What You Need to Know When Managing an Independent Administration
Serving as an executor in Texas is an important responsibility and, at times, an overwhelming one. You are stepping into a fiduciary role that requires organization, diligence, and careful decision-making. This guide is designed to provide practical tips and real-world guidance for executors navigating an independent administration in Texas.
As always, every estate is different. Executors should work closely with an experienced estate planning attorney and a qualified accountant for advice tailored to their specific situation.
Understanding Your Role as an Independent Executor
As an executor, you are a fiduciary. That means you are legally obligated to act in the best interest of the estate, its beneficiaries, and its creditors.
Your core duties typically include:
Duty of loyalty
Always prioritize the interests of beneficiaries while properly addressing valid creditor claims.Duty not to delegate
Essential responsibilities must be handled by you personally, not passed off entirely to others.Duty to keep and render accounts
Maintain clear, accurate records and be prepared to provide accountings if requested.Duty to furnish information
Keep beneficiaries reasonably informed. Regular updates help prevent confusion and conflict.Duty of care
Administer the estate with the level of care and skill a prudent person would exercise.Duty to control and preserve estate property
Safeguard assets and prevent loss or deterioration.Duty to enforce and defend claims
Pursue debts owed to the estate and defend against improper claims.Duty not to co-mingle funds
Estate assets must remain separate from your personal finances.Duty regarding bank deposits
Use prudent banking practices and ensure accounts are properly titled in the estate’s name.
Locating and Identifying Estate Assets
One of an executor’s first major tasks is identifying all estate assets. This often requires more than reviewing a will.
Helpful strategies include:
Review personal records
Examine tax returns, bank statements, insurance policies, and correspondence for evidence of accounts or income.Search public records
Look into county property records, tax rolls, mineral interests, and state unclaimed property databases.Investigate digital footprints
Check computers, phones, email accounts, cloud storage, and password managers for digital assets such as online accounts or cryptocurrency.Contact financial institutions
Present Letters Testamentary to banks and investment firms to obtain full account histories.Speak with trusted contacts
Family members, accountants, attorneys, and financial advisors may know about assets not immediately obvious.Seek professional help if needed
For complex or contested estates, forensic accountants or investigators can be invaluable.
Maintaining and Protecting Estate Property
Preserving estate property is a critical responsibility during administration.
Key reminders include:
Stay current on mortgages, HOA or POA dues, and utilities
Maintain insurance coverage, especially for vacant property
Pay property taxes on time to avoid penalties or forced sales
Secure properties by locking doors, collecting mail, and scheduling regular checks
Keep up with routine maintenance such as lawn care and pest control
Watch for environmental hazards like mold or leaks
Document the condition of property early with photos and videos. This can be extremely helpful if disputes or insurance claims arise later.
If selling property, choose a real estate agent experienced with estate sales. If renting, ensure leases are reviewed and income flows directly into the estate account.
Winding Down the Decedent’s Affairs
Closing unnecessary accounts helps prevent fraud and reduces financial leakage.
Important steps include:
Cancel credit cards and loans and notify issuers promptly
Do not pay unsecured debts until all estate assets are identified.Review and cancel internet, cable, cell phone, and subscription services
Automatic withdrawals are a common source of unnecessary losses.Forward mail through USPS to ensure nothing is missed.
Secure or close digital accounts while preserving any valuable digital assets.
Keep written records of all closures and cancellations.
Tax Filings and Financial Accounts
Coordinate early with the decedent’s tax preparer or hire a qualified professional to handle:
Final individual income tax returns
Estate income tax returns, if required
For banking:
Never use the decedent’s personal accounts
Open estate accounts and transfer funds properly
Be cautious with joint accounts and survivorship rules
Consider interest-bearing accounts for longer administrations
Monitor FDIC insurance limits
This guide is intended as a practical reference and a starting point for discussions with your estate attorney. It is not a substitute for personalized legal advice. If you are serving as an executor or preparing to do so, working with experienced counsel can help protect both you and the estate throughout the process.
If you have questions about your role as an executor or need guidance with a Texas estate administration, Bohls Law is here to help. Contact our office to schedule a consultation.
