Executor Duties
Becoming an executor of a will is both an honour and a significant responsibility. Your executor duties mean you are entrusted with managing and distributing a loved one's estate, which can be overwhelming, emotional, and complex.
From navigating legal requirements to handling financial matters, the role of an executor demands time, attention to detail, and a clear understanding of the law.
At Lawhive, our network of wills, trust, and probate lawyers is on hand to guide you through every step of the executor process, helping you to understand your duties and comply with all legal obligations.
Contact our Legal Assessment Team today for a free case evaluation, guidance, and a no-obligation quote for the services of an expert probate lawyer.
What is an executor?
An executor of a will is the person, or people, responsible for distributing the deceased's assets according to their will.
The primary responsibility of an executor is to the beneficiaries – those named in the will.
When someone dies without a will the person responsible for distributing the estate is known as the administrator. Despite the difference in naming conventions, the role is the same.
What are the main duties of an executor?
The primary duty of an executor is to distribute the funds, property, and belongings of the estate as laid out in the will.
An executor has the legal authority to do this and can be held accountable for any mistakes they make.
Their main duties include:
Keeping the estate’s accounts.
Paying debts owed by the estate.
Calculating if inheritance tax is due, competing and sending inheritance tax forms to HMRC, and paying it.
Paying any other taxes including income tax and capital gains tax.
Applying for a grant of probate.
Notifying banks and other financial institutions about the death.
Valuing and distributing the estate according to the will.
Making court appearances if required.
Executors can also be responsible for locating the original will, registering the death, informing relatives and beneficiaries, and funeral arrangements.
Do I need a solicitor to act as an executor?
As an executor of a will, you are not legally required to hire a solicitor. However, there are several reasons why having a solicitor can be beneficial, especially given the responsibilities involved in administering an estate.
Firstly, they can provide expert guidance to ensure all legal requirements are met and minimise the risks of delays to the probate process by making sure that all paperwork is correctly completed and filed.
Secondly, should family conflicts or disagreements among beneficiaries arise during the probate process, a solicitor can act as a neutral third party and make sure the estate is administered fairly and according to the deceased's wishes.
At Lawhive, our network of experienced solicitors is here to help with executor duties.
Contact us today to learn more about how we can assist you in your role as an executor.
Can an executor also be a beneficiary?
Yes, an executor can also be a beneficiary of a will. This arrangement is common and can work well, provided the executor manages conflicts of interest and acts impartially.
That being said, in the event of a will dispute, seeking professional advice from a solicitor can provide clarity and guidance to ensure the estate is administered according to the deceased's wishes and legal requirements.
How do I value the estate?
To value the estate you need to add up the value of all assets (bank accounts, property, investments, etc) and liabilities (mortgages, loans, credit card balances, unpaid bills). Then, subtract the total liabilities from the total assets.
Depending on the estate, you may need a professional valuation from estate agents, chartered surveyors, or other specialists.
What taxes need to be paid by the executor?
Executors are responsible for paying Inheritance Tax, Income Tax, and Capital Gains Tax on behalf of the estate.
While certain thresholds and allowances may mean no tax is due from the estate, executors must make sure taxes are calculated accurately, filed on time, and paid promptly to avoid penalties or delays.
What if the estate can't pay its debts?
If the estate can't pay its debts, it is considered insolvent.
Executors must follow the legal order of priority and pay each category in full before moving on to the next. Further, they must not distribute any assets to beneficiaries until all debts and liabilities have been settled.
Distributing assets prematurely can make the executor personally liable for any outstanding debts.
Generally, the order or priority is as follows:
Secured debts (e.g. mortgages)
Funeral expenses
Testamentary administration expenses (e.g. probate fees)
Taxes
Unsecured debts (e.g. credit cards, personal loans)
If there aren't enough funds to fully pay a category, available funds must be distributed proportionately among those creditors.
Further, if the estate is insolvent, executors can apply for an Insolvency Administration Order. This process, similar to bankruptcy for individuals, ensures that the estate is managed and distributed according to insolvency rules.
How do I distribute assets as an executor?
Before you can distribute assets, you need to obtain a Grant of Probate, which gives you the authority to manage and distribute the estate.
Then, after all debts, taxes, and liabilities are paid, you can distribute specific gifts and bequestes to named beneficiaries. This can include personal possessions, amounts of money, or particular assets.
After gifts have been distributed, the remaining assets (the residual estate) should be allocated according to the will or intestacy rules.
This may involve selling assets and distributing the proceeds or transferring assets directly to beneficiaries.
What if a beneficiary can't be found?
As an executor, you must locate all beneficiaries named in the will or identified under the rules of intestacy. However, sometimes a beneficiary cannot be found despite your best efforts.
If initial search efforts, like contacting known relatives and friends, using professional services (like tracing agents), or placing advertisements in local newspapers don't prove fruitful, you may need to apply to the court for guidance.
The court can provide directions on how to proceed, which may include distributing the estate without the missing beneficiary.
In some cases, the missing beneficiary's share can be held in a statutory trust until they can be found.
In the long term, if the beneficiary remains unlocated, their share may be passed to the government’s Bona Vacantia division, which deals with unclaimed estates. This usually happens if no contact is made for a significant period (often many years).