Paying tax

Executors have the personal responsibility of paying any tax due by the estate and to complete tax returns covering the administrative period. If a deadline is missed this can lead to significant penalties which may not be recoverable from the estate.

Dealing with claims against the estate

An Executor faced with a claim against the estate should assess if they need to make a Beddoe application seeking directions from the court on the action they should take and protection for legal costs. A failure to obtain a Beddoe’s order may lead to personal liability for legal fees.

Insuring and securing vacant property is vital - if a property with its contents is left unoccupied it would be sensible to remove the valuables and the property should be kept secure and insured. An Executor should make sure the trustees/beneficiaries interest is noted in the relevant insurance policy.Stop the payment of salary, pensions and state benefits. Advise the issuers of credit cards, passport, driver’s licence, TV licence and act on their instructions.

Executors who are also appointed as Trustees

It is always crucial to check if the testator has set up any trusts and what duties and liabilities arise under these.  A Professional Executor, such as ProbateNI, can identify where there may be trusts included in the Will and how to deal with them.

Failing to make sure beneficiaries provide relevant information in respect of Inheritance Tax

Executors should keep in mind what the HMRC inheritance tax (IHT) toolkit says in relation to lifetime gifts. If the above process is not correctly completed, the Executor may find themselves being held personally liable for any unpaid tax.

Distribution 

An Executor is responsible for paying all the beneficiaries their share of the residual estate. Prior to doing this the Executor needs to ensure that all debts are honoured before any payments can be made. These debts include all taxes, loans, credit cards, car finance, mortgages and other creditors. If the personal representative has NOT placed statutory advertisements (e.g. in the Belfast Gazette and a local newspaper), they will be personally liable to settle any unpaid debts of the deceased.

Unnecessary delay 

If a loss occurs because the Executor acted too slowly they may be personally liable to the estate for the loss. Examples would be selling a property which falls in value or failure to pay a debt leading to additional interest or penalty charges.

Failing to communicate with beneficiaries

The Executor should inform the beneficiaries of their interest in the estate and give a time frame for the administration. They should also be advised of the Executor’s fees in order to avoid any disputes. 

At the end of the estate administration process, the beneficiaries must be provided with detailed Estate Accounts which show all income and expenditure incurred and how each beneficiary’s share was calculated.