Executors’ Legal and Fiduciary Duties
More than 600,000 probate grants are issued annually by HM Courts & Tribunals Service (gov.uk), underscoring the critical role of UK executor duties in legacy and succession planning.
When a person dies, their estate must be managed in accordance with UK law, the instructions in their Will, and relevant HMRC guidelines. If someone dies without a will, they die intestate.
This article explores how to appoint a suitable executor, understand their fiduciary and legal duties, complete key estate administration tasks, and resolve conflicts, all within the scope of inheritance tax law and the Administration of Estates Act 1925.
You might find our LEGACY services helpful to you when planning for succession and inheritance tax. Additionally, you may have other assets in other countries that might require you to think more internationally as an expat.
Identifying a Suitable Executor
One of the first steps in succession planning is choosing the right executor. An executor is a person named in a Will to carry out the instructions of the deceased. They should be trustworthy, organised, and ideally impartial. As Carl Bayley notes in Shelter Your Family from the Taxman, “The executor role requires financial competence and emotional distance.”
Rebecca Probert, in Wills and Probate (OUP, 2022), warns that even a family member acting as executor must carefully manage conflicts of interest. Up to four executors can be appointed in the UK, but they must act unanimously on decisions.
Christopher Whitehouse, author of A Modern Approach to Wills, Administration and Estate Planning, recommends that complex estates—particularly those involving businesses or international assets—should appoint a professional executor such as a solicitor or chartered tax adviser.
Understanding Legal and Fiduciary Duties
Executors duties begin at the date of death and continue through probate and distribution. They include locating all assets, settling debts, paying taxes, and distributing what remains according to the Will. Executors act as personal representatives and must act lawfully under:
– Administration of Estates Act 1925
Daniel Edwards (Probate and Estate Administration, Law Press, 2023) highlights that executors owe a duty of care to beneficiaries and must document every transaction. HMRC requires executors to report the estate’s value using IHT205 or IHT400 forms, depending on its size. Late or inaccurate submissions can incur penalties.
Executor duties also include ensuring inheritance tax is paid on time. Under the Inheritance Tax Act 1984, tax must be settled by the end of the sixth month following the date of death. Capital gains tax and income tax may also apply during the administration period.
Key Tasks During Estate Administration
Estate administration follows a sequence:
1 – Initial Actions (Weeks 1–12):
– Register death, secure property and valuables.
– Notify banks, utility providers, pension schemes.
– Use Tell Us Once service.
2 – Tax & Probate (Weeks 12–16):
– Complete HMRC forms (IHT205 or IHT400).
– Apply for Grant of Probate using PA1P.
3 – Asset Realisation (Weeks 16–28):
– Close bank accounts, sell property.
– Set up executorship account.
4 – Debt Settlement & Distribution (Months 9–12):
– Pay debts and taxes.
– Prepare estate accounts.
– Distribute to beneficiaries.
As Karen Speight writes in Managing Estates: A Practical Guide (2021), “The success of estate administration lies in timely compliance and structured communication with all parties.”
Executors must obtain an IHT reference number three weeks prior to submitting any payments to HMRC. Estates valued over £325,000, or £500,000 with the residence nil-rate band, will require an IHT400.
Types of Disputes and Effective Resolution
Executor-beneficiary disputes are common. These can involve:
– Delays in asset distribution
– Disagreements over property sales
– Allegations of favouritism
– Lack of communication or transparency
Daniel Edwards urges early mediation, particularly where relationships are strained. Beneficiaries can request full estate accounts and apply to court under Section 50 of the Administration of Justice Act 1985 to remove executors in cases of misconduct.
Matthew Smith, in Resolving Estate Disputes (Sweet & Maxwell, 2023), explains, “Most estate conflicts stem from poor communication, not malice. Clear updates can prevent litigation.”
Rebecca Probert also notes that failure to register trusts within an estate with HMRC’s Trust Registration Service can trigger legal disputes or penalties.
Recent updates from HMRC include:
– Greater scrutiny of lifetime gifts made within seven years of death
– Stricter reporting of non-taxable estates under Finance Act 2020
– Enhanced digital submission requirements since 2023
Consider a case where three siblings act as joint executors, and two are estranged. The probate process is delayed, leading to IHT penalties. Professional intervention by a neutral solicitor restored order, ensuring asset distribution and compliance.
In another scenario, an executor discovers undeclared offshore assets. HMRC guidance mandates disclosure, potentially increasing the estate’s tax liability. Professional support is critical here to avoid penalties.
FAQ about Legacy & Succession Planning: Executors Support
Q1. What is the key responsibility of an executor in the UK?
An executor collects assets, pays taxes and debts, and distributes the estate according to the Will or intestacy laws.
Q2. What is the normal timescale for estate administration?
Typically 6–12 months, though complex estates may take up to two years, especially if disputes arise.
Q3. Can beneficiaries remove an executor?
Yes, under the Administration of Justice Act 1985, beneficiaries may apply to the court if misconduct or neglect is evident.
Q4. Which HMRC forms do executors use?
Common forms include IHT205, IHT400, and PA1P for probate applications.
Q5. Is professional advice necessary?
Yes. For estates involving trusts, business assets, or international issues, a tax adviser or solicitor ensures compliance
