The executor of a will is a very important individual responsible for many administrative tasks after a person’s death. When writing a will, a loved one might choose you to take on this vital role for them when they’re gone.
If you’ve never been an executor before, you might be unsure about exactly what the job entails, and you wouldn’t be alone.
In fact, new research from Canada Life revealed serious gaps in knowledge about what an executor’s responsibilities are.
When probing those who are currently named as an executor or have acted as one in the past, the survey found:
- 68% were unaware the executor is responsible for arranging a funeral
- 47% didn’t know the executor must calculate and pay all relevant taxes, including Inheritance Tax (IHT)
- 44% didn’t realise the executor needed to secure the property of the deceased as soon as possible.
These are just some examples of the important responsibilities that many executors could overlook. If you aren’t clear about your duties, you might find yourself in an incredibly stressful situation while grieving for a loved one.
That’s why it’s so important to prepare beforehand.
Read on to learn the key steps you must take if you’re the executor of a will.
Securing the property and registering the death
If you are the executor, there are several important steps you must take after first learning that the person in question has passed away.
First, you must secure the property as soon as possible to prevent theft or damage of any kind. This may be as simple as visiting the property to lock everything up. However, if there are any maintenance problems you might need to arrange for repairs. You may also need to contact the insurance company to check that the property is still covered.
Once the property is secured, you can begin dealing with the administrative tasks.
This includes registering the death with the local authority and obtaining a death certificate from the General Register Office (GRO)
You will then need to locate the will so you can administer the estate.
Finally, you will need to plan a funeral on behalf of the deceased. They may have left instructions about their send off in the will. If they haven’t, it’s up to you to discuss it with the family and decide on the details.
Valuing the estate and applying for probate
After dealing with the initial tasks following the death, you can begin organising the estate.
The first step is to gather and value all the assets including:
- Property
- Cash savings
- Investments
- Pensions
- Personal possessions.
It may be a good idea to have a conversation with the person who has named you as their executor so they can show you where they keep important paperwork with details about their assets. They can also show you where they keep their will.
Once you have a total value of the estate, you must calculate how much Inheritance Tax (IHT) is due, if any. The government provides detailed information on how to work out what tax is due on the estate here.
You can then apply for probate – the legal right to deal with somebody’s estate.
To do this, you will fill out an online application form and submit:
- The death certificate
- A completed IHT form
- The original will.
You will also have to pay a fee of £300 if the estate is worth more than £5,000.
Normally, before probate is granted, you must pay any IHT that is due on the estate. Bear in mind that you won’t yet have access to funds from the estate, so will need to cover this expense yourself and recoup the wealth later, once probate is granted.
Settling liabilities from the estate
After probate is granted, you will be able to access the deceased’s bank accounts and other assets. Before you do anything else, you will need to settle any liabilities from the estate.
This might include paying off debts including a mortgage, credit card debts, or personal loans.
You may also recoup some of your own costs, including funeral expenses, probate charges, or wealth you used to cover an IHT bill.
There may also be tax to pay on income the estate receives after the death. For example, if the deceased had a rental property that is still generating income, you may need to pay outstanding Income Tax.
Distributing assets and closing the estate
Finally, when all the liabilities are settled, you can administer the estate. The deceased’s will should contain instructions about who will inherit which assets.
It is up to you to distribute these assets according to the instructions in the will.
When you are finished, you can file the relevant paperwork with the courts to formally close the estate. This ensures that no future liabilities can be bought against the estate.
Get in touch
Managing the responsibilities of an executor can be challenging, but we can give you guidance.
Please get in touch or email us at advice@mlifa.co.uk for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.
The Financial Conduct Authority does not regulate estate planning.