If you have been named as the executor of someone’s estate when they pass away (or you’ve been asked to act as the executor), it’s important to understand what is expected of you. In this article, our wills and probate specialists highlight some key duties of an executor that come into play in the administration of an estate.
What is an Executor?
An executor is a person chosen to assist in the administration of a deceased individual’s estate. Often during estate planning, an individual will choose a trusted family member or friend to take care of the administration of their estate when they pass away.
For the executor, while also grieving, it can be a difficult thing to navigate. Depending on the circumstances of the person’s death, the administration could last a few months, if not longer.
How do I prepare for my role as Executor?
It is of vast importance that extensive enquiries are made as to the assets and extent of the estate. This information will be required to make an application for a Grant of Probate (where necessary) and to report the estate to HMRC in the appropriate manner.
There are specific rules relating to the valuation of assets for inheritance tax purposes. There may be assets that do not pass under the will, for example, pension benefits and life insurance policies.
Familiarise yourself with the will and what instructions it contains. Where there are ongoing trusts arising from a will, the executors will often become the initial Trustees. Although this can potentially be a long-term appointment, trustees can choose to retire and new trustees be appointed throughout the lifetime of the Trust.
When utilising the support of a wills and probate solicitor, they can ease the load and guide you through the process.
What are my immediate duties as an Executor?
- Registering the death and acquiring one or more copies of the death certificate
- Making arrangements for the funeral.
- If the deceased owns the property they live in:
- take immediate steps to secure the property
- Inform the insurance company to make sure you meet additional requirements to provide cover for an empty property
What will I be liable for?
The responsibility for reporting the estate to HMRC falls upon the executor and they may be liable for any penalties that occur as a result of inaccurate reporting to the HMRC.
When enquiring as to the value of the estate for inheritance tax, the executor must make enquiries as to any gifts made by the deceased in the last 7 years.
The executor will also need to deal with the income tax position for the deceased to the date of death and any income and capital tax consequences arising during the administration period.
Executors should not be personally liable for any liabilities in the deceased’s estate provided they perform their role correctly, but do have a responsibility to ensure that the deceased’s liabilities are settled.
As a general rule, any liabilities owed by the deceased at the date of their death, as well as funeral expenses, may be deducted from the value of the assets for inheritance tax purposes.
What else should I consider?
Other aspects of the role of the executor can include:
- liaising with companies
- conducting searches as to any unclaimed assets
- arranging for legal notices
- conducting bankruptcy searches
- preparing estate accounts
- making the relevant distributions to the beneficiaries in accordance with the will.
As highlighted above the role of executor can require the performance of a number of duties to ensure that the estate is protected and maximized for the beneficiaries.
Please be reassured that you don’t have to do this all by yourself; appointing a probate solicitor can lighten the load, enabling them to do the majority of the legal work while you manage arrangements for funerals and deal with bank accounts and so on.
Our team will support you through it all with our friendly and sensitive approach.
Contact our Probate Specialists
We appreciate that this is often an emotional time for all family members including executors. We’re here to help ease the burden and help you through any complexities you may encounter.
For further information on the duties of an executor you can talk to one of our team at 0161 969 3131 or fill in our contact form and we’ll be in touch at the earliest opportunity.