How Do I Manage Risks as an Executor of a Will?
Losing a loved one is often overwhelming.
Alongside grief, there can be a long list of practical matters to address.
If you have been appointed as an executor, you are taking on an important legal responsibility at what is already a difficult time.
Administering an estate involves gathering assets, settling liabilities and distributing what remains in accordance with the will, or the intestacy rules where no will exists. If you would like a broader overview of the duties of a will executor in the UK, you can read our related guide.
While many estates proceed without difficulty, the role does carry responsibilities that require care and attention.
A measured and structured approach can significantly reduce the risk of complications.
What Are an Executor’s Legal Duties?
An executor must act in the best interests of the estate and its beneficiaries, exercising reasonable care and complying with the will and the law of England and Wales.
Personal liability does not arise simply because something goes wrong.
However, where an executor acts outside their authority, distributes funds too early, or fails to settle debts and tax properly, there can be consequences.
The key is to ensure that decisions are informed, documented and properly timed.
Identifying and Protecting Estate Assets
One of the first practical tasks is to establish what the estate consists of.
This may involve:
- Locating the original will and checking for any codicils
- Contacting banks, pension providers and investment managers for date of death balances
- Obtaining property valuations where real estate is involved
- Identifying personal possessions that may require valuation
Where property is unoccupied, insurance arrangements should be reviewed promptly.
Many policies impose conditions once a property becomes empty. Ensuring that appropriate cover is in place can help protect against avoidable loss.
Taking early steps to secure property and maintain accurate records reduces the likelihood of later disputes.
How to Deal With Unknown Assets, Debts or Claims
Executors are expected to make reasonable enquiries into the deceased’s financial affairs.
In some cases, additional searches may be appropriate, particularly where records are incomplete.
It is also common practice to consider placing statutory notices in The Gazette, the UK’s official public record, and sometimes in a local newspaper.
Even where the deceased lived locally, publication in The Gazette provides national notice to potential creditors.
If no claims are made within the specified period (typically two months from publication in England and Wales), this can offer protection against certain unknown debts.
Such steps are not mandatory in every estate, but they can be a sensible safeguard depending on the circumstances.
Tax and Timing Risks Executors Should Not Overlook
Inheritance Tax reporting must be addressed before an application for a Grant of Probate can be made. Depending on the estate, further tax obligations may arise during the administration period, including income tax or capital gains tax.
Deadlines should be monitored carefully. Delays can result in interest becoming payable, even where there is no wrongdoing.
Professional advice is often appropriate where estates include property, investments, business interests or lifetime gifts.
When Can an Executor Safely Distribute an Estate?
- Executors should avoid distributing funds until:
- Debts and taxes have been settled or sufficient provision has been made
- The statutory notice period (if notices have been placed) has expired
- Consideration has been given to the six-month period following the Grant during which certain inheritance claims may be brought
These waiting periods are not simply procedural; they exist to protect executors from personal exposure.
Preparing clear estate accounts before final distribution is also important. Estate accounts typically include:
- The value of assets at the date of death
- Liabilities outstanding at that date
- Income received during administration
- Administration expenses
- The final distribution to beneficiaries
Providing these accounts to main beneficiaries helps ensure transparency.
Why Good Record Keeping Protects Executors
Many disputes arise not from wrongdoing but from misunderstanding.
Keeping written records of decisions, valuations and correspondence provides an audit trail. Setting realistic expectations about timescales from the outset can also reduce tension.
When Should an Executor Get Legal Advice?
Some estates are straightforward. Others involve property portfolios, blended families, business interests or foreign assets.
Seeking legal advice does not remove an executor’s responsibility, but it can help ensure that duties are carried out properly and in a way that minimises risk.
The Wills, Trusts and Probate team at Bennett Griffin LLP supports executors across Sussex and the South East, providing clear guidance tailored to the circumstances of each estate.
To learn more about common pitfalls and how to avoid them, read the next post in our series: What Executors Often Get Wrong (And How to Avoid It)