Why should you appoint a professional executor in your Will?
Who you choose as your executor is a significant decision that you will need to make when writing your Will. We look at why you should appoint a professional executor in your Will. An executor is responsible for administering your estate. This involves obtaining a Grant of Representation for your estate, gathering in your assets, settling any outstanding debts and paying any taxes due from your estate and finally, distributing your estate according to your wishes.
Whilst it is common for most people to appoint their family members or friends to act as executors, there are circumstances where appointing a professional executor may be more appropriate and beneficial.
Continuity
First and foremost, professional executors guarantee continuity and reliability and ensures the administration of your estate progresses smoothly.
If you were to appoint your family or friends as your executors, there is a chance that they may die before you or be unable to fulfil their duties due to incapacity or illness. This may not be an issue if you have appointed more than one executor. However, if you have only appointed one executor and that appointment fails, then your next of kin would need to refer to the order of priority set out by the Non-Contentious Probate Rules 1987 to determine the next person responsible in law for administering your estate.
When drafting your Will, we would always advise that you appoint two partners of a firm to act as executors if you were appointing solicitors, rather than naming an individual as this means that there will always be someone available to step into the role of executor even if the named partner you are working with now retires (or worse!).
Impartiality
Professional executors can also provide impartial advice, especially in cases where family members and friends do not always get along.
Ongoing tensions or disputes among beneficiaries may be magnified during an already overwhelming and emotional time following the loss of a loved one, and this can often lead to delays or the mishandling of your estate. Professional executors will deal with things impartially and in the best interests of the estate and the beneficiaries, as their focus is solely on executing the wishes outlined in your Will and they are not personally involved.
Expertise
Whilst some estates are straightforward, those involving trusts or foreign assets can become very complicated. Additionally, estates are often subject to tax obligations that a lay executor may not understand. The complexity of estate administration can often lead to mistakes which in turn could cause delays and penalties for which an executor can be held personally liable.
A professional executor will have extensive experience and in depth understanding of the probate procedure, inheritance tax regulations and general estate administration requirements. They can meet all of the legal obligations and complexities that come with acting as an executor, mitigating the risk of mistakes and delays.
Legal Compliance
Solicitors are officers of the court, and as such, bound by professional standards and regulations set out by various institutions such as the Solicitors Regulation Authority and the Chartered Institute of Legal Executives. These rules and regulations are in place to ensure that your estate will be dealt with in accordance with the law and at the highest standards.
For example, at Blake Morgan, we always place statutory notices in the London Gazette and a local paper when we are appointed as professional executors. This is to give notice to creditors and other individuals, who may have an interest in the estate, that a potential claim must be received within two months from the date of the notice. In this way the estate will not be liable should any previously unknown claims or debts come to light after the deadline.
We will also arrange for a Financial Asset Search to be undertaken. This is to identify any lost, dormant or unknown assets which your family or friends may not be aware of and provides confidence that all the assets are dealt with.
Can professional Executors charge for their services?
When you are considering appointing a professional executor, you should be aware that they will charge for their time spent proving your Will and administering your estate. Usually, a charging clause will be incorporated into your Will expressly stating that your professional executors can charge for the time spent performing their duties.
Whilst you may think legal costs for professional executors unnecessary, you should remember that the estate administration process can be complicated. Often, a lay executor will seek advice from a solicitor which means that legal costs are incurred anyway. As such, it may be more cost efficient to appoint a professional executor from the outset.
Blake Morgan do not charge a premium for the administration of an estate where Partners of the Firm are named as your executors. Our fees in connection with the work undertaken will be based on the time spent, in line with the complexity of your estate and will be reasonable and fair.
We will also consider whether it is appropriate for us to act as professional executors at the time of your death, and if necessary, renounce our role if it is more suitable for your next of kin to administer your estate. This may be due to changes in the nature of your assets or family circumstances between making the Will and the date of death.
How can we help?
In summary, while appointing family members or friends as your executors may seem like the most logical option, it is important to consider whether it is the right decision and beneficial for your estate and beneficiaries. A professional executor can provide expertise, impartiality and give you confidence that your estate will be managed fairly and efficiently.
The Succession & Tax team at Blake Morgan are a team of specialists with extensive experience in Will drafting and estate administration who are able to provide expert legal advice on the appointment of professional executors and other estate-related issues.
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