What it Means to Be a Legal Executor

When a loved one passes away, there are various arrangements that must be made. But what happens to the affairs our loved ones leave behind? Hopefully, your loved one has written a will that will now be put into effect. However, for this to be accomplished, they will have named someone as their legal executor; that person could be you.

What is a Legal Executor?

The legal executor is the person empowered by a will to deal with the estate of the deceased. It is their responsibility to arrange for assets to go where they are supposed to go. This includes consolidating funds and paying off debts.

In short, the legal executor must carry out the instructions of the deceased. If a legal executor is not named in the will, a court may appoint an executor in their place.

What is an Estate?

The “estate” encompasses everything owned by the person who has passed away. An individual’s estate may consist of:

• Money – This includes cash and bank accounts, as well as any money that may be owed to the individual from benefits or pensions
• Shares – It will be the responsibility of the executor to determine the value of any shares
• Property – This includes their home and any other properties they may own
• Personal Possessions – Cars, jewellery, furniture, etc. all count as personal possessions, provided they were owned by the person who has passed away

As part of their will, your loved one’s estate will likely be divided between several beneficiaries. It is the role of the executor to manage the distribution of these assets.

Responsibilities of a Legal Executor

If you have been named as your loved one’s legal executor, you will have to take on certain responsibilities. Some of these can be time consuming. You will also likely be in a fragile state following the passing of a loved one. Therefore, you should first be certain you can handle the role you have been given.

The list of tasks a legal executor is likely to undertake include:

• Registering the death
• Getting copies of the will
• Arranging the funeral
• Valuing the estate
• Sorting out finances
• Taking responsibility for property and post
• Dealing with all assets
• Paying Inheritance Tax
• Applying for probate
• Distributing the estate

For some responsibilities, you may benefit from consulting a solicitor. Whilst this may be costly at times, a solicitor can help to ensure that everything is done properly, and nothing gets missed.

Keep in mind that you may not be the only executor of your loved one’s estate. You and the other executor(s) will need to work together, though can split the responsibilities between you. Any actions carried out should be done with the approval of the other executor(s).

Registering the Death

This is not always the role of the legal executor, but if you are fulfilling this role for a loved one it may fall on you. You can register the death online, or you may have to visit your local registry office. Your loved one’s GP should also be informed. When you receive the death certificate, consider requesting multiple certified copies; this will become more expensive if requested at a later date.

You will need these copies when communicating with certain organisations, such as your loved one’s bank and insurance providers.

Who to Inform?

The loss of a loved one can be a difficult time. However, as well as informing family and friends, the executor will also need to ensure that the appropriate organisations are informed. Fortunately, most areas of England and Wales make this easier by providing the “Tell Us Once” service. The death must be registered first, but then you can contact the Tell Us Once service. When you register the death, the registrar will give you the necessary contact details and a reference number. Using this service means you will only have to pass over the details once, and the government will handle the rest.

However, this will only cover government agencies such as the Department of Work and Pensions. The Tell Us Once service also informs certain public sector pension schemes. Banks and insurance companies will need to be contacted separately.

If you are not in an area that benefits from the “Tell Us Once” service, you will need to contact the organisations separately.

The organisations are:

• HM Revenue and Customs (HMRC)
• Department for Work and Pensions (DWP)
• Passport Office
• Driver and Vehicle Licensing Agency (DVLA)
• Local Council
• Veterans UK (if ex-military)

Getting Copies of the Will

Unfortunately, many of us do not discuss arrangements for after we pass away until it’s too late. This may mean you are left uncertain about your loved one’s wishes. Hopefully, however, they will have prepared a will. As legal executor, you will need to find out where the most up-to-date version of the will is held and get hold of the original. If this is not possible, you will need to get a copy.

To access the will, you will need to provide the death certificate and proof of your identity. If there are any other executors, they must also approve of your access to the will.

Once you have the will, make enough copies for yourself, any co-executors, and beneficiaries outlined in the will.

In your loved one’s will there will be instructions determining who will receive what from their estate and what their wishes are regarding the funeral. As executor, it will be your responsibility to implement the content of the will as closely as possible.

For more information on preparing a will, read Plan Ahead – Making Your Will.

Arranging the Funeral

Not everyone will leave instructions for their funeral in a will. If your loved one has, however, then you must ensure the instructions are followed. Arranging a funeral can be a challenging, and expensive, time, but you do not have to do it alone. Whilst you may be in charge, it is okay to delegate certain tasks to friends or family.

