Executor – Step 4 – Money in and out

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As the executor of someone’s will, you work through certain steps before you can distribute the ‘estate’* that they left behind.

Step 1 The Death Certificate

Step 2 Inheritance Tax

Step 3 Probate

Step 4 Collect in money and settle debts

Finally then, you will be in a position to carry out the wishes in the will.

What do you need to do to sort out the money?

Institutions to contact

There is a very useful list on the website MoneySavingExpert suggesting who you need to contact at this stage.

Get in touch with every organisation: banks, building societies, mobile phone company, pension companies, utilities, landlords… the list is very big.  Absolutely everyone who had some sort of financial dealings with the deceased.

The Death Notification Service can notify banks and building societies that are part of the scheme.  Click on the link to see which banks.  It is a free service and may save a lot of individual interactions with the banks and building societies.

Then close all accounts.

If you are planning in advance, I have published a handbook called To My Executor to try to make this stage a little easier.  It provides a place for someone, who will ask you to be their executor, to record all the organisations that you will need to contact.  Otherwise the whole process can feel like you are a private detective trying to work out which organisations are involved.

When you contact, say, a bank, ask to talk to their death department.

Get access to financial assets

The government says that:

You can ask for financial assets to be transferred to an agreed ‘executorship account’. This can be either:

  • an executor’s bank account
  • an account that’s been set up only for dealing with the estate

Debts to pay

Before you can distribute the estate, you need to ensure all debts are settled.

To ensure no debts surface after you have distributed the estate, you can place a Deceased Estates Notice in the Gazette, Official Public Record for £87.50.

The website explains ‘Should a notice not be placed, and a creditor subsequently comes forward after the estate has been distributed, then you may have some personal liability for an unidentified debt.’

They also recommend that ‘If the estate includes a property, a notice should also be put in a newspaper that is local to the property.’

Plan ahead

(If the person whose estate you will be administering is still alive.)

I will leave you with a question:

Could you have a conversation with the person who has asked you to be their executor and gain a clear understanding of where information is about all their financial comings and goings?  

That one difficult conversation may save you days of trouble later; it may also help give the will writer a nudge into making sure their finances are in as good order as possible, to help them while they still need the money.

Meanings of words used in this blog

Estate = property, money and things the deceased person owned.

Executor = is a person who is named as someone who can deal with the estate of a deceased person.

HMRC = HM Revenue & Customs (aka the tax office) Click Here.

Probate = the document granted to an executor that gives them the right to carry out the wishes stated on a will.

NB The information in this blog is not legal guidance. 

If you have been asked to be someone’s executor, the Verat Executor app can help you hold conversations with the will writer.  It is a place where you can store the information you may need when sorting out someone’s estate.  The Verat Executor app is available on The App Store and Google Play.

Published by margaret