The role of executors
Charmaine Feagan, Solicitor in the Private Client team at Berry & Lamberts Solicitors, answers questions on the role of executors.
What is an executor?
An executor is a person who administers a person’s estate upon their death. The executor follows the instructions set out in the will, including distributing the estate of an individual according to their wishes.
How many executors should I appoint?
It is safer to appoint more than one executor in case a sole executor is unable to act, be it either by death or loss of capacity or unwilling to act. A maximum of four executors can apply for Probate and prove a Will.
If I appoint more than one executor, do they all have to act?
No, they do not have to act or deal with the administration of an estate. It is acceptable for just one of them to prove the Will and for any others to stand back and have ‘power reserved’, or renounce as executor.
Who should I choose to be my executors?
There is no rule against who can be an executor of your Will, however you should consider those you trust implicitly, for example a spouse, your children, other family members or friends. You can choose professional executors, such as a firm of solicitors, but there will be costs involved.
If there is a likely to be a dispute between beneficiaries, it may be prudent to appoint an independent executor such as a firm of solicitors.
If executors are appointed who disagree and are in conflict, this can cause delays to the administration of an estate. In certain cases, executors may need to be removed by court order, and an independent administrator appointed in their place to administer the estate.
It is important to remember that executors must be over the age of 18 in order to deal with the estate administration.
Charmaine Feagan
What are the main responsibilities of an executor?
As an executor, you must notify all key institutions and organisations. You must obtain valuations of assets and liabilities of the estate and consider whether inheritance tax is payable. If inheritance tax is payable, you must submit the relevant forms and pay the amount owed prior to applying for a grant of probate. If there is no inheritance tax to pay, you should consider whether a grant of probate is required before making an application. Executors must show that they have taken all reasonable steps to identify all assets and liabilities.
It is a good idea to open an executor’s bank account before collecting in the assets. Once collected, you are then responsible for paying any debts or taxes due (save for IHT). Executors need to prepare estate accounts showing values of assets, any liabilities, income received during the administration period, administration expenses and who is to receive what distribution. Then the estate can be distributed to the beneficiaries named in the will.
If an executor administers the estate incorrectly, they can be personally liable for any loss incurred by the beneficiaries, unpaid liabilities, and any unpaid inheritance tax.
Can a solicitor help an executor?
Appointing a solicitor to assist an executor is very common. Solicitors deal with the administration of estates day in, day out and are very knowledgeable and experienced in this field.
The administration of an estate can be complicated and appointing a solicitor to handle the administration can mitigate risk and streamline the process, ensuring assets are distributed efficiently and legally.
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