Being asked to act as an executor is a sign of trust, but dealing with someone’s estate can feel daunting, particularly while grieving. According to B P Collins’ private client team, a methodical approach can make the responsibility more manageable.
Start with the will
Find the latest original will and any codicils – documents changing its terms – and check that you are appointed as an executor. Contact any fellow executors and agree how to work together. If you’re unsure whether you want the role, get advice before taking steps that could count as ‘intermeddling’ in the estate, as that can affect your ability to step down.
Register the death and arrange the funeral
Help ensure the death is registered. In England and Wales, this normally means registering within five days of confirmation from the medical examiner’s office, although coroner cases may follow a different process. Check for funeral wishes or a prepaid plan and agree arrangements with loved ones. Keep invoices as banks may release funds directly for funeral costs before probate.
Protect the home and belongings
Secure the property, safeguard valuables and make an inventory, ideally with photographs. Tell the buildings and contents insurers promptly, particularly if the home is empty. Ask about inspection, heating and security requirements as existing cover may need changing. Avoid allowing relatives to remove possessions before their ownership and the will’s instructions are clear.
Build the financial picture
Your next job is to build a clear picture of what the person owned and owed. That tells you whether the estate can cover its debts. If it can’t, the order in which creditors are paid matters, and an executor who gets that wrong could be personally exposed. An asset search can help uncover accounts or investments you might otherwise miss. Ask family about gifts made in the previous seven years and check the records where you can.
Pensions are worth checking too, especially as most unused pension funds and pension death benefits are due to come within the inheritance tax rules from 6 April 2027.
Notify banks, insurers, pension providers, utilities and other relevant organisations. If debts may exceed assets, get advice before paying creditors: the payment order matters, and mistakes can leave executors personally liable.
Keep the tax deadlines in mind
If inheritance tax is due, it generally needs to be paid by the end of the sixth month after the month of death to avoid interest. You’ll also need to send HMRC an inheritance tax account, called an IHT400, if tax is due or the estate doesn’t qualify as an ‘excepted estate’. The form gives HMRC the details it needs to check the estate’s value and the tax position, and it must be sent within 12 months of the death.
Collect, settle and distribute
Open a dedicated executor’s account to keep estate money separate and collect assets when authorised. Deal with outstanding taxes, administration expenses and debts, including any income tax or capital gains tax arising during administration. Keep enough money back for unresolved liabilities before distributing according to the will.
Keep records and resist pressure to rush
Finally, don’t rush to distribute the estate if there’s any sign of a dispute about the will or a possible claim for financial provision. Those claims usually must be brought within six months of the grant of probate, though the court can allow a later claim.
Keep track of money coming in and going out, too, so you can give beneficiaries a clear account of what happened.
If you’re concerned, take advice on when it’s safe to distribute and whether insurance is appropriate.
For further advice and information, please contact Sharon Heselton or our private client lawyers at enquiries@bpcollins.co.uk or call 01753 889995.
