Appointing an Executor for your Will

• Acting as an Executor is a job for life.

• Careful consideration needs to be given as to who to appoint.

• Being and Executor is a difficult and time-consuming job.

• Relatives may be too distressed to perform the role.

• Decisions could make them unpopular with Beneficiaries.

• The role carries legal liability.

Appointing Executors

You choose Executors to carry out your wishes, as stated in your will. They can be beneficiaries under the Will and often people appoint their spouse, partner or children as Executors. (*see below!)

Check with your proposed Executors that they are willing to take on this role before naming them as it can involve considerable responsibility. Consider naming more than one Executor in case one dies before you do.

It may be easier for the Executors if there is more than one person to share the work and the responsibility. They may have to deal with any day-to-day administration of your estate in the period before it can be distributed. Executors can claim from the estate for expenses incurred in carrying out their duties.

If the estate is large or complicated, there would certainly be advantages in appointing a Professional Executor/solicitor.

From personal experience I would recommend appointing a Professional Executor should be seriously considered Will.

Your Choice of Executors

Executors are often Professional People (Solicitor, Accountant, Bank Manager) or can be a Trust Corporation. Legally, anyone over the age of 18 (when the Will is registered) can be appointed.

They all have advantages and disadvantages which need to be considered in the light of your circumstances.

You should take into account their availability, suitability, willingness to act, any possibility of conflict or dispute as well as the possibility of them predeceasing you.

The size, nature and location of the estate, the assets and the Beneficiaries, as well as the extent and complexity of the burden placed on the Executor(s) is often a major consideration along with the costs involved.

Where professionals are chosen as Executors, they may be appointed as individually named persons or as a firm. Executors like Trustees, are in a fiduciary relationship so they cannot make profit out of their office. They may only claim out of pocket expenses. Therefore, a charging clause must be included, authorising them to charge for all the work done by the Executors or their firm in administering the estate.

There is nothing to say that an individual cannot be appointed as an Executor where he or she is the sole Beneficiary, or where the estate is small or uncomplicated

The size, nature and location of the estate, the assets and the Beneficiaries, and the extent and complexity of the burden placed on the Executor(s) is often a major consideration along with the costs involved.

You really should notify them as to the location of your Will!

Understanding the role of Executor.

An Executor must carry out certain tasks and duties to legally fulfil the obligations of the task.

• Obtain a copy of the medical certificate indicating cause of death and a formal notice from the Doctor if the family members do not wish to do so.

• Register the death at the local Registry of Births, Marriages and Deaths if there are no family members able or willing to do so. The death must be registered in order to obtain the Death Certificate. NB It is advisable to get more than one copy as it will be needed when dealing with Banks, Pension providers, insurance companies etc.

• Ensure any last wishes such as organ or body donations are carried out. The job might also include planning the funeral and/or cremation and arranging for payments for service provided.

• Make sure they have the last Will of the deceased.

• Locate all the heirs/beneficiaries. This might seem like an easy task and if there are just a couple of children and they are the only ones named on the Will, it may indeed be easy. If there are numerous heirs and they are named in the Will either collectively or individually, the Executor must locate each and every one.

• Make an exhaustive list of all the assets of the estate from personal to real property, bank accounts, shares, investments, insurance policies etc as well as debts including loans, mortgages, credit cards, utility bills/providers as they all must be accounted for.

• Open a separate bank account for the estate for any money collected and paid out. This will prevent estate monies getting mixed up with your personal finances.

• Notify all businesses of the death – Utility Companies, Banks/Building Societies, Local Council, Social Security etc.

• Make sure that all the deceased debts are settled before any of the estate is distributed to the Beneficiaries.

• If there are minor children, dependent children, or dependant adults, the Executor could be responsible for arranging for their care and placement. The deceased might/should have their wishes stated in the Will but, if not, the Courts might need to be involved in the placement.

• If there are pets, the Executor will need to care for them and make arrangements for their continued care.

• Calculate and declare the value of the estate to HMRC on an Inheritance Tax return, within 12 months of the Death.

• Pay any Inheritance Tax (IHT) necessary.

• Pay the Deceased’s Tax. This is your personal responsibility. Failure to submit an accurate account to HMRC may leave you open to personal liability and/or penalties.

• Complete the relevant forms and submit them to the Local Probate Registry to obtain a Grant of Probate.

• Distribute the contents of the Will, making sure that anything is left to minors, a Trustee is named.

• After you have completed all your tasks, you, the administrator must produce a full set of accounts for the Beneficiaries showing the estate assets and liabilities, administration income and expenses and how the estate has been distributed.

A key consideration for you will be the extent you wish to involve professionals to help.

A solicitor can deal with the administration of the estate and have a professional duty of care to explain clearly in advance the basis of their charges, so you know what to expect.

If you are considering asking someone to serve as the Executor of your estate, be sure you both understand the duties and responsibilities of being an Executor.

Being appointed the Executor of an estate is not really an honour; it is a difficult and time-consuming job, that carries legal liability. An Executor will probably work long hours for months if not years getting your estate settled and they could quite possibly end up as an unpopular person to your heirs.

*A relative may feel obliged to accept the role but believe me, at the end of the day, they are unlikely to thank you, even posthumously.

Please contact us if you want more information regarding the issues outlined in this publication or any other related matter.

Chris Parry - 07804 513 452

admin@safehandsfinancial.co.uk

The Safe Hands Financial Ltd does not accept responsibility for any loss that may occur if you make decisions based on this guide alone without seeking professional advice. Any law referred to is correct at the date below but the law changes and can affect each person differently.