Executor responsibilities
The team at IDR Law understand that being made an executor for someone’s will can feel like a very challenging role to take on. As an executor, it is important to understand that you are now responsible for making sure the deceased’s estate is administered properly. This means that you have a duty to ensure that the deceased’s wishes are carried out exactly as they wanted/state in their will.
This is a responsibility that can sometimes feel incredibly daunting, especially at a time when you may be dealing with a lot of grief. Therefore, IDR Law has put together some advice and information (see below), to make understanding and carrying out your duties as an executor of a will that bit easier for you.
What exactly are my responsibilities as an executor of a Will?
If you are a named executor in a will (be mindful that there can sometimes be more than one), it means that you have been given the task of ensuring that the deceased’s estate is dealt with in accordance with their final wishes outlined in the will.
This means that when the deceased passes away, everything they owned upon their death such as their money, assets, property and possessions has now become your responsibility, until everything has been distributed amongst the beneficiaries.
As well as being responsible for the distribution of the deceased’s estate, you should also be aware that there are also many legal obligations attached to the role of executor.
What are my legal responsibilities as an executor?
- Do I need to register the death?
Whilst this isn’t something that you are strictly required to do as an executor – in cases where there may not be a relative that can register the death – it may become your responsibility to do so.
Therefore, it is important to note that in England, Wales and Northern Ireland you must register the death within five days.
- Do I need to get copies of the will?
Obtaining the most up-to-date copy of the deceased’s will is an essential part of your role as executor. This copy of the will should hold the final wishes of the deceased and should offer crucial guidance and instruction on how they want their estate to be distributed.
Be mindful that in the case that the original will is not kept securely at the deceased’s home, an original copy of the Will should normally be released to you by a lawyer.
As an executor it is also important to be aware the only individual that is entitled to see the original copy of the Will, before probate is granted, is yourself (as well as any co-executors).
- Am I responsible for making funeral arrangements?
Yes, as an executor, you are primarily responsible for making the funeral arrangements for the deceased. Although hopefully close friends and family members will be around to assist you and share this responsibility where they can. We suggest that you accept this support, as it can make an incredibly emotional task that little bit more bearable for you and your family.
It is important to note, when arranging a funeral, it is very common for the deceased to have left funeral instructions enclosed within their will or alongside it.
These instructions will normally outline: how the deceased wanted their funeral to be carried out, if they wanted to be buried or cremated, and what sort of wake they wished to have.
Although these wishes aren’t legally enforceable, we advise that you respect the deceased’s wishes and allow them to guide you and your family when making important decisions about the funeral.
- As an executor, am I responsible for paying for the funeral?
Funeral costs typically need to be paid up-front, which means they will normally have to be paid in advance of when the estate funds become available.
Therefore, as funeral costs are normally paid out of the deceased’s estate, it is important that you keep records (receipts etc) of any money spent on things such as: funeral director fees, cremation/burial fees, type of service, cost of flowers, and notices in the paper. This ensures that the money spent on these funeral arrangements can definitely be claimed back from the estate – when the funds are eventually released.
In the meantime, if you or anyone assisting with these funeral arrangements are not in a financial position to cover these initial costs, then you are eligible (as an executor) to ask the deceased’s bank to cover these funeral costs. Most banks will approve and release the funds to pay for the funeral – provided there is sufficient money in the deceased’s account to do so.
It is also important to check if the deceased has any pre-paid funeral plan in place. As these plans often help to cover some of the costs towards a funeral and will normally have had money paid into them in advance of the deceased’s death.
- What does valuing an estate mean?
As an executor, it is usually your responsibility to do a valuation of the deceased’s estate and apply for a Grant of Probate.
This calculation should incorporate both the value of the house and any other possessions owned by the deceased at the time of their death. This additional property may include: the value of any bank accounts, savings, life insurance policies, car(s), land and any ‘gifts’ given in the last 7 years of the deceased’s life (Note: any gifts given within the last 7 years, will be included in the value of the estate).
