The Role of an Executor
Where somebody makes a Will, they must choose an executor or executors to administer the estate. A maximum of four executors can be appointed to act. The executors are entrusted to administer the estate, this means they are responsible for dealing with and distributing the estate in accordance with the terms of the Will.
It is important to be aware that where two or more executors are appointed there is no pecking order and that there is no such thing as the 'main executor'. The first named executor has no greater authority than the second executor if they are both appointed as executors in first instance. As such, executors should work together as a team and even if tasks are divided between them they should still keep each other informed and essentially approve of each other’s actions.
First Steps
Initially, the executors might be involved in registering the death and potentially arranging the funeral, though these steps can be taken by other family members that might not be appointed as executors. The funeral account is a debt of the estate and that is the responsibility of the executor to settle, often from any bank accounts held in the deceased’s name.
Ascertaining the Estate
The executors must, as quickly as possible, gain an understanding of the deceased’s estate through establishing the assets of the deceased and whether there were any debts owed by the deceased at the date of death. All estates differ in terms of assets though the executors often need to: contact the deceased’s banks, building societies, pension providers, life assurance providers, NS&I (in respect of any premium bonds etc) and deal with any shares owned by the deceased.
Any property owned by the deceased will also need to be valued and, as a matter of urgency, the insurers providing building insurance and any contents insurance need to be informed of the death. The requirements for continuing cover need to be established and complied with by the executors to ensure that the deceased’s property continues to be insured.
Apply for the Grant of Probate
In many estates, it will be necessary for the executors to apply for a Grant of Probate. Many financial institutions will require sight of the Grant of Probate before releasing funds to the executors and if the deceased owned a property, then the sale of a property cannot be completed to a new owner without this being obtained.
Administering & Distributing the Estate
Once the Grant of Probate has been obtained the executors will be able to liaise with all the financial institutions and close the various accounts and investments, sell any shares and property, pay any debts, pay inheritance tax if applicable and distributing the estate according to the Will, e.g. paying the beneficiaries listed in the Will and/or dealing with any trusts set up under the Will.
Summary – Key Actions to be Taken by Executors
To summarise, the main duties of an executor or executors usually include, though not limited to, the following steps:
• Pay all debts and expenses.
• Pay any taxes that are due including inheritance tax, income tax and capital gains tax.
• Keeping assets insured and safe.
• Contacting utility providers to close accounts and inform them that the property is empty.
• Contacting pension providers.
• Organising the clearance of any property.
• Signing all forms and transfers.
• Declaring information to be true and correct.
• Producing a set of accounts for the beneficiaries.
• Pay interest on any legacies unpaid after one year.
• Dealing with estate in a timely manner.
• Setting up any trusts that are included in the Will.
• Dealing with any claims made against the estate.
Next Steps...
Many estates will often involve other tasks and responsibilities depending on the terms of the Will and the make up a deceased’s estate. For further information please contact me on 01283 561531 or at m.kelly@timms-law.com.
