Navigating the Role of an Executor

Understanding your role

An Executor's role is to honour the wishes of the deceased and distribute their assets in accordance with their Will. This can be broken down into the following steps.

Gathering information

• Inventory of assets:
  The biggest task is identifying what assets the deceased held at the time of their death. This includes physical bank statements, bank cards, and land registry documents. However, with the rise of digital assets, online bank accounts, and payment systems like Google Pay, this task is becoming increasingly complex.
• Debts and liabilities:
  Once all bank accounts are discovered, liabilities are often easier to trace. If payments have been missed since accounts were frozen, letters will usually be sent to the deceased's last known address.

Probate process

• Applying for Probate:
  Before applying for probate, you must determine if the estate needs to pay Inheritance Tax. If it does, full accounts must be submitted to HMRC. If not, the estate may qualify for the excepted estate rules and follow a simplified process.
• Once the inheritance tax position is determined and the correct route followed, the legal statement can be drafted for the Executors' signatures and submitted to the probate registry.

Managing the Estate

• Section 27 notices:
  These are crucial in the probate process, providing protection for Executors and ensuring that all creditors have the opportunity to claim their debts. By following this procedure, Executors can distribute the estate with confidence and peace of mind.
• Bankruptcy searches:
  It is recommended to conduct a bankruptcy search on beneficiaries, even if they are well known to you, before any distribution of the estate. Failure to do so can lead to complications.
• Tax considerations:
  Ensure that clearance has been obtained from HMRC before making any distributions. Any Inheritance Tax due is the personal responsibility of the Executor, and distributing funds too early can cause issues.
• Asset distribution:
  Once debts have been settled and the administration period ends, assets can be distributed to the beneficiaries. This may occur in tranches or all at once.

Communication and support

• Keeping beneficiaries informed:
  Regular communication with beneficiaries is important, but it should not be too onerous. Your primary responsibility is to the estate.
• Seeking professional help:
  If the estate is complex, if there is uncertainty about tax liabilities, or if there are tax returns to be filed or shares to be valued, you can engage professionals. The costs will be borne by the estate. This can be the most efficient way to ensure the correct tax reliefs are applied and to handle HMRC inquiries.

Common challenges

• Disputes among beneficiaries:
  These are more prominent in blended families and for example a situation involving a second spouse versus adult children.
• Complex estates:
  Estates with business assets or international elements require careful handling. Seek advice if you are unsure how to manage these assets to ensure they are correctly taxed in the relevant jurisdictions.

Conclusion

At Crowe, we understand that acting as an Executor can be a daunting and complex responsibility. Our dedicated team is here to provide the expert guidance and support you need to navigate this challenging role with confidence. Our team of certified accountants and legal specialists ensures that every aspect of the Executor's duties is handled with precision and care. We offer a comprehensive range of services designed to support you through every step of the process.