An executor is someone named in a will as legally responsible for sorting out the deceased’s estate (that’s all their property, money and possessions). If there is no will or the named executors are unwilling to act, you may be appointed as an administrator instead. The role of an executor and administrator is essentially the same so to keep things simple we’ll just use the word ‘executor’ to cover both roles in this guide.
If you are someone’s executor there are certain things you will be expected to do but that doesn’t mean you can’t get some help.
Most people appoint a solicitor to do the day-to-day work of sorting out a will. But you can do it all yourself or ask a solicitor to do some of the more technical bits for you if you prefer. Your decision will probably come down to how much time you have and how complex the deceased’s affairs are.
Even if you do use a solicitor, it’s a good idea to know how the process works so you understand what work is being done on your behalf.
This guide covers being an executor or administrator in England and Wales only. Different rules apply for dealing with an estate in Northern Ireland and Scotland. Some of these rules are covered in Age UK’s guide How to be an executor and you can find out more about how things work in Scotland in this guide from the Scottish government.
Appointing a solicitor to help
It’s often a good idea to contact at least three firms of solicitors to get quotes.
Some solicitors charge a percentage of the estate value, others charge on an hourly basis or quote a fixed fee. If they charge a fixed fee check the circumstances when you may be charged more than this. The cost of a solicitor is usually paid for by the estate.
To find solicitors in your area with wills and probate experience, try the Law Society’s Find a Solicitor service.
What does an executor do?
Executors have five main responsibilities. These are:
- sorting out the initial practical arrangements
- valuing the estate
- working out if inheritance tax is due and paying it
- applying for probate
- distributing the estate.
Initial practical arrangements
The first job is to check you have the most up-to-date will and are named as one of the executors. If you’re not sure you have the latest version, check the deceased’s paperwork and contact their bank and solicitor to see if there’s a more up-to-date will. You should also check with online will storage companies and the Probate Service.
Executors also often register the death, inform relatives and arrange the funeral.
You should check the will to see if the person who died left particular instructions about their funeral and if they had a pre-paid funeral plan or any insurance specifically to cover the cost of their funeral.
If you arrange the funeral then you’ll be responsible for paying the costs. But you can claim these back from the deceased’s estate (banks sometimes release money to cover the cost of the funeral providing there is enough money in the deceased’s bank account).
Valuing the estate
To value someone’s estate you need to establish exactly what the person who died owned and what they owed. This involves gathering together all the relevant paperwork and checking who you need to contact such as the deceased’s bank, life insurance company, utility suppliers and their employer or pension provider. Notify each organisation of the death and ask how much the deceased was due or owed at the date of their death.
Work out if inheritance tax is due
Depending on the value of the estate there may be inheritance tax to pay. If no inheritance tax is due you will need to complete form IHT205. If there is inheritance tax to pay you’ll need to complete form IHT400. If you would like help filling in the forms contact HMRC’s probate and inheritance tax helpline on 0300 123 1072.
You usually have to pay some of any inheritance tax before you can apply for a grant of probate (see below). This can cause difficulties as you can’t usually access the money in the deceased’s estate until probate is issued. However, check if there is a life insurance policy written in trust as this will pay out without probate. Also, talk to the deceased’s bank or building society as some will release money directly to HMRC to cover the inheritance tax bill before probate is received. Alternatively it may be possible to get a loan from the deceased’s bank.
Applying for probate
Usually you need to apply for probate before anyone can inherit the deceased’s money, property or possessions.
However, there are exceptions. For more on probate see our guide.
Distributing the estate
Once you’ve got the grant of probate, you can send copies of it to the organisations holding the deceased’s money and ask them to release it to you. Ordinary photocopies won’t be accepted so you’ll need the Probate Registry to give you sufficient additional copies. It’s a good idea to open an executor bank account to pay this money into.
Once you have collected all the money, you must pay off the deceased’s debts. Any remaining money, property and possessions should be distributed according to the will.
Your final job is to complete estate accounts, showing everything that has come in and what has been paid out, and get them approved and signed by the beneficiaries.
Written on 19 December 2017