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Personal finance glossary

Executor

Definition

The person named in a will to settle an estate: gather and value assets, notify institutions, pay debts and final taxes, and distribute what remains to the heirs. The role usually runs through the probate court and can take months to a few years.

Why it matters

Choosing an executor is a real decision, not an honor: the job is administrative, legally accountable, and often done while grieving. Naming someone organized, and telling them where the documents live, is a gift to your heirs.

Example

An executor settles a $600,000 estate: files the will with the court, pays $22,000 of final medical bills and card balances, files the last income tax return, sells the car, and distributes what remains to the two heirs named in the will, keeping records of every step.

Related terms

This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.

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