What is the “executors’ year”?

What is the executors’ year?

Administering and distributing takes time, even if the Will is very straightforward. However, many beneficiaries do not realise that, by law, executors and administrators have twelve months before they are obliged to distribute the estate to the beneficiaries. Time runs from the date of death. The principal reasons for this “executors’ year” are to allow them sufficient time to:

• gather in all information regarding the assets and liabilities of the estate;
• settle the estate’s debts;
• safeguard the assets of the estate;
• pay any Inheritance Tax and any other tax liabilities due;
• search for beneficiaries or potential claimants on the estate.

During those twelve months, no interest accrues to the beneficiaries.

See also: What does an executor of a Will do?

Executors’ liability

Executors carry personal liability. If pressured into releasing funds early and a mistake is made, they may have to make up any shortfall.

Complex estates

Even once the executor’s year has ended, it’s unlikely that the court will order the distribution of an estate if complexities exist. Typical examples include estates with foreign assets, private company shares, or ongoing property sales. In such cases, the executor must provide reasonable justification for the delay. The executors should therefore keep detailed and accurate records.

An exception to the executors’ year

There is an exception to the executors’ year. The Inheritance (Provision for Family and Dependants) Act 1975 provides a mechanism for early financial support for the deceased’s dependents. A good example would be where the deceased was the sole provider for a child under 18. In such circumstances, the court can order the early partial or complete release of funds or property. The time for making such an application is six months from the date of the granting of probate or letters of administration.