The Roles & Risks of an Executor
As we always say it is an honour to be asked to be an executor for someone; it shows that they really trust you. However, it can be a burden and the role brings with it great responsibility.
Here we have a look at this in a bit more details…
So, let’s start at the very beginning:
What is an Executor?
“A person or institution appointed by a testor [the person writing the Will] to carry out the terms of their Will.”
Where there is no Will, the person that takes on this role is known as an Administrator, rather than an Executor.
The Role of an Executor (or Administrator)
So, now we know that the Executor is responsible for carrying out the terms of a Will, we will have a brief look at exactly what that entails and what other duties form part of this:
- Contacting utility companies;
- Putting the necessary insurances in place;
- Obtaining property valuation;
- Obtaining contents valuations;
- Redirection of post;
- Transferring property into the Beneficiaries names or selling (as required);
- Valuing Estate assets;
- Valuing Estate liabilities;
- Applying for a Grant of Probate;
- Completion of Inheritance Tax forms;
- Calculating Inheritance Tax;
- Paying Inheritance Tax within HMRC guidelines and deadlines;
- Completion of Income Tax forms (for the year of death and period following death);
- Consideration of Capital Gains Tax;
- Set up any Trusts set out within the Will;
- Sell or Transfer any Shares;
- Pay all Estate debts and liabilities;
- Distribute assets and Estate funds to the Beneficiaries (and obtain receipts);
- Produce Estate Accounts.
The Risks taken on by an Executor
As you can see the role of an Executor is not one to be taken lightly and can be quite lengthy, depending on the Estate that you are administering.
It is also worth noting that the Executor takes on a legal obligation when accepting their position as Executor as well as financial risk.
Ignorance is no defence and so an Executor with a lack of experience and/or knowledge can quickly become overwhelmed.
However, it is important to remember that an Executor does not have to do everything on their own…help is available and it is okay to ask for help!
Whether you engage a professional or spread the burden among family members that have experience in dealing with such circumstances to help relieve some of the pressure, it is possible to reduce your exposure and risk as an executor.
If you would like to have a free chat about your Will or acting as an Executor, please contact us on info@TotalLegacyCare.co.uk or 01727 865 121
Leah Waller
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