We often work with clients in creating a Will and broader estate planning, ideally undertaken holistically alongside other professionals such as financial advisers. However, many clients’ financial circumstances will change over time and often their estate will look very different by the date of their passing. This could mean that both the value and nature of assets within their estate could vary significantly at death. For example, savings accounts may have been switched, life insurance expired or new policies acquired, premium bonds encashed, or shareholdings in companies changed due to amalgamations. This is before factoring in a wide array of online accounts and services. Maintaining clear financial records for executors is one of the most practical steps you can take to simplify estate administration.
Why is this important to note?
There are two – possibly three – main reasons:
- Depending on the terms of the Will, changes to the estate could have a direct impact on the testator’s wishes. For example, if there is a specific gift of a particular bank account or property. The value of the residuary estate may also be very different at death from what may have been envisaged when the Will was drafted. So, it is important to keep this under review to ensure you are still benefiting those named in your Will as intended.
- The executor role includes an obligation to make “all reasonable enquiries” to ascertain the extent of the estate at death. You can make this task much easier by giving them a helping hand. For example, by ensuring any one or more of the following is done – bear in mind that this is not an exhaustive list.
- Keeping up-to-date records of bank accounts and other asset details, noting where a provider has changed (e.g. switching a credit card or savings accounts for preferable interest rates)
- Closing any dormant accounts held during lifetime
- Noting pensions and any which may have been amalgamated
- Ensuring financial institutions have your most recent contact details and, if applicable, next of kin information
- Letting your executors know where this information is located, or leaving a note with your Will – of course, ensuring your executors know where your original Will is stored!
- In some cases, the value of the estate must be ascertained for inheritance tax (IHT) purposes. If there are records of at least approximate values, this will give executors an indication early on as to whether there is going to be an IHT liability, and therefore a deadline they need to work towards.
Even for the most straightforward estates, having everything in “apple pie order” will really help your executors administer your estate. Setting aside time to conduct financial reviews is important and should be regarded as an “MOT” for estate planning and Will contents. In more complex cases, this becomes even more crucial, such as when business assets or internal arrangements are involved, as otherwise unnecessary costs and delays may arise when executors come to administer the estate and carry out your wishes.
How can we help?
Pippa Bavington is a Partner in the Wills, Life Planning & Probate team, based at our Sudbury Office.
Fisher Jones Greenwood LLP, a member of Lawfront since 2021, is a prominent law firm offering a comprehensive range of legal services to corporate, public and private clients.
Our Sudbury office is home to a team of specialists providing both business and personal legal services. Whether you need support with Family Law, Conveyancing, or Dispute Resolution, we’re here to help. If you’d like to talk about financial records for executors, our Wills, Life Planning & Probate team are here to help. Call us on 0845 543 5700 email [email protected] or contact us via our online enquiry form.