Most lay-Executors will feel like seasoned professionals after enduring the administration of an estate. As a Wills and Probate professional myself, who has met clients who have ‘endured’ the administration of an estate and applying for Grant of Probate, it’s interesting to ask the question – “did you consider instructing a solicitor to assist?” Whether it’s the web of inheritance tax account schedules they did not realise they had to complete or the estate accounts which would not balance; the answer is too often “on reflection, I/we should have.”
So, why ‘endure’ when you could relieve yourself of the administrative burden on top of everyday life? I explore the all-too-common problems that arise in applying for Grant of Probate and administering an estate as a layperson without seeking legal advice or assistance.
1. Personal Liability
As an Executor, you are personally responsible for the estate’s administration, debts, and asset distribution. Mistakes can lead to personal liability for losses to the estate or its beneficiaries.
Clients who have made mistakes and become liable for losses to the estate, require immediate assistance. This outcome results in higher overall costs for the instructed solicitor to review the file and get the estate back on track. Had the Executor(s) instructed a solicitor to assist from the beginning, the mistake would have been avoided and costs from the outset would have been proportionate to the value of the estate.
2. Unpaid Debts
If a previously unknown creditor emerges, you may be held personally responsible for the debt.
This can be avoided provided the Executors furnish the instructed solicitor with as much information as possible. Including old letters from creditors (secured or unsecured). An experience solicitor will know that if there is a gap in correspondence with a creditor, it is best to contact them and confirm the death in the event that the debt was held by the deceased at the date of death.
3. Incorrect Distribution
Misinterpretation of the Will is a very common mistake lay Executors tend to make and it is crucial that legal advice is sought to understand the contents of the Will.
For example, overlooking a legacy and not paying it to the legatee following payment of testamentary expenses, will result in wrongful distribution and potentially lead to family disputes and legal challenges.
4. Tax Errors
Miscalculating inheritance tax, missing deadlines or failing to claim the available relief the estate is entitled to claim, may result in large penalties, accrual of interest and incorrect distribution of the estate which ultimately affects the beneficiaries.
5. Liability for Hidden Debts
Overlooking hidden debts or outstanding expenses can exposes Executors to personal claims from creditors.
A solicitor can help uncover hidden debts and advise the Executors accordingly.
6. Undervaluing Assets
Misvaluing properties or other assets such investments and the like may result in miscalculating tax and incorrect distribution of the estate resulting in legal challenges from beneficiaries.
It is very easy to overlook certain details when administering an estate, even if you have acted as an Executor before. It is essential to understand the complexities involved in probate matters and seek professional advice.
7. Costs
Most lay Executors choose not to instruct a solicitor to save the estate money and ensure the beneficiaries inherit 100% of the capital in the estate. This is understandable, however, administering an estate is complicated if you do not have experience as well as stressful in addition to existing responsibilities. Mistakes are easily made and not so easily remedied. This often costs the estate in time and money; therefore, it is essential to, at the very least, seek the correct advice before administering an estate and applying for Grant of Probate to ensure the Executors fully understand the contents of the Will.
Contact Kirsty or the Private Client team today if you would like to discuss the administration of a loved one’s estate.
For bespoke advice on this or any other area of law, get in touch with the team now.
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