Being asked to act as the executor of someone’s will can feel like an honour. It shows that a relative or close friend trusts you to carry out their wishes and deal with their affairs after they die.
In practice, however, it can be a demanding and time-consuming responsibility. Executors often begin the process while grieving, supporting family members and trying to understand financial and legal information they may never have dealt with before.
From April 2027, the role is set to become more complicated again, as most unused pension funds and pension death benefits are brought within the Inheritance Tax process.
For anyone making or reviewing a will, this raises an important question: have you chosen the right people to act as your executors, and have you done enough to make their job manageable?
What does an executor have to do?
An executor is responsible for administering the estate of someone who has died.
This may involve identifying and valuing assets, calculating and paying tax, applying for probate, settling debts, dealing with property, preparing estate accounts and distributing the remaining estate to the beneficiaries.
Although executors can take professional advice, they remain legally responsible for ensuring the estate is dealt with correctly. Mistakes can lead to delays, disputes and, in some circumstances, personal financial liability.
Why is the role becoming harder?
Modern estates are often more complicated than they first appear. Someone may have several bank accounts, pensions, investments, online savings, digital assets and subscriptions. Important information may be spread across emails, online accounts and paperwork, leaving executors to establish what exists before they can begin administering the estate.
Family arrangements can also create difficulties. Second marriages, unmarried partners, stepchildren and children from previous relationships may all have different expectations. Disagreements may arise over property, personal possessions, valuations or the timing of distributions, even where the will itself is clear.
The April 2027 pension changes
At present, many pension death benefits sit outside the estate for Inheritance Tax purposes and are dealt with separately by pension providers or trustees.
From 6 April 2027, most unused pension funds and pension death benefits will be included in the Inheritance Tax calculation. This will bring pensions more directly into the executor’s work.
Executors may need to trace several pension arrangements, obtain accurate valuations and ensure the relevant figures are included when dealing with the estate’s tax position. They may also need to coordinate with pension providers, beneficiaries and other professional advisers.
The exact position will depend on the type of pension, the beneficiary and the wider estate. However, the broader effect is clear: another layer of information, responsibility and administration is being added to an already demanding role.
What can go wrong?
Problems can arise if an executor overlooks an asset or debt, uses an inaccurate valuation, distributes money too soon or pays the wrong beneficiary. Executors must also follow the terms of the will, remain impartial and keep accurate records of estate money.
An honest mistake does not automatically lead to personal liability, but an executor may face penalties, interest or financial consequences if the estate is mishandled. They may also find themselves caught between beneficiaries who are frustrated by delays or unhappy with the way decisions are being made.
Taking legal advice early can help executors understand their responsibilities and avoid preventable mistakes.
Can someone refuse to act as an executor?
A person named as an executor does not always have to accept the role. If they have not yet started dealing with the estate, they may usually be able to formally renounce their appointment. Once they have begun acting, however, stepping away can become much more difficult.
Anyone who is unsure should therefore seek advice before handling assets, contacting financial institutions or making decisions on behalf of the estate. This is also why it is sensible to speak to someone before naming them as an executor. A person may be trustworthy and organised but still lack the time, confidence or willingness to take on the responsibility.
Choosing the right executors
Many people appoint a spouse, adult child, sibling or close friend. This may be appropriate where the estate is straightforward and family relationships are good.
However, the decision should be based on more than closeness. A suitable executor should be organised, reliable, able to deal with financial information and capable of communicating calmly with beneficiaries.
It is common to appoint two executors so the workload can be shared. Where more than one person is appointed, it is important to consider whether they are likely to work well together, as disagreements between executors can delay the administration.
Can a solicitor act as an executor?
A solicitor can be appointed as an executor, either alongside a family member or, in some cases, as the sole executor.
This can be particularly helpful where the estate is likely to be subject to Inheritance Tax, includes several pensions or properties, involves a business or overseas assets, creates a trust or is likely to be disputed.
A professional executor will usually charge for their work, with the fees paid from the estate where the will contains an appropriate charging clause. A solicitor does not need to be named in the will to provide support. Family members and friends can remain as executors while instructing a solicitor to assist with part or all of the estate administration.
Making the role more manageable
Careful planning during your lifetime can make a significant difference. Keep an up-to-date record of your bank accounts, investments, pensions, property and other important assets. Store your will and financial records securely and make sure your executors know where to find them.
You should also review your will and pension nominations after major life events, such as marriage, divorce, separation or bereavement.
It is equally important to speak to the people you intend to appoint. Explain what the role may involve and give them the opportunity to ask questions or decline.
Lamb Brooks’ experienced Wills, Trusts and Probate team can advise you on choosing suitable executors, act as a professional executor where appropriate, or support family members and friends who have taken on the role.
To discuss your circumstances, call 01256 844 888 or email enquiries@lambbrooks.com.
