As the executor of an estate, you are entrusted with the responsibility of carrying out the wishes of a deceased person and managing their estate in accordance with the law. The process of administering a will or trust involves various legal, financial, and administrative tasks that must be handled with care and precision.

At Percy, Hughes & Roberts, we understand the challenges of estate management and recognise that each situation presents its own unique set of circumstances. With our extensive experience and expertise in trusts, wills, and probate, we are here to guide you through each step of this journey.

If you feel confused about your responsibilities as an executor, the best step may be to work with a professional to support you. We have compiled this checklist to provide you with a clear and concise guide for executors, outline the key duties involved in estate administration and help you to fulfil your obligations throughout the process.

1.Locate the Will and Verify its Validity

Before anything else can be done, you must locate the deceased’s will. This legal document outlines their final wishes and provides guidance on how their assets should be distributed. You must find the most up-to-date version of the will.

Search for the original will in places such as the deceased's home, safety deposit boxes, or with their solicitor. Verify the validity of the will by checking for the signatures of the deceased person and two witnesses, which are necessary for the document to be legally binding. If the will was made by a solicitor, you can be confident that it will be legally valid. However, if it was made independently by the deceased, you should take more care to verify that it meets the relevant legal requirements.

2.Secure the Estate

Once you have located and verified the will, an executor will need to secure the deceased's assets. This can be done in several ways, depending on the assets involved:

• Notify banks, insurance companies, and other financial institutions about the death to freeze accounts and prevent unauthorised access.

• If you are concerned about people accessing the deceased’s home, secure it by changing locks. You can also arrange for property maintenance if you expect the probate process to take a long time.

• Collect and safeguard valuable items such as jewellery, artwork, and important documents.

Every estate is unique, and you will need to secure everything listed in the will or trust. This can be anything from houses and other property to small items of jewellery. Read our guide to six assets that are often forgotten about in a will.

3. Assess and Value the Estate

An accurate valuation of the estate is needed for probate and Inheritance Tax (IHT) purposes. You can begin with estimates, as you will only need an accurate value if the estate is likely to exceed the tax-free threshold, which is currently set at £325,000.

Making a more accurate valuation involves compiling a detailed inventory of all the deceased's assets and liabilities, including property, investments, personal belongings, and debts. Create a comprehensive list of the deceased’s assets, including real estate, bank accounts, stocks, and personal items. Obtain professional valuations for high-value assets like property or artwork.

You should also assess the estate's liabilities, including any outstanding debts, loans, and funeral expenses. Accurate record-keeping during this stage will help you to create detailed accounts to assess any potential tax liabilities, which you must submit to HM Revenue and Customs (HMRC) when applying for a grant of probate

4. Apply for a Grant of Probate

A grant of probate is a legal document that grants you the authority to manage and distribute the deceased's assets as specified in their will. First, confirm whether probate is necessary based on the size and type of assets in the estate. Some assets, like jointly owned property, may not require probate and, if these form the majority of the estate, probate may not be needed.

To begin the probate process, complete the necessary forms and gather the required documentation - the original will, death certificate, and a complete list of the estate’s assets and liabilities. Once you have arranged all of these, submit the application to the Probate Registry and pay any associated fees.

In cases where the deceased did not leave a will, you need to apply for letters of administration by completing a Form PA1A. This will grant you the legal authority to distribute the deceased’s assets, and is similar in nature to a grant of probate. A solicitor can support you with this process and advise you on your application.

5. Identify and Notify Beneficiaries

Identify and notify the beneficiaries named in the will. It is your responsibility as the executor to inform them of their entitlements and provide updates on the estate's administration process. Clear communication will prevent misunderstandings or disputes from arising, and ultimately lead to a smoother process.

Here are some tips for how to do this:

• Carefully review the will to identify all beneficiaries and their respective inheritances.

• Contact the beneficiaries in writing, outlining what they are entitled to and any conditions attached to their inheritance.

• Make every effort to reach beneficiaries even if they are difficult to locate, as this is your legal responsibility.

• Keep beneficiaries informed about the estate’s progress, including any delays or complications that may arise.

Read our guide on what an executor has to disclose to beneficiaries to learn more.

6. Review Any Trusts

If the will establishes any trusts with you as a trustee, you must make sure they are correctly set up and comply with HMRC’s legal requirements. Each type of trust has different obligations, and you will need to understand them, or instruct a legal professional who does, to manage the trust appropriately.

Register the trust with HMRC, if necessary, and make sure it meets all its tax obligations. You may need to file an annual trust tax return. As a trustee, you will also have responsibilities towards the trust and any assets, both in law and in the trust documents associated with the will. For example, you may need to manage and invest the trust assets responsibly and in the best interests of any ultimate beneficiaries.

7. Pay Debts and Taxes

Before distributing the estate's assets to the beneficiaries, all outstanding debts and liabilities need to be settled. This includes paying off any mortgages, loans, credit card debts, and other obligations. IHT and any other applicable taxes must also be calculated and paid to HMRC. You can use the estate’s funds to do this. 

• IHT is charged at 40% on assets that exceed the £325,000 nil rate band. 

The executor is responsible for communicating this with HMRC and arranging for the necessary payments to be made. Handle this step carefully and secure any receipts for payments, as distributing assets before settling debts can lead to personal liability for executors involved.

8. Distribute Assets to Beneficiaries

Once all debts and taxes have been settled, you can begin distributing the remaining assets to the beneficiaries as outlined in the will. This is the process of transferring property, funds, and other assets to the rightful recipients. Be transparent with the beneficiaries and any other executors. Working in accordance with the will’s instructions will help to prevent disputes or misunderstandings.

Take the following steps:

• Prepare detailed accounts of the estate’s administration that show the remaining assets available for distribution.

• Transfer property titles, distribute funds, and handle the distribution of personal belongings as specified in the will.

• Provide beneficiaries with relevant documentation, such as statements of distribution, and ensure they understand the process.

You must follow the will’s instructions to the letter where possible, as it is a legal document. You cannot make your own decisions about how assets should be distributed unless you are the trustee of a discretionary trust. In the latter cases, you will be able to make some decisions about the distribution of trust assets, depending on the rules of the trust.

9. Final Accounts and Reporting

After distributing the estate's assets, your final responsibility as an executor is to prepare accounts detailing the administration process. These accounts should include an inventory of assets, liabilities, payments made (including debts and taxes), and distributions to beneficiaries. Providing these accounts to the beneficiaries offers transparency and confirms that the estate has been managed in accordance with the will and any legal requirements.

• Prepare detailed final accounts that show the total value of the estate, payments made, and distributions to beneficiaries.

• Present the final accounts to the beneficiaries for review and approval. This helps ensure transparency and can prevent future disputes.

• Retain records of all transactions and communications throughout the estate administration process for future reference, as executors may be asked to provide these details even after the estate has been closed.

Seek Professional Assistance from Solicitors

Managing an estate is a complicated process that requires careful attention to detail and an understanding of the legal obligations involved. This checklist and the resources we have provided can help you to meet these responsibilities but the advice of a professional executor will save you time and stress. This can be invaluable support for families dealing with the emotional toll of losing a loved one.

At Percy, Hughes & Roberts, we have decades of experience in handling the responsibilities of executors, from providing advice on fulfilling all of the legal responsibilities, to taking on the role of executor for our clients. Appointing a professional solicitor can help your loved ones during their time of grief.

Speak to Percy Hughes & Roberts Solicitors’ Wills & Probate team for a no-obligation phone consultation today. Call us on 0151 666 9090, or fill out our online enquiry form to arrange for a call back at a time that is suitable for you.