21. July 2026

The Value of Executorship – Between Responsibility, Duty, and Trust

Following recent media coverage of a case involving an executor in the canton of St. Gallen, one might be tempted to conclude that the execution of a will brings more risk than benefit.

In the St. Gallen case, a legal adviser and former attorney (whose practising certificate had already been revoked) was appointed as executor and subsequently sentenced to five years’ imprisonment for multiple counts of misappropriation, breach of fiduciary duty and forgery of documents. Rather than distributing the funds to the heirs in accordance with the testator’s last wishes, the executor had retained them for personal benefit. This is a clear and reprehensible abuse of a position of trust, but it is no reason to question the execution of a will as a fundamentally valuable legal institution.

What Does an Executor Do?

An executor is a trusted person appointed by the testator in a will or contract of succession. The executor’s duties commence immediately upon the death of the testator and are varied:

• Securing and recording the estate: First, the executor obtains a complete overview of the estate. The executor takes an inventory of all assets, such as bank balances, real property, mortgages, securities, vehicles, works of art, jewellery, etc., and takes the necessary immediate measures to secure the estate (for example, changing the locks on doors, redirecting all post to the executor’s address, cancelling or continuing existing insurance policies, securing access credentials, or placing valuables in storage).

• Administration of the estate: Until the division of the estate, the executor carries out all necessary administrative acts. The executor pays outstanding invoices and rent, collects receivables, pursues recalcitrant debtors, terminates contracts or continues them (e.g. employment contracts with employees of the deceased), whichever best serves the preservation of the estate assets. In the case of real property, this includes managing tenancy relationships, commissioning tradespeople and monitoring ongoing costs. Until the division of the estate, the executor has the exclusive right of possession and power of disposal over the estate assets. The heirs have no access to those assets.

• Tax matters: Among the executor’s core duties is the filing of the income tax return for the period up to the date of death, the correct settlement of inheritance taxes, the payment of ordinary taxes and the claiming of withholding tax refunds (up to the date of death). Depending on the canton and the complexity of the estate, this is time-consuming and requires sound knowledge of tax law.

• Giving effect to the testator’s last wishes: The executor’s central task is to implement the testamentary dispositions of the deceased. Legacies are distributed, burdens are fulfilled and any conditions are monitored. The executor ensures that the wishes of the deceased are given effect.

• Preparation and completion of the division of the estate: Finally, the executor prepares the division of the estate among the heirs. The executor obtains valuations (of real property and works of art), calculates the succession rights of each heir as well as any claims arising from the division of marital property of a surviving spouse, draws up proposals for division, coordinates between the heirs and any legal representatives they may have appointed, and drafts the contract of division. The right to effect the actual division does not, however, belong to the executor: the division takes place either by agreement among the heirs or by court order if one heir has brought an action. Where the estate is divided by agreement, the executor assumes responsibility for the implementing steps. The executor notifies the land register authority of the transfer of real property to individual heirs, distributes any jewelry and works of art, issues payment and securities transfer instructions to the banks, and subsequently closes the bank accounts and custody accounts.

When Is It Worth Appointing an Executor?

The numerous duties and responsibilities of an executor make clear why an executor can be of great assistance. Where heirs are in dispute with one another, the executor enables the proper administration of the estate without any single heir being able to block measures. If the deceased has not appointed an executor, the principle of joint management applies: the heirs administer the estate jointly and unanimously. If the heirs are in dispute, if one of them is obstructive, or if one heir is difficult to reach, this can quickly lead to a deadlock: bills cannot be paid (resulting in debt enforcement proceedings) or necessary maintenance work on real property cannot be carried out. The executor, however, may act alone in such matters and does not require the heirs’ consent for purely administrative acts. The executor acts independently, swiftly and impartially. At the same time, the executor is accountable to the heirs: keeping them regularly informed and consulting them on important questions.

The appointment of an executor is particularly advisable where the estate is complex or includes assets located abroad (e.g. real property), where the heirs lack the necessary expertise to administer and settle the estate, where family tensions exist or are foreseeable, or where the heirs simply do not have the time (or inclination) to attend to the affairs of the estate.

What Does an Executor Cost?

Where a fiduciary or attorney is appointed as executor, they charge on a time-spent basis at their usual hourly rates. A good executor will ensure a sensible and cost-efficient division of work: administrative and/or repetitive tasks are delegated to assistants or members of staff who work at lower hourly rates. The total cost of an executorship depends on the composition and complexity of the estate and on the duration of the executorship. It must not be disproportionate to the size of the estate. The executor’s fee is always paid out of the estate and thus indirectly by the heirs. The executor owes the heirs full transparency and accountability in respect of the fee, in the form of comprehensible fee notes with a detailed description of the services rendered.

 

For further information, please contact:

Sandra Spirig, Partner
Valeria Leusciatti, Junior Associate