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Executors can be sued personally if they breach their duties — distributing before paying debts, overpaying beneficiaries, missing HMRC deadlines, or mismanaging assets. Key protections: advertise for creditors, obtain IHT clearance, take professional advice, and keep thorough records throughout.
An executor is a personal representative — they stand in the shoes of the deceased and are legally responsible for collecting the estate, paying its obligations, and distributing the balance to beneficiaries. This responsibility is personal: if the estate suffers a loss because of the executor's breach of duty, the executor may be required to make good that loss from their own money.
This is not a theoretical risk. Each year, executors face claims from beneficiaries, creditors, and HMRC for errors made during administration — sometimes years after the estate was apparently wound up. Understanding where the risks lie, and how to manage them, is essential before accepting the role.
See our estate administration checklist for an overview of the full scope of executor duties, and our executor timeline for how these duties play out over time.
This is the most common source of personal liability. Executors must pay all debts, including secured debts (mortgages), funeral expenses, tax liabilities, and ordinary creditors, before distributing anything to beneficiaries. If the executor distributes too early and a creditor later emerges, the executor must personally make good the shortfall — they cannot recover it from beneficiaries who have already spent their inheritance (unless the executor can bring a "devastavit" claim against the beneficiary). Our guide on debts after death explains the correct payment priority.
HMRC can pursue an executor personally for unpaid inheritance tax. Common errors include undervaluing assets (particularly property), missing gifts within the seven-year window, failing to claim available reliefs, or submitting returns late. IHT interest accrues at HMRC's current rate (7.5% in 2026) from six months after death. Where returns are fraudulent or negligent, there is no limitation period. Always obtain HMRC clearance before making the final distribution. See our inheritance tax guide.
If an executor distributes more than a beneficiary is entitled to — for example, due to a miscalculation of the estate value or a misreading of the will — the executor is personally liable for the excess. The executor may bring a claim against the overpaid beneficiary, but that claim may be difficult to enforce if the beneficiary has already spent the money. Keep precise records of entitlements and make interim distributions only where there is clear certainty.
If an executor distributes the estate without making adequate enquiries for all beneficiaries — for example, unknown children or distant relatives under intestacy — they may face claims from those who were missed. See our guide on what to do when a beneficiary cannot be found and our guide on the Trustee Act procedure for missing beneficiaries.
An executor must manage estate assets with reasonable care. This includes maintaining property insurance, not leaving cash idle in a non-interest-bearing account for a prolonged period, and not making speculative investments with estate funds. Under the Trustee Act 2000, executors who hold assets as trustees must exercise the standard of care of a reasonably prudent person.
Unreasonable delay in obtaining probate or distributing the estate can cause harm to beneficiaries. IHT interest on unpaid tax accrues from six months after death. See our guide on probate delays and IHT interest.
Section 27 of the Trustee Act 1925 provides executors with a statutory protection against unknown creditor claims. The procedure requires the executor to:
If an executor follows this procedure and distributes in accordance with it, they are protected from personal liability to unknown creditors who failed to come forward — those creditors can only claim against the beneficiaries who received the assets, not the executor personally.
The procedure does not protect against known creditors — always settle all known debts before distributing.
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Even where an executor has made an error, the court may relieve them of liability under section 61 of the Trustee Act 1925 if satisfied that the executor acted honestly, reasonably, and that it would be fair to excuse the breach given all the circumstances.
This is a discretionary remedy — the court cannot be compelled to grant relief. But it provides an important safety net for lay executors acting in good faith who make genuine mistakes, particularly where professional advice was sought and relied on. Courts are generally more sympathetic to lay executors than to professional ones.
Farra helps executors stay on track and manage their duties — reducing the risk of costly mistakes.
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