You have been appointed an Executor. What happens now?

Senior associate solicitor, Charlotte Cooper from our private client team looks at the steps people need to take once they have been named as an executor in a Will.

In England and Wales, there is no legal requirement to notify a person if they have been named as an executor in a Will.

While clients are advised to tell their executor of their appointment and the location of the Will, there are several reasons why many clients refuse; they don’t want family members to be aware they are making a will, they don’t want to upset someone who has not been appointed, they may change the executors in the future.

For these reasons, many bereaved people can be surprised to find they are appointed as an executor.

What do you do?

Act, reserve or renounce?

Consider first whether you wish to take up the appointment. Take the advice of a solicitor and discuss the reasons for any reluctance to act. If there are several executors appointed, you could have power reserved to you or renounce.

‘Power reserved’ means you can be informed of the administration, but you are not required to make decisions, sign documents or be named upon the Grant. If you change your mind your role can be re-ignited but this does cause additional costs.

Renouncing means your appointment as executor is removed and you have no legal role in the administration of the estate. You cannot change your mind once you have renounced.

If you have started acting as an executor, for example by collecting monies or giving instructions to agents, it may be too late to renounce as you will have ‘intermeddled’ in the estate.

Do I lose my inheritance by not acting?

Check that not acting as an executor does not forfeit any possible gift left to you in the will. Some clients bequeath a cash gift to an executor only if they take up the role.

If there is no stipulation and you are included in later gifts in the will, refusing to be an executor, would not affect your inheritance.

I’ll act – what do I have to do?

Executors are responsible for the following:

• Identifying all assets and debts both in the UK and overseas both personal and business
• Identify any gifts made by the deceased in the seven years prior to death.
• Paying all outstanding liabilities.
• If required reporting an accurate account to the revenue and discharging any tax.
• Identifying all the beneficiaries.
• Keep full financial records for the scrutiny of beneficiaries.
• Report and pay any income tax to the date of death and during the period administering the estate.
• Collecting in all assets or transferring assets dependent upon the wishes of the beneficiaries.
• Responding to any queries raised by beneficiary.
• Correspond with agents for the deceased such as accountants and financial advisors.

What are the risks?

If the executor does not administer the estate correctly or inefficiently, causing loss to the beneficiaries, they risk being personally liable.

Using a solicitor to administer the estate on the executor’s behalf is a cost borne by the estate giving invaluable protection to executor trying to fulfil the wishes of the deceased.

For more information on this matter, or any other issue relating to wills and inheritance, contact Harrison Drury on 01772 258321.