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Legal Talk

WHAT DOES AN EXECUTOR HAVE TO DO?

An Executor is appointed by Will and their duties do not start until the person who wrote the Will passes away. The duties I will refer to apply equally to an administrator (i.e. where there is no Will). Apart from the practicalities of registering the death, ensuring that the house is secure and the pets are looked after, it’s important to establish that you are the correct person to handle the paperwork. On an intestacy it’s critical to identify that there is no Will, and where there is a Will, it’s critical to establish that this is the last Will. It is possible for a Will to turn up at a later date and even twenty years after the estate has been administered, which will be a nasty shock to everybody, as it means the Executor has not applied the correct last wishes, people will have benefited who were not entitled to benefit, and there will be some very disgruntled true beneficiaries who may have a claim against the Executor. There are searches and checks that can be undertaken, which a Solicitor can advise on. At the end of the administration it’s also possible to purchase insurance to cover these risks.

The Inland Revenue use death as an opportunity to check that the deceased had correctly disclosed their assets and income during their lifetime, and to charge further tax if the value of the estate exceeds the available nil rate band and residence nil rate band. There are some traps in calculating the taxable estate, as the Executor will have to take into account assets that do not pass under the Grant but, instead, pass by way of survivorship to a coowner, lifetime gifts and trusts from which the deceased benefited, either by a right to occupy a property or to receive income. Failure to make proper enquiry could leave the Executor with a headache when they get an extra tax bill, but have distributed all the assets to the beneficiaries.

Monies should be held separate from those belonging to the Executor. Opening an Executor’s account is a time consuming exercise and not every bank will do this. One advantage of using a solicitor is that monies will be paid into our client account, and we’re regulated by the Solicitors Regulation Authority in all our dealings with clients’ money. Estate accounts will then be produced for the approval of the beneficiaries, who can be exerting pressure for everything to be wrapped up quickly. It’s a mistake to distribute too early as the DWP may write after the issue of the Grant concerning overpayment of benefits, and a person who feels aggrieved in that they have not received their just entitlement has seven months from the date of the Grant in which to bring a claim. To alleviate themselves of all risk, an Executor should consider employing a solicitor, who will bear all the risks, for which they carry professional indemnity insurance.

Nicola Briggs www.aticuslaw.co.uk

Mark Anthony DESIGN & BUILD

v Loft conversions v Extensions v Renovations v Bespoke design garden rooms

Tel: 07949 313151

Email: mark.haddon2@gmail.com markanthony_building

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