Being an executor is an important responsibility, but you do not have to manage the process alone. The role can feel daunting, especially while you are grieving. You may be unsure what you need to do, concerned about making a mistake or reluctant to take on the responsibility.
This guide explains the main steps, so that you can understand what is expected and carry out the deceased’s wishes carefully.
It assumes that the deceased left a valid Will. Different rules may apply if there is no valid Will or if the estate is complex.
What is an executor?
An executor is someone appointed in a Will to deal with the person’s estate after they die and to carry out the instructions in the Will. The estate includes everything the person owned and everything they owed at the date of death.
The executor must identify and value the estate, deal with it in accordance with the law and follow the Will. They should also check for any codicil or letter of wishes. A codicil is a later document that changes or adds to the Will. If required, the executor must apply for a Grant of Probate, which gives legal authority to deal with the estate.
Executors must act in the best interests of the estate and its beneficiaries. They must meet legal and tax obligations, keep accurate records and take reasonable care not to cause loss to the estate. An executor may be personally responsible if they act improperly or distribute assets too soon.
The executor’s main responsibilities
- register the death and help arrange the funeral
- find the original Will and other important documents
- protect the estate’s property and other assets
- identify and value assets and debts, and work out the tax position
- apply for probate if needed and collect the estate assets
- pay debts, expenses and tax, then distribute the estate
- keep clear records and prepare estate accounts
1. Register the death and arrange the funeral
Once the death has been medically confirmed and the cause of death has been established, the death must normally be registered within five days in the district where the person died. The registrar will provide the paperwork needed before a burial or cremation can take place. Different arrangements may apply if the death is referred to a coroner.
Check the Will, any codicil and any letter of wishes for funeral wishes. These wishes are usually not legally binding, but they should be considered. Reasonable funeral costs can normally be paid from the estate if enough money is available. Keep all invoices and receipts.
2. Find the Will and other important documents
Find the most recent original Will as soon as possible. Check whether there is also a letter of wishes or one or more codicils. A codicil is a document made after a Will that changes or adds to it. It must be read together with the Will.
Read these documents carefully. They identify the executors and explain how the deceased wanted the estate to be dealt with.
Also look for documents that may help identify the estate, including:
- any Lasting Powers of Attorney or Enduring Powers of Attorney
- property deeds and ownership documents
- bank, investment, pension, insurance and tax records
- other important personal papers, such as birth, marriage or civil partnership certificates
These documents may contain useful information about the estate. Keep them safe and handle them carefully throughout the administration.
If documents cannot be found: search the deceased’s papers and belongings, contact their solicitor, and ask relevant banks and financial organisations. A recognised Will-search service may also help you find the latest Will.
3. Protect the estate
Take reasonable steps to keep the estate safe until it can be administered and distributed. Secure property and valuables, check that insurance remains suitable, especially for an empty property, and notify banks, insurers and other relevant organisations of the death. Continue to monitor assets and pay essential expenses where appropriate.
4. Identify and value assets and debts
Work out what the deceased owned and owed at the date of death. This establishes the estate’s value and helps determine whether tax is due. Make reasonable enquiries so that the information provided to HM Revenue & Customs is complete and accurate.
The estate may include:
- bank and building society accounts
- savings and investments
- property and land
- personal belongings and valuables
- business interests
- some gifts made by the deceased during the seven years before death
- assets held in certain trusts, or benefits the deceased received from them
You must also identify what the deceased owed. This may include mortgages, loans, credit cards, household bills, care fees and other unpaid amounts. Tell known creditors about the death where appropriate. You may also consider placing a formal notice for unknown creditors, giving them an opportunity to make a claim. This can help protect you from personal responsibility for debts that were not known when the estate was administered.
Assets should usually be valued as at the date of death. Keep a separate record of any income or interest received afterwards, as the estate may need to report and pay tax on it. Keep a clear record of all assets, debts, income and expenses. This will make the administration easier and help you give accurate information to HM Revenue & Customs.
5. Apply for probate if needed and collect the assets
You may need a Grant of Probate before banks and other organisations will let you deal with the deceased’s assets.
A Grant of Probate is the court document that confirms the executors’ legal authority to collect assets, pay debts and tax, and distribute the estate.
Not every estate needs probate. The answer depends on the type and value of the assets and how they were owned. Each bank, investment provider or other organisation may have its own requirements. Once probate has been granted, where required, you can collect or transfer the assets and continue administering the estate.
6. Pay liabilities and distribute the estate
Before paying beneficiaries, settle the estate’s debts, funeral costs, administration expenses and any tax due. Check that all known liabilities and claims have been dealt with, and keep back enough money for any remaining costs. The balance can then be distributed in accordance with the Will.
Do not distribute the estate too early. For example, a beneficiary may be entitled to interest if a cash gift remains unpaid 12 months after the date of death, but there may also be good reasons to wait while tax, debts or claims are resolved.
7. Keep records and prepare estate accounts
Keep clear, accurate records of the estate’s assets, income, payments, expenses and distributions. Retain supporting documents such as valuations, statements, invoices, receipts and tax records.
When the administration is complete, prepare estate accounts showing what came into the estate, what was paid out and how the balance was distributed. Share them with the beneficiaries, deal with any reasonable questions and retain a copy with the estate papers.
Summary of key points
An executor will:
- Read the Will, any codicils and any letter of wishes before taking major steps.
- Identify, value and protect all assets, and identify all debts and possible claims.
- Check the inheritance tax and other tax position, and obtain probate if it is required.
- Pay debts, tax and expenses before distributing the estate under the Will.
- Keep full records and prepare estate accounts for the beneficiaries.
- Take advice if the estate includes a business, trusts, overseas assets, disputed claims, possible insolvency or difficult tax issues.
How Tees can help
If you would like advice about your responsibilities as an executor, or help with any stage of administering an estate, please contact Tees. Our team can explain what you need to do, help you meet your legal and tax obligations, and support you throughout the process.
Disclaimer
This guide gives a general overview of an executor’s role and responsibilities in England and Wales. It is for information only and is not legal, tax or financial advice. The right steps will depend on the circumstances of the estate, so obtain advice where needed before acting or distributing assets.
