An executor is legally responsible for administering the estate of the person who has died, overseeing that their final wishes are respected and carried out correctly. This involves a series of important duties, from valuing the estate to paying taxes and distributing assets.

In this guide, we will explain the key powers and responsibilities of an executor in the UK. Understanding these duties provides clarity for everyone involved and helps to properly manage the estate administration process.

What is the executor's role and authority?

An executor is the individual (or individuals) appointed in a will to take legal control of the deceased’s estate and administer it in accordance with the will and the law. The estate includes all assets and liabilities, such as property, money, investments and personal possessions.

An executor’s authority comes from two sources: the will itself and, in most cases, a grant of probate. Together, these define what an executor can and cannot do.

When does an executor’s authority begin?

An executor’s role technically begins at the moment of death. This allows them to take certain protective steps immediately, such as arranging the funeral or safeguarding property and possessions.

However, an executor cannot usually exercise their full powers - for example, accessing bank accounts or selling property - until a grant of probate has been issued by the Probate Registry. The grant is formal confirmation that the will is valid and that the named executor has the legal right to act on behalf of the estate.

What powers does an executor have?

Once probate has been granted, an executor has wide-ranging legal authority to manage the estate. This includes the power to:

• Take control of assets: executors can close bank accounts, collect funds, access investments and take possession of property belonging to the estate.
• Sell estate assets: where necessary, executors have the power to sell property, shares, or other assets to pay debts, taxes or facilitate distribution to beneficiaries.
• Pay debts and expenses: executors are authorised to settle outstanding debts, funeral costs and administration expenses from estate funds, following the correct legal order of priority.
• Deal with tax matters: executors can complete inheritance tax returns, pay Inheritance Tax and handle any income tax or capital gains tax arising during the administration period.
• Manage the estate during administration: this includes insuring property, maintaining assets and making decisions needed to preserve the estate’s value until distribution.
• Distribute the estate: once all liabilities are settled, executors have the authority to transfer money, property and possessions to beneficiaries exactly as set out in the will.

These powers exist solely to allow the executor to carry out the deceased’s wishes. They are not discretionary powers to change outcomes or make personal decisions about fairness.

The key responsibilities of an executor

The executor's responsibilities follow a logical process, starting from the moment of death until the final distribution of the estate. This is known as the administration period.

Making the initial arrangements for the deceased person

Immediately after the person dies, the executor’s duties begin:

• Locating the original will: the first step is to find the original will, as this document is the foundation of their authority. It may be stored at home, with a lawyer or lodged with the Probate Registry.
• Registering the death: the executor must register the death and obtain copies of the death certificate. This document is essential for notifying financial institutions and applying for probate. An interim death certificate may be issued if an inquest is needed.
• Arranging the funeral: the executor is responsible for arranging the funeral, ensuring it respects any known funeral wishes of the person who has died. Funeral expenses are a primary debt and should be paid from the deceased’s estate before other debts. Many banks will release funds from the deceased's bank account to pay the funeral invoice directly.

Identifying and valuing the estate

A crucial part of the executor role is to build a complete financial picture of the deceased's estate.

• Identify all assets: this involves a thorough investigation to locate all money, property and possessions the deceased owned. This includes bank and building society accounts, property, shares, vehicles, valuable personal items and any life insurance policy payouts.
• Identifying all debts: the executor must also identify any outstanding debts, such as mortgages, loans, credit card balances and bills from utility companies.
• Calculating the estate value: once all assets and liabilities are known, the executor prepares a detailed valuation. This final estate value is essential for completing the inheritance tax forms and determining how much inheritance tax, if any, is owed.

Applying for the Grant of Probate

While not always required for very small estates, a grant of probate is usually necessary to manage the deceased's financial affairs.

• Completing tax forms: to apply for probate, the executor must complete the relevant inheritance tax forms for HM Revenue & Customs (HMRC). This reports the total estate value and calculates the Inheritance Tax liability.
• Paying Inheritance Tax: a portion of any Inheritance Tax owed must often be paid before probate is granted. Executors need to arrange this payment, which can sometimes be made directly from the deceased's bank account or through a loan.
• Submitting the application: the executor submits the application, along with the original will, the death certificate, and the completed inheritance tax forms. The application can be submitted to the Probate Registry, which can often be done online.

