Do Both Co-Executors Need to Sign Documents?
Co-executor signature authority is determined by several factors. Learn how legal permissions and practical requirements can differ when settling an estate.
When a will names multiple people to manage an estate, they are called co-executors. They share the responsibility of settling the deceased’s affairs, which involves handling numerous documents. A frequent question is whether every document requires the signature of each co-executor. The answer depends on the will, state laws, and the requirements of financial institutions.
How the Will Dictates Signing Authority
The will is the primary source of rules for co-executor authority, and its instructions supersede general state laws. The language used by the testator, the person who made the will, determines how co-executors must act. The will can grant co-executors the power to act either “jointly” or “severally.”
If the will specifies that co-executors must act “jointly,” they must reach a unanimous agreement on decisions. This means all co-executors are required to sign most legal and financial documents. For example, a will might state, “I appoint my two children as co-executors, and they shall act jointly in all matters concerning my estate.” This phrasing ensures one cannot act without the other’s consent and signature.
Conversely, a will might grant co-executors the authority to act “severally” or “independently.” This allows one co-executor to act alone on behalf of the estate, and their signature can bind the estate in certain transactions. A clause might read, “My co-executors may act severally, and the action of one shall be sufficient to bind my estate.” This can make administration more efficient. If the will is silent on this issue, state law provides guidance.
Default Rules Under State Law
If the will has no specific instructions, the default rules are determined by state probate laws. These laws provide a framework for how co-executors must operate when the will is silent on joint or several authority. State requirements differ, but often fall into one of two common approaches.
Many states have a default rule requiring co-executors to act unanimously, meaning all must agree and sign off on actions for the estate. This is the standard for significant decisions, protecting the estate’s assets and beneficiaries’ interests.
Other states allow a more flexible approach, permitting a single co-executor to handle routine administrative tasks independently, like gathering assets or paying minor bills. However, these laws still demand unanimous consent and signatures for major transactions. These include selling real estate, making large financial distributions, or engaging in litigation for the estate.
Signature Rules for Common Executor Duties
Third-party institutions like title companies, banks, and government agencies impose their own signature requirements. These entities establish policies to minimize their liability and ensure transactions are authorized. These practical requirements can override the flexibility that a will or state law might otherwise permit.
Real Estate Transactions
When selling estate property, title insurance companies and county recorders require the signatures of all co-executors on documents. This includes the listing agreement, purchase contract, and the deed transferring ownership. Title companies require all signatures to guarantee a clear title to the new owner, preventing future legal claims against the property.
Banking and Financial Accounts
Financial institutions have strict protocols for estate accounts. To open an estate bank account, most banks require all co-executors to be present and sign the account’s signature card, establishing who has authority. For subsequent transactions, like writing large checks or making withdrawals, the bank will require all co-executors’ signatures to authorize the payment.
Tax Filings
Government agencies also have specific rules for signing tax documents. For the federal estate tax return, IRS Form 706, the signature of only one co-executor is sufficient, though all are responsible for its accuracy. For the estate’s income tax return, IRS Form 1041, which reports income from estate assets, the signing executor should clearly state their fiduciary role.