Executor Powers

What Are Executor Powers?

When you appoint executors in your will, they automatically receive certain basic duties and responsibilities under the law. However, you may also grant them additional powers that give them greater flexibility in managing and distributing your estate.

Why Grant Additional Powers?

Without additional powers, your executors may face delays or complications when dealing with your estate. For example, they may need court approval for certain actions, or they may be unable to handle unexpected situations efficiently. Granting additional powers allows them to:

• Act more efficiently without needing court approval for routine decisions
• Respond to changing market conditions when managing estate assets
• Handle unexpected situations that arise during estate administration
• Reduce costs by avoiding unnecessary legal proceedings

Where You Choose Them

Additional powers are chosen in the Executors & Letter of Wishes step, once you have said that you are appointing executors. That step first asks whether you would like to grant additional powers at all. If you say yes, you pick the powers you want from a searchable list, and you may select as many or as few as you wish. There is also an Other option where you can describe a power in your own words, and a free-text box for any further instructions to your executors.

Sell, Lease, Exchange or Mortgage Property

Allows your executors to sell, lease, exchange, or mortgage any property in your estate. This is particularly important if your estate includes real property that may need to be sold to pay debts, meet bequests, or simply because retaining the property is impractical.

Invest or Reinvest Estate Assets

Permits your executors to invest estate funds or reinvest proceeds from asset sales. Without this power, executors may be limited to holding cash or very conservative investments, which could erode the estate's value over time, particularly during lengthy administration periods.

Distribute Assets in Kind

Allows your executors to distribute specific assets directly to beneficiaries rather than selling everything and distributing cash. For example, if you leave "my estate equally to my two children," this power lets the executor give the house to one child and equivalent investments to the other, rather than selling everything.

Insure Estate Assets

Permits your executors to take out or maintain insurance on estate assets. This protects the estate from loss or damage during administration, for example maintaining building insurance on a property until it is sold or transferred.

Appropriate Assets to Satisfy Entitlements

Allows your executors to allocate specific assets to satisfy a beneficiary's share of the estate. This is similar to distributing in kind but specifically relates to matching assets to entitlements, giving the executor discretion in how shares are fulfilled.

Continue Running a Business

If you own a business, this power allows your executors to continue operating it for a reasonable period. Without it, the business may need to be wound up immediately, potentially at a significant loss. This gives your executors time to find a buyer, arrange a transfer to a beneficiary, or wind down operations in an orderly manner.

Borrow Funds on Behalf of the Estate

Allows your executors to borrow money against estate assets. This may be necessary to pay inheritance tax or other debts before assets can be sold, or to cover estate administration costs during a period when assets are illiquid.

Claim Tax Exemptions and Reliefs

Permits your executors to claim applicable tax exemptions and reliefs on behalf of the estate. This may include tax allowances, exemptions, and reliefs available in the relevant jurisdiction. Which of them apply depends on your circumstances, so a tax adviser can explain the options that may be relevant to your estate.

Make Loans or Advances to Beneficiaries

Allows your executors to make loans or advance payments to beneficiaries from the estate before final distribution. This can be helpful when beneficiaries need immediate funds, for example for living expenses, while the estate is being administered.

Employ Professional Advisers

Allows your executors to hire solicitors, accountants, financial advisers, and other professionals to assist with estate administration. This power authorises payment of professional fees from the estate, which is particularly important for complex estates.

Settle, Compromise or Defend Claims

Permits your executors to negotiate, settle, or defend legal claims against the estate without needing court approval for every decision. This can save significant time and cost if disputes arise during administration.

Use Estate Funds to Maintain Dependants

Allows your executors to use estate funds to support your dependants during the administration period. Estate administration can take months or even years, and this power ensures your dependants are not left without financial support while waiting for final distribution.

Delegate Executor Functions

Permits your executors to delegate certain functions to qualified agents or professionals. This is useful when executors lack expertise in specific areas, for example delegating investment management to a financial adviser or property management to a letting agent.

Give Valid Receipts for Minor or Incapacitated Beneficiaries

Allows your executors to give valid receipts on behalf of beneficiaries who are minors or lack mental capacity. Without this power, distributions to such beneficiaries may require court-appointed guardians or trustees to provide receipts, adding delay and expense.

Manage Digital Assets and Online Accounts

Permits your executors to access, manage, or transfer digital assets and online accounts. This includes email accounts, social media profiles, digital subscriptions, cryptocurrency wallets, and other digital property, an increasingly important aspect of modern estate administration.

Do executors automatically have these powers?

No. Executors have certain basic powers under the law, but the additional powers listed here must be explicitly granted in your will. Without them, executors may need to apply to the court for permission to take certain actions, which costs time and money.

Can I grant some powers but not others?

Yes. You can select only the powers that are relevant to your estate and circumstances. There is no requirement to grant all available powers, and granting additional powers is itself optional. Choose based on the types of assets you own and the complexity of your estate.

What if the power I want is not on the list?

Choose the Other option and describe the power you have in mind in your own words. You can also use the additional instructions box in the same step to give your executors further guidance. Your reviewing professional will see what you have written and can advise on whether it is workable in your jurisdiction.

Can executors abuse these powers?

Executors have a legal duty to act in the best interests of the estate and its beneficiaries, regardless of what powers they hold. They must act honestly, in good faith, and with reasonable care. Beneficiaries can challenge executor actions through the courts if they believe powers have been misused.

What if I'm not sure which powers to grant?

If you're unsure, a common approach is to grant a broad set of practical powers: selling property, investing assets, employing professionals, and distributing in kind. For more complex estates, consult a legal professional who can advise based on your specific circumstances.

Do these powers vary by jurisdiction?

Yes. The specific powers available and their legal effect may vary depending on the jurisdiction governing your will. The powers listed here are commonly recognised across many jurisdictions, but specific rules may differ. Consult a legal professional for advice specific to your jurisdiction.