If you are named as an executor in the Will of someone who has died, you will be responsible for winding up their estate. We look at some of the issues you need to be aware of before you start dealing with the administration.
If, for any reason, you do not want to take on the job of executor, you may be able to renounce the position. However, this is only possible if you have not taken any steps to begin the administration process. Once you have started handling the deceased’s estate, you cannot step down.
Matters you should consider before you begin include:
The time taken to deal with an estate administration
The estate administration process tends to be lengthy and time-consuming. Executors generally have a year within which to complete the estate administration. While this may seem like a long time, if property needs to be cleared and sold the process can easily take longer.
If the estate includes a range of assets and liabilities, it can take many hours to contact the holders to obtain the necessary information needed to apply for a Grant of Probate. Other time-consuming elements include:
- Valuing the estate
- Calculating and paying Inheritance Tax
- Applying for a Grant of Probate
- Contacting all asset holders to close accounts and liquidate assets
- Identifying and clearing all liabilities
- Preparing estate accounts
- Distributing the estate and obtaining signed receipts from the beneficiaries
Executors will usually need to put aside hours each week to deal with paperwork and chase responses if organisations are slow to respond.
How complex the estate is
A more complex estate can take a long time to deal with, as well as being difficult to handle. The administration process is not always straightforward and you may need assistance to ensure that each step is carried out correctly and that no mistakes are made.
Calculating and paying Inheritance Tax
Inheritance Tax may be payable on part of an estate, and this can be a difficult calculation. Some elements may attract the tax on a sliding scale where gifts above a certain value have been made within seven years of the deceased’s death.
There are a substantial number of forms to be completed for HM Revenue & Customs, with a separate form for each type of asset and liability as well as for charitable gifts. If you intend to complete the forms yourself, you need to be confident that you can do it correctly.
Whether you will need to place statutory advertisements
If it is not clear who all of the beneficiaries are, for example, if the Will leaves money to ‘grandchildren’, you may need to place statutory advertisements in the local newspaper and the official paper known as the Gazette. This is necessary so that you can demonstrate that you took all reasonable steps to identify beneficiaries who might have a claim against the estate.
Similarly, in some cases, it is necessary to advertise for creditors of the estate to come forward to ensure that all of the estate’s liabilities are cleared.
Preparing estate accounts
Once the estate administration is largely complete, you will need to prepare detailed estate accounts showing the estate’s assets, liabilities and income, as well as how the estate will be distributed.
Personal liability
As an executor, you could face personal liability if errors are made in the administration process which cause a loss to the estate, even if the mistakes are inadvertent.
Your relationships with beneficiaries and other executors
Emotions can run high after a death and it is unfortunately a time when disagreements can arise. You need to be sure that you have a good relationship with any fellow executors and that you are able to keep a professional relationship with the beneficiaries, who can sometimes be demanding.
Do you have to be an executor if you don’t want to?
If you are concerned about the onerous nature of executorship, you can choose to renounce the position. In this case, someone else would need to take on the task.
An alternative is to ask a professional probate solicitor to represent you. This means that you can be sure that the correct process is followed and that the forms will be filled in correctly and submitted promptly.
It can also help to avoid any relationship difficulties, as executors and beneficiaries can be directed to the solicitor if they have enquiries or requests.
Contact Us:
If you would like to speak to one of our expert estate planners, ring us on 01634 353 658 or email us at rob@pembrokewillwriters.com