Although being chosen as an executor of a will has a lot of weight, it signifies you’ve earned the trust and respect of the person who owns the will. But what does the executor of a will do? Who can you appoint as your executor, what makes an executor, and can you refuse to serve as an executor? That’s how complicated it might be. However, let’s say you’re considering writing a will, or, on the other hand, someone appoints you to be an executor in their will. Understanding the dos and don’ts of an executor is essential. Read on as we satisfy your curiosity about what a will executor in the UK entails.
What Is A Will Executor?
Simply put, an executor of an estate is a person who performs the task of managing a deceased person’s final will. In another way, an executor is an individual who is legally accountable for executing the wishes of a deceased person. They follow the deceased’s instructions about their estate. They’ll gather the estate’s assets and distribute them to the beneficiaries (those listed in the will), as well as make sure they settle any debts.
Typically, the executor has the principal responsibility of following the deceased’s instructions for managing his or her affairs and wishes. However, in circumstances where there is no pre-existing appointment by the writer of the will, a court will choose the executor.
While you can be a beneficiary and an executor of the will at the same time, an executor just represents the deceased’s interests. This, however, means you’re not personally liable for the deceased’s obligations, and you won’t profit from the estate’s investments throughout the probate process.
How Executors Work
The executor is legally responsible for ensuring that all assets in the will are properly accounted for and assigned to the intended beneficiaries (parties). Financial holdings, such as stocks, bonds, real estate, direct investments, and antiques, are all examples of assets. However, according to the Internal Revenue Code, the executor must assess the worth of the estate using either the date of death value or the alternative valuation date (IRC)
Likewise, the executor must also guarantee to pay all of the deceased’s debts, including any taxes. The executor is legally bound to carry out the deceased’s instructions and act in his or her best interests.
In addition, the executor can be virtually anyone, although it’s frequently a solicitor, accountant, or member of the family; the only requirement is that they are above the age of 18 and have no record of felony convictions.
Some people accept the role of executor with the assumption that they will not have to do any work for years. Carrying out a proper job, on the other hand, demands immediate action. You can’t predict the future, and death won’t give you prior notice. Thus, deciding to be an executor implies that your legal responsibilities might be upon you at any moment.
Getting Prepared
However, to prepare yourself ahead of time, you should do the following:
Make sure the writer keeps track of his or her assets and liabilities, such as financial institutions, investment accounts, insurance, and property investments.
- Understand where the original will and asset list are and how to get access to them.
- Learn the names and contact information of any attorneys or agents mentioned by the writer, as well as the nature of their work.
- Learn the names and contact information of any attorneys or agents mentioned by the writer, as well as the nature of their work.
- Discuss at length the testator’s funeral or memorial service wishes, including burial or cremation instructions.
- To avoid complications in the future, address the will with the testator and, if feasible, with the beneficiaries.
- Make sure you have a duplicate of all these documents in your possession
Now that you are fully prepared and ready to go in case the unexpected happens,
What Does Will Executor Do?
The obligations of your will executor can vary depending on the intricacy of your estate and your instructions. However, If you’re the executor of the will, you’ll have several responsibilities. Below are a few:
- Obtaining certified copies of your death certificate
- Locate your last will and file it in probate court.
- Inform your heirs and relatives of the open contest period.
- Take inventory of your estate and distribute your belongings to your heirs or beneficiaries.
- Inform banks, government agencies, insurance companies, and creditors of your passing
- Use estate funds to pay or settle any outstanding taxes or debtsÂ
- Make sure your property is secure until you settle the estate.
- File your final income taxes
- Make court appearances for the estate
Who Can Be The Executor of Your Will? How Do you choose one?
The executor of the testament you appoint should be trustworthy and dependable. Below are some important aspects to think about while determining who to appoint:
Willingness:
Being an executor entails a great deal of responsibility, and not everyone is up to the task. Before appointing your executor in your will, talk to them about the notion and prospective responsibilities.
Where they call home:
Nominating someone who lives near you is a smart idea. This makes managing your estate, appearing in court, and distributing your assets to your heirs easier for them.
Family relationships:
Go for someone you and your household can trust to handle your wishes without bias, outside influence, or family pressure.
Their ages
Your executor should be someone who will most likely be alive when you die.
Organizing skills and attention to detail:
Since an executor has several responsibilities, you may wish to hire someone who is naturally organized.
Will Executor and Estate Planning
Generally, people, their families, and successors all need executors when it comes to estate preparation. Typically, estate planning refers to the process of preserving, managing, and distributing an individual’s assets after death. Likewise, it also considers how this person’s property and financial obligations will be managed if he or she becomes impaired.
However, people create estates for a variety of purposes, including maintaining family wealth and caring for surviving wives and kids. Also, taking care of kids and/or grandkids’ education, or creating and leaving a philanthropic legacy. Nevertheless, writing a will is perhaps the most basic step in estate planning. Below are the additional and important aspects of estate planning:
- Setting up trust accounts in the names of beneficiaries to limit estate taxes.
- Establishing a guardian for dependents who are still alive.
