One of the most common questions I am asked when dealing with Probate matters is: is there a time limit for executors to distribute estates? Most people are surprised to hear that the answer is “no”.
Executor Delays in Sale
If the executor won't sell for an indefinite period of time, then they may be found to be unreasonably withholding funds from the beneficiaries of the estate. This opens the executor up to personal liability for failing to resolve the estate in a timely manner.
There are no time limits when applying for probate, but as an executor you need to act in the best interests of the beneficiaries. If you delay the process for too long, they will be within their rights to start questioning you. There are also time limits and deadlines when it comes to Inheritance Tax (IHT).
Once the grant of Probate has been issued, executors of the estate are usually expected to distribute assets within 12 months; this is known as the 'executor's year'. In some circumstances it may take over 12 months for the estate to be distributed due to various reasons such as: Assets may be held abroad.
Since every estate is different, the time it takes to settle the estate may also differ. Most times, an executor would take 8 to 12 months. But depending on the size and complexity of the estate, it may take up to 2 years or more to settle the estate.
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.
In addition to paying any outstanding debts, the person administering the estate will also need to call in any debts that were owed to the person who has died. This can take time, especially if there is any ambiguity over how many loans were made or what the terms were.
Section 4 of the 1975 Act states that an application must be made within six months from the date on which representation with respect to the estate is first taken out. In other words, once the executor named in the deceased's will has obtained a Grant of Probate, a person has six months to make their claim.
Probate can be a complicated and time-consuming process. In some circumstances, however, the delay may be caused by the executor being too slow or failing to take any action altogether.
If there is unreasonable delay however you should write to the Executor, pointing out his obligation to keep all beneficiaries updated on the progress of managing the Estate. You can also demand that the Executor provide an “account” of the Estate which should outline how much you are due to receive.
Normally the Master will discharge an executor who fails to submit this liquidation and distribution account without good reasons. The Master also has the authority to discharge an executor if he or she does not do his or her work properly.
You can apply for the court to remove an executor and appoint a new one. It is possible to remove an executor if: They've failed to administer the estate correctly. They have a conflict of interest.
Beneficiaries are also entitled to receive an accounting of the estate from the executor. This means that the executor must provide proper accounting for the estate's assets and expenses, in legal court format, to beneficiaries in a timely manner.
Firstly, a probate search can be carried out on the Government's website at the dedicated Probate records search service. By entering the deceased's name and date of death you will be informed if the Grant has been issued and can obtain a copy of the Grant and the relevant Will for a small fee.
Probate involves a significant amount of legal, tax and administrative work which can be very time consuming and if this work is not completed in a timely manner, the probate process will inevitably take longer.
Probate typically takes 9-12 months to settle an estate. However, it can sometimes take longer if, for example, there is a property to sell, complex Inheritance, Income or Capital Gains Tax affairs to resolve or there are complications regarding the personal representatives or beneficiaries of the estate.
The Supreme Court Rules 1970, Part 78 Rule 16 govern the timeframe for lodging probate. If an application for probate is filed after 6 months from the date of death of the deceased, an explanation must be given to the court accounting for the delay.
Some firms keep wills indefinitely, while others have a policy of holding the original will for 50 years from the date of its creation. There is no absolute rule, but you should always err on the side of caution, even if you believe or know that a later will has been made.
Simple estates might be settled within six months. Complex estates, those with a lot of assets or assets that are complex or hard to value can take several years to settle. If an estate tax return is required, the estate might not be closed until the IRS indicates its acceptance of the estate tax return.
Generally, collecting straightforward estate assets like bank account money will take between 3 to 6 weeks. However, there can be more complexities involved with shareholdings, property and some other assets, which can increase the amount time it takes before any inheritance is received.
If you need to close a bank account of someone who has died, and probate is required to do so, then the bank won't release the money until they have the grant of probate. Once the bank has all the necessary documents, typically, they will release the funds within two weeks.
In some instances, a beneficiary may take legal proceedings against the executor, to recover what they've lost. If the money cannot be recovered by other means, then the Executor could be held personally liable to cover this shortfall.
In short, yes, an executor can be a beneficiary of a will, in fact, it's quite normal for that to be the case. The only people who cannot be beneficiaries under a will are those who witnessed the will when the deceased signed it.
Can an executor of a will take everything? No. An executor of a will cannot take everything unless they are the will's sole beneficiary. An executor is a fiduciary to the estate beneficiaries, not necessarily a beneficiary.
How Long Should I Keep the Papers For? We recommend keeping the above papers indefinitely, but other papers such as tax records, valuations and statements should be kept for at least 3 years just in case the Tax Office needs to re-open an enquiry.