The advantages of appointing a professional to be an executor in your Will
Administering an estate after someone passes away is a significant responsibility that involves legal, financial, and personal considerations. Choosing the right person to fulfil this role is crucial to ensure the process runs smoothly and in accordance with the deceased's wishes.
So what does it mean to be an executor, and what are the potential benefits of appointing a professional? In this article we'll explore the factors to consider when making this important decision.
An executor is an individual who administers a deceased person's estate, having been appointed in the Will. In general terms, an individual's estate is the total of all their assets, less all their liabilities. The person who writes a Will is known as the testator. They can choose anyone to be their executor.
Naturally, a testator will want to choose someone they trust to administer their estate. It’s an important role and it’s vital that it’s done properly.
There are many legal responsibilities associated with being an executor including potentially:
Registering the death
Arranging the funeral
Valuing the estate
Paying any inheritance tax
Applying for probate
Sorting the deceased's finances
Distributing the estate
Keeping estate accounts
While many people decide to appoint their loved ones, i.e. their spouse, children, other family members or friends, it is possible to appoint a professional such as a solicitor or accountant to be an executor.
Often, being an executor to an estate can be a thankless job. One way to avoid burdening your loved ones with this job is to appoint a professional.
Professional executors have experience of estate administration. They understand the legal complexities involved and can navigate the process efficiently. Estate administration can be time-consuming and overwhelming for individuals who are not familiar with the legal process and the government departments such as HMRC and the Probate Office that need to be dealt with.
Professional executors have the time and abilities to facilitate the process while reducing stress for the beneficiaries and family members.
We regularly advise clients that the most appropriate course of action is to appoint an independent executor who is not associated with the family. Doing so allows the estate to be administered without a cloud hanging over the process because one party believes their family member is not administering the property as they should be. In addition, professional executors are bound by professional standards and regulations. This ensures that the administration of the estate is conducted diligently and transparently.
By appointing a professional executor, individuals can have peace of mind knowing that their estate will be managed competently and in accordance with their wishes, relieving their loved ones of the burden of navigating the complexities of estate administration.
As above, professional executors are governed by their professional obligations. They are generally experienced in the administration of estate, and they understand the legal landscape. Where a lay person has been appointed, matters can often spiral out of control. We regularly deal with matters where a family member:
Delays in administering the estate because they do not understand the deadlines set by HMRC or other governmental bodies and therefore incur fines
Has moved into an estate property to the detriment of other beneficiaries
Misappropriates funds
Favours certain beneficiaries over others
Appointing a professional executor reduces the chance of these types of incidences occurring
Executors of any description can claim various costs from the estate, including out of pocket expenses. Of course, if you appoint a professional, they will charge for their time. The potential benefits of appointing a professional must be weighed against the amount they will charge for their time and the total value of the estate.
There is no golden rule for whether to appoint a professional executor or not, however, in the complex and/or high value matters we would advise appointing a professional.
While the cost element might concern some individuals, given the complexity of estate administration, many lay executors are likely to appoint a solicitor to act on their behalf in administration. The result is that the cost implications of not appointing a professional can sometimes be as high as if one had been appointed at the outset.
If you’d like to speak to an expert in estate administration or you have a contentious probate matter that you would like advice on, please contact one of our experts for advice.
Contact Katherine to discuss this further.
