What must executors do to fulfill their responsibilities in managing an estate?

To fulfill their responsibilities in managing an estate, executors must prioritize settling the estate's debts and filing necessary tax returns. This involves paying off any outstanding debts or obligations of the deceased before distributing assets to beneficiaries. The executor has a fiduciary duty to act in the best interests of the estate and ensure that all legal and financial responsibilities are met before any distributions are made.

By filing the appropriate tax returns, which might include income and estate taxes, the executor is also ensuring compliance with the law, which is crucial for the proper administration of the estate. The proper handling of debts and taxes is essential not only for fulfilling legal obligations but also for protecting the interests of the beneficiaries, who are entitled to their inheritance only after all debts and taxes have been taken care of.

The other options do not reflect the correct responsibilities of an executor. Distributing assets immediately could lead to complications if debts are not settled, selling all estate property might not be necessary depending on the circumstances, and transferring assets to personal accounts would be a breach of fiduciary duty. Therefore, maintaining financial responsibility and ensuring that the estate's obligations are met is central to the executor's role.