Professional Executors: When and Why They Are Used

A professional executor is a person or organisation that administers estates as part of their profession. This includes solicitors, accountants, banks, trust corporations, and specialist executor services. While most people appoint family members or friends as executors, there are circumstances where professional involvement can be valuable or even necessary.

What does a professional executor do?

Professional executors carry out the same duties as any other executor: collecting assets, paying debts and taxes, and distributing the estate to beneficiaries. However, they bring expertise and experience that can be particularly helpful for complex estates.

Professional executors typically have established processes for dealing with banks, pension providers, HMRC, and other institutions. They understand the legal requirements of estate administration and can navigate complications that might overwhelm a lay executor.

When professional executors are particularly useful

There are several situations where appointing a professional executor makes sense:

• Complex estates: Estates involving business interests, overseas assets, multiple properties, or complicated tax issues often benefit from professional management
• Trusts: If your will creates trusts that require ongoing administration, professional trustees can provide continuity and expertise
• Family conflict: Where relationships between beneficiaries are strained, an independent professional can administer the estate without taking sides
• Vulnerable beneficiaries: When beneficiaries have disabilities or lack capacity, professional involvement can protect their interests
• No suitable family member: Some people have no family members who are willing or able to take on the executor role
• Geographic considerations: If all potential executors live abroad, appointing a UK-based professional can make practical administration easier

How professional executor fees work

Professional executors charge for their services, and fees vary widely depending on the provider and the complexity of the estate. Common fee structures include:

• Percentage of estate: Some charge a percentage of the gross or net estate value, typically ranging from 1% to 4%
• Hourly rates: Others charge by the hour for time spent on administration
• Fixed fees: Some offer fixed-price packages for straightforward estates
• Additional charges: There may be separate charges for specific tasks such as selling property, dealing with overseas assets, or tax planning

It is important to understand fee structures before appointing a professional executor. Ask for written estimates and clarification of what is included. For estates in Kent, including Tonbridge and Sevenoaks, local providers often offer competitive rates.

Types of professional executor

Several types of professional can act as executor:

• Solicitors: Often appointed for complex estates, they bring legal expertise and are regulated by the Solicitors Regulation Authority
• Accountants: Particularly useful where tax issues are significant
• Banks and trust companies: Some banks offer executor services through their wealth management or trust arms
• Specialist executor services: Organisations that focus specifically on estate administration
• Will writers: Some will writing firms offer executor services, often at lower cost than solicitors

Combining professional and family executors

A common arrangement is to appoint both a professional and a family member as joint executors. This approach offers several benefits:

• The family member provides personal knowledge and connection
• The professional brings expertise and handles technical matters
• The family feels involved rather than excluded from the process
• Workload and responsibility are shared

Joint executors must generally agree on decisions, so it is important that the individuals chosen can work together effectively.

Potential drawbacks of professional executors

While professional executors offer clear advantages, there are potential downsides to consider:

• Cost: Professional fees reduce the amount available for beneficiaries
• Impersonal approach: A professional may not understand family dynamics or personal wishes as well as a family member
• Staff changes: The person you deal with when making your will may not be the one who administers your estate
• Potential delays: Busy professional executors may have many estates to manage simultaneously

Checking professional credentials

Before appointing a professional executor, check their credentials and reputation:

• Are they regulated by an appropriate body?
• What experience do they have with estates similar to yours?
• Can they provide references from satisfied clients?
• What happens if they cease trading or the individual leaves the firm?
• Is there a complaints procedure if something goes wrong?

Key takeaways

Professional executors can be valuable for complex estates, where family conflict exists, or where no suitable family member is available. However, they charge fees that reduce the amount available for beneficiaries. Understanding fee structures and considering a combination of professional and family executors can provide the best of both worlds. Will writers across Kent can help you assess whether professional executor involvement would benefit your estate planning.