The Duties of an Executor

The Executors should register the death of the Testator and obtain copies of the death certificate.

A number of copies may be required, not only before the funeral takes place, but also for each of the funds that may have to be released or transferred, such as;

• Bank accounts
• Insurance policies
• Shares and other equities

It’s a good idea to gauge how many copies are needed, in advance, because many organisations will need sight of an original Death Certificate before releasing funds.

Copies obtained from the Registry of Births Deaths and Marriages are regarded as ‘originals’. A photocopy of the certificate isn’t.

The Executors should arrange the funeral in accordance with any instructions contained in the Will.

The cost of the funeral will usually be the first expense paid for from the deceased’s estate.

Enquiries should be made about the existence of any prepaid funeral plan, something that’s becoming increasingly popular amongst people wishing to safeguard against the effects of inflation.

When banking organisations are notified about a death, it’s normal for them to freeze any existing accounts.

Because of this, Executors need to open a Personal Representative’s bank account, which will be used for the receipt of money due to the Estate, the collation of money from organisations holding funds (banks, building societies, Insurance Companies etc), the payment of any debts owed by the Estate, the payment of any Inheritance Tax to the Inland Revenue, the payment of any Probate fees, the payment of any expenses incurred and the distribution of the funds to the beneficiaries.

All Executors are jointly and severally liable for the funds held, prior to their distribution.

Executors need to inform all relevant persons and organisations of the Testator’s death. That includes banks, building societies, life assurance companies, employers, local authorities, Inland Revenue, benefit agencies etc.

Every person and organisation they need to have dealings with whilst carrying out their role will need to be advised.

Organisations that hold funds will require an original copy of the Death Certificate and/or a copy of the Will to establish who the executors are, before they will release those funds to the Executors.

The Executors will need to arrange for a valuation of the Estate. This will include the house and its contents, other personal effects, investments in savings plans, equities, life policies, building societies etc.

Once the valuations have been carried out, they need to draw up a detailed schedule of all the Testator’s assets.

Any money owed by the Testator needs to be assessed and the Executors should draw up a full schedule of the debts that must be paid from the proceeds of the Estate.

These will include mortgages, income and capital gains taxes, bills, credit cards, loans and overdrafts.

The Executors need to assess the money owed to the Estate, as this forms part of the Estate.

A detailed schedule should be drawn up and steps taken to collect the outstanding money.

Once Probate has been granted, copies of the Grant of Probate should be sent to everyone who owes money to the Estate. The Executors now have the legal authority to pursue any debts owing to the Estate.

Once the Executors have established the full value of the Estate by valuing the assets, assessing money owed by the Estate, assessing money owed to the Estate and allowing for the costs involved in selling any assets, they need to complete the forms required by the Inland Revenue Capital Taxes Office, so that it can be established whether any Inheritance Tax is due.

When Inheritance Tax is due, the Executor’s account of the Estate is passed to the Inland Revenue and the Inheritance Tax becomes due and needs to be paid.

There will be circumstances where part of the Estate has to be sold in order to to pay the Inheritance Tax but this doesn’t change the fact the the HMRC will expect payment, immediately.

Where there aren’t sufficient funds to pay the Inheritance Tax prior to selling the assets a short term loan may need to be taken. Banks can arrange loan facilities to pay the tax straight away.

It’s important to note that the Grant of Probate cannot be issued until the tax has been paid, which means that the Executors can’t distribute funds or complete their work before then.

The Executors need to complete the probate forms and send or take them to the Probate’ Office along with the original Will, The Death Certificate and the Inland Revenue account.

An appointment will be made for the Executors to swear the papers within about 5 to 6 weeks of receipt at the Probate Office and once any Inheritance Tax has been paid.

When the Grant of Probate is received, the Estate can be divided according to the terms of the Will.

The Executor must prepare and sign accounts detailing all assets, any debts and the expenses involved in liquidating any assets and reaching a net value for the Estate. They also need to have account that show who has received what from the distribution.

The Executors must be able to show that they acted in accordance with the terms of the Will, in case there’s any dissent from the family of the deceased.

All Papers, including the Grant of Probate, the accounts and any documentation pertaining to the work carried out, need to be kept for 12 years.