Yes, an executor can withdraw money from an estate account, but only to pay obligations of the estate itself: funeral costs, the deceased’s debts, taxes, court and professional fees, property upkeep, and eventually distributions to beneficiaries. Estate funds are not the executor’s money. Every dollar that leaves the account has to tie back to a legitimate estate expense, and an executor who spends estate funds on personal items or pays the wrong creditors in the wrong order can be forced to repay the estate from their own pocket.
What Counts as a Legitimate Withdrawal
An executor is not just permitted to spend estate funds on valid obligations. They are required to. Letting bills go unpaid or property fall into disrepair because you are nervous about writing checks is itself a breach of duty. The categories that clearly qualify:
- Funeral and burial costs, which are often paid before probate is fully underway.
- Debts of the deceased, including credit card balances, outstanding medical bills, mortgages, personal loans, and final utility bills.
- Legal and professional fees for probate attorneys and accountants preparing tax returns.
- Court costs, including the probate filing fee and any later motions.
- Property maintenance for real estate or other assets the estate holds: insurance premiums, mortgage payments, necessary repairs, and security.
- Appraisal fees for real estate, artwork, vehicles, and other valuables.
- Federal and state taxes, including the deceased’s final income taxes, estate income tax, and estate tax if the estate is large enough to owe it.
The controlling word across every category is reasonable. Hiring a premium law firm for a simple estate, or paying for cosmetic renovations on a house that is about to be sold, sits inside a permissible category but can still draw objections from beneficiaries. Courts evaluate whether the spending served the estate, not just whether it fit a label.
Pay Debts in the Right Order
One of the most consequential mistakes an executor can make is paying creditors in the wrong sequence. When an estate does not have enough assets to cover everything, federal law requires that government claims, particularly taxes, be paid first. An executor who pays other creditors or distributes to beneficiaries before satisfying federal tax obligations becomes personally liable for those unpaid government claims.1Office of the Law Revision Counsel. United States Code Title 31 – 3713 Priority of Government Claims
Below federal claims, each state sets its own hierarchy. The pattern is usually similar: administration expenses, secured debts, funeral costs, medical expenses from the final illness, and then general unsecured debts. When money runs out inside a tier, creditors in that tier typically share what remains proportionally rather than on a first-come basis.
The practical rule: do not rush to pay anyone until you have a clear picture of the estate’s total debts and total assets. If the estate might be insolvent, get legal advice before writing checks. Personal liability for paying debts out of order is not theoretical.
Paying Yourself as Executor
Executors are generally entitled to be paid for their work, and taking that compensation out of the estate account is a legitimate withdrawal. About half of states set executor fees by statute, usually as a declining percentage of estate value. The rest apply a reasonable compensation standard, with the probate court weighing the complexity of the estate, the time spent, and local norms. Fees for typical estates generally fall between 1% and 5% of the estate’s value.
If the will names a specific compensation amount, that figure controls unless the executor formally rejects it and petitions the court for more. Either way, executor compensation is a documented payment, not an informal draw. Taking more than the will or state law allows, or taking fees without court approval where it is required, is treated the same as any other unauthorized withdrawal.
What Executors Cannot Do With the Account
Two violations dominate probate disputes.
Commingling
Commingling means mixing estate money with your personal funds: depositing an estate check into your personal account, running estate expenses through a personal credit card and reimbursing yourself, or failing to keep a separate estate bank account. Once funds are mingled, the burden shifts to the executor to prove which dollars belong to the estate. If you cannot untangle them, courts will presume the entire commingled amount belongs to the estate.
Self-Dealing
Self-dealing is any transaction where the executor sits on both sides: buying estate property for yourself at a discount, hiring your own business to provide services to the estate, or using estate funds to pay personal debts. Courts do not judge whether the executor got a fair price for the estate. They judge whether there was a conflict of interest at all. Even a transaction on genuinely fair terms can be voided without court approval or beneficiary consent.
Other clear violations include using estate money for personal travel, investing estate funds in the executor’s own business, and making gifts to people who are not beneficiaries under the will. Borrowing from the estate with the honest intention of paying it back is still a breach. The duty of loyalty has no temporary exception.
Records matter here. Keep bank statements, receipts, invoices, and proof of payment for every transaction. Executors who plan to reconstruct the ledger later almost always regret it, because months on you will not remember whether a $400 charge was the plumber or the locksmith, and a skeptical beneficiary will assume the worst.
When Can You Withdraw Money to Pay Beneficiaries?
Beneficiaries often push for money quickly, but early distributions are one of the biggest sources of executor liability. Every state requires the executor to notify known creditors directly and publish notice to unknown creditors, then wait out a statutory claim period before distributing assets. Those periods vary by state and commonly run three to six months. Distribute before the window closes and a later valid creditor claim can leave the executor personally on the hook if the estate no longer has funds.
Even after the creditor period ends, distributions should wait until tax returns are filed and any tax liabilities are resolved or reserved for. An executor can request a prompt assessment from the IRS, which shortens the usual three-year audit window to 18 months from the date of the request.2Internal Revenue Service. Publication 559 (2025), Survivors, Executors, and Administrators Holding back a reasonable reserve for late claims or tax adjustments before the final distribution is standard practice, and beneficiaries should expect it.
Taxes carry their own personal-liability trap. The IRS can hold the executor of an insolvent estate individually responsible for tax debts if the executor failed to exercise due care in identifying tax obligations before distributing assets.2Internal Revenue Service. Publication 559 (2025), Survivors, Executors, and Administrators Paying a tax professional out of the estate to get this right is one of the more defensible withdrawals an executor can make.
What Happens if an Executor Withdraws Money Improperly
Beneficiaries who suspect mismanagement can petition the probate court to investigate, and the court’s authority is broad. The most common remedy is a surcharge: an order requiring the executor to repay the estate from personal assets for any losses the breach caused. Surcharge applies whether the executor acted intentionally or was simply negligent. Courts can also void specific transactions, such as reversing a below-market sale of estate property to the executor’s relative.
The court can also remove the executor and appoint someone else to finish the job. Removal usually follows a pattern: mismanagement, refusal to communicate with beneficiaries, or failure to file required accountings. An executor who does nothing at all, letting deadlines lapse and property deteriorate, can be removed just as quickly as one who takes money.
In cases of intentional theft or embezzlement, criminal charges are on the table alongside civil liability. Converting estate funds for personal use is a crime in every state, with fines and possible imprisonment. Executors who breached their duties routinely lose their compensation entirely, even for the legitimate work they did before things went wrong.