Being named as an executor of a will can feel like an honour, but it also brings important responsibilities. An executor is responsible for administering the deceased person's estate, dealing with their assets and liabilities and ultimately distributing the estate to the people entitled to inherit.
For someone who has never administered an estate before, it can be difficult to know where to begin.
This guide explains some of the main responsibilities an executor may need to deal with in England and Wales.
1. Locate the Will
One of the first steps is establishing whether the deceased left a valid will and locating the most recent version.
The will normally identifies the executors and explains how the deceased wanted their estate to be distributed.
If there is no valid will, the estate will generally be dealt with under the rules of intestacy and an administrator, rather than an executor, may need to deal with the estate.
2. Identify the Deceased's Assets
Before an estate can be valued and distributed, the executor needs to establish what the deceased owned.
Assets might include:
- Bank and building society accounts
- Property and land
- Savings and investments
- Shares
- Premium Bonds and other NS&I products
- Pensions and death benefits
- Life insurance policies
- Business interests
- Vehicles and valuable possessions
- Digital or cryptocurrency assets
- Assets held overseas
Some assets are obvious. Others may be considerably harder to identify, particularly where records are incomplete or the deceased managed their finances privately.
Executors should therefore make reasonable enquiries rather than assuming that the paperwork immediately available represents the entire estate.
If you're unsure where to begin, see our guide How to Find All the Assets of a Deceased Person in the UK.
3. Identify Debts and Liabilities
An executor also needs to establish what the deceased owed.
This could include:
- Mortgages
- Loans
- Credit cards
- Utility accounts
- Tax liabilities
- Care fees
- Professional fees
- Other outstanding debts
The estate's liabilities normally need to be considered before the remaining estate can be distributed to beneficiaries.
4. Value the Estate
Once the assets and liabilities have been identified, the executor can establish the approximate value of the estate.
Property, investments, business interests and valuable possessions may require appropriate valuations.
An accurate picture of the estate is important both for probate purposes and for determining whether inheritance tax or other tax issues need to be considered.
5. Deal With Inheritance Tax and Probate
Depending on the circumstances, information about the estate may need to be provided to HM Revenue & Customs and inheritance tax may need to be dealt with.
The executor may then need to apply for a Grant of Probate.
The Grant provides evidence of the executor's legal authority to deal with many of the deceased's assets.
Not every estate requires a Grant, so professional advice may be appropriate if the position is unclear.
6. Collect the Estate's Assets
Once the necessary authority is available, executors can begin collecting or transferring assets belonging to the estate.
This might involve closing bank accounts, selling investments or property, receiving money due to the deceased and dealing with other financial institutions.
Good records should be maintained throughout this process.
7. Pay Debts and Estate Expenses
Before distributing the estate, executors generally need to ensure that outstanding liabilities and appropriate estate expenses have been dealt with.
Distributing an estate too early can create difficulties if a previously unknown debt or liability subsequently appears.
8. Distribute the Estate
Once the executor is satisfied that the estate's assets and liabilities have been properly dealt with, the remaining estate can be distributed according to the will or, where applicable, the intestacy rules.
Executors should keep records showing what was received, what was paid and what was ultimately distributed to each beneficiary.
What If an Asset Is Discovered Later?
Finding an additional asset after an estate has been administered does not necessarily mean it is lost.
It may still be possible to collect the asset and make an additional distribution.
However, discovering assets before the estate is distributed is generally much simpler.
This is one reason why executors may choose to make additional enquiries where there is uncertainty about the deceased's financial affairs.
Do Executors Have to Do Everything Themselves?
No.
An executor can obtain professional assistance with different aspects of estate administration.
Solicitors, accountants, valuers and specialist asset-search providers can all perform different roles depending on the circumstances.
Not Sure Whether All the Estate's Assets Have Been Identified?
Estate Resolve helps executors and administrators search for assets and liabilities that might otherwise be overlooked.
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Disclaimer
This article is provided for general information only and does not constitute legal, financial or tax advice. Every estate is different and professional advice should be obtained where appropriate. Estate Resolve provides asset-search services and does not provide legal representation.