The death of a person triggers a series of legal processes for the administration and distribution of their estate. One can die testate (with a valid Will) or intestate (without a Will) in law. In the event of a person dying testate, the Testator (drafter of the Will) has to appoint persons to oversee the administration of the estate. These persons appointed are known as Executors.
An Executor refers to an individual appointed by a Testator to perform the wishes expressed in their Will after death. In Nigeria, the management of Executors is regulated under the Wills Act, Administration of Estates Laws, and the State Wills Law. Failure to comply with such provision under the laws may render Executors liable to personal action and suit. By law, a Testator has to appoint at least two Executors, but no maximum number is specified. But practically speaking, it is preferable not to appoint more than four, lest there are administrative problems.
THE ROLE OF AN EXECUTOR
A legal authority for an Executor to act arises on the grant of Letters of Probate by the High Court. Once so, Executors are tasked with the administration and disposal of the Testator’s property for the benefit of the beneficiaries. An Executor may be a family member, a close friend, or a professional advisor such as a lawyer.
The primary duties of an Executor are:
- Application for Letters of Probate – Although Executors derive their powers under the Will, they must apply to the Probate Registry for Letters of Probate, which formally authorize them to administer the estate.
- Estate Asset Preservation and Valuation – Executors are tasked with finding, maintaining, and valuing all the estate assets (bank accounts, real properties, stock, personal belongings, digital assets, etc.). Proper valuation assists in assuring equity as well as tax equity. Valuers can be engaged in complex cases.
- Discharge of Debts and Liabilities – Executors pay genuine debts, funeral expenses, and unpaid taxes (estate duties where applicable). Prepayment of assets ahead of liabilities can leave Executors with personal liability.
- Distribution of Assets – Executors must distribute the estate according to the Will strictly. Discretionary variation amounts to a breach of trust and could lead to legal proceedings.
- Record Keeping and Reporting – Executors must maintain open books of all transactions (expenses, income, sales, distributions). They may be requested by beneficiaries or the Probate Court.
GUIDELINES FOR COMPLIANCE
Executors gain their authority from both the Will as well as statute law. In order to remain accountable and defend themselves against liability, Executors must be governed by the following legal standards:
- Probate Compliance – Executors are not authorized to deal with an estate before Letters of Probate have been granted. Any movement beforehand can amount to unlawful intermeddling.
- Fiduciary Duty – Executors are fiduciaries, bound by rules of honesty, loyalty, and fairness. They must always act in the interests of the estate and beneficiaries.
- Avoiding Unauthorized Acts – except in emergency preservation actions, Executors must not act in the absence of probate power.
- Conflict of Interest – When the Executors themselves stand to gain under the Will, they have to act fairly and not take steps prejudicing other beneficiaries.
An Executor’s position is laden with legal and ethical responsibilities. Executors are not only custodians of a Testator’s final wishes but also principal tools in ensuring legitimate and orderly estate administration. From safeguarding assets to the payment of debts and distribution of inheritances, Executors must function within statutory requirements, fiduciary roles, and ethical norms.
The noncompliance with these legal requirements can result in individual liability, disputes among beneficiaries, and invalidation of estate administration. Fulfillment of the roles in a proper manner ensures effective transfer and maintains the integrity of the estate process in Nigeria.