Being named as an executor in a will does not simply mean handing money and property to beneficiaries.
An executor has an important legal role in administering the deceased person's estate. There can be several steps to complete before assets can safely be distributed.
Find the will
The first step is usually to locate the deceased's original will and confirm who has been appointed as executor.
GOV.UK states that an executor named in a will can apply for probate and that the original will is normally required for the application.
Identify the estate's assets and debts
The executor needs to establish what the deceased owned and what they owed.
This may include:
Bank accounts
Investments
Property
Vehicles
Personal possessions
Pensions and death benefits
Life insurance
Loans
Credit cards
Mortgages
Household bills
Tax liabilities
The estate may be more complicated than it initially appears.
Establish whether probate is required
Probate gives the personal representative the legal authority to deal with the deceased's property, money and possessions in appropriate cases. The executor may need to apply for a Grant of Probate before organisations will release certain assets.
Deal with Inheritance Tax
Before applying for probate, the estate generally needs to be valued for Inheritance Tax purposes.
GOV.UK explains that some estates require full details to be reported to HMRC using form IHT400, while others may qualify as excepted estates. Where Inheritance Tax is due, payment arrangements may need to be addressed before probate is granted.
Pay debts and expenses
An executor should not normally distribute the estate simply because beneficiaries are waiting for their inheritance.
Outstanding liabilities need to be identified and dealt with. Funeral expenses, debts, taxes and administration costs can all affect what is ultimately available to beneficiaries.
Distribute the estate
Once the estate has been properly administered, the executor can distribute assets according to the will.
The executor should keep appropriate records showing what assets were collected, what liabilities were paid and what beneficiaries received.
What if there is a dispute?
If there is a dispute about the will, debts, beneficiaries or the administration of the estate, distribution may need to be delayed until the issue is resolved.
An executor should not ignore a potential claim simply because the will appears straightforward.
Conclusion
An executor's job involves much more than obtaining probate and handing out inheritance.
They may need to identify assets, value the estate, deal with tax, settle debts, obtain probate, keep records and distribute the remaining estate correctly.