Understanding Executor Duties in Texas (Part Two): Questions Every Executor Needs to Know

Serving as an executor in Texas involves far more than carrying out the instructions in a Last Will and Testament. Executors must follow the requirements set out in the Texas Estates Code, protect estate property, manage deadlines, communicate with beneficiaries, and coordinate with the Court throughout the probate process.

At J Nichols Law, PLLC, we guide executors through each of these obligations so they can administer an estate confidently and avoid unnecessary legal risks. In this continuation of our Top Ten Questions series, we explain Questions Six through Ten—the areas where most executors need the clearest guidance.

6. Paying Estate Debts and Expenses

One of the earliest responsibilities an executor must handle is notifying creditors and paying valid claims in the correct legal order. Under the Texas Estates Code, unsecured creditors have 120 days to submit a claim once notice is properly provided.

If the estate has enough funds, the executor must pay debts according to the statutory priority list, which includes:

• Funeral and last-illness expenses (up to $15,000)
• Administration costs such as court fees, legal fees, and executor compensation
• Secured debts (mortgages, vehicle notes)
• Child support arrears
• Taxes and government-related debts
• Other unsecured debts

Executors must follow this order precisely—paying claims out of sequence can create personal liability. Our probate practice helps executors avoid these pitfalls and make legally sound decisions throughout administration.

7. Understanding Executor Tax Responsibilities

Executors are responsible for filing all required tax returns on behalf of the decedent and the estate. This typically includes:

• The decedent’s final income tax return
• Any unfiled prior returns
• Payment of outstanding income taxes
• An estate income tax return if the estate earns more than $600 in income during probate

Executors must also evaluate whether the federal estate tax return (Form 706) applies. For 2025, estates valued above $13.99 million (including lifetime taxable gifts) may trigger the federal estate tax, which must be paid before distributing assets.

Because tax obligations are time-sensitive and complex, we regularly assist executors in determining what filings are required and how they must be handled.

Need help with probate issues? Learn more on what our probate services are here.

8. Selling Estate Property During Probate

In many cases, an executor in Texas may sell estate property without obtaining advance permission from beneficiaries—particularly when the Will grants this authority or when the estate qualifies for independent administration.

However:

• If the Will does not authorize property sales,
• And independent administration was not granted,
• The executor must request Court approval before selling assets.

Additionally, when a Will specifically gifts certain property (like a home or heirlooms), Texas law requires the executor to try to sell other assets first. The specifically gifted property should only be sold if absolutely necessary to pay debts, taxes, or expenses.

Before selling any real estate or major asset, we strongly encourage executors to consult with a probate attorney to avoid potential conflicts or challenges. Learn how we guide executors through real property issues.

9. Distributing Assets to Beneficiaries

Once debts, expenses, and taxes are resolved, the executor must distribute the estate according to the terms of the Will.

Executors are responsible for:

• Carrying out specific gifts exactly as written
• Distributing remaining property according to the residuary clause
• Obtaining asset valuations when necessary
• Managing or selling assets to achieve fair distribution
• Facilitating discussions when beneficiaries disagree

Disputes can arise even in well-planned estates. Our firm regularly helps executors manage beneficiary expectations, avoid conflict, and follow the Will’s instructions faithfully.
See how our team supports executors here!

10. Executor Fees and Compensation Under Texas Law

Executor compensation is governed by the Will and, when the Will is silent, by the Texas Estates Code.

If allowed by the Will, or if unspecified, Texas Estates Code §352.002 permits executors to receive:

• 5% of all cash received, and
• 5% of all cash paid out

Certain payments do not count toward compensation (such as account balances at death or life insurance paid directly to beneficiaries).

Courts may increase or reduce compensation if the statutory fee is unreasonable. Many executors waive compensation entirely—especially when they are also beneficiaries.

We regularly advise executors on whether compensation is appropriate, how to calculate it, and how to document their work to protect themselves from liability. Learn more about our approach to guiding executors here!

Need Help Navigating Executor Duties in Texas?

Serving as an executor is an honor, but it is also a complex legal responsibility. From creditor claims to asset distribution, the Texas probate process includes many steps where an executor can unintentionally create liability without proper guidance.

At J Nichols Law, PLLC, we help executors:

• Admit Wills to probate
• Obtain Letters Testamentary
• Manage estate assets
• Handle tax and creditor issues
• Comply with the Texas Estates Code
• Complete the estate efficiently and correctly

If you have been named as an executor or need help starting the probate process, we are here to provide clear direction and reliable support. Reach out to our office to schedule a consultation.