Can an executor be a beneficiary of a will?

After funeral proceedings and a period of reflection comes the task of distributing the estate. This process – technically known as estate administration – can feel like a lot of responsibility at a difficult time. There may be significant transfers of wealth involved, potentially across a mix of assets. And, at the centre of it all, are the wishes of the person who has died.

To help with this process, hopefully there is a will left behind. The responsibility falls to the executors of the will – who may also be beneficiaries of the will – to act on the instructions and distribute the estate. The role of an executor is very important. It includes locating the will, arranging the death certificate, applying for probate and looking out for the interests of the estate. Thankfully, solicitors can help facilitate this in practice.

The executors of the will can be family members, friends, or professional executors such as solicitors.

Can an executor be a beneficiary?

In short, yes, it’s perfectly legal. In fact, it’s very common for someone to take on this dual role. But the executor must always act in the interests of the estate, not their own personal interests.

How long does it take for money to be distributed?

Once an executor begins applying for probate, on average, it often takes around 6–12 months. But of course, simple estates may be quicker, and more complicated ones can take longer. Once the solicitor has received the entire estate and beneficiaries have accepted their inheritance, provided ID and bank details, it can then be distributed.

Unfortunately, it can take quite a while for some building societies and banks to release funds or transfer ownership. This is an unfair stress at an already challenging time. That’s why Charles Stanley is clear: as part of our client-first commitment, we don’t drag our heels. We endeavour to release assets as quickly as possible once we’ve received the right documentation and completed the necessary checks.

What to do if there is no will

As our financial adviser Simon Davis points out, “by having no will, you’re essentially handing your affairs over to the state. And while the state does try to do the right thing, it’s highly unlikely to follow what you really wanted.”

A person who dies without a will is said to have died “intestate” and who inherits – and in what order – is determined by the rules of intestacy. A spouse or civil partner will usually be first in line, followed by children and then other close relatives, depending on the circumstances. Unmarried partners do not automatically inherit under the intestacy rules, which can come as a very painful surprise.

What will happen to assets not mentioned in the will?

Assets not clearly covered by the will may have to be dealt with under intestacy rules. This is not ideal and makes the whole process more complicated than it really ought to be. That’s why a good will should include what’s known as a “residuary estate” clause. This is a simple note to set out what should happen to everything left over after the assets have been dealt with.

What to do if there is disagreement

Communication is king and talking is its best friend.

Every family is different. Some head down the pub and thrash it out. Others find that a more formal process is the right way to resolve a dispute. The main thing is that everybody knows what the will says, what the person who died appears to have wanted, and what can and can’t be legally changed.

It’s also worth keeping in mind that grief can plague these conversations and that patience with one another is especially important. A disagreement about money is often a disagreement about fairness, recognition and family dynamics. If there is a serious dispute about how valid a will is, the conduct of an executor, or whether a will deserves to be changed, seek legal advice.

Can you change a will?

You can, but only the executors of the will have this power. If it was felt that a will was wrong, unfair, or miscommunicated, the executor might arrange for a deed of variation to the will. Again, a solicitor’s office would draw this up. The deed of variation can be used to redirect an inheritance after death. This allows a beneficiary to pass some or all of what they have inherited to someone else, provided the necessary parties agree. As a general rule, anyone who would lose out because of the change needs to agree to it.

A deed of variation can be much more tax efficient than receiving an inheritance and then giving it away later because the redirected gift can be treated as if it came from the person who died. But it needs to be made within two years of death. Also, the deed of variation can generally only be made after probate has begun and the estate is being administered.

What do the best wills look like?

Your will doesn’t need to be written in ballpoint pen on expensive paper, with a wax seal and spray of perfume. The best wills are the ones that are clear and don’t come as shocks to those left behind.

1. Be clear who the executors are.
2. Be clear who gets what.
3. Be clear about your wishes for any unknown assets you may have forgotten about or are not aware of, in case anything surprising is discovered after your death.
4. Keep it updated through life, particularly when your wealth picture changes.

It’s also worth remembering that major life events can affect a will. In England and Wales, getting married will usually invalidate a prior will, hence the importance of keeping it up-to-date.

Wealth isn’t measured just in financial terms, but in the impact it leaves behind. You may be interested in our free guide to leaving a lasting legacy. Inside, you can learn more about:

• Timely inheritance planning strategies for UK families.
• How to reduce inheritance tax and preserve family wealth.
• The benefits of working with a wealth manager to simplify complex decisions.
• Practical steps to ensure your wishes are carried out effectively.

Download here: Guide to leaving a lasting legacy | Charles Stanley.

Have you got a death box?

If you want to get organised so that everything can run as smoothly as possible for your loved ones after you pass away, you may be interested in making what’s known as a “death box”.
Our financial adviser, Lisa Caplan, explains the death box as such:

“It’s about having a place where your will is, your power of attorney, the list of all your assets, the deeds, and so on. Make sure the people who need that information know where the box is. It’s all about communication and putting people in the picture.”

Without a death box, it can be hard for executors to even know where to start to find some of these documents, which can create undue pressure.

On a lighter note, if you have any questions or concerns about estate planning, we invite you to book in a free, 15-minute chat with a qualified financial coach. We’d love to hear from you.