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TSEM6054 | Legal background to trusts and estates: the three phases of an executor's duties

From HM Revenue & Customs · Trusts, Settlements and Estates Manual

The period of administration starts with the death of the testator. It finishes when the executors have discharged all their duties. It has three phases.

Phase 1

The executors

  • arrange the deceased’s funeral

  • get details of all assets and debts

  • pay any inheritance tax that is due

  • obtain a grant of probate, recognising their lawful ownership of the assets of the deceased.

Phase 2

They bring the assets together in their hands.

Phase 3

The executors

  • pay the debts of the deceased

  • hand over, or pay out, specific bequests

  • determine what is left (ascertain the residue).

Then they pay it out to those nominated in the will (the residuary legatees). The provisions of ITTOIA/S682A (for non-corporate beneficiaries) and CTA2009/S967 (for beneficiaries within the charge to Corporation Tax) require that, if requested to do so, they provide such persons with a statement in writing showing

  • the amount treated as the beneficiary’s share of the income from the residue of the estate, and

  • the amount of tax at the applicable rate (ITTOIA/Ss670, 679(2) and (3) for non-corporate beneficiaries, and CTA2009/S952, 962(2) and (3) for corporate beneficiaries) such income is deemed to have borne.