Being named as an executor is often viewed as an honour, but it is important to understand what the role involves before agreeing to act.
An executor is responsible for administering the estate, which may include obtaining probate, dealing with tax matters, collecting assets, paying debts, and distributing the estate to beneficiaries. While some estates are straightforward, others can be complex, particularly where there is property, inheritance tax, business assets or family disagreement.
Could I be personally liable?
Yes.
Executors can be held personally responsible if mistakes are made during the administration of an estate. Common examples include:
- Distributing funds before all debts and liabilities have been identified.
- Failing to deal with tax matters correctly, including inheritance tax, income tax or capital gains tax arising during the administration period.
- Selling assets without obtaining appropriate valuations.
- Misinterpreting the terms of the Will.
- Treating beneficiaries unfairly or failing to act impartially.
In some cases, an executor may be required to reimburse losses from their own funds.
Do I have to act?
No. Being named as an executor does not automatically mean you must accept the role.
Before deciding, consider:
- The amount of time the administration is likely to require.
- Whether the estate contains property or complex assets.
- Whether there are family tensions or potential disputes.
- Whether you feel comfortable taking on legal and financial responsibilities.
Importantly, once you start acting as an executor, you may lose the option to step aside. Obtaining advice before taking any action can therefore be invaluable.
What if I decide not to act?
If you have not yet started acting as executor, you may be able to renounce the role.
Where other executors are named in the Will, they can usually continue with the administration. Some Wills also appoint substitute executors who can step in if the original executor is unable or unwilling to act.
If there is no executor able to act, there is a legal order of priority that determines who can apply for Letters of Administration with the Will annexed to administer the estate. This could be a residuary beneficiary of the Will.
Why take professional advice?
Acting as an executor can be daunting, particularly if you have never dealt with an estate before.
With changes due to take effect from April 2027 bringing many pension assets within the scope of Inheritance Tax, executors may face additional responsibilities when dealing with an estate, further increasing the importance of taking professional advice.
A Wills and Probate solicitor can:
- Explain your responsibilities and potential risks.
- Guide you through the probate and estate administration process.
- Advise on inheritance tax, income tax and capital gains tax issues.
- Assist with the sale or transfer of property.
- Liaise with beneficiaries on your behalf.
- Prepare estate accounts.
- Help protect you from personal liability.
Many people are surprised to learn that professional fees incurred in administering an estate are generally paid from the estate as an administration expense, rather than by the executor personally.
Summary
If you have been named as an executor, take time to understand the responsibilities before accepting the role or taking any steps in the administration.
Early advice can help you make an informed decision, avoid costly mistakes, and ensure the estate is administered efficiently and correctly. It can also provide reassurance that you are fulfilling your duties while protecting yourself from unnecessary personal risk.
How can we help?
Heidi Van Rooyen is an Associate in our Wills, Trusts and Probate team, specialising in Inheritance Tax advice, Wills, administration of estates, Grants of Probate and Powers of Attorney.
If you require any advice concerning the subjects discussed in this article, please do not hesitate to contact Heidi or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.
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