estate’s value that decreases as the estate grows. Across those states, rates generally run from about 0.5 percent to 5 percent, with the highest percentages applied only to the smallest initial tiers.
A will can override the default rule. It might specify a flat fee, a different percentage, or direct the representative to serve without compensation. If a named representative finds the terms inadequate, they can decline the appointment rather than take it on at a loss.
The Fiduciary Duty That Limits Every Power
Each power above comes attached to a fiduciary duty: act honestly, carefully, and in the best interest of creditors and beneficiaries. You must avoid conflicts of interest, refrain from self-dealing, keep personal and estate funds strictly separate, and make decisions a prudent person would make in the same situation.
Breach that duty and the consequences are real. A representative who causes a loss through mismanagement, neglect, or self-dealing can be ordered to pay personally for the damage, including any depreciation in the estate’s value plus interest. If the representative personally profited, the court can order those profits returned on top. Other state or common-law claims may stack on top of that.
Any interested person, including a beneficiary, creditor, or co-representative, can petition the probate court to remove the representative for cause. Common grounds include mismanaging assets, using estate funds personally, failing to file required inventories or accountings, having a disqualifying conflict of interest, or otherwise being unfit for the role. If the court agrees, it revokes the letters and appoints a successor. Many courts also require a surety bond at the outset as a financial guarantee, and a will that waives the bond does not always stop a court from ordering one when circumstances call for it.