A Guide to Your Rights and Responsibilities as a California Estate Executor

As an executor in California, your primary role is to carry out the final wishes of the deceased as stated in their will. This involves a legal obligation, known as a fiduciary duty, to manage the estate’s assets and debts honestly and in the best interest of the beneficiaries. 

Your responsibilities include:

• Gathering all assets.
• Paying off legitimate debts and taxes.
• Distributing the remaining property to the people named in the will.

The process is demanding, especially while you are grieving. You must follow specific procedures set by the California Probate Code, meet strict deadlines, and maintain clear communication with beneficiaries who may also be struggling. The good news is you do not have to do this alone. An experienced real estate attorney will guide you through each step, ensuring you meet your legal obligations and the estate is settled correctly.

If you have questions about your role as an executor and how to begin the process of California estate administration, Wade Litigation is here to help. Call us at (408) 842-1688.

Key Takeaways for California Estate Executors

1. You have a legal duty to act in the best interest of the beneficiaries. This fiduciary duty requires you to manage assets prudently, avoid conflicts of interest, and keep everyone informed.
2. Not all estates require formal court-supervised probate. California’s “small estate” procedures may apply depending on the value of the assets, which saves time and money.
3. You are entitled to compensation and have the right to hire professional help. An attorney’s guidance protects you from personal liability for mistakes and ensures the process is handled correctly.

What Does My “Fiduciary Duty” Actually Mean?

The term fiduciary duty is a legal concept that simply means you must act in the highest good faith for someone else (in this case, the estate’s beneficiaries). It is the cornerstone of your role as an executor. 

This duty, outlined in the California Probate Code, breaks down into several key responsibilities.

• Duty of Loyalty: You must always put the interests of the beneficiaries first, ahead of your own. You cannot, for example, sell an estate property to yourself for a below-market price or make decisions that benefit you at the expense of others.
• Duty of Prudence: You are required to manage the estate’s assets as a “prudent person” would. This involves making sound financial decisions, such as safeguarding property, managing investments responsibly, and avoiding needlessly risky actions.
• Duty to Avoid Conflict of Interest: You must prevent your personal interests from clashing with the estate’s interests. Any transaction between you and the estate will be heavily scrutinized and should almost always be avoided.
• Duty to Keep Beneficiaries Informed: You must be transparent. This involves providing beneficiaries with regular updates and a copy of the estate inventory and accounting. Keeping clear records is your best defense against any accusations of mismanagement.
• Duty to Segregate Assets: You must keep estate assets separate from your own personal funds. Open a new bank account in the name of the estate to deposit funds and pay bills. Commingling funds leads to serious legal problems.

How Do I Handle the California Probate Process?

Does every estate in California have to go through a lengthy court process? Not always. Recent changes in California law recognize the state’s high property values and provide simpler paths for certain estates.

The key is determining the total value of the estate’s assets. A new law effective April 1, 2025, has significantly changed the process for many families.

• Understanding the New “Small Estate” Thresholds:

• For a Primary Residence: For individuals who pass away on or after April 1, 2025, if the decedent’s main home is valued at $750,000 or less, you may be able to use a streamlined procedure to transfer the property, avoiding formal probate entirely. This is a major increase from the previous limit.
• For Personal Property: The limit for using a Small Estate Affidavit for personal property like bank accounts and stocks is $184,500 for deaths occurring after April 1, 2022.

• The Median Home Price Context: With the median California home price projected to be over $900,000 in 2025, many properties will still require formal probate. However, this new law helps a significant number of families avoid court and a probate litigation lawyer can help you determine whether your situation qualifies.

Your path forward depends on the estate’s composition.

Step 1: Inventory the Estate’s Assets

You must create a complete list of everything the decedent owned and assign a value to each item as of the date of death. This includes real estate, bank accounts, investments, vehicles, and valuable personal property. Professional appraisals may be necessary.

Step 2: Determine if the Estate Qualifies for a Simplified Procedure

If the estate is below the new thresholds, you may be able to use a Small Estate Affidavit or a Petition to Determine Succession to Real Property to transfer assets. These methods are faster and less expensive than formal probate. Our firm helps you prepare and file this paperwork correctly.

Step 3: If Formal Probate is Required, What Does That Look Like?

If the estate’s value exceeds the limits, you will need to go through the formal probate process.

