Executor Duties: What Being an Executor Involves

When someone dies and appoints you as executor in their will, your legal authority to act derives from the will itself — but in practice, most financial institutions and third parties will not act on your instructions until you have a grant of probate. The first steps are:

1. Register the death: This must be done within 5 days (in England and Wales) at the local register office. Obtain multiple certified copies of the death certificate — you will need them for banks, pension providers, and other institutions.
2. Locate the will: Find the original will (not a copy) and confirm that you are named as executor. Check whether a later will exists that supersedes it.
3. Identify and value assets and liabilities: Write to all banks, building societies, insurance companies, pension providers, mortgage lenders, HMRC, and other creditors to notify them of the death and obtain current valuations and account balances. Get valuations for property (an estate agent or RICS surveyor), personal possessions (if significant), and any business interests.
4. Apply for a grant of probate: Once you have a full picture of the estate's value, you can submit a probate application to HMCTS, together with the original will and the applicable IHT form. If IHT is payable, this must usually be paid (at least in part) before probate is granted — which creates a practical funding challenge, as banks will generally not release funds until probate is granted. Banks may release funds to pay an IHT bill directly from the deceased's account (the HMRC bank payment scheme).

Before distributing any assets to beneficiaries, executors must pay all of the deceased's debts and any taxes due. The order of priority for paying debts from an insolvent estate is set by law — but in a solvent estate, all debts must be paid in full before beneficiaries receive anything.

The categories of debt to settle include:

• Funeral costs (priority claim on the estate)
• Inheritance tax (must be paid to HMRC before probate is granted in many cases)
• Income tax and capital gains tax liabilities up to the date of death (HMRC will issue a tax calculation)
• Mortgage and secured debts (the security holder has a claim on the specific asset)
• Unsecured debts: credit cards, personal loans, utility arrears, and other creditors

To protect themselves from unknown creditors, executors should place a Section 27 Notice (also called a Trustee Act notice) in The Gazette and a local newspaper. This notice invites creditors to submit claims within two months. After the notice period expires and all known debts are paid, executors are protected from claims by creditors who did not come forward — provided the notice was properly placed. Without this notice, an executor can remain personally liable to creditors even after distributing the estate.

Inheritance tax is payable at 40% on the estate value above the nil-rate band (currently £325,000) and any applicable residence nil-rate band (up to £175,000 where a main residence passes to direct descendants). IHT on land and buildings can be paid by instalments over 10 years.

Once probate is granted, debts and taxes are paid, and the Section 27 notice period has expired, executors can distribute the estate to beneficiaries in accordance with the will. The key steps are:

1. Transferring or selling assets: Property, investments, vehicles, and other assets are either transferred to the relevant beneficiary or sold and the proceeds distributed. Property requires completion of SDLT/LTT forms and registration at HM Land Registry.
2. Interim distributions: Executors can make interim distributions of cash before the estate is fully wound up, provided sufficient funds are retained to cover potential final liabilities. This is useful where beneficiaries need funds before the estate is complete.
3. Estate accounts: Executors should prepare estate accounts — a full record of all assets, liabilities, income, and distributions — for the beneficiaries' approval. This provides a transparent record and protects executors if disputes arise later.
4. Final distribution: Once all liabilities are settled and accounts are agreed, the residue is distributed to residuary beneficiaries in the shares set out in the will.

There is no strict legal time limit for completing an estate administration, but HMRC expects IHT to be paid promptly, and executors should aim to complete administration within 12 months of the date of death (known as the "executor's year"). Beneficiaries cannot compel an executor to distribute within 12 months, but thereafter may be able to apply to court if there is unreasonable delay.

Executors take on significant personal responsibility. If an executor makes errors in administering the estate — missing debts, distributing incorrectly, failing to pay IHT, or making unauthorised investments — they can be held personally liable to creditors or beneficiaries for any resulting loss. This liability is not limited to the value of the estate: an executor can be sued in their personal capacity.

To protect themselves, executors should:

• Place a Section 27 Gazette notice before distributing
• Obtain written confirmation from HMRC that all taxes are settled before final distribution
• Keep detailed records of all decisions and transactions
• Consider taking out executor's insurance (indemnity insurance) for complex or high-value estates
• Use a solicitor for complex estates, particularly where there are disputes, foreign assets, business interests, or significant IHT

Renouncing the role: If you are named as executor but do not wish to take on the responsibility, you can formally renounce the role by signing a Deed of Renunciation — but only before you have taken any steps to act as executor. Once you begin to act (for example, by contacting a bank or making any decisions about the estate), you have "intermeddled" in the estate and can no longer renounce. You may then need to apply to be removed by the court, which is more complex. If you are considering renouncing, do so promptly and seek legal advice.