ROLE OF THE EXECUTOR
Your function as an Executor is to extract a grant of probate to the deceased and to administer the estate of the deceased. As executor, your powers and duties date from the death of the deceased.
From the date of death the whole estate devolves or passes to you as executor. You have very wide powers under general law apart from any powers given to you under the Will.
The duties of a personal representative last for life, therefore your obligations as an executor are ongoing. I have set out below in summary some guidelines on the powers and duties of executors.
We shall be guiding you and advising you on all matters in relation to the administration of the estate and we will be undertaking all your tasks which we are able to undertake. We will be instructing you fully on all those tasks or duties which you alone can perform. Likewise, we will explain fully all documents and declarations which you are required to sign.
DUTIES OF AN EXECUTOR
Valuation and protection of Assets
The executor has a duty to ascertain the precise value and extent of all of the deceased’s assets. The executor has the right to pay or take releases of debts owing from the estate. An executor may also sell or otherwise dispose of, at his discretion, the goods and assets of the testator before the grant of probate issues. However, in relation to assets such as land or stocks and shares, it would be difficult to do so without the grant and in practice, sales of assets will usually occur after the grant issues.
The executor must insure that the assets of the estate are properly protected. It is a duty to see that all assets normally requiring insurance such as a house, land or other valuable items, e.g. Jewellery, car, house contents are insured with a reputable insurance company.
Ascertain all liabilities and the beneficiaries
An executor must ascertain all outstanding debts, taxes, etc and check that there are no claims outstanding against the estate. All of the beneficiaries must also be ascertained. An executor must make enquiries of all beneficiaries in relation to prior gifts or inheritances received by them, to complete the Statement of Affairs for the Revenue. We will need to obtain details of all beneficiaries PPS numbers.
Statement of Affairs
When all enquiries have been made, a schedule or list of all the assets and liabilities of the deceased must be prepared. This is an official document that must be submitted to the Revenue Commissioners and is known as the Statement of Affairs.
Extract the relevant grant and collect in the assets
When all the relevant papers have been lodged in the Probate Office, the grant of probate issues. There is usually a wait time of a few months, possibly 3-4 months for a Grant of Probate to issue once the papers have been lodged in the Probate Office.
Once the Grant of Probate has issued, the executor is then in a position to collect in all the deceased’s assets. It is at this stage usually that assets not being specifically given to named beneficiaries will be sold.
Pay the expenses and debts of the estate and obtain tax clearance
The executor is obliged to pay funeral expenses and all other outstanding debts of the deceased. The executor is required to distribute the assets to those entitled, whilst ensuring that taxes are paid. These include all taxes due by the deceased prior to his death and all taxes arising out of the administration of the estate itself. We will need to obtain tax clearance from the Revenue Commissioners prior to the distribution.
Prepare Administration Accounts
The Executor must prepare an administration account where he accounts for all monies received and all monies distributed during the administration period.
Duty for Life
The duties of the personal representative are for life. For example if an asset is discovered after distribution is complete, it is the duty of the personal representative to dispose of that asset as per the will or rules of intestacy. An amended schedule of assets may be required.
Other points to consider for executor
In general, an executor sufficiently discharges his duty where he/she takes all precautions which an ordinary prudent person would take in managing similar affairs of their own.
An executor may not delegate their authority but they may deploy other persons, executors in their own fields to help them. The executor will not be liable for their mistakes or negligence, provided they are employed only to do acts within the scope of their profession or expertise.
The executor is not entitled to receive fees or to profit from carrying out their duty. However, neither should they incur a loss, so all expenses properly incurred during an administration period are recoverable by the executor.
There is no obligation on an executor to give a copy of the Will to anyone before it is admitted to probate, or to inform any beneficiary of their interest. If required, an executor must give any information to a beneficiary in relation to his/her interest in the estate. However it should be noted that once a will is “proved” i.e. admitted to probate, and the grant has issued, a copy of the will is contained in the grant of probate and the will becomes a document of public record. Anyone is then entitled to inspect and anyone can obtain a copy of the document.
Call our West Dublin office in Clondalkin on 01 4030777 or our South Dublin office in Rathgar on 01 4990499 or email: info@howellkelly.ie or contact us here.