Why Being an Executor Is a "Thankless Job" (And How to Protect Yourself)

By teamaragoneassocMastering the Probate Sale Process February 18, 2026

Navigating Executor Liability and California Probate Sales

Congratulations, you have been named the executor of an estate. To the uninitiated, this feels like being named the "boss." You might imagine it means you call the shots, control the purse strings, and finally have the authority to settle old family scores.

It is time to burst that bubble immediately. Being an executor or administrator in California is not a position of power; it is a position of extreme legal liability. My colleague, trust and probate attorney Paul Velasco, describes it as a "thankless job" defined by enormous responsibility and constant scrutiny.

You are stepping into a "damned if you do, damned if you don't" scenario: if you sell a trust or estate property quickly to settle the books, beneficiaries may claim you sold it too cheap; if you take the time to maximize the price through a traditional probate sale, they will accuse you of stalling their inheritance.

If you make even one mistake, no matter how well-intentioned, someone is usually unhappy. Worse, the law provides them with the tools to make that unhappiness your personal financial problem.

The "Thankless Job"

The Legal Shadow: Why Your Personal Bank Account is at Risk

In the eyes of the California Probate Code, you are bound by Fiduciary Duty. This is not a mere suggestion; it is the highest standard of care and loyalty recognized by our legal system.

This duty requires you to treat the estate’s assets with even more care than your own. If you make a risky investment with your own money and lose it, that is a personal tragedy.

If you make a mistake with the estate’s money, you are personally liable. In a probate court, a judge can order a "surcharge," meaning you must repay the estate for any perceived losses out of your own pocket.

You must internalize one reality: you are a steward, not an owner. Your job is to protect the asset, maximize its value, and distribute it fairly, not to do favors for friends or make emotional decisions.

"Most family probate disputes happen because executors forget this duty.

They make emotional decisions or, even worse, they start acting like they personally own the assets."

— Nikki Milliban, Federal Litigator

Adults vs. Toddlers: The Procedural Trap That Kills Estate Value

The success of a real estate sale in probate often hinges on a technicality most families ignore until it’s too late: the level of authority granted by the court.

The difference between "Full Authority" and "Limited Authority" is the difference between a smooth closing and a public auction nightmare.

Limited authority is a functional nightmare for executors. Because of the "Court Overbid Process," a buyer can have their offer accepted, wait months for a hearing, and then lose the house in seconds to someone who bids a few dollars more in the courtroom.

This uncertainty drives away "traditional buyers", families looking for a home in Orange County—and instead attracts predatory investors who specialize in buying court-confirmed properties at a discount because they know the competition is decimated.

This lack of competition almost always results in a lower final price for the heirs.

The Ferrari Fee: Why “Cheap” Help is a Legal Impossibility

A common mistake is trying to "save money" by hiring a generalist attorney or a discount agent. In California probate, this logic fails because the fees for both attorneys and executors are set by statute.

These fees are non-negotiable and, crucially, are calculated based on the gross value of the estate, not the equity. If you sell a $2 million house with a $1.9 million mortgage, the attorney and executor fees are still calculated on the full $2 million.

Since the law mandates you pay these "Ferrari-level" fees regardless of the professional's expertise, hiring a generalist is like paying for a Ferrari and choosing to drive a bicycle. A specialist doesn't just fill out forms; they provide the legal shield necessary to prevent the litigation that eats up the estate's remaining value.

In a traditional buy/sell in Orange County and surrounding areas, where property values are high, the cost of an expert is identical to the cost of a novice, but the risk of the novice is infinitely higher.

The $400,000 Mistake: The Danger of the Friendly Generalist

The cost of "convenient" advice can be measured in hundreds of thousands of dollars. Take the case of a grieving stepmother whose stepson claimed he was entitled to 50% of her late husband’s estate.

Exhausted and vulnerable, she turned to a friend—an attorney, but not a probate specialist. He told her the claim sounded legitimate and advised her to settle for the 50/50 split.

It seemed like the "easy" path. Fortunately, she sought a second opinion from a specialized probate attorney.

He immediately applied the California Community Property Presumption, proving the assets were community property. Instead of losing half of her life's work, she received 85% of the estate.

"Cheap" advice from a non-specialist is almost always the most expensive mistake an heir can make.

The Red Flags: Why Your Neighborhood Agent is a Liability

Hiring a "neighborhood agent" who primarily sells standard residential homes can expose an executor to massive legal risk. If your agent exhibits either of these two behaviors, fire them immediately:

1. Listing without "Letters Testamentary": If an agent puts a property on the MLS before the court has issued Letters Testamentary, the listing is null and void. You do not yet have the legal authority to sign a contract. This creates a "zombie listing" that destroys the estate's credibility and confuses the market.

2. Ignorance of the Overbid Process: In a limited authority sale, the agent must manage expectations from day one. If they tell you "we're basically done" once an offer is accepted, they are setting you up for a lawsuit. If they fail to prepare the family for a court date where an investor might outbid the original buyer, the resulting fury from the original buyer and the beneficiaries will be directed squarely at you.

The Executor’s Shield: Three Golden Rules of Estate Preservation

To protect your personal assets and fulfill your fiduciary duty, you must adhere to these three principles:

Practice Absolute Transparency: Never hide information. As attorney Cheryl Barrett warns, "Beneficiaries smell money." They are far more likely to cooperate when they feel informed; they are far more likely to sue when they feel ignored.

No Commingling of Funds: Never, under any circumstances, mix estate money with your personal accounts. This is an immediate ground for removal by the court and a primary trigger for personal liability.

• Reject Generalists: If an agent or attorney cannot explain the specific difference between a 15-day NOPA and a court confirmation hearing, they are a liability. They are not just "inexperienced", hey are a threat to your personal financial safety.

Conclusion

Successfully navigating a probate estate requires a specialized team that acts as your legal and financial armor.

You do not have to handle the scrutiny of the court or the emotions of heirs alone, but you must ensure your team, your attorney and your real estate agent—actually understands the complexities of the California Probate Code.

As you move forward, ask yourself: Are you prepared to defend your decisions in front of a judge and a room full of heirs who "smell money"?

Protect your personal assets and master the probate process.

• Watch: See our full "Mastering the Probate Sale" series on YouTube for deep dives into every stage of the process.

• Download: Get your copy of the "Executor Liability Checklist," a step-by-step guide to keeping yourself protected.

• Stay Informed: Sign up for the Aragone & Advisors newsletter on our Contact Us page for the latest updates on California probate trends.

• Listen: Tune in to the Aragone & Advisors Podcast on Spotify.

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Finally, thank you for reading this current episode of our Youtube Probate Series, you can watch the full episode in our Youtube Channel.

Let Aragone & Associates guide you through the process, helping to make the transition seamless. Call us at 949-415-4784 or email us at [email protected].

Disclaimer: We are not real estate attorneys, and the information provided should not be considered legal advice. We strongly recommend consulting with qualified legal counsel regarding your specific situation. If you do not currently have legal representation, feel free to reach out to us, and we can connect you with one of our trusted attorneys.