There has been a recent case where the Court reprimanded Executors for their failure to keep accurate records of Estate assets or produce accounts to the beneficiaries of the Estate funds.
These included:
- He paid the sale proceeds of the deceased’s property into his own bank account instead of an Executors account
- Funds received and paid out during the administration could not be accounted for
These actions resulted in the Executor being taken to Court by the beneficiaries and ordered to account for the Estate funds for the administration period. Whilst there is no suggestion that the Executor had acted improperly, but rather naively, there is always a risk that the Executor could face a Court Order for the costs the Estate incurred as a result of the Court application for enquiry into the dealings with the Estate funds.
When acting as an Executor it is essential you keep records of money received and paid out, with property receipts and produce to the beneficiaries accounts showing the assets at the date of death, the Estate’s liabilities and Inheritance Tax, if any, paid, income received during the administration period and income tax paid and how the final balances due to the beneficiaries are arrived at.
If needs be you can seek professional advice from your solicitor to deal with the administration so that they can ensure these records are kept and funds properly accounted for.
Please contact one of our solicitors in our Wills and Probate team for more information – Penny Smith, Marie Slavov or Lauren Kendell.