Executors of a Will play a crucial role in estate administration. They are the individuals entrusted with carrying out the wishes of the deceased and ensuring their estate is distributed in accordance with the terms of their Will. Many who take on this role do not have prior experience in estate administration, and the complex concepts and terminology involved can be confusing and overwhelming. If you have been nominated to act as an executor, understanding your duties and executing them correctly is crucial to avoid disputes and face personal liabilities. So, what is an executor of a Will? Who can act as executor, and what does the role entail?
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What Does An Executor Of A Will Do?
As executor of a Will, your primary responsibility is distributing the estate of the deceased in accordance with their wishes as detailed in the Will. You have wide-reaching obligations relating to administrative, legal, and tax matters.
Examples of the specific tasks you may need to undertake include the following:
- Registering the death.
- Valuing the estate, including obtaining professional valuations where necessary.
- Settling the estate’s debts and liabilities.
- Paying any inheritance tax.
- Applying for a Grant of Probate.
- Ascertaining who the beneficiaries are.
- Distributing the estate between the beneficiaries.
- Keeping estate accounts.
There will be no executors if the deceased died without leaving a Will. Instead, the estate will be distributed by individuals known as ‘administrators’ in accordance with the intestacy rules. The deceased’s family members can apply to act as administrators, with each family member ranked according to their relationship with the deceased. For example, spouses and civil partners are first, followed by children, parents and siblings.
What Are An Executor’s Legal Duties?
Getting things right when acting as an executor is crucial. Executors are under a legal obligation to carry out their role with care and skill and to act in the best interests of the estate. If you don’t, and if your actions cause losses to the estate, the beneficiaries may hold you personally liable and force you to make good their losses from your own pocket.
Say, for example, the estate comprises the deceased’s house. As an executor, your duties to act in the best interests of the estate dictate that you must achieve a fair market value when selling the house and realising its value to distribute between the beneficiaries. If you sell it for less than a fair market value, the beneficiaries may look to you to make up any shortfall.
Securing a fair price may not be as straightforward as putting the property on the market and waiting for a buyer. Since the occupant has died, the house is likely to be sitting empty, so retaining its market value might necessitate you taking proactive steps, such as keeping it secure and ensuring it is insured.
Furthermore, you must consider the potential tax consequences of any proposed sale, for example, whether it would expose the beneficiaries to capital gains tax.
Who Can Act As Executor Of A Will?
The deceased will have named the individuals they wish to administer their estate in their Will. Anyone can be chosen to act as an executor, provided they are over the age of 18 at the time of the death and have the requisite mental capacity to carry out the job.
Most people choose family members or friends to act as their executors, which makes sense given the high level of trust placed in them. However, it’s important to ensure those you select are suitable and have the time to carry out the tasks required of them effectively. Being an executor can be arduous, time-consuming and, at times, stressful, so it’s a good idea to speak to the individuals you have in mind before you nominate them to check that they feel able to take on the role and are happy to do so.
Instead of nominating friends and family, some people choose professional executors to administer their estate, particularly if it is particularly large or complex, or to avoid disputes between family members. For example, they may choose their solicitor or accountant. Those professionals will charge for the work involved in administering the estate.
How We Can Help
At Birch & Co., we have a team of specialist solicitors dedicated to assisting clients with all aspects of estate administration. Whether you wish to make your Will or have been nominated as an executor under someone else’s Will and require guidance on administering the estate, we are on hand to provide straightforward, cost-efficient legal advice and support.
Reach out to Birch & Co’s specialist and supportive team today. Call us on 0191 284 5030 or complete a Free Online Enquiry now to get a bespoke fixed price estimate.
“I cannot fault the professionalism and helpfulness throughout what has been a difficult time. I would not hesitate to use your services again and would recommend you to others.” (Mrs Surtees)
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