Acting as an Executor

Being asked to act as an Executor by a friend or member of the family can be flattering, it shows they trust you to handle their affairs. But remember that by accepting you will have to take on a lot of responsibility.

Executors are named in a Will and can inherit money, property or goods.

Distribution of assets that belong to the estate in accordance to the instructions of the Will, or if no Will has been made, means being responsible for the sale of property, land, antiques, stocks and shares or transferring them to the beneficiaries without selling anything.

Married couples can appoint each other as their Executor. This can work if the Wills are not complicated. But complications can arise if a tragedy happens and both die together as the result of an accident, or you both become very old and incapable of taking care of your own affairs. So perhaps you would be better off appointing a solicitor or a younger person or persons to be Executors.

The Executor’s duties include:

• List all the assets - house, car, bank accounts, life insurance, investments, personal possessions, etc.
   
• List all debts - credit cards, gas, electric or telephone bills, loans etc.
   
• Protect the assets of the estate, e.g. ensuring a property is adequately insured.
   
• Get in touch with the HM Revenue & Customs and pay any outstanding Income Tax and/or Capital Gains tax.
   
• Obtain a Grant of Representation from the Probate Office if there is property to sell or if the estate is over £5,000.
   
• Deal with any Inheritance Tax formalities if the estate is over the Nil Rate Band and niot passing to an exempt beneficiary.  
   
• Distribute the money according to the Will or according to the inheritance laws of which home country you are resident in.

If the estate is small, i.e. less than £5,000 the Executor normally only has to produce copies of the death certificate to release funds from the bank or building society. But sometimes they will be asked to produce a copy of the Grant of Representation. If any property or accounts are held in joint names, no grant or death certificate is required, as the assets become the property of the surviving person. The Executor only needs to transfer the title deeds of a house into the name of the remaining owner.

Generally the procedures of being an Executor are not complicated - provided you are good at paperwork. If you are the sort of person who hates forms or dislikes partaking in official business, then maybe the job is not for you and you should gracefully decline.