Date published: 15th February 2018

The loss of a loved one is one of the most difficult things we will ever experience. Whilst trying to deal with our grief we are also expected to deal with the mountain of paperwork involved in administering their estate.

Often beneficiaries of a Will or an Intestacy (where there is no Will) are also anxious to receive their entitlements as soon as possible. This can place added pressure on the person responsible for administering the estate (the Executor), and can result in them distributing the gifts before all of the assets and liabilities of the estate have been correctly identified particularly in a time of complicated modern finances and property ownership.

Sally Johnson, solicitor in the Wills, Trusts & Probate department at Jackson Lee, comments:

“Executors under a Will or Administrators under an Intestacy need to be aware that they are personally liable for any action they take (or fail to take) on behalf of an estate. They are also under a legal duty to administer the estate in a timely fashion whilst ensuring that the tax and financial affairs of the deceased are properly dealt with.

Don’t go it alone – we can help. Our Wills, Trusts & Probate team can alleviate much of the stress and risks involved in administering an estate. We will guide you through the whole process. We will correspond with all relevant third parties, including all entitled beneficiaries to ensure that the tax and financial affairs of the deceased are properly dealt with and that beneficiaries receive their entitlements as soon as possible, relieving you of any personal liability. Also, we can arrange settlement of administration expenses and our fees from the estate, thereby alleviating the stress caused by having to cover such costs up front.”

During the process Executors/Administrators face other risks which can include, but are not limited to:

  • Failing to adequately secure the property in the estate which is then damaged resulting in the estate suffering a loss;
  • Failing to identify all of the assets in the estate;
  • Failing to pay the correct amount of inheritance tax (where applicable) on the estate either; due to not applying all of the allowances available at death and thereby paying too much, or failing to identify all of the assets and paying too less. Either way the executor may be personally liable for any losses suffered by the estate which can include payment of interest and/or penalties;
  • Selling an asset without authority;
  • Paying a gift to the wrong beneficiary or to someone who is not entitled.

Administering an estate can also take a long time, particularly if the estate is complex, for example if the estate includes foreign assets or a business asset. Many third parties are also involved such as HM Revenue & Customs, banks and buildings societies and pension providers. It may also be the case that family/the executor will be required to cover funeral and administrative costs until funds become accessible, adding further stress to family at an already difficult time.

If you would like any more advice regarding Wills and LPA’s, you can contact our Liverpool and Wirral experts. Please click here for a call back or message us your enquiry.