- appointing an executor of the estate to supervise the will’s provisions
- Adding/changing beneficiaries on life insurance, IRAs, and 401(k) plans
- Organizing funeral services
- To lower the taxable estate, make annual gifts to recognized charities and non-profit organizations.
- Creating a durable power of attorney (POA) for the management of other assets and investments
How Long Does Making a Will Take?
Making a will should take no more than two weeks, but the entire procedure can take several months or even longer. However, there is a probability that delays will occur. This is in the sense that, if the testator chooses the traditional procedure, he or she must schedule a meeting with the solicitors before getting an initial draft, which may be subject to modifications.
Can the Executor Of a Will Be a Beneficiary?
Yes, to put it succinctly. Normally, it’s not uncommon for the executor of a will to also be one of the beneficiaries. Nevertheless, this makes sense because executors are best able to carry out their responsibilities when they are conversant with the circumstances of the decedent. That knowledge and others would be available to someone who has an intimate relationship with the deceased and is a beneficiary.
However, in some circumstances, the probate court system heavily favors beneficiaries who function as executors. Also, when choosing executors, probate courts in numerous states give priority to beneficiaries over other people.
The only time a beneficiary can’t act as executor is if the person is inherently disqualified to do so. In some situations, this would be the case if she was under the age of 18, had a prior criminal record, or was a non-relative living out of state.
How many executors of a will should you have?
Generally, some people appoint multiple executors to distribute the burden of responsibility. It looks like a good idea to name more than one executor in case one dies or wishes to relinquish their executorship. At any given time, up to four executors can act, though having that many could generate confusion.
What happens if I don’t have somebody who can serve as an executor?
You may appoint the Public Trustee as a last resort if no one else can function as an executor. Let’s say everyone close to you is under the age of 18 or has the mental capacity to sort up your assets, and you can’t hire an expert). The Public Trustee is a government entity that can perform most of the functions of an executor. However, you cannot select the Public Trustee as your executor. This especially when being the executor of your estate includes managing a business or if the debt exceeds the assets.
Will Executor Fees
Generally, most executors agree to serve out of a personal obligation to a deceased friend or relative, or family member. Thus, doing it with no expectation of compensation. Regardless, all executors deserve compensation for managing an estate, albeit the laws for executor fees differ per province.
Even if the executor’s costs are not included in the will, the right to be rewarded is a feature of our legal system, whether it is established by common law or by statute.
When a testator chooses a trustworthy corporation as executor, the parties usually agree on compensation during the testator’s lifetime, with the terms occasionally included “by reference” in a will provision. Fees for corporate executors usually range from 4% to 5% of the estate’s worth
Nonetheless, some personal executors refuse to accept a fee. This is especially if they are a beneficiary and consider their gift under the will to be an effective payment. However, executor fees are like taxable income, whereas gifts by will are not.
Furthermore, if a will doesn’t specify remuneration, provincial regulations, case law, or defined rules determine how much an executor can earn.
On the other hand, if a court concludes that an executor could have reasonably performed some of their tasks without professional assistance, their remuneration may decrease. Typically, compensation is usually discussed when the executor presents the estate accounts to the beneficiaries, especially towards the end of the estate administration.
How do I distribute the estate?
Below are some of the main duties of a will executor distributing the estate of a deceased person:
- If you are going to hand over a specific object (‘bequeathed’) to someone as in the will, you can do so before the approval of the probate, but be absolutely sure the things are of great value.
- Create estate accounts for each beneficiary after probate has been granted (that is what each person will get
- Search thoroughly for bankrupt beneficiaries on the Individual Insolvency Register to verify if they are eligible for their inheritance.
- For their portion of estate income, give each beneficiary an R185 tax form (contact the Probate and Inheritance Tax Helpline for additional details).
- Ensure you retain detailed records of your work so you can respond to any concerns regarding how you handled the estate.
- Distribute the inheritance, naming at least two trustees for any gifts left to kids under the age of 18. If there are any claims against the estate, you should wait at least six months probably after probate is granted before sharing it.
Conclusion
An executor of a will performs the primary task of managing a deceased final will and testament and ensures that all assets in the will are properly accounted for while also assigning them to the willful beneficiaries (parties).
Will Executor FAQs
Is it better to have one or two executors?
In most situations, it’s not a good idea to name co-executors. When you’re making your will, a big decision is who you choose to be your executor—the person who will oversee the probate of your estate. Many people name their spouse or adult child. You can, however, name more than one person to serve as executor
What happens if executors disagree?
If two or more executors disagree, it’s possible to get an executor removed by the court if it best serves the estate (in other words, to make sure your possessions are distributed as you wanted). When no substitute executor has been named, the court also has the legal right to appoint a replacement.
Can executors of a Will act independently?
As long as the writer has selected you to be the sole Executor in the Will, then they can act alone. If the Will has appointed one or more joint Executors, then these Executors will need to act together unless the other Executor(s) renounce from their role or have power reserved to them
How long do executors have to apply for probate?
Is there a time limit on applying for probate? Though there is no time limit on the probate application itself, there are aspects of the process which do have time scales. Inheritance tax, for example, is a very important part of attaining probate in the first place. And must you do it within 6 months of the date of death?
