Executor Duties: Money, Debts and Creditors

Being named as an executor is an important responsibility. This guide provides a general overview for England and Wales of the financial duties involved — from gathering assets to paying debts and distributing what remains. It is not a substitute for legal advice and should not be applied to Scottish or Northern Irish estates.

Understanding your role as executor

An executor is the person named in a will to administer the deceased person's estate. Executors are responsible for gathering the estate's assets, paying any outstanding debts and taxes, and distributing what remains to the beneficiaries named in the will.

If there is more than one executor named, you can generally act jointly or one of you can take the lead with the others' agreement. Executors can also choose to instruct a solicitor to act on their behalf.

Accepting or renouncing probate. Being named in a will does not obligate you to act as executor. You can formally renounce the role before you have begun to act — a process that typically involves signing a legal document. Once you have started acting as executor, it becomes more difficult to withdraw. A solicitor can explain the implications of both accepting and renouncing.

In Scotland, the equivalent of a Grant of Probate is called Confirmation, and the process is administered through the Sheriff Court rather than a Probate Registry. The same broad duties apply.

Collecting the estate's assets

Before you can pay debts or distribute the estate, you need to identify and value everything the deceased owned. This is also necessary for the probate application and any Inheritance Tax calculations. Assets to consider typically include:

• Bank and building society accounts
• Savings accounts, Cash ISAs, and Stocks and Shares ISAs
• Property (owned outright or as tenants in common)
• Investments and share portfolios
• Pension death benefits (note: pensions often fall outside the estate for tax purposes — check with the pension provider)
• Life insurance payable to the estate (as opposed to written in trust)
• Personal belongings and vehicles
• Money owed to the deceased

Most financial institutions will require a Grant of Probate (or Confirmation in Scotland) before releasing funds, though some have small estate processes for lower-value accounts. For guidance on obtaining probate, see our guide on how to get probate in the UK.

GOV.UK provides guidance on valuing an estate, including which assets to include and how to handle property valuations.

Dealing with debts and liabilities

An estate's debts must generally be paid before any distributions are made to beneficiaries. Common liabilities include:

• Mortgages and secured loans
• Funeral expenses (typically treated as a priority)
• Utility arrears and council tax
• Credit card balances and personal loans
• Outstanding tax liabilities (income tax, capital gains)
• Inheritance Tax (where applicable)

Debts are paid in a legally defined order of priority. If the estate does not have enough assets to cover all debts (an insolvent estate), the rules become significantly more complex. If you suspect an estate may be insolvent, take professional legal advice before distributing anything.

Notifying creditors

Executors are expected to make reasonable efforts to identify all creditors before distributing the estate. Known creditors should be contacted directly. For creditors who may not be immediately obvious, one approach is to place a Statutory Notice to Creditors.

A Statutory Notice is an advertisement placed in the London Gazette (and, in Scotland, the Edinburgh Gazette) inviting any creditors to submit claims. Placing such a notice does not guarantee full protection against later claims, but it can assist executors who have acted in good faith and followed reasonable steps. A solicitor can advise on whether this is appropriate for a particular estate and what steps to follow.

For an overview of the organisations that typically need to be notified after a death, see our guide on who to notify after a death.

Distributing the estate

Once debts, taxes, and administration costs have been settled, the remaining assets can be distributed to beneficiaries. The will sets out who receives what. Where specific items or sums are left to named individuals (known as legacies), those are generally distributed first; the residue (what remains) goes to the residuary beneficiaries.

If there is no will (intestacy). Where the deceased left no valid will, the estate is distributed according to the rules of intestacy. These rules determine who is entitled to inherit and in what order — generally a surviving spouse or civil partner first, then children, then other relatives. This summary concerns England and Wales only. GOV.UK explains intestacy rules for England and Wales.

Before distributing the estate, it is prudent to keep an accurate record of all payments made and received. Residuary beneficiaries commonly have a right to estate accounts, while other beneficiaries may not have the same entitlement. Retaining documents and correspondence throughout the process is good practice; take advice if disclosure is disputed.

Common questions about executor duties