legal corner Legal Corner By Marinella Hollies, Consultant Solicitor at Wollen Michelmore
the role of executor – handle with care When someone dies, there are many practical as well as emotional issues to deal with. Being asked to be an executor is an honour.
The person appointing you knows you can be trusted to carry out their wishes. But it can also be a huge task, even if the estate is simple. Executors are expected to fulfil
the terms of the will including the distribution of bequests. This can be complicated, for example, if a bequest has been made to a beneficiary who cannot be found or if the Will is not straightforward. It is not at all uncommon
It is not at all uncommon for private executors to
for private executors to make mistakes in an administration, especially if they are not professionally advised. An obvious example is where an executor misinterprets a Will and makes a payment to a beneficiary that is beyond their entitlement, so that others suffer. The Trustee Act 2000 has imposed on all
executors a statutory duty to exercise care and skill in the administration of the estate. Executors are personally responsible for
completing self-assessment tax returns during the administration of the estate and for payment of assessed tax. The tax may be payable after the administration is concluded and it is essential that such liabilities are allowed for in distributing the estate. Delay in lodging returns, or in payment of tax, can now lead to significant penalties which may not be recoverable from the assets of the estate. In addition, executors have a statutory
responsibility to the Inland Revenue to advise them of all circumstances which might lead to the payment of inheritance tax. They are expected to make appropriate inquiries about possible lifetime gifts made by the deceased. Failure to account to the Revenue can lead to
make mistakes
severe penalties, which fall on the executors personally and cannot usually be recoverable from the estate unless they can be shown to have done all they could to uncover taxable gifts. Executors are required to keep clear and accurate accounts of their dealings with the deceased’s assets and liabilities and beneficiaries are entitled to inspect them. Where an Executor has no experience of the preparation of accounts, he is under a duty to delegate the task to a competent person. Otherwise, the court might intervene and demand an account. It is frequently difficult to be
certain that one has been made aware of every single debt owed, at his or her death, by a deceased person but the executor must take certain steps to ensure that he doesn’t become personally liable for any debts that are not paid. We appreciate this is a difficult time and if you
are acting as an executor or administrator, we can help.
Not only will we make the experience as
stress-free as possible, our experienced estates and probate solicitors will also ensure that everything is dealt with correctly and efficiently, whether there is a Will or not.
The South Devon Law Firm
The experience, dedication and values to support you, your family and your business
Torquay • Newton Abbot • Paignton • Dartmouth
www.wollenmichelmore.co.uk Tel: 01803 521692
Paignton Office: Belgrave House, 2 Winner Street, Paignton, Devon TQ3 3BJ 49
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