When someone writes a Last Will and Testament, they must name an Executor. An executor is the person, or people, who deal with the estate after death. Simply, they carry out the wishes written in the Will and handle the practical tasks that follow.
What Does an Executor Do?
An executor manages the estate of the person who has died. The estate includes money, property, shares, belongings and anything else the person owned.
In most cases, an executor will need to:
- Register the death and arrange the funeral
- Secure any property and valuables
- Locate the Will and check its instructions
- Contact banks, insurers, pension providers and other organisations
- Value the estate and its assets
- Apply for Probate if required
- Pay debts, bills and taxes
- Collect money owed to the estate
- Keep records of all transactions
- Distribute the estate to the beneficiaries
Executors also need to act carefully, as mistakes can create financial issues for the estate and, in some cases, personal liability for the executor.
What is Probate?
Probate gives an executor the legal authority to deal with the estate. Many banks and financial organisations require a Grant of Probate before they release funds or transfer assets.
However, Probate is not always required. For instance, some small estate can be managed without it. Assets owned jointly may also pass automatically to the surviving owner.
Even so, many estates still require probate. In England, the Probate application fee is £300 for estates valued above £5,000. There is no fee if the estate is worth £5,000 or less. Once an application has been submitted, Probate can take several weeks.
Why are Executors So Important?
Executors sit at the centre of the estate administration process. They act as the person legally responsible for making sure the estate is handled correctly. This responsibility goes beyond simply following a checklist. Executors must make decisions and manage deadlines to keep the process moving forward.
For example: An executor may need to decide when to sell a property, how to protect valuable belongings or whether professional advice is needed.
Who Can Be an Executor?
In England, an executor must be at least 18 years old. They can be:
- A husband, wife or civil partner
- An adult child
- Another relative or trusted friend
- A solicitor
- An accountant
- A professional Probate specialist
Additionally, an executor can also be a beneficiary of the Will.
A Will can name up to four executors. This helps spread the responsibility and provides cover if one person cannot act. Some Wills also name a Substitute Executor, who can step in if the original executor cannot take on the role.
Can Family Members Act as Executors?
Yes, and this happens frequently. Many people appoint a spouse, child or other close relative to act as executor. Family members often understand the wishes and circumstances of the person who wrote the Will.
However, being close to the family does not always make the role easier. Grief can make decision-making more difficult. Additionally, tensions can sometimes arise between family members.
How Should You Choose an Executor?
Choosing an executor requires careful thought. Trust remains the most important factor. However, practical ability also matters.
A good executor should be:
- Trustworthy
- Organised
- Willing to take on the responsibility
- Comfortable handling paperwork
- Calm under pressure
- Capable of making fair decisions
Before naming someone in your Will, it is sensible to speak with them first. This conversation helps them understand the responsibility and decide whether they feel comfortable accepting the role.
Do You Need More Than One Executor?
You only need one executor. However, a lot of people appoint two. There are several advantages to this approach.
Firstly, the workload can be shared. Secondly, if one executor cannot act, the other can continue. Thirdly, important decisions can be made jointly. However, joint-executors must work well together. Disagreements can slow the process and create delays.
Can You Refuse to Act as an Executor?
Yes, you can refuse the role. If someone names you as an executor, you are not legally required to accept.
However, timing matters. If you decide not to act, you should step aside before taking any action on the estate. Once you begin carrying out executor duties, it becomes much harder to withdraw.
When Should You Consider a Professional Executor?
A Professional Executor may help where the estate is particularly complicated.
This may apply where the estate includes:
- A business
- Overseas assets or property
- A trust
- Potential family disputes
- A large tax liability
- Complicated property matters
Professional executors bring experience and independence. However, their services involve professional fees. For this reason, many people appoint family members as executors and allow them to seek professional help if necessary.
What are an Executor’s First Steps After a Death?
The first steps often shape the rest of the process.
Executors usually begin by locating the latest version of the Will, registering the death and obtaining several copies of the death certificate. These copies are needed when dealing with banks, pension providers and government departments.
They may also secure the home, review insurance cover and ensure valuable items remain safe.
Next, executors normally contact banks, utility providers, insurers and pension organisations. They may also redirect post, stop regular payments and gather financial documents.
What Taxes Does an Executor Deal With?
Executors must also deal with the tax affairs of the estate.
Depending on the circumstances, this may include:
- Inheritance Tax
- Income Tax
- Capital Gains Tax
- Final personal tax matters for the person who died
For example: The estate may continue to receive bank interest, rent or dividends during the administration period. If this happens, the executor may need to report this income to HMRC.
Since April 2024, estates can receive up to £500 of income per tax year during the administration period without paying Income Tax on that income. If the income exceeds this amount, the executor may need to report all income to HMRC.
Executors must also check whether Inheritance Tax applies. The current nil-rate band is £325,000. In some cases, an additional residence nil-rate band may apply if a home passes to direct descendants.
What Happens During the Administration Period?
The administration period begins on the date of death and ends when the estate has been fully distributed. During this time, the executor takes control of the estate’s assets and manages all related responsibilities.
This process can involve collecting funds from banks, selling investments, arranging property valuations and paying bills. Executors may also need to report income to HMRC and settle any tax due.
How Long Does Estate Administration Take?
Many people expect estate administration to finish quickly. In reality, the process often takes several months. Straightforward estates many conclude sooner. However, estates involving property sales, tax matters or complex assets can take a year or more.
Executors must gather information, settle liabilities and confirm that all legal steps have been completed before distributing the estate.
Records Executors Need to Keep
Clear records protect everyone involved. They show what entered the estate, what payments were made and how decisions were reached.
Executors should keep records of:
- Bank balances and asset valuations
- Debts and bills that have been paid
- Tax forms and payments
- Property sales and assets transfers
- Payments made to beneficiaries
- Letters and emails sent during the process
What Problems can Executors Face?
While many estate remain straightforward, some present challenges.
Common issues include:
- Unclear wording in the Will
- Family disagreements
- Missing financial documents
- Previously unknown debts
- Delays in selling property
- Tax complications
- Legal claims against the estate
An executor must remain fair and act in the best interest of the estate. If problems arise, professional advice can help resolve the issue more effectively. Sometimes, the most difficult challenges involve family relationships rather than legal matters.
What Happens If the Estate Has Debts?
Executors must settle valid debts before distributing any assets to beneficiaries. These debts may include unpaid bills, loans, taxes or other liabilities.
If the estate does not have enough funds to cover its debts, the estate becomes insolvent. In this scenario, debts must be paid in a specific order. Therefore, executors should seek advice before making payments or distributing assets.
Many executors also place a notice in The Gazette. This notice allows unknown creditors to make claims within a set period. Doing this can protect the executor from future claims.
What Happens If There Is No Executor?
If a Will does not name an executor, or the named executor cannot act, the estate still needs someone to manage it. In this situation, an administrator usually takes responsibility.
An administrator performs a similar role to an executor. However, instead of Probate, they apply for Letters of Administration. The administrator then collect assets, settles debts and distributes the estate according to the law.
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This article is for general informational purposes only and does not constitute legal or financial advice. While we aim to keep our content up to date and accurate, UK laws and regulations are subject to change. Please speak to a professional for advice tailored to your individual circumstances. Will Guardian accepts no responsibility for any issues arising from reliance on the information provided.