What is an Executor of a Will?
This topic covers off the following themes:
What is an Executor?
An Executor is named in a Will and they are responsible for handling the affairs of someone who has died. In a Will, there are one or more (up to four) Executors named to carry out the instructions of the Will and deal with the estate. The role of an Executor comes with a lot of responsibilities, including applying for the Grant of Probate.
An Executor may also be referred to as a Personal Representative, which is the collective term for Executors and Administrators (the term used when there isn’t a Will). Read our section on intestacy to find out what happens if there is no Will.
What is your role as an Executor?
The role of an Executor is not one to be taken lightly as the person(s) are financially and legally responsible for administering the deceased’s estate. It is an unpaid role but an Executor can be paid for reasonably incurred expenses.
Additionally, they are the only person(s) who can instruct a legal professional to administer the estate on their behalf.
What are the responsibilities of an Executor?
Executors are responsible for maximising the estate for the beneficiaries (those who are inheriting from the estate), the correct distribution of the estate and ensuring that all assets and debts of the deceased are identified.
They are also accountable for ensuring that any Inheritance Tax payable on the estate is paid and submitted within the appropriate timeframes. If there are any errors on the Inheritance Tax return, they are personally liable and may face a fine for errors or late submission.
The Executor(s) must also ensure that the Income Tax position of the deceased is finalised, up to the date of death and for the period post-death until payments are made to the beneficiaries.
What tasks could an Executor need to handle?
The role of an Executor can involve a vast number of tasks which need to be attended to and it can be a timely process administering an estate. On average, it takes around 12 months to complete the estate administration.
The process could involve:
• Dealing with the property
If there is a property, the Executor(s) will need to source specialist buildings insurance, arrange clearance of the property, contact utility companies, obtain a property and contents valuation, arrange postal redirection, register unregistered properties, maintain the property to a high standard, and arrange to transfer the property into the name of the beneficiary(s) or sell the property standard.
• Completing all of the relevant tax forms
In order to complete the relevant tax forms, an Executor will need to complete the relevant Inheritance Tax forms and any subsequent forms that may be required, correctly calculate any Inheritance Tax that could be payable, ensure the Inheritance Tax is paid within the HMRC guidelines, and complete Income Tax for the year of death and for the period post-death.
• Identifying and valuing the assets and liabilities
• Applying for the Grant of Probate
• Distributing inheritance to the beneficiaries
Click here to view a full list of what tasks an Executor may need to handle.
How do I know if I'm an Executor?
Typically, when someone creates a Will they will inform their Executor(s) that they have nominated them. This means that most people are aware that they will be taking on the role of Executor in advance. However, there are no legal requirements for the creator of the Will to inform the Executor(s) so there is a chance that you may not find out until after the person has died.
Do I have to accept the role of an Executor?
Executors can choose to not take on the role if they wish. If you don’t want to accept the role of an Executor, you can renounce by signing a Renunciation document. Someone else will usually take your place if you decide to resign from the role. It is best to renounce as early in the process as possible and it can cause complications further down the line.
There are many reasons for not wanting to accept the role, such as being unwell, lack of time, not wanting to deal with the estate, or not wanting the legal and financial responsibility.
If the Executor is also named as a beneficiary, resigning from the role will not impact their inheritance.