In some cases, your loved one may have made arrangements before their death. Some funerals can be prepaid – at least in part – and you just have to take the final steps. When arranging the funeral, you will receive an invoice from the funeral provider. By taking this to your loved one’s bank, along with the death certificate, will, and your ID, the bank should be able to issue a cheque in your loved one’s name – provided there are adequate funds in their account.

Alternatively, you may be able to cover the expenses with their life insurance pay-out.

You may also wish to post an obituary in your local newspaper. This will increase the chances of your loved one’s colleagues and acquaintances learning of their passing.

Taking Over Responsibility for Property

If your loved one owned their own home and lived alone, you will have to take responsibility for it. To do so, you will have to inform the insurance company that they have passed away. Depending on the insurance policy, you may need to take out a new one to cover an empty property.

In some cases, the estate may be named as the policy holder, and you will be asked to perform regular checks on the property. You may also find that you want to stop any post being delivered to the property; to do this, you will need to contact the Bereavement Register.

Handling Finances

After your loved one passes away, the legal executor needs to take control of their finances. This allows for the money to be allocated to the beneficiaries as outlined in the will. However, before this can be done, tax, benefits, and National Insurance need to be handled. It may be that money is owed by the estate, but it could also be that the estate is due a rebate.

When you inform the “Tell Us Once” service of your loved one’s passing, they will pass on this information to HMRC and the DWP. These organisations will get in touch with you to determine the next steps. If money is owed, it will come out of the estate. If there is not enough money in the estate, however, you should seek legal advice.

As part of handling finances, you should also find out who will receive the money from pension and life insurance schemes. It may be that it goes directly to a beneficiary; if it goes into the estate, however, it may become liable for inheritance tax.

Debts

Similarly, your loved one may have certain debts when they pass away. If they do, it will be your responsibility as legal executor to contact any creditors. These debts must also be paid off before any money can be distributed amongst the beneficiaries. If there is not enough money in the estate to cover the debts, the creditors will not be able to recover the amount owed from any additional parties.

However, this may not be the case if the debt is related to a joint account or a loan on which someone else was a guarantor. In these situations, the debt can still be recovered from the second party. Similarly, if your loved one lived with someone else, then the other person may still be liable for any costs relating to the property.

Valuing the Estate

Once costs have been dealt with, the legal executor will need to determine the value of the estate. This includes all property, possessions, and money. In some cases, the estate may also include items owned jointly with others. For certain items, such as property or land, you should consider getting a professional valuation.

As a rule of thumb, the HMRC recommend having any items worth £500 or more valued by a professional.

The value of the estate does not need to be determined immediately. However, there is additional pressure if Inheritance Tax is owed. In this case, you will need to send off inheritance tax forms within a year of your loved one’s passing; tax payments need to begin with six months of their passing.

You can find more information about reporting the value of an estate by reading the official government guidance.

Distributing the Estate

One of the legal executor’s most important roles is to distribute the estate between the beneficiaries. This must be done in accordance with your loved one’s will. However, to distribute the estate, you will first need to be empowered to do so. This requires applying for probate.

Applying for Probate

A grant of probate provides you with the legal power necessary for dealing with someone’s estate. It enables you to take control of all finances and property, and then distribute the estate amongst the beneficiaries.

Smaller estates (those with a value of less than £5,000 in England and Wales, or less than £10,000 in Northern Ireland) may be exempt from probate. In this situation, you must write to your loved one’s bank or building society to make arrangements.

If probate is necessary, however, you can either complete the forms and mail them – available by calling the Probate and Inheritance Tax Helpline on 0300 123 1072 – or apply online. If applying by post, you will need to send a certified copy of the death certificate, the original will with three copies, and will be required to pay a fee of £215.

When you receive the grant, you will need to make several copies. This is so they can be provided to asset holders, such as banks and insurance companies. When you send your grant of probate to these asset holders, they must be provided with an official copy.

Once assets are released, they should be paid into a new account set up by the legal executor. Any distribution will then be carried out from this account.

Find out more about probate by reading our simple guide.

Distribution

Once funds have been secured, it is now the duty of the legal executor to divide it between the beneficiaries as specified in the will. Specific items that have been allocated – or bequeathed – to a beneficiary can be gifted before probate is granted. However, the item should be valued first.

Before distribution begins, you should ensure the assets have been carefully accounted to ensure everything is as it should be. This should also cover any expenses accrued during the process of executing the will. Once this has been done, you can distribute the estate between the beneficiaries.

If you are uncertain about distribution, it may be worth hiring a solicitor or accountant to assist with the process. This will also provide some protection if something goes wrong. You must also give each beneficiary an R185 tax form and keep clear records of the work you have done.

As always, seek legal advice if any part of the process seems unclear to you. It is better to be safe than sorry, especially in financial matters.

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