This can sometimes feel like a complex task to undertake as an executor, particularly if you are having to search for bank statements and sort through further paperwork. Therefore, it might be worth considering paying a professional estate administration service to help handle these valuations for you.
It is very important that the valuation of the estate is accurate for inheritance tax purposes, especially as you only have a short window of six months for the inheritance tax to be paid.
- As an executor, is it my responsibility to pay Inheritance Tax?
Inheritance Tax is tax on the estate of someone who has passed away.
One of the most important tasks as an executor is making sure that you pay the correct amount of Inheritance Tax, within the short 6 month time period.
The current threshold for Inheritance Tax is £325,000.
This means that normally there is no Inheritance Tax for you to pay if the estate is worth less than £325,000. However, it is important to note that you must report the value of the estate to the government whether or not it is higher or lower than £325,000.
The standard Inheritance Tax rate is 40%, which will only be charged on the part of your estate that lies above the threshold (of £325,000).
- What is a Grant of Probate?
Probate is a term used to describe the legal and financial process of administering the ‘estate’ of someone who has died.
Probate is also used to define the process of proving a will’s validity and should verify your legal authority (as the executor) to administer the deceased’s ‘estate’.
However, a ‘Grant of Probate’ must be applied for before you (the executor) can distribute any of the deceased’s assets.
It is a legal document that allows the executor to put their legal authority into action and begin administering the estate. This should grant you access to the deceased’s bank accounts, allow you to settle any outstanding debts and begin selling the necessary assets.
Note: it is only called a ‘Grant of Probate if the person left a will. If they didn’t leave a will, it is called a ‘Grant of Letters of Administration’.
How do I apply for a Grant of Probate?
You can apply for probate online or by post (this may only be done after the estate has been valued).
- Next step: distributing the estate among the beneficiaries
As soon as the Grant of Probate has been issued, you (as an executor) may begin distributing the estate to the beneficiaries, in accordance with the deceased’s will.
Be mindful that it is essential that you obtain proof of distribution. This could be a receipt that includes the date of distribution, names of both the executor (you) and the beneficiary, as well as a clear record of the gift given.
Frequently asked Question:
Do I need probate for joint assets?
Ordinarily, probate would not be required if assets in the estate were jointly owned (such as bank accounts, savings or property), as these assets normally pass to the surviving co-owner under the ‘Right of Survivorship’.
Do I need probate if there is a will?
The existence of a will doesn’t necessitate the need for probate. The need for probate solely depends on the financial situation of the deceased.
Under what circumstances, do I not need to apply for probate?
There are certain occasions where an application for probate is not necessary. This can happen in cases where:
- All the assets in an estate were jointly owned by someone who is still alive,
- Or the estate only consists of cash and personal belongings,
- Or the amount of money in the estate is small (under £5,000) and banks etc have agreed to release the funds without a ‘grant of probate’.
Do I need probate if my husband/wife/civil partner dies?
Probate is generally not required between couples where the assets in the estate are jointly owned, for example most couples have joint ownership over their home or bank accounts. However, probate could be required if the deceased leaves behind any assets that they sole ownership over.
Do I need probate to sell a house?
If the deceased was the sole owner of the property then yes, probate will need to be granted in order to sell the property.
Can an executor inherit anything?
Yes, an executor of a will can also be a beneficiary of the same will.
Who has more power next of kin or executor?
If there isn’t a will then the responsibility of administering the estate falls to next of kin. However, if there is a will, legal authority it falls to the executor(s) which takes priority over ‘Next of Kin’ rights.
What is the threshold for probate in the UK?
The threshold for probate in the UK varies between institutions and are often decided on a case-by-case basis, but they typically range between £5,000-£50,000.
Do executors have a duty of care?
Yes, all executors have a duty of care to carry. This means that it is essential that you act in the best interests of the estate, the beneficiaries and not act in a way that neglects your responsibilities as an executor.