What Does an Executor Do?

Executor Responsibilities

Being named an executor in someone’s Will is a significant responsibility. It means managing their estate and ensuring their wishes are carried out. This can seem like a daunting process, which is why we’ve prepared a straightforward guide to help you understand what’s involved and where to turn for support.

Immediate Responsibilities

When someone passes away, the executor’s first task is to register the death. This must usually be done within five days in England, Northern Ireland and Wales, or within eight days in Scotland. You’ll need a medical certificate from the GP or hospital, or permission from the coroner.

Once the death is registered, the executor can arrange the funeral, ensuring any specific wishes left in the Will or other documents are respected. It’s important to note that funeral costs are typically covered by the estate, as banks may release funds directly for this purpose.

Applying for Probate

Before distributing the estate, the executor must apply for probate, which gives legal authority to deal with the deceased’s assets. To do this, you’ll need:

• The original Will
• A death certificate
• An accurate valuation of the estate, including property, savings, investments and debts

Inheritance tax (IHT) must be settled before probate is granted. Executors are responsible for completing the necessary IHT forms and paying any tax due to HMRC. Valuing the estate accurately and determining any applicable exemptions or reliefs is key to this process.

Managing Finances

An executor must handle the deceased’s financial obligations, including income tax, capital gains tax and outstanding debts. If the estate cannot cover all liabilities, it may be considered insolvent. In such cases, debts must be paid in a specific legal order.

Before distributing the estate, it’s advisable to place a deceased estates notice in a local newspaper. This protects the executor from unknown creditor claims.

For assistance with probate and tax responsibilities, consult a Kent accountant for probate services or Kent tax advisors.

Distributing the Estate

Once probate is granted, the executor can collect the assets, such as closing bank accounts or selling property. Beneficiaries may receive assets directly or as proceeds from their sale, depending on the Will’s instructions and their preferences.

If the Will includes a trust, the executor may also need to consider their future role as a trustee, managing the assets for beneficiaries.

Keeping Records

Executors must maintain clear and accurate estate accounts throughout the process. These records should detail all transactions, from payments made to funds distributed. Once completed, share the accounts with beneficiaries for approval to ensure transparency.

Seeking Expert Guidance

Acting as an executor can involve navigating complex legal and financial matters. High-net-worth estates or those with international considerations may require specialist advice. Experts such as Nick Hughes, who advises on UK and non-UK domiciliaries, trusts and estate planning, can offer tailored support for complex cases.

While being an executor carries responsibilities, understanding the steps involved and knowing where to seek advice can make the process more manageable. You’re fulfilling an important role, and there’s always help available to guide you through it.