What Executors Often Get Wrong (And How to Avoid It)
Being appointed as an executor is a position of trust. It reflects confidence in your judgement and integrity. However, administering an estate involves legal responsibilities that are sometimes underestimated.
Many difficulties arise not from bad faith, but from misunderstandings about what the role requires. Below are some of the more common issues we see, and practical steps that can help reduce risk.
Distributing the Estate Too Early
One of the most frequent mistakes is making payments to beneficiaries before all liabilities have been properly identified and settled.
Executors are responsible for ensuring that debts, tax and administration expenses are dealt with before distributing funds. If assets are paid out prematurely and a creditor later comes forward, the executor may need to recover funds from beneficiaries or, in some circumstances, meet the shortfall personally.
How to avoid it:
- Ensure all known liabilities are settled or sufficient provision is made.
- Consider whether statutory notices to creditors are appropriate.
- Allow relevant limitation periods to pass before final distribution.
- Patience at this stage can prevent significant difficulty later.
Failing to Locate the Original Will
An executor’s authority comes from the original will. Problems can arise where a copy is relied upon, or where a later will is discovered after administration has begun.
Using the wrong document can invalidate earlier steps and create avoidable dispute.
How to avoid it:
- Confirm that the document in hand is the most recent original will, including any codicils.
- Make reasonable enquiries if there is uncertainty about whether a later will exists.
Overlooking Assets or Liabilities
It is not uncommon for bank accounts, investments, digital assets or debts to be missed, particularly where records are incomplete.
An incomplete understanding of the estate may lead to inaccurate tax reporting or premature distribution.
How to avoid it:
- Review financial paperwork carefully.
- Contact relevant institutions for date of death balances.
- Consider whether additional searches are appropriate in the circumstances.
Executors are expected to take reasonable steps, not to achieve perfection, but diligence is important.
Ignoring Insurance Requirements
Where an estate includes property, particularly if it becomes unoccupied, existing insurance arrangements may no longer apply without notification.
A failure to review cover can expose the estate to unnecessary loss.
How to avoid it:
- Notify insurers promptly of the death.
- Confirm whether cover continues and whether additional conditions apply.
- Ensure the property is appropriately secured and maintained.
Underestimating Tax Responsibilities
Inheritance Tax must be addressed before a Grant of Probate can be obtained. During the administration period, income tax or capital gains tax may also arise.
Tax reporting is often more involved than executors anticipate.
How to avoid it:
- Establish the tax position early.
- Monitor deadlines carefully.
- Seek professional advice where the estate includes property, investments or business interests.
Interest can accrue on unpaid tax even where no fault is intended, so early attention is advisable.
Mixing Estate Funds With Personal Funds
Using a personal bank account for estate transactions can lead to confusion and difficulty in accounting.
It may also undermine transparency if beneficiaries request an explanation of how funds have been handled.
How to avoid it:
- Open a separate executor bank account.
- Keep clear records of all receipts and payments.
Maintaining a clear financial separation is a simple but important safeguard.
Poor Communication With Beneficiaries
Disputes often arise from misunderstanding rather than wrongdoing. Beneficiaries may assume that delays are unnecessary or that information is being withheld.
While executors are not required to provide constant updates, transparency can prevent tension escalating.
How to avoid it:
- Set realistic expectations about timescales.
- Keep a written record of key decisions.
- Provide estate accounts before final distribution.
Clear communication demonstrates that the estate has been administered properly.
Acting Without Advice When the Estate Is Complex
Some estates are straightforward. Others involve second marriages, business assets, overseas property or family disagreement.
Proceeding without guidance in a complex estate can increase the risk of error.
How to avoid it:
- Take advice early where there is uncertainty.
- Consider whether professional assistance would assist in protecting both the estate and the executor personally.
Seeking advice is not a sign of weakness; it is often a practical step in fulfilling the role responsibly.
A Balanced Approach
Most executors act carefully and in good faith. Difficulties tend to arise where responsibilities are not fully understood or where actions are taken too quickly.
Administering an estate requires structure, record-keeping and measured decision-making. Taking time to understand the role, keeping clear documentation and obtaining advice where needed can significantly reduce the likelihood of problems.
The Wills, Trusts and Probate team at Bennett Griffin LLP advises executors across Sussex and the South East, providing practical guidance tailored to the circumstances of each estate.
If you would like to discuss your responsibilities as an executor, we would be pleased to assist.