Can an Executor of an Estate Sign a Promissory Note on Behalf of the Estate in Washington State?

General Power of Appointment

If the will, or court if there is no will, gives the executor a general power of appointment, the executor has complete control over the estate and can sign any documents for the estate. It is the executor's responsibility to pay all of the estate's debt, collect any money owed to the estate and make any decisions not specified in the will.

Limited Power of Appointment

In Washington, a limited power of appointment is also known as a special power of appointment. Typically, executors with a limited power of appointment have a co-executor and are unable to make all of the decisions for the estate without the approval of the other executor. The will or the court can specify what powers the executors have when managing the estate's assets.

Borrowing Money

If the estate's funds are unavailable, the executor may need to sign a promissory note for attorneys and creditors to guarantee that the estate will pay the debts when the funds become available. For example, if the estate must sell an asset to pay its attorney, the attorney can request a promissory note from the estate to ensure payment after the executor sells the asset. The executor, as the manager of the estate, must sign the note.

Lending Money

An executor with full power can authorize a loan from the estate, if necessary. If the executor approves the loan, the executor and the borrower must sign a promissory note detailing the conditions of the loan. If the borrower is a beneficiary, it is up to the executor to decide if the beneficiary must make payments to the estate or repay the estate when the executor distributes the estate's assets.