Friendship, modesty, sympathy
Executorship...
COULD YOU
DO IT?
What is an Executor?
An Executor is the person or people appointed
by a Will to deal with the affairs of the deceased.
Duties and responsibilities of Executors
As an Executor, you are responsible for identifying
all assets and liabilities held by the deceased.
With this information, you must then complete
the relevant inheritance tax forms as accurately
as possible before applying for Probate, should
this be necessary. Once you receive Probate,
you must then settle all debts and liabilities from
estate funds, before accounting to beneficiaries
for their inheritance.
Risks of acting as an Executor
Being an Executor is a demanding role and can
prove to be time consuming and stressful. If the
administration process is not correctly adhered
to then there can be various repercussions which
may not be obvious to a lay person.
As Executor, you can be held personally liable
for mistakes and negligence when administering
to an estate. If you are not familiar with the
administration process, it is easy to make mistakes
such as submitting an incorrect tax account, not
adequately protecting an unoccupied property or
failing to contact all relevant organisations.
entitlement, or to omit payment of a legacy
altogether, can lead to complications once the
estate has been distributed as you will be held
responsible for resolving such issues.
Another crucial aspect of Executorship is ensuring
that estate funds are kept separate from your
own personal funds. You must open a separate
client account for this purpose. Failure to do so
can be treated as misappropriation of funds and
can cause difficulties in identifying payments,
interest and tax.
In addition to the above, one other important
point to consider is the concept of intermeddling.
As an Executor you are free to renounce your
role as Executor if you feel the administration is
too difficult or you do not wish to undertake this
duty. This must be done at the very beginning,
as any action you take in your capacity as an
Executor can result in intermeddling meaning you
are prohibited by law from standing down as an
Executor. Where an Executor has intermeddled
they must fulfil their duty and will be liable for
their actions. A minor task such as payment of a
small utility bill can result in intermeddling.
Why should you appoint a professional
Executor?
Where mistakes are made, there can be serious
consequences. Failure to disclose relevant assets
or liabilities on tax forms can mean that penalties
are incurred or in extreme cases you can even be
prosecuted for fraud. By appointing professional Executor, you can rest
easy knowing that the administration process will
be dealt with by a dedicated and experienced
team. A professional Executor will relieve you
of any stress and burden at what is a difficult
time. More importantly, a professional Executor
will take on the liability associated with the
administration of an estate and will be fully
insured in the event of any issues arising.
Failure to pay inheritance tax when it is due can
accrue unnecessary interest on the balance due
which you will be responsible for paying. Failure
to correctly identify the extent of a beneficiary’s For further information regarding the appointment
of a professional Executor, please contact SWW
Trust Corporation.
the society of will writers
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