Also called personal representative. The executor inventories assets, notifies creditors, pays valid debts, files final tax returns, and distributes the remainder to beneficiaries. Where there is no will, the court appoints an administrator who performs the same role.
Related terms
Step-Up in Basis
A federal tax rule (IRC §1014) that resets an inherited asset's cost basis to its fair market value on the date of the original owner's death.
Probate
The court-supervised process of validating a will, paying the deceased's debts, and transferring remaining assets to heirs.
Inheritance Tax
A state-level tax paid by the heir on the value of property received from a deceased person.