The essential role of an executor: Your guide to administering a will

Losing a loved one can be incredibly difficult. More than that, if you have been made the executor of their estate, the added responsibility may feel like a heavy load to bear.

Being an executor and administering the will of a loved one is an important job because you are acting as the personal representative for their estate. However, it’s no secret that there are several significant legal duties and obligations associated with the task.

Fortunately, when you have all the information you need to make informed decisions and navigate your role as an executor, the process can be more than manageable.

Here, learn what you need to know about managing someone’s estate efficiently and what you might need to prepare for.

The difference between an “executor” and an “administrator” is important

When someone passes away, they will leave behind their “estate”. This doesn’t just include their money. Rather, it encompasses all their assets, property, possessions, and importantly, any debts and liabilities they may have had.

Bringing these together and providing a value for the various pieces can be a complicated and lengthy process.

This task will fall to the deceased’s personal representatives. In this instance, there are two main types:

• Executors, or individuals specifically named in the will, who are responsible for carrying out the deceased’s wishes and administering the estate.
• Administrators, who step forward to manage the estate if there is no valid will or if the will doesn’t name any valid executors.

While the two roles will be the same in their execution, if you are an executor, you may have had time to prepare if the deceased person let you know what your role would be when they made their will.

Your core responsibilities might be varied depending on the estate

Being an executor can be a significant undertaking, and one that requires time and patience.

It’s a role that can involve many tasks and could take months or years to complete. While not every duty will apply to every estate, here’s an outline of the key responsibilities.

Arranging a funeral

While not a legal requirement for an executor, you may be involved with arranging the funeral immediately after the person’s death, especially if you’re a close relative. Here, you could ensure the deceased’s wishes are followed as closely as possible (they may have left a letter of wishes with their will that helps you plan the right funeral for them).

Securing property assets

As soon as possible following the death, you should secure all property owned by the deceased. This includes telling insurers that the property is unoccupied and arranging new home insurance if necessary.

Gathering information and valuing the estate

You’ll need to put together a comprehensive list of everything the deceased owned at the time of their death. This could include bank accounts, investments, properties, and personal possessions.

Remember to also account for any debts, such as mortgages, loans, and bills. For significant assets such as property or items worth more than £500, it may be worth seeking the expertise of a professional valuer.

Organising finances

Taking stock of and organising your loved one’s finances will typically involve a variety of tasks, including:

• Notifying banks, building societies, and insurance companies
• Sourcing account balances at the time of death
• Cancelling direct debits and stopping payments of salaries, pensions, and state benefits.
• Informing government agencies, such as passport offices and the Driver and Vehicle Licensing Agency (DVLA)
• Investigating outstanding debts or overpayments
• Potentially setting up a bank account to keep any estate funds separate from your personal finances.

Managing a loved one’s finances can be time-consuming and emotionally draining, so be sure to lean on family and friends during this difficult time.

It’s also worth noting that, if the debts appear to outweigh the assets, the estate may be insolvent. Here, you may require professional advice from a solicitor.

Dealing with assets and debts

Take some time to understand how jointly owned assets need to be distributed. Often, money in a joint account passes to the surviving owner, but property rules can vary. Start with joint accounts and property, as money in a joint account usually passes to the surviving owner.

From there, you could move to pensions and life insurance. Contact the relevant pension providers and life insurance companies to work out if there are any death benefits to consider and if they form part of the estate for tax purposes.

Then, consider debts, taxes, and other legalities, including:

• Applying for probate, which confirms your authority to deal with the estate
• Reporting the estate’s value, income, and tax liability to HMRC
• Providing statutory notices for creditors, which protects you from personal liability for any claims that arise after the estate has been distributed
• Settling outstanding bills from Income Tax or investment interest
• Paying Capital Gains Tax (CGT) and Inheritance Tax (IHT) as needed
• Distributing the estate to the legal beneficiaries once all assets have been collected, debts and tax paid, and probate granted.

Throughout the entire process, be sure to maintain clear and meticulous records of your actions, communications, and any financial transactions. This will help you answer any questions that may arise later about how the estate was administered.

Organisation is key when it comes to multiple executors

If you’re handling the estate alongside another executor, then you will need to agree on some key factors, including:

• Where to hold any financial assets
• Rules on making withdrawals or payments from accounts connected to the estate
• What assets to sell and when.

When dealing with the financial aspects of another person’s estate, you might want to consider setting up a bank account known as an “executorship account”.

Working with a solicitor could help you manage complicated estates

While you aren’t legally required to work with a solicitor to help with your duties as an executor, it could be helpful for more complex cases.

This is especially true if you’re undertaking any level of personal liability.

For example, if you distribute assets before you have paid all outstanding taxes, you could be left personally liable for any shortfall.

A solicitor can guide you through the process, ensuring all legal and tax obligations are met before you distribute any assets. They can also provide guidance if the estate has many assets, including complex elements such as trusts, or if there are disputes among the beneficiaries.

We’re here to help

Acting as an executor can be a significant undertaking, especially during a period of personal grief. While this guide outlines the key responsibilities, every estate is unique.

We don’t provide legal advice directly, but we can help connect you with trusted professionals who specialise in estate administration.

Moreover, if you are a beneficiary of the estate you’re administering, we can help you work out what to do with the assets and incorporate them into your overall financial plan.

Email enquiries@metiswealth.co.uk or call 0345 450 5670 today to find out what we can do for you.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, tax planning, or will writing.