If you are administering an Estate yourself, without professional legal assistance, then you should be aware of the common mistakes and risks involved with doing so.
1. Failing to Follow the Terms of the Will
The main duty of an Executor is to administer the estate and distribute the deceased’s assets as per the deceased’s Will. Executors sometimes think it is fine to ignore bequests they disagree with and distribute on what they believe the deceased would have wanted.
e.g. Personal Effects
Uncle Fred’s will states “I leave my gold watch to my brother” but instead the executor feels that Fred really wanted to leave his “banjo” to his brother not the watch and gives the brother the banjo. This is wrong.
Failing to provide each beneficiary with his or her entitlement as per the Will, not more, less or different – could lead to a claim by a disappointed beneficiary.
2. Failing to properly interpret the Will
A Will is a binding legal document.
Even though Solicitors are trying to modernize the language used when drafting Wills certain legal terms used are beyond the vocabulary of the average executor.
If an Executor plans to administer the deceased’s estate himself without professional assistance, the executor would be well-advised to seek legal assistance in interpreting the Will.
3. Acting as an Executor without Legal Assistance
Acting as an Executor is a demanding and time-consuming responsibility. It is a more challenging task than ever. Many executors who have never acted as an executor before, either as a sense of duty or desire to save the estate money, opt to go it alone.
If it is as a sense of duty they decide to go it alone then the obligation they feel is misplaced. The law has consistently recognised an Executor’s right to seek professional assistance and to delegate certain areas to an agent or agents. As a general rule an executor may delegate administration duties i.e. ascertaining and collecting in assets, dealing with payment of Inheritance Tax (if applicable) preparing estate accounts and dealing with the deceased’s income tax affairs.
If it is the desire to save the Estate money that prevents an Executor asking for legal assistance then this is misguided.
Inexperience, lack of knowledge including various laws may end up costing the estate dearly. Missing filing deadlines and not taking advantage of exemptions could result in additional costs to the estate. Doing it yourself can prove more costly in the long run.
4. Keeping all Beneficiaries “in the Loop”
Whilst an executor is responsible for administering an estate either solely or with a co-executor which may include selling the deceased’s property, making payments from the estate he should never forget that he is acting on behalf of the beneficiaries mentioned in the Will who have a right to know what is going on.
It is a legal requirement of an Executor to keep track and produce evidence by way of accounts of all estate transactions.
Estates usually take longer to administer than expected. Beneficiaries sometimes do not understand delays but by keeping them informed keeps beneficiaries happy.
Beneficiaries who are kept in the dark tend to assume the worst.
Executors who fail in the above could end up having to answer annoying phone calls from beneficiaries or their solicitors.
5. Failing to Take the Job seriously
The role of an Executor is one of Trust and responsibility to the beneficiaries. Some executors fail to live up to the expected standards.
Some inappropriate behaviour by Examples include
- Mixing estate monies with their own monies
- Failing to keep proper documentation of assets and liabilities
- Failing to collect in all monies due to an estate
- Selling estate property without first obtaining professional valuations
- Not giving the role the time it requires (I will do this next week it can wait until then)
A beneficiary is justified to complain about any of these acts.
Failing to take the job seriously and properly discharge an executor’s duty may result in personal liability.
If you have any queries about the above or would like legal assistance on administering an estate, please do not hesitate to contact our Probate department on 01606 74301.
