So, you’ve decided to write a will or maybe you’ve been named as an executor in someone else’s will. Either way, it’s crucial to understand what being an executor involves, what an estate administrator does, and why sometimes it’s best to consider hiring a professional to manage these roles. Here’s a simple guide to help you navigate this sometimes complex topic.
What Is an Executor?
An executor is a person named in a will who is responsible for carrying out the wishes of the deceased person, also known as the testator. In essence, the executor acts as a legal representative and is responsible for settling the estate. This means making sure that all debts are paid off and that any remaining assets are distributed according to the wishes outlined in the will. It sounds simple enough, but in practice, it can be drawn out and complex.
What Is an Estate Administrator?
The term “estate administrator” often gets confused with “executor,” but they are not the same. An estate administrator performs a similar role but is appointed by the court when a person dies without a will (known as dying “intestate“). Because the administrator doesn’t have the benefit of written instructions in a will, they must distribute the estate according to the law.
What Does Being an Executor Involve?
Being an executor can be straightforward forward but sometimes it isn’t. It can also take a great deal of time so if you are asked to be someone’s executor this is something you need to consider. Likewise, if you are looking to appoint someone to act for you, consider their existing responsibilities; do they have a young family, do they have a full-time and demanding job or do both of these things apply?
Here are some typical responsibilities:
- Probate Application: The executor needs to apply for a “grant of probate,” a legal document that confirms the executor’s authority.
- Inventory and Appraisal: An inventory of the deceased person’s assets and debts needs to be created.
- Settle Debts: Using the estate’s assets, the executor pays off debts and taxes.
- Asset Distribution: What remains after settling debts is then distributed among the beneficiaries, as mentioned in the will.
- Closing the Estate: The executor ensures that all administrative tasks are completed, such as closing bank accounts and notifying government agencies of the death.
What are the Benefits of Hiring a Professional Executor?
Expertise
Professional executors, usually solicitors, have the legal expertise to navigate complexities that may arise during probate.
Time and Commitment
Managing an estate is time-consuming. A professional can dedicate the time needed to carry out these tasks efficiently.
Impartiality
Family dynamics can be complicated, and emotions often run high when an estate is being divided. A professional remains impartial, making decisions based on the law and the will’s instructions.
What are the Pitfalls of using a Friend or Family Member?
- Legal Consequences: Incorrectly administering an estate can result in legal issues. The executor could be held personally liable for any mistakes made.
- The strain on Relationships: Handling the will of a loved one can be emotionally taxing and may strain relationships among family members.
- Complexity and Time: Managing an estate can be a full-time job for several months. According to UK industry statistics, the average time taken to complete probate is around 9 to 12 months.
- Costs: While it might seem like a money-saving idea to have a friend or family member act as executor, mistakes can be costly. Hiring a professional might be an upfront expense but could save money in the long run.
As you have read, the role of an executor comes with significant responsibility. Whether you are writing a will or have been named as an executor, it’s crucial to understand what the role involves. While it might be comforting to appoint a family member or friend, sometimes hiring a professional is the wiser choice, both emotionally and financially.
Being well-informed can help you make the best decision for your unique circumstances. After all, the executor plays a pivotal role in ensuring that your final wishes are honoured and that your legacy is managed in the best way possible.
If you’re in the process of estate planning, it may be beneficial to talk to us so you can be fully aware of all your options. Contact us here: This will give you the peace of mind that comes from knowing your estate will be left in capable hands.
John Bees
