7 steps to prepare as an executor of a will
This content is for information purposes only and should not be taken as financial advice. Every effort has been made to ensure the information is correct and up-to-date at the time of writing. For personalised and regulated advice regarding your situation, please consult an independent financial adviser here at Castlegate in Grantham, Lincolnshire or other local offices.
Being an executor to a loved one is an honour. You have been entrusted to help administer their estate after his/her passing. Yet performing the executor role is a big responsibility. What should you expect, exactly, and how can you prepare?
Below, our Grantham-based financial planners at Castlegate offer seven ideas to help executors do the best job for the person you care about. We hope you find this content helpful. If you want to discuss your own financial plan with us, please get in touch to arrange a no-obligation financial consultation, at our expense:
01476 855 585
info@casfin.co.uk
#1 Check the will location
The last thing anyone needs when your loved one dies is panic as you all scramble to try and find the will. Make sure you check its location regularly and that the other executors – if any – also know where it is and how to access it. It should be held somewhere secure, such as a safe. In which case, store the password safely (e.g. in a trusted online password vault).
If possible and appropriate, store the original, up-to-date will – or a copy – yourself. Make copies for the other executors and beneficiaries. Do not alter them in any way (even if you see spelling mistakes on the document!).
#2 Make sure funeral plans are clear
When your loved one dies, the most immediate practical concern will be dealing with the funeral arrangements. Is it perfectly clear to all executors what the funeral wishes are, and are these articulated plainly in the will? What is the funeral plan and do you have the details of the provider? How will funds be made available to pay for it?
Remember, you should be able to turn to the friends and family of your loved one for support when the time comes. They can help you to make arrangements and to contact extended family. As people who know your friend/family member well, they can also be a source of emotional support during this difficult time.
#3 Be ready to register the death
You may need to notify your loved one’s GP and formally register his/her death if there is no one else to take this responsibility. You will need a copy of the will and proof of your own identity at various stages to demonstrate that you have the authority to deal with the estate.
For instance, you may need to gain regular access to your loved one’s property to secure the premises and incoming post (you can halt further mail by contacting the Bereavement Register). A home insurance provider may need you to conduct regular checks on the property and the policy may even need changing if it does not cover an empty property.
Consider getting several authorised copies of the death certificate, as you are likely to need these as you administer the estate (unless you appoint a solicitor to handle this). It may be difficult and more costly to get more copies later on.
#4 Know how to value the estate
Part of your role as an executor will be to determine the value of the assets for inheritance tax (IHT) purposes. It will help you immensely to have an idea of how this works, beforehand. If any items look like they are worth over £500, then it will be wise to get a professional valuation.
The whole process can be quite complex and time-consuming. You can find more information about how to value an estate on the government’s website. The estate only needs to be valued quickly after the death if the person owes IHT. In which case, you have a year to get the relevant IHT forms to the authorities; and six months to start paying the IHT liability using money from the estate. Be careful to check the asset types – and how they were held/owned. Pension pots, for example, typically fall outside of the value of an estate for IHT purposes.
#5 Prepare your probate application
Probate refers to the legal right to handle another person’s estate. Doing this involves sending an important IHT form and a PA1A/P form, which you can get by calling the Probate and Inheritance Tax Helpline. Alternatively, most applications can now be completed online. When the time comes to make the application, you will need to send these (filled out) to the local Probate Registry, together with:
- A legal death certificate copy
- The original will plus three copies of it
- A fee of £273.
#6 Be ready to distribute the estate
Depending on the estate, there may be many assets to distribute to many people upon the owner’s death. It will help to have a clear idea of the assets you will be dealing with, how the will says they should be handled and who the beneficiaries are. If an item has been professionally valued and the will says that a specific item should be “bequeathed” to a specific person, then this can be done after the death and before the probate process (above) is completed.
You should be ready to set up estate accounts for every beneficiary, where assets and income can be placed into. When probate is given, you can start distributing the estate as stipulated in the will. Hand each beneficiary an R185 tax form and make sure you keep your own accurate record of everything you do when handling the estate.
#7 Know when to seek advice
Performing the executor role can be a challenging, time-consuming exercise. Seeking professional advice can help to ensure any complexities are carefully navigated.
Invitation
If you are interested in discussing your own financial plan or investment strategy with us, please get in touch to arrange a no-commitment financial consultation at our expense:
01476 855 585
info@casfin.co.uk
