Duties of an Executor
Aug 22, 2024
What is an Executor ?
When writing your Will, you'll find there are several roles you will need to consider - Executors being one of these. In this article, we outline the roles and responsibilities of an Executor and what you, as the testator, would need to consider when appointing them in your Will.
An Executor is the name individual(s) in the Will who carries out your wishes and administers the estate upon their death. You're able to appoint up to four working Executors at one time, this can include professional Executors should you prefer.
What are some of responsibilities of an Executor?
- Collating all assets, ascertaining the value and keeping them insured if applicable
- Ensuring the estate is distributed correctly
- Maximising the estate for the beneficiaries by applying for the relevant allowances and reliefs available
- Identifying and settling all assets and debts before distributing any funds to the beneficiaries
- Paying Inheritance Tax, if applicable, which is due on the estate within the stated timeframes
- Applying for the Grant of Probate, if its required
- Finalising the Income Tax position of the deceased's estate from point of death till post-death distribution
It is also worth noting that should any issues occur, the Executor(s) can become personally and financially liable for losses, therefore when appointing an Executor, you want to ensure you're choosing capable people.
The Executors you've appointed have the option to instruct professional Executors should they wish, which is a helpful and necessary alternative in some cases. Professional Executors will charge for their service, but it does remove the liability and stress of having to manage administering the estate, and the onus of this responsibility is passed to the company you've instructed.
If you have minor children, a guardianship appointment is one of the most important clauses to be put within your Will. A guardianship appointment will state you would look after your minor children if you were to pass away. If there is no guardianship appointment made, there is a strong possibility that the children would be placed in temporary foster care while local authorities decide who would be the best people to look after them. When deciding who to nominate as guardians, it is important to consider the following: Would they be able to look after your children Do they have the space Are their beliefs/values similar to yours Their location and would the children need to move A guardianship appointment can only be made by a person who has parental responsibility, this can be a confusing area, so this will be discussed during your initial consultation and advice around this area would be provided.
Inheritance tax is tax that must be paid on someone’s passing if their estate is over their given allowance(s). If you’re married it is only taxed on the second persons passing, as any assets passed from spouse to spouse is exempt. There are two allowances that can be given. Nil Rate Band (NRB) £325,000 Residential Nil Rate Band (RNRB) £175,000 In theory most people will have an £500,000 allowance which is the combined NRB and RNRB; if you’re married this is transferable and combines to £1,000,000. Allowances are not a guarantee, and you must match certain criteria to use your Nil Rate Band and qualify for your Residential Nil Rate Band. There are also reliefs available, and this is something we would delve into with you in our initial meeting. Inheritance Tax is an important part of Estate Planning and is usually the first subject we broach with a client. This gives us a better understanding of what asset values you hold within your estate; this ensures we are advising correctly.
Intestacy or dying intestate is when a person passes away without writing a Valid Will. This then means that the deceased’s assets pass under the rules of intestacy. The Rules of intestacy can have big implications for anyone but especially unmarried couples, blended families, and those with few relatives. It is always best practice to have a Will in place to ensure your assets are ringfenced for the intended beneficiaries, otherwise you could be leaving your loved ones in vulnerable positions. The workflow below explains how inheriting under the rules works:
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When writing your Will, you'll find there are several roles you will need to consider - Executors being one of these. In this article, we outline the roles and responsibilities of an Executor and what you, as the testator, would need to consider when appointing them in your Will.
If you have minor children, a guardianship appointment is one of the most important clauses to be put within your Will. A guardianship appointment will state you would look after your minor children if you were to pass away. If there is no guardianship appointment made, there is a strong possibility that the children would be placed in temporary foster care while local authorities decide who would be the best people to look after them. When deciding who to nominate as guardians, it is important to consider the following: Would they be able to look after your children Do they have the space Are their beliefs/values similar to yours Their location and would the children need to move A guardianship appointment can only be made by a person who has parental responsibility, this can be a confusing area, so this will be discussed during your initial consultation and advice around this area would be provided.