A Guide for Executors and Personal Representatives

Acting as an Executor or Personal Representative is an important legal responsibility.

Following the death of a loved one, the person dealing with the estate must ensure that assets are collected, liabilities are settled, and the estate is distributed correctly and in accordance with the law.

The administration of an estate can be straightforward in some circumstances, but it can also become complex and time-consuming depending on the size of the estate, the assets involved, and the number of beneficiaries.

This guide explains the role and responsibilities of Executors and Personal Representatives in England and Wales.

A Personal Representative is the person legally responsible for dealing with the estate of someone who has died.

The estate may include:

• Property
• Bank and building society accounts
• Investments and shares
• Personal possessions
• Insurance policies
• Debts and liabilities

A Personal Representative may be known as:

• An Executor – where the deceased left a valid Will naming Executors; or
• An Administrator – where there is no valid Will or no Executor able or willing to act.

If there is no valid Will, the deceased is said to have died intestate and the estate must be administered in accordance with the intestacy rules.

What Does an Executor or Administrator Do?

The role of a Personal Representative includes:

• Registering the death
• Locating the original Will
• Arranging the funeral
• Identifying beneficiaries
• Valuing the estate
• Applying for probate or letters of administration
• Paying debts and taxes
• Collecting in the estate assets
• Distributing the estate correctly

Personal Representatives have a legal duty to act in the best interests of the estate and its beneficiaries.

Valuing the Estate

One of the first duties of a Personal Representative is to establish the value of the estate at the date of death.

This usually involves obtaining information relating to:

• Bank and savings accounts
• Property valuations
• Investments and shares
• Pension and insurance policies
• Personal belongings
• Outstanding debts and liabilities

Accurate valuations are essential as they determine whether Inheritance Tax is payable and what information must be submitted to HM Revenue & Customs (HMRC).

Inheritance Tax

The Personal Representatives must determine whether Inheritance Tax (IHT) is payable on the estate.

The Nil Rate Band is currently £325,000 per individual, although additional allowances and exemptions may apply, including:

• The transferable Nil Rate Band between spouses and civil partners
• The Residence Nil Rate Band
• Spouse and charity exemptions
• Business Property Relief and Agricultural Property Relief

Even where no tax is payable, certain HMRC forms may still need to be completed before probate can be obtained.

What Is a Grant of Representation?

A Grant of Representation is the legal document that gives authority to the Personal Representatives to deal with the estate.

The type of Grant depends on the circumstances:

• Grant of Probate – where there is a valid Will and Executors are acting
• Letters of Administration – where there is no Will
• Letters of Administration with Will Annexed – where there is a Will but no Executor is able or willing to act

A Grant is often required where:

• The deceased owned property in their sole name
• Assets exceed the financial institution’s threshold
• Shares or investments need to be transferred or sold

Many banks and building societies have their own limits and may release smaller balances without requiring a Grant.

Collecting the Assets

Once the Grant has been obtained, the Personal Representatives can begin collecting the estate assets.

This may include:

• Closing bank accounts
• Selling or transferring property
• Cashing investments
• Collecting refunds or monies owed to the estate

The Personal Representatives have various legal powers to assist them, including powers to:

• Sell property
• Insure property
• Invest estate funds
• Manage estate assets during the administration period

Before beneficiaries can receive their inheritance, all debts and liabilities must be settled.

These may include:

• Funeral expenses
• Utility bills
• Loans and credit cards
• Care fees
• Taxes owed by the deceased or the estate

Personal Representatives should ensure that all liabilities are identified before distributing the estate, as they may become personally liable if debts remain unpaid.

Distributing the Estate

Once the estate assets have been collected and liabilities settled, the estate can be distributed to the beneficiaries.

Where there is a valid Will, distribution must follow the terms of the Will.

If there is no Will, the estate must be distributed in accordance with the intestacy rules.

Estate Accounts

Personal Representatives must maintain clear and accurate estate accounts throughout the administration process.

The estate accounts should include:

• The value of the assets at the date of death
• Money received into the estate
• Debts and liabilities paid
• Administration expenses
• The final distribution to beneficiaries

Beneficiaries are entitled to see the estate accounts.

The duties of a Personal Representative must be carried out with care and diligence.

Frequently Asked Questions (FAQs)

For further information or advice regarding estate administration, probate, or the duties of Executors and Personal Representatives, please contact our Specialist Team.