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There are a
variety of important considerations for Executors or Estate Administrators... |
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LIABILITY FOR LOSS
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Executors are legally required to perform their duties with 'due
diligence'. If you take on the role of Executor or Estate
Administrator, you are liable to the beneficiaries for any loss
resulting from wrongful use of the deceased's property, negligence or
maladministration
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VALUATION OF ASSETS
AND LIABILITIES
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Executors will initially need to take the necessary steps to obtain
details of the deceased's assets and liabilities and, for some assets,
arrange appropriate professional valuations
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INSURANCE AND HOUSE
CLEARANCE
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Executors should arrange for the clearance of the deceased's house and
obtain insurance cover for their assets. They should take into
account relevant provisions in the deceased's Will and wishes expressed
by the beneficiaries
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INHERITANCE TAX
ACCOUNTS
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Depending on the value and nature of the Estate assets, it may be
necessary for Executors to prepare Inheritance Tax Accounts and lodge
them with the Inland Revenue. This may also involve calculation of
inheritance tax due, arrangement of bridging finance to pay the tax and
subsequent negotiation of valuations
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GRANT OF
REPRESENTATION
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Unless the Estate value is low, in order to prove entitlement to collect
in the deceased's assets, the Executors named in the deceased's Will
will need to obtain a 'Grant of Probate' issued by the High Court.
If the deceased did not leave a Will or if there are no Executors for
some other reason, the deceased's closest relatives will need to obtain
a 'Grant of Letters of Administration'
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COLLECTION OF ASSETS
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Executors need to collect in the deceased's savings, investments, land
and property as well as personal possessions. Again, they should
take into account relevant provisions in the deceased's Will and wishes
expressed by the beneficiaries
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PAY TAXES AND DEBTS
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Once assets have been realised, Executors should pay the funeral
expenses and all other outstanding liabilities of the Estate, including
any taxes remaining due
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DISTRIBUTE THE ESTATE
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After assets have been realised and liabilities settled, Executors
should distribute the remainder of the Estate in accordance with the
terms of the deceased's Will, or in accordance with the laws of
'intestacy' if there was no Will. They must ensure that relevant
assets are properly and legally transferred into beneficiaries' names
and should provide clear and detailed accounts which show how the Estate assets and
liabilities have been dealt with
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CONTINUING TRUSTS
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Continuing Trusts could arise from the deceased's Will or as a result of
the laws of intestacy, for example, where the beneficiaries include
children under 18. In such circumstances, Executors then become
Trustees and must invest and administer the assets in accordance with
the relevant rules of Trusteeship until the Trust has been correctly
brought to an end
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