What Is an Executor or Administrator?

An executor is named in the will to manage the estate. An administrator is appointed by the court when there is no will (intestate) or when the named executor cannot serve. Both roles carry the same legal duties: manage estate assets, pay debts and expenses, and distribute remaining assets to beneficiaries.

Independent vs. Dependent Administration

Independent administration is the default in Texas when the will grants it or when all heirs consent. The executor has broad authority to act without prior court approval for most transactions, including listing and selling real estate. This is faster and less expensive.

Dependent administration requires court oversight for nearly every significant action, including accepting offers and conveying title. This process is slower, more expensive, and more restrictive.

For a deeper dive, see the Dependent Administration guide and the Probate Guide hub on this site.

Your Legal Obligations

As executor, you owe a fiduciary duty to the estate and its beneficiaries. This means:

• Act in the best interests of the estate, not your own interests
• Manage estate property prudently
• Keep detailed records of all transactions
• Avoid self-dealing or conflicts of interest
• File required court documents on time
• Pay creditors in the legally required order

Immediate Steps After Appointment

1. Obtain letters testamentary or letters of administration from the probate court. These documents prove your legal authority to act on behalf of the estate.
2. Secure the property. Change locks if the property is vacant, ensure insurance is in place, and arrange for basic maintenance.
3. Notify relevant parties: mortgage lender, insurance company, HOA, utility companies, and any tenants.
4. Open an estate bank account for all estate income and expenses.
5. Gather important documents: will, death certificate, property deed, mortgage statements, insurance policies, tax returns, and any existing appraisals.

The Executor's Checklist

For the full 15-section executor checklist, visit the Texas Executor Estate Home Sale Checklist page. Here is a quick-start checklist for the first few weeks:

• ☐ Letters testamentary or administration obtained
• ☐ Property secured and insured
• ☐ Lender notified of owner's death
• ☐ HOA notified; dues payments current
• ☐ Utilities transferred to estate name or maintained
• ☐ Estate bank account opened
• ☐ Important documents gathered
• ☐ Professional team assembled (agent, attorney, CPA)

Should You Repair Before Listing?

The decision to repair, improve, or sell as-is depends on:

• The estate's cash position and ability to fund repairs
• The cost of carrying the property during repairs
• The expected increase in sale price vs. the repair cost
• The local market's appetite for fixer-uppers
• Buyer financing requirements (FHA/VA loans have property-condition standards)

General principle: Focus on safety and financeability issues. Avoid over-improvement that will not be recovered at sale. Cosmetic improvements rarely pay for themselves in probate sales.

For a deeper look, see the Selling the Property section of the Probate Guide.

Getting the Property Inspected

A professional home inspection before listing helps you:

• Identify defects that could derail a sale later
• Understand what buyers will find during their inspection
• Estimate repair costs accurately
• Price the property realistically
• Disclose known conditions honestly

For a home inspection checklist, visit hillcountryhomesteads.com for additional resources.

Pricing the Estate Home

Price based on:

• Current market conditions and recent comparable sales
• The property's actual condition (not the family's memory of its original condition)
• Any needed repairs or improvements
• The local market's supply and demand

Do not confuse the stepped-up cost basis (used for tax purposes) with the property's market value. The stepped-up basis adjusts the cost basis to fair market value at the date of death for capital-gains purposes, but it does not determine what the property will sell for.

Common Title Problems in Probate Sales

• Missing heirs: If all heirs are not identified and notified, the title company may require additional documentation or court orders.
• Undisclosed liens: Mortgage liens, tax liens, mechanic's liens, and HOA liens must be addressed before closing.
• Incomplete probate proceedings: The title company will require certified copies of the will, letters testamentary, and court orders.
• Mineral rights reservations: Common in Texas — mineral rights may have been severed from the surface property.
• Boundary disputes or encroachments: A current survey can identify these issues before they delay the sale.

For a list of trusted title companies familiar with estate transactions, visit the Title Companies resource page.

