Executors should keep full and accurate records of how the estate has been managed and distributed, and should provide a summary of the financial transactions for the estate to the beneficiaries. If a conflict arises, an executor cannot take sides with one or more beneficiaries.
The records for buying, owning and selling the property need to be kept for at least 5 years after you dispose of the property.
Every executor or administrator is under a duty to keep a record of how they administer the estate (probate accounts) and to report to the beneficiaries.
Here are some items that you should never put in your Will: Business interests. Personal wishes and desires. Coverage for a beneficiary with special needs.
Residuary beneficiaries are additionally entitled to receive a copy of the estate accounts, once these have been prepared, so that they can see how their share of the inheritance has been calculated.
If an estate is insolvent and a legacy cannot be paid in full, the beneficiaries of that estate will have a right to see the accounts. This is also true for beneficiaries whose full legacy cannot be paid for other reasons.
The key responsibility an executor has when it comes to beneficiaries is to notify everyone who has an interest in the estate, and let them know what, if anything, is set out for them in the will. Beneficiaries are essentially entitled to make sure that the estate is being administered properly according to the will.
How long should I keep the paperwork for after the estate has been distributed? You must keep all paperwork associated with the estate, including the Grant of Probate or Letters of Administration for a minimum period of 12 years.
Wait Six Months (or sometimes longer)
By law the Executor has to hold onto estate assets for six months from the date Probate is granted, and cannot pay out any money to the beneficiaries before this time is up.
You should store the original will until after the death of the client, or until you are able to return the original to the client. Some firms keep wills indefinitely, while others have a policy of holding the original will for 50 years from the date of its creation.
Executors generally serve as a beneficiary's only conduit of information. As a result, executors have a responsibility to keep beneficiaries reasonably informed about the estate and administration.
Some times beneficiaries want to see more detailed documents such as a Deceased's bank statement or pension documentation. Strictly speaking a beneficiary has no entitlement as of right to such documentation and it is your discretion as Executor whether or not to disclose it.
Getting copies of bank statements
Once you have found out what bank accounts were held by the deceased and have notified the relevant banks of the death, you should be able to request copies of bank statements.
There is no set format for estate accounts, however they should as a minimum detail all estate assets as they were at the date of death, all liabilities and any increases/ decreases in the value of estate assets once they have been liquidated.
The Will will also name beneficiaries who are to receive assets. An executor can override the wishes of these beneficiaries due to their legal duty. However, the beneficiary of a Will is very different than an individual named in a beneficiary designation of an asset held by a financial company.
There is no specific amount of commission an Executor is entitled to. However, the court will typically award a commission in a lump sum or percentage of the estate. Here is an estimate of the ranges: 0.25% to 1.25% of the value of transferred assets.
Generally, beneficiaries will not be presently entitled to the income of a deceased estate until it has been fully administered. If any income is distributed to a beneficiary before the estate is fully administered, they are considered to be presently entitled to it.
In your will, you can specifically detail which person (or organisation) should receive which assets. These bequests can include property, family heirlooms, sentimental keepsakes, or money. It is also possible to leave individuals the 'residue' of your estate.
Who is disqualified from inheriting under a will? The following people are disqualified from inheriting under a will: a person or his/her spouse who writes a will or any part thereof on behalf of the testator; and a person or his/her spouse who signs the will on instruction of the testator or as a witness.
An executor may decide to send a copy of the will to family members or close friends and allow them to read its contents, and usually, there is little reason not to disclose the contents of a will. However, strictly speaking, an executor does not have to do this.