• File a Petition: The process begins by filing the will and a petition for probate with the Superior Court in the county where the decedent lived.
• Receive “Letters Testamentary”: The court will hold a hearing. If everything is in order, the court will formally appoint you as the executor and issue “Letters Testamentary.” This document is your legal proof of authority to act on behalf of the estate.
• Administer the Estate: Once you have Letters, you have the legal authority to manage the estate, which includes gathering assets, paying creditors, and preparing for distribution.
• Close the Estate: After all debts and taxes are paid, you will file a final petition with the court, provide a final accounting to the beneficiaries, and receive permission to distribute the remaining assets and close the estate.

How Do I Handle the Estate’s Finances and Debts?

Managing the estate’s money is one of your most important jobs. It requires careful organization and meticulous record-keeping.

• Open an Estate Bank Account: As mentioned earlier, this is a non-negotiable step. All of the estate’s cash assets should be deposited here, and all bills and expenses should be paid from this account. This creates a clear financial record.
• Identify and Notify Creditors: You have a legal duty to notify known or reasonably ascertainable creditors of the death. This starts a specific timeline, typically four months, for them to file a claim against the estate. Failure to do this correctly extends your personal liability.
• Determine the Validity of Claims: Just because a creditor submits a bill does not mean it is valid. You must review claims and reject any that are improper or invalid. We will help you assess the legitimacy of claims filed against the estate.
• Pay Legitimate Debts and Expenses: Estate funds are used to pay for:

• Funeral Expenses.
• Debts of the Decedent: This includes mortgages, credit card bills, and medical expenses.
• Administration Expenses: These are the costs of managing the estate, such as attorney fees, executor fees, and appraisal costs.

• File Final Taxes: The estate is a taxable entity. You are responsible for filing the decedent’s final personal income tax return and the estate’s own income tax returns for each year it remains open. A federal estate tax return may be required, but the exemption is high (though scheduled to decrease at the end of 2025), so this affects very few estates.

How Should I Communicate with Beneficiaries?

Beneficiaries are typically anxious and grieving, and being kept in the dark only makes things worse.

• Provide Initial Notification: Shortly after you are appointed, send a formal notice to all beneficiaries named in the will. This notice should inform them that the will has been submitted to probate and that you have been appointed executor.
• Be Transparent and Proactive: Do not wait for beneficiaries to ask for information. Provide them with a copy of the initial inventory of assets. Send periodic, brief updates on your progress, even if there is not much to report. This shows you are actively managing the estate.
• Keep Meticulous Records: Document every action you take and every dollar that comes in or out of the estate. When it is time to close the estate, you must provide a detailed accounting to the beneficiaries. Flawless records make this final step smooth and prevent challenges.
• Remain Neutral: Tensions sometimes run high among family members. As the executor, your duty is to the will and to all beneficiaries equally. Avoid taking sides in family disagreements and always refer back to the instructions in the will.

Frequently Asked Questions About California Estate Administration

Can I be paid for my work as an executor?

Yes. California law provides for statutory fees for the executor based on a percentage of the estate’s value. The fee is 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, and continues on a sliding scale. These fees must be approved by the court before you are paid.

What if a beneficiary disagrees with the will or my actions?

A beneficiary may challenge the will or object to your handling of the estate. If this happens, we recommend having an attorney to represent the estate’s interests in court and ensure you are acting within your legal authority.

How long does the probate process take in California?

Even for a straightforward estate, formal probate typically takes a year to 18 months. If there are complications, such as a will contest or difficulty selling property, it takes longer.

What happens if the deceased had a living trust instead of a will?

A living trust generally avoids the court-supervised probate process. However, the person named as the “successor trustee” has similar duties to an executor: they must gather assets, pay debts, and distribute property according to the trust’s terms, but without the direct oversight of the probate court.

Do I need a lawyer to help me with California estate administration?

While you are not legally required to hire an attorney, it is highly recommended. The probate process is complicated, and an executor may be held personally liable for mistakes. Having legal guidance protects you and ensures the process is handled efficiently and correctly.

You Do Not Have to Manage This Responsibility Alone

Serving as an executor is an act of trust, but it comes with intricate legal and financial duties that feel daunting. As an executor, you are honoring a legacy by managing the deceased’s final affairs, and the pressure to do it perfectly is real. Any mistake, however unintentional, creates delays, financial loss, and painful family disputes.

Fulfill your loved one’s wishes with confidence and care without handling the entire legal process yourself. The team at Wade Litigation guides you through every filing, every deadline, and every decision. We handle the difficult parts of the California estate administration process so you can focus on what matters most.

To get clear, straightforward answers about your duties as an executor, call us for a consultation at 888-705-5059.