An unexpected problem for executors

Friday, 08 April 2011 00:00

When a person dies his executors are responsible for dealing with his assets, paying his debts and distributing the balance in accordance with his Will. This involves obtaining a grant of probate which is the document which permits the executors to gain control of the assets.

To obtain the grant of probate the executors must make a detailed inventory of all the deceased's assets and liabilities for submission to the Revenue so that any liability for Inheritance Tax can be assessed. Executors go about this task by looking through bank statements, share certificates, household bills and all the other business papers we accumulate.

The more technologically aware among us prefer to keep control of business matters, and retain information about assets and bills, on computer. This avoids accumulating mountains of paper and, if protected by password, stores confidential financial information in a more secure form.

As Ted Foulkes, head of Wills & Probate at Tozers LLP solicitors, explains: "Executors are beginning to face a new problem. They expect to find paper records of financial matters, but find instead that all such records are stored on computer, protected by an unknown password. They must employ a computer consultant capable of unlocking the information. This causes delay and added expense in the investigative work needed to obtain the grant of probate.

If you store your financial information on computer please remember that your executor will need access to the information. The simplest way to achieve this is to write your password on paper, place it in a sealed envelope addressed to your executors and store the envelope with your Will. If your Will is held by your solicitor the Will and envelope will be stored in a locked strong room."