Myth Busting: LPA is the Same as Being an Executor

 

An Executor is a person(s) selected and nominated by you to carry out or “execute” your last wishes and instructions as stated in your will. They will manage your estate throughout the probate process. The main difference between an Executor and an Attorney is when the roles take effect. Power of Attorney can come into force in situations in which you are alive but you cannot make decisions independently. Meanwhile, your Executor will only take on responsibilities after you have died. 

An Executor’s duties include: 

 

Making funeral arrangements - some people plan their own funerals ahead of time, particularly if they have any specific requests or requirements (such as what kind of flowers they’d like, what music they’d want to be played, any particular location where they would want the service to take place…) It’s the Executor’s responsibility to ensure that the funeral is paid for (this payment comes from the estate, or from a prepaid funeral plan) and that the service takes place according to the deceased’s instructions. 

 

Applying for probate - your Executor will need to apply for probate after your death in order to access your assets and distribute them according to your wishes laid out in your will. The Executor will send your original will and death certificate (these can’t be photocopies) along with the probate application. The probate registry will keep the will and it’ll become a public record, though the death certificate will be returned to the Executor(s). If more than one person is named as an Executor, they must all agree upon who will make the application for probate. Up to four Executors can be named on the application. 

 

Settling debts and taxes - it’s the Executor’s duty to ensure that any outstanding debts or taxes are paid from the Estate (including Inheritance Tax) before any assets are distributed amongst the beneficiaries. The Executor must also place a Deceased Estates notice in the Gazette , giving any creditors two months to claim anything they’re owed. The Estate’s assets must not be distributed before this two month period is up. 

 

Distributing the assets - once any outstanding debts and/or taxes have been paid, the Executor ensures that the assets are distributed to the named beneficiaries in accordance with the will. 

Not at all - you can appoint the same person to be your Attorney and your Executor, and many people do. Often the person trusted to deal with someone’s affairs during their lifetime is the person trusted to do the same after their death. 

 

However, appointing the same person as Attorney and Executor is not a shortcut for managing probate: the fact that you had power of Attorney has no influence over whether or not probate is needed. Instead, this will depend on what assets the deceased owned, and whether these assets were owned in their sole name. 

 

Your Attorney and Executor will both play key roles in taking care of your affairs towards the end of your life and beyond. It’s vitally important that you choose people who you trust and believe to be highly competent. These choices must be made very carefully, as these people will also have a large effect on your family after you’re gone. 

More than ever, it’s vital to ensure that your Will is prepared with the help of a qualified person. We’re both experienced and qualified and will help with every aspect of making your Will. 

 

To find out how we can help - 

 

contact Tim Mullock on 01234 713021. 

Or email Tim.Mullock@AdeptAssetSolutions.co.uk