Is there any risk in being appointed as an executor?

While writing your will, you’ll name executors responsible for carrying out your final wishes when you pass away. Whoever you nominate should be someone you trust as they’ll be the person who’ll manage your affairs when you’re gone. It’s a big responsibility and a position of trust. But are there any risks involved for the person you nominate? And what happens if they cannot execute your wishes as you would have liked?

What’s the role of an executor?

An executor is someone who’ll manage your assets after you die. It’s down to them to ensure that your assets are sold or divided according to your instructions. They must also ensure that your affairs are properly handled, including paying off any debts that you may have left behind.

Who can be named as an executor?

Anyone over the age of 18 can be an executor. They will commonly be friends or family members, but you could also name a family solicitor or other professional.

What duties will an executor have?

Acting as an executor is an enormous undertaking and comes with many personal and legal responsibilities. Often, it is a long-term commitment, can be a complex role to fulfil and may be a source of pressure, stress and anxiety.

Duties are varied and can encompass:

·         Registering the death

·         Applying for a grant of probate to execute the will

·         Dealing with any claims made against the estate, for example from business or individual owed money by the deceased

·         Completing an Inheritance Tax return (ITR)and paying any taxes owed to HMRC

·         Filing Income Tax and Capital Gains Tax returns and paying any taxes owed to HMRC

·         Notifying third parties of the passing of the deceased and settling any outstanding debts to those people

·         Verifying there are no missing assets

·         Distributing the estate to beneficiaries named in the will

What are the risks involved?

Being an executor is a significant undertaking, and due to the numerous legal responsibilities, it also carries a degree of personal risk. The executor is responsible for any failings or mismanagement in the administration of the estate. Should a tax return be incorrectly filed, for example, or any taxes owed not paid to HMRC, the executor can be held personally responsible.

Executing an estate can be overwhelming. If the estate is large or affairs are complex, it can quickly become a full-time role and take months or years to complete.

Who to choose as executor to minimise risk

You can appoint a professional executor or legal professional, such as a solicitor, to serve as executor of your estate. This removes the legal burden and personal responsibility that friends or family members face when asked to assume the role.

Our specialist team can help you throughout the process of appointing an executor for your estate in addition to serving as executor after your passing. To find out more, simply get in touch with a member of our friendly, experienced team.