Executor

What Does Executor Mean?

An executor is a representative appointed in a will to settle the affairs of the deceased and ensure that their written wishes are carried out. The responsibilities of an executor include protecting the deceased’s assets and property, arranging for the payment of debts and taxes, and ensuring that beneficiaries and heirs receive their due. In terms of insurance, this may involve making sure the appropriate beneficiary receives any life insurance benefits. Additionally, executor’s liability insurance is becoming increasingly common as a means to protect the policyholder from potential liability claims.

Insuranceopedia Explains Executor

Although an executor is not legally required to be a financial or legal expert, the appointed individual has a fiduciary duty—an obligation to act in good faith, honesty, and impartiality—to fulfill their responsibilities. Some states require an executor to post a bond to ensure they act in good faith while carrying out the wishes expressed in the deceased’s will. If not required by law, a court may mandate a bond for the benefit of an estate or trust. In either case, this executor’s bond, or fiduciary bond, serves as protection against embezzlement or fraud by the executor.

Similarly, executors can utilize a relatively new insurance product known as executor’s insurance, which covers damages that may arise from claims of error, omission, or negligence. This insurance can cover reasonable expenses, costs awarded against the insured, defense costs, and the amount needed to correct an error or restore the estate.