Understanding the Duties and Responsibilities of an Executor

What is an Executor?

An Executor is a person who is named in a Will to deal with the estate of someone who has died. They have a legal duty to carry out the instructions of the Will in accordance with the Law. Once they take on the role of Executor, they are responsible for ensuring that the estate administration is dealt with from start to finish (however, there may be instances where they need to cease acting which can be dealt with if necessary).

A Few Possible Considerations

Before getting into the overview of what Executors need to do during the estate administration, it may be worth considering situations which may arise during that time which the Executors would need to deal with;

• Is the Will of the deceased being contested? If so, the Executors may need to obtain further advice from a specialist

• Inheritance tax is usually what comes to mind when someone dies however, there may also need to be income tax and capital gains tax considerations

• Are there assets abroad which need to be dealt with and if so, are there further tax considerations to be had and is a Grant of Probate required in that Country to release the assets held there?

• There may be issues with the sale price of the deceased’s property. The Executor is under a duty to obtain the best possible price for the property

• Are there missing beneficiaries which cannot to be located? A specialist researcher may need to be instructed to find them

The Role

The first job of the Executor is to arrange registering the death if they are the ones arranging the funeral. Then should then arrange the funeral in accordance with the wishes of the deceased (if known) or liaise with the family in this regard - this would usually happen if the Executor is a professional as they may not have been made aware of the wishes of the deceased.

It is also crucial that the Executor secures the deceased’s property right away and make sure that the property is still adequately insured, as the property is likely to be unoccupied. If the policy provider is not aware of this, this could invalidate the policy completely.

The next step is to start making enquiries as to where assets are held and where liabilities may be due. All of this information will be needed in order to apply for Probate and if there is an inheritance tax liability, that would need to be dealt with before an application for Probate can be made.

Once IHT has been paid (if applicable) and a Grant of Probate has been issued, then the Executors would need to deal with the sale of the property and settle any outstanding liabilities.

The remaining money would then need to be distributed in accordance with the Will.

However, the Executors may need to consider whether they want to wait before distributing the estate to the beneficiaries. Any Inheritance Act claims must be made within six months of a Grant of Probate being issued however, a claim can be brought later if permission is granted by the Court.

Being an Executor is not a job to be taken lightly. They can be held personally liable for loss to the deceased’s estate due to their actions or lack of and so it is important that they take the role seriously.

An Executor may decide that due to the time consuming nature of the role and the pressures of “getting it right” they may need the assistance of a professional to advise and guide them in respect of the estate administration and this is of course something that we do on a daily basis.

If you would like to discuss Probate and/or your role as an Executor in more detail, please contact us on telephone 0116 212 1000 or alternatively fill in the free Contact Us form and we will get in touch as soon as possible.

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