Choosing your Executor is really important. And acting as one is a very responsible job indeed! In this blog we ask “What does an Executor need to do?”
When we write your Will, you need to consider who should be the Executor of it. To make the right choice, you need to understand a bit more about what the role is. Put simply it is to make sure your wishes are carried out. But it is far more than that!
And if you have been appointed as an Executor, you may think it’s just contacting a few banks and telling a few people. If so, you’d be wrong – because it is MUCH more than that!
So what DOES an Executor need to do ?
Well firstly, you become the “Legal Personal Representative” of the person that has died. So that is a reminder that this is a legal role with legal liability and legal responsibility. You are under a duty to do everything needed. And quite a few Executors we have seen haven’t completed all their duties! That leaves them at risk …
We wrote a blog recently that lays out “What to do when someone dies” and you may find this useful, so do have a read .But that doesn’t cover everything needed.
You are under a duty to ensure that you fully gather all the information required about the estate. What the person who died owned, what they owed, what gifts they may have given, how much tax is owed. You may need to open bank accounts to bring money in – so it is separate from yours. Once you have all the information, you may need to apply for a “Grant of Probate”. That is the legal authority you need to distribute the estate. And there may also be trusts to deal with – registration and ongoing work in the future. And properties to consider too!
We have prepared a simple guide to “Executor Duties” which shows you all the things that may be needed and how we, or our trusted partner Zedra, can help if you feel you need it.
What does an Executor need to do first?
You need to decide if you do want to take on the role.
You may find it is going to be straightforward, or you may find it looks really complex!
And if there is any chance there could be disputes, you may not want to get involved !!!
You may decide that you don’t want the legal and financial responsibility and liability the role brings.
Or you may just not feel able to, or may not BE able to, undertake the role.
So the first thing to do is decide. And get help if you feel it may be too much, or you’d rather a professional do some or all of it for you.
What does an Executor need to do once they decide to act?
Our simple “Executor Duties” guide (link above) shows everything you may need to do.
Most estates will need to go through probate. Often, we hear “Oh I did probate for X, it was easy”. But you are legally obligated to make sure it is done properly and it’s not always easy!
To do probate properly, you need to:
- Make sure you have the latest Will – conducting a search if you aren’t sure.
- Find out about ALL the assets and liabilities of the person who died. To do that you may need to contact many organisations. And you may need to organise a full financial report. Or arrange professional valuations.
- Find out if there is anyone with a claim on the estate. These could be people who are owed money. And to do that you need to place notices in the correct publications.
- Find out about any trusts, gifts or Inheritance Tax (IHT) allowances that need to be considered.
You can only really complete the probate application when you have all that information. And in some cases, you may need to complete many IHT forms first. And there may be tax to pay too!
What does an Executor need to do after probate is granted
Firstly, make sure you have somewhere to place any funds you withdraw or proceeds from sales etc. Don’t put money in your own account! Intermingling is dangerous and you are accountable for every penny. (Oh, and if the worst was to happen to you before all that money is distributed, your estate would be in a real mess!). So, open a separate account and use that!
Keep good records – these are called estate accounts! Make sure you record every penny in, and every penny out. Again, you’re accountable for this. You need to be able to show any beneficiaries how you got to the figure you share with them.
WAIT … ideally you should not distribute any monies until 6 months after probate is granted. That’s because you need to give time for anyone to make a claim. You should also place notices in the Gazette so that anyone who is owed money can come forward. So, fulfil your duties and responsibilities, and be patient!
You can take insurance out if you wish – to cover you in case anyone does come forward later.
When you do distribute monies, you also need to make sure you get proper receipts.
You should keep all the paperwork you’ve gathered in case there are any future queries. Remember you are personally liable if there are any errors, so make sure you have all the information somewhere safe!
What does an Executor need to do about trusts and properties?
Trusts! Many modern Wills contain trusts, and these need to be registered with HMRC. You are legally responsible for making sure that’s done. And if you are a trustee as well as an Executor, then you also need to provide regular updates to HMRC too.
Properties. Land Registry titles are likely to need amending. If there is a trust or a jointly owned property becomes solely owned, the title should be updated. We see so many clients where these updates have never been made – and it just delays things when the second person dies.
Or the property may need transferring into the names of the new owners – those who benefitted from the Will. That means filling in forms!
If you need to sell a property this can’t be done until probate has been granted. You can market the house but can’t exchange contracts without the Grant. As Executor, you are the person legally entitled to make the sale on behalf of the estate.
What does an Executor need to do? Call us for help and advice!
So, now you know the answer to the question “What does an Executor need to do?”! All the above isn’t a fully comprehensive list as every estate is different. But I hope that this helps you understand a little about the responsibilities and duties you need to fulfil. Or helps you understand what is needed so you make sure you appoint the right person in your own Will.
As always, if you have any queries, we are here to help. We offer a free 30-minute consultation if you become an Executor. This allows you to ask questions and decide whether you’d like some assistance from us, or from our trusted probate partner.
Just call us on 01524 571032 to arrange a convenient time. Or complete our Information Request form and we can send you our simple guides. You can also find more information on our website here.