Managing and protecting the estate

During the administration period, the executor is legally responsible for the estate’s assets.

• Opening an executor’s bank account: it is best practice to open a separate bank account to hold all the estate funds. This keeps the estate’s money separate from the executor’s personal finances and provides a clear record of transactions.
• Collecting assets: once granted probate, the executor can present the Grant of Probate to banks, pension providers, and other institutions to close accounts and gather all the money into the executor's account. They will also manage the sale or transfer of property and other financial assets.
• Pay debts: the executor must pay all the debts of the person who has died from the estate funds. There is a specific legal order for paying debts which must be followed, especially if there is not enough money in the estate to cover everything.

Settling the estate’s tax obligations

The executor is personally responsible for ensuring the estate’s tax affairs are in order.

• Inheritance Tax: the executor must calculate and pay the correct amount of Inheritance Tax to HMRC by the deadline.
• Income tax: if the estate generates income during the administration period (for example, rental income from a property or interest on savings), the executor must pay any income tax due.
• Capital Gains Tax: if an asset, such as a property or shares, is sold for a profit during the administration period, the executor is responsible for calculating and paying any Capital Gains Tax.

Distributing the estate to beneficiaries

After all debts, funeral costs and taxes have been paid, the executor’s final major duty is to distribute the remaining assets.

• Following the will: the executor must distribute the money, property and possessions exactly as set out in the will.
• Preparing estate accounts: it is good practice for the executor to prepare a final set of estate accounts. These accounts detail all the money and assets received and all payments made from the estate. A copy should be provided to the main beneficiaries for transparency.
• Transferring assets: The executor transfers the inheritances to the beneficiaries, finalising the estate administration.

What an executor cannot do

While an executor has significant legal powers, their role is strictly governed by law. They have a fiduciary duty to act in the best interests of the estate and its beneficiaries.

An executor must not:

• Deviate from the will: an executor cannot change the terms of a valid will or ignore the instructions within it. They cannot decide who gets what; their duty is to follow the deceased’s wishes. The only exception is if all beneficiaries agree to formally alter the will's terms with a Deed of Variation.
• Act for personal gain: executors cannot use their position to benefit themselves. They cannot sell an estate property to themselves for less than market value or take any assets that were not left to them in the will.
• Distribute the estate too early: an executor must settle all outstanding debts and taxes before distributing inheritances. If they distribute the estate and a creditor later comes forward, the executor could be personally liable for that debt.
• Act carelessly or irresponsibly: an executor must act with reasonable care. Failing to insure a property which then suffers damage, or making poor decisions that devalue assets, could lead to personal liability.

What powers do executors of a will have? FAQs

Can an executor also be a beneficiary?

Yes, it is very common for an executor to also be a beneficiary. Often, a spouse, civil partner or child is named as both. However, they must remember their duty is to all beneficiaries and they must act impartially.

What if there is more than one executor?

If the will names more than one executor, they must generally make all decisions jointly. This means checks and balances are in place. If one of the named executors does not wish to act, they can formally step down from the role.

Is an executor personally liable for mistakes?

Yes. The executor is legally responsible for their actions. If they make a mistake that causes a financial loss to the estate - such as miscalculating inheritance tax or failing to pay a debt - they can be held personally liable for that loss. This is one of the most significant disadvantages of being an executor.

How can an executor protect themselves?

To protect against unknown creditors or beneficiaries coming forward after the estate has been distributed, an executor can place a deceased estates notice in The Gazette and a local newspaper. This provides a time limit for claims to be made. Seeking professional legal advice is the most effective way to minimise the risk of personal liability.

What is a professional executor?

A professional executor is a specialist, such as a lawyer or a trust company, appointed in the will to carry out the estate administration. Appointing a professional executor can relieve the burden and legal risk from a family member, providing expertise and impartiality, especially for complex estates.