1. What is an Executor
Under a Will, this is the person who is legally responsible for handling the estate of the deceased person. When making a Will, you must name at least one, but often two are named in case one dies, becomes incapacitated or renounces their role. It’s also useful to name multiple Executors so they can share the responsibilities.
2. Who can carry out this Role
Most people nominate their spouse, child (provided they are over 18) or a family member.
- It is worth noting that you can be both a beneficiary and the Executor of a Will. However, the Executor cannot also be an official witness to your Will.
3. What are the Key Responsibilities of this Role
The role of an Executor is an important one as they must handle the deceased’s estate in accordance with the instructions in the deceased’s Will and any applicable laws. The role may therefore include the following responsibilities:
- Registering the death and obtaining the Death Certificate (its useful and cheaper to get multiple certified copies of the Death Certificate in the first instance).
- Arranging the funeral.
- Valuing the estate which includes any property, possession and money, minus any debts (e.g. mortgages and bills).
- Applying for probate.
- Paying any Inheritance Tax, which must be paid within a year (with the first payment being within 6 months of the end of the month in which the person died).
- Paying off any estate debts and distributing the rest of the estate, to the beneficiaries, in accordance with the Will.
4. Challenges of this Role
- An Executor can be personally liable for any mistakes made. Consequently, some will choose a Professional Executor instead of putting a family member at risk.
- This role can require navigating complex financial and legal matters which can be time consuming and emotionally taxing, (e.g. where there are clashes with beneficiaries).
5. Pro and Cons of Using a Professional
If an estate is complex and there could be family conflicts or you just don’t know anyone to be your Executor, then you can use a Professional Executor (e.g. a solicitor, accountant or bank). Here are a few pros and cons for this option.
Pros
- Expertise – Professional Executors will have the necessary legal and financial knowledge to sort out probate and administer the estate which reduces the risk of errors. The more complicated the estate is the more likely it is that a Professional is the right fit.
- Impartiality and Relieving Family Members – A Professional Executor is a neutral party which can prevent conflicts among beneficiaries and means family members (if acting as Executors) need not get stuck in the middle of a family feud during a time of grief.
- Liability Protection – Professional Executors are often insured which can be useful given Executors can be personally liable for mistakes or mismanagement of the estate.
Cons
- Cost – The cost of a Professional is charged to the estate and can be high which means the beneficiaries will inherit less.
- Potential Delays – While Professional Executors are efficient, if they are from a large firm, they will likely be handling multiple estates which could cause processing delays for your estate.
- Loss of Control – The families’ / beneficiaries’ involvement in decision making will likely be limited if a Professional Executor is appointed which could cause frustration for such parties.
Conclusion
The role of an Executor of a Will is not a role to blindly fall in to as it is a great responsibility to ensure the deceased’s estate is managed in accordance with their wishes and all legal and financial formalities are adhered to.
Next Steps
Should you wish to find out more about being or deciding on an Executor, or would like to discuss any other estate planning matters, please click on the link at the top of this page to book an appointment with one of our expert financial planners.
