Executor decisions

It can involve a lot of work and responsibility, which may go on for months or even years. You should think carefully about whether you want to act as executor, or indeed whether you are able to.

Executors need to

• Collect all assets and money due to the deceased person's estate (including property).
• Pay any outstanding taxes and debts (out of the deceased person's estate).
• Distribute the estate to the people who are entitled to it under the terms of the will.
• Make sure all the property owned by the deceased person is kept safe and secure, as soon as possible afther their death. You can claim reasonable expenses for this work.

Executor's key duties

There are a range of tasks you must carry out as an executor.

• If necessary, register the death. Consider how many copies of the death certificate to order, as they cost less if you ask for them when registering the death. Unless you are employing a solicitor to deal with the estate, you'll need one for each company that holds money or other items of value that belonged to the person, for example, the bank, TV Licensing, insurance providers and landlord. These are sometimes known as asset holders.
• Find out where the most up-to-date version of the person's will is held and get the original. You may need to provide a death certificate and proof of your identity. Any other executors must confirm they are happy for you to have the original will. In Scotland, the will needs to be registered in the Books of Council and Session's Register of Deeds before you can obtain an official copy, which is known as an Extract.
• Make copies of the will for coexecutors, financial institutions and beneficiaries and then put them away in a safe place. Don't tamper with them or the original will in any way (this includes adding staples or paper clips).
• If necessary, arrange the funeral. Check the will for any funeral wishes. If the person had a funeral plan, contact the provider immediately.
• Stop the payment of salary, pensions and state benefits. Advise the issuers of credit cards, passport, driver's licence, TV licence and act on their instructions. A new service, Tell Us Once, is available in most local authorities in England, Scotland and Wales. This allows you to tell the government about the death. Once you have informed the service by phone, in person or online, they will contact all the relevant departments on your behalf. This could include the housing department, the Pension Service, the Identity and Passport Service and the Driving and Vehicle Licensing Agency (DVLA). The Registry Office can tell you how to use the Tell Us Once service.
• Request information on any debts the deceased person had, and any overpayments made to them.
• Check whether a grant of probate is needed. Sometimes there is no need to apply for one because, for example, the value of the estate is very small (usually less than £5,000). In this case you need to write to the bank, building society, or whoever is holding the money, and ask whether they will make a payment to you without receiving a grant of probate.
• The grant of probate or confirmation is a legal document that confirms the will is valid and allows you to deal with the estate. It is issued by the local Probate Registry in England and Wales. Get several copies as you will need them for asset holders. Call the Probate and Inheritance Tax Helpline on 0300 123 1072 for more information.
• If the will states a specific item of personal property is to be given to someone ('bequethed'), you can do this before probate is granted. If the estate is likely to be taxable, you should get a valuation of the item to include in your Inheritance Tax (IHT) return.
• Work out the value of any assets and debts, and make a full inventory of everything the deceased person owned and owed. In Scotland, you need to make a full written inventory of the estate on form C1, available from HM Revenue and Customs (HMRC) or your local Sheriff Court in Scotland. If you are going to apply for probate yourself, complete the PA1 application form (or C1 form in Scotland) and the relevant Inheritance Tax Form, even if no IHT is payable. Arrange to have an interview at the Probate Registry (local Sheriff Court in Scotland), or consult a solicitor to do this on your behalf.
• Contact the deceased person's tax office to find out whether any other tax, such as Income Tax, is owed.
• Open a separate executor account into which you can transfer any money paid into the estate. This will stop estate money getting confused with your personal finances.
• When you receive a grant of probate or confirmation, send an office copy with instructions to asset-holders. When the assets are released, pay them into the special estate account (except anything that has been specifically bequethed to someone).

How to be an executor

• Pay any outstanding tax and bills. It is advisable to put up a 'statutory' notice for creditors' in the press, allowing two months for claims to be made. If you don't, you will be personally responsible for any claims that arise. Putting up the notice means any future claims will be made against the beneficiaries instead.
• Get clerance from HMRC for any IHT, Administration Income Tax (tax on income that has accumulated since the date of death) or Capital Gains Tax liability.
• Distribute the estate in accordance with the terms of the will, making sure at least two trustees have been named for any gifts left to children under 18. In Scotland, it is legally advised that you wait six months after the date of death before distributing the estate.
• Draw up estate accounts for each beneficiary, accounting for all the assets collected, income accrued, and any liabilities paid.
• Give each beneficiary an R185 tax form (ask the Probate and Inheritance Tax Helpline for more information) for their share of estate income.

Get the records straight

Normally, the surviving joint owner automatically owns the money. You will need to send to death certificate to the bank or financial institution so it can update its records. The value of the deceased person's share is included when calculating the value of the estate for Inheritance Tax.

Jointly owned property

If the deceased person owned property with another person as 'beneficial joint tenants', their share automatically passes to the surviving joint owner. The property doesn't form part of the estate, but the value of the deceased person's share is included when calculating the value of the estate for Inheritance Tax.

Pension schemes

Contact the scheme and provide a death certificate. Ask whether death benefits are payable and whether there is a pension for a spouse, civil partner or children.

Confirm whether any money will be paid directly to someone, rather than forming part of the estate. If this does form part of the estate, check that the amount does not need to be included in any IHT return.

Life insurance policies

Contact the insurance company to find out what you need to do before it can pay out. Confirm whether any money is payable directly to someone.

If it does form part of the estate, check that the amount does not need to be included in any IHT return.

Collect any debts owed to the deceased person.