Being responsible for administering someone’s Estate can be a daunting prospect in what can be a very sensitive time.
Here are some of the key points to bear in mind as you take on the role of Executor or an Administrator for someone’s Estate:
1. Am I an Executor or an Administrator?
An Executor is someone who has been specifically named in a Will to take on the role of administering someone’s Estate. This means the person that made the Will has specifically chosen you for this task and most likely because they trust you to take on such an important role. Hopefully they may have asked you in advance to agree to this role but they may not have in which case your appointment may come as a surprise.
As an Executor you will most likely be obtaining a ‘Grant of Probate’ in an Estate (Probate forms and guidance – GOV.UK (www.gov.uk)).
You are an Administrator if the person did not make a Will (or made a Will but did not appoint an Executor). You have in these circumstances acquired the role of Administrator because the law has set rules as to who takes on the responsibility for dealing with someone’s Estate. If you are an Administrator, you will usually be so because you are either a family member or a beneficiary of the Estate. These rules can be complicated and its best to take legal advice to understand your role in the circumstances.
As an Administrator you will most likely be obtaining a ‘Grant of Letters of Administration’ if there is no Will or a ‘Grant of Letters of Administration with Will annexed’ if there is a Will but no Executors to act.
2. Do I have to take on the role of Executor or Administrator?
No you don’t. If you do not feel able to take on the role then you do not have to. If you were named as an Executor you may have options to either have “power reserved” (which means taking a back seat role in the process) or you can “renounce” so fully remove yourself from any possible involvement in the Estate now and in the future.
The same principle applies if you are an Administrator. You can decline to take on the role and formally remove yourself and the law will then look to the next person in line to take on the job.
In either case it is important to think about who else can take on the role of Executor or Administrator if you do not want to do it.
3. What are my responsibilities?
You are legally and financially responsible for administering the Estate in accordance with the law. It is a personal responsibility (and notably one you cannot retire from once accepted!) and you can be held accountable to the Estate should you get anything wrong in the administration process. It is a highly responsible and time-consuming role.
An Executor or Administrator you can instruct Solicitors to administer the Estate for you or help with the administration process. This can be advisable in most circumstances and particularly so where there are persons other than yourself who inherit under the Estate and therefore your responsibility extends to them as well.
4. How long does it take to administer an Estate?
On average it takes a year to administer an Estate as there is lots to do; this is known as the ‘Executor’s year’. It depends a lot on what assets the person had, the value of their Estate and the number of people who inherit under it. Sometimes Estate can be administered more quickly and sometimes they can take a lot longer; it all depends on the specifics and complexity of the Estate.
The current turnaround times at the Probate Registry are also relevant. There have been a lot of changes with the Probate process in recent years. Currently the advised timescale by the Probate Registry for them to issue a Grant is 16 weeks from submission. Sometimes it can be quicker and other times it can be much longer, particularly when the Grant application cannot be made via HMCTS online. This is known as a ‘paper’ application. A ‘paper’ application is more likely to be required for a ‘Grant of Letters of Administration’ or a ‘Grant of Letters of Administration with Will annexed’ as these tend to be more complex applications which cannot not yet be handled by HMCTS online.
5. Are there any deadlines in administering an Estate?
There can be deadlines in administering an Estate. These usually relate to HMRC and the payment of inheritance tax and submission of paperwork if an Estate is taxable. There can also be time limits for making an application for certain reliefs from inheritance tax in an Estate. It is important that an Executor or Administrator is aware of these when carrying out their role.
It can appear a daunting prospect to know where to start with lots of information to take on board, but Estate Administration is certainly something we can guide you through and we offer help on many different levels depending on how much work you as an Executor or Administrator want to take on yourself.
For expert advice and assistance on estate planning, contact Helen Milburn, Partner – Wills, Trusts, Estates & Probate at Jacksons Law Firm hmilburn@jacksons-law.com or call her on 01642 873050.