The Title Commitment

When the buyer orders a title commitment, review it carefully:

• Schedule B: Lists exceptions that may remain outside the title policy's coverage (easements, restrictions, mineral reservations)
• Schedule C: Lists requirements that must be satisfied before the title company will issue the policy (releases, payoffs, corrective documents)

If an exception or requirement is unclear, ask the title company for factual information and have a Texas real-estate attorney advise on its legal effect.

For a list of estate attorneys, see the Estate Attorneys resource page.

The Selling Process Step by Step

1. Select an agent experienced in probate sales who understands court requirements, executor authority, and the emotional dynamics of family estate sales.
2. Set the listing price based on market analysis, not sentiment.
3. Prepare the property — focus on clean, safe, and marketable.
4. List the property and market it to qualified buyers.
5. Review offers — consider price, financing strength, contingencies, closing timeline, and buyer credibility.
6. Negotiate and accept — in independent administration, you have authority to accept; in dependent administration, court approval is required.
7. Manage the option period — the buyer will conduct inspections and may request repairs or credits.
8. Clear title — resolve any title issues identified in the commitment.
9. Close — sign the deed, transfer title, and distribute proceeds per the court's instructions.

For a detailed walkthrough, see the Selling the Property guide.

Disclosure Requirements

Texas requires a seller's disclosure notice for most residential sales. As executor, you must disclose known material defects but are not required to conduct independent investigations beyond your reasonable knowledge. When you have never lived in the property, the disclosure should honestly reflect what you know and what you do not know.

Failing to disclose known defects creates legal exposure for the estate. When in doubt, disclose.

Working with the Buyer's Lender

The buyer's lender will require:

• Certified copies of the will and letters testamentary
• Court orders authorizing the sale (if dependent administration)
• Title commitment and survey
• Property appraisal
• Proof of estate's authority to convey

Respond to lender requests promptly — delays in probate documentation are a common cause of buyer frustration and deal fallout.

Carrying Costs While the Property Sits

The estate is responsible for:

• Mortgage payments
• Property taxes
• Homeowner's insurance (including vacant-property coverage)
• Utilities (minimum service to prevent freeze damage, maintain climate control)
• HOA dues
• Lawn maintenance and basic upkeep

These costs accumulate monthly and can deplete estate resources. The longer the property sits, the more the estate loses.

For a property tax guide, visit hillcountryhomesteads.com for additional financial resources.

Estate Cash Flow

If the estate is cash-poor:

• Contact the lender about payment options
• Heirs may contribute to carrying costs
• Consider whether a quick as-is sale preserves more value than waiting for a higher price
• The executor can seek court authorization for temporary loans against estate assets

Reimbursing Yourself

Under Texas Probate Code Section 352.051, you are entitled to reimbursement for reasonable expenses paid on behalf of the estate. Keep detailed records and receipts. Reimbursement is typically approved as part of the final accounting.

For professional financial guidance, see the Financial Advisors resource page.

Additional Challenges

Managing a Texas estate from another state adds complexity:

• Physical distance makes property inspections, contractor supervision, and court appearances difficult
• Time-zone differences can delay communications
• You may need to post a bond and designate an agent for service of process in Texas

For detailed guidance on managing from a distance, see the Out-of-State Executors guide.

Building a Local Team

Before listing, assemble:

• A local real-estate agent experienced in probate sales
• A Texas probate attorney
• A property manager or trusted person to check on the property
• A CPA familiar with both state and federal tax implications

Contact Bill Ross for help finding trusted professionals in the Hill Country area.

Common Mistakes

• Underestimating carrying costs
• Failing to secure the property
• Not understanding the local market
• Missing court deadlines
• Not having a trusted local team

Closing and Distribution

After the sale closes:

1. The proceeds go into the estate bank account
2. The executor pays estate debts, expenses, and taxes
3. The executor files a final accounting with the court
4. The court approves distribution to beneficiaries
5. The executor distributes assets per the will or intestacy laws

This process typically takes three to six months for simple estates and twelve months or more for complex ones.

Tax Filings

The estate may need to file:

• Federal estate tax return (Form 706) if the estate exceeds the federal exemption
• Final individual income tax return for the decedent
• Estate income tax return (Form 1041) if the estate earns income during administration

Consult a CPA for property-specific guidance. See the Financial Advisors page for recommendations.