Don’t underestimate the risks of being an executor – they’re about to get worse

Email your tax questions to Mike via email: taxhacks@telegraph.co.uk  When a friend asks you to be named as an executor in their will, it seems an honour. It shows how much they trust and appreciate you, a bit like being asked to be best man at their wedding. But that is where the similarity ends. Your duty as best man is to make sure the groom arrives at the church on time and to look after the ring. In return, you are allowed to make an amusing speech and (with consent) kiss the bridesmaids. Becoming an executor to someone’s will, however, brings with it very real responsibilities and financial risks. You can even finish up with a personal liability if things go wrong. In financial terms, you step into the shoes of the deceased, take control of their assets and settle any liabilities. You have legal obligations both when applying for probate and when dealing with any questions from HM Revenue and Customs (HMRC). Investigations can run on for several years and become both time consuming and distressing, and the very person you would most like to help you has inconveniently just died. Last month, I wrote about a reader...

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