Understanding the role of an executor in your Will
24 June 2024
When preparing your Will, one of the most crucial decisions to make is who to appoint as your executor(s). The role of an executor is pivotal in managing your estate after your death, ensuring that your wishes are honoured and that your beneficiaries receive their inheritance.
The role of executor also comes with personal liability and so the person appointed should be aware of this and of what the role entails.
Whether you are looking to put in place a Will and so are considering who to appoint as executor, or you have been asked to act as an executor, you should consider this carefully.
Who can be an executor?
An executor can be anyone you trust – a family member, friend, a professional, or a corporate entity. It is important that you consider the complexity of your estate and the capabilities of the individuals you are considering appointing as executors. If you intend to appoint more than one executor, you should also think about their relationship to one another and whether they will be able to work together.
Duties of an executor
Broadly speaking the executor’s duties include:
- Arranging the funeral – there may be funeral wishes included in your Will but, ultimately, it is for your executors to arrange your funeral.
- Collecting in details of the assets and liabilities of the estate – depending on the nature and extent of your estate this may be straightforward or more complex.
- Dealing with the inheritance tax reporting and application for the Grant of Probate – depending on the nature and extent of your estate this may or may not be required.
- Settling liabilities of the estate, including any taxes due – it is sensible for executors to obtain clearance/confirmation that all taxes have been settled before distributing the estate.
- Distributing the estate in accordance with the terms of the Will – this can include needing to trace missing beneficiaries and considering whether there are any ongoing trusts for beneficiaries.
Executors can deal with the estate administration process themselves or instruct a professional to assist. The cost of professional assistance will be a liability of the estate.
Choosing the right executor
When deciding who to appoint as your executor, you should consider the following:
- Trustworthiness – this person will be handling the assets of your estate and should be someone you trust implicitly.
- Organisational skills – administering an estate requires a high level of organisation and attention to detail.
- Financial acumen – an understanding of financial matters is beneficial.
- Availability – the process can be time-consuming, often taking 12 months or more to finalise.
- Willingness – you should ask the person you are considering if they are content to take on the role. It is a significant responsibility and not everyone may feel comfortable accepting it.
Conclusion
The role of an executor is a significant one, and choosing the right person is essential. They will ensure your estate is managed according to your wishes and that your beneficiaries are looked after. When making your choice, consider the individual’s abilities, the complexity of your estate and the legal responsibilities they will need to fulfil.
The Birketts view
Birketts’ Private Client Advisory Team can advise on all aspects of Will drafting and estate administration, including in relation to the role of an executor and the legal and practical implications of this appointment and the protections which are available for executors. Birketts also has a corporate entity – Birketts Trust Corporation Limited – which can, where appropriate, be appointed as an executor.
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Natasha Senior
Services
The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article please contact the author in the first instance. Law covered as at June 2024.