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Executor's Year

Also known as: Administrator's Year, One Year Rule

Definition

The executor's year is a 12-month period from the date of death during which executors cannot be legally forced to distribute the estate, allowing time to complete administrative tasks and settle debts.

Understanding this protection helps both executors manage estate administration responsibilities and beneficiaries set realistic expectations for receiving their inheritance.

What Does Executor's Year Mean?

Under Section 44 of the Administration of Estates Act 1925, personal representatives (both executors and administrators) are not bound to distribute the estate before one year has passed from the date of death. This legal protection, commonly called the "executor's year," gives personal representatives time to collect assets, apply for probate, identify creditors, pay debts and taxes, and handle administrative requirements without pressure from beneficiaries. The protection applies equally whether someone dies with a will (executor) or without one (administrator).

The executor's year exists because estate administration is complex and time-consuming. During this period, executors must obtain the grant of probate, notify banks and financial institutions, collect assets, investigate potential claims, settle debts, calculate inheritance tax, obtain tax clearances from HMRC, and wait for various challenge periods to expire. Emma's executor James, for example, spent the first four months after her death on 1 March 2024 just obtaining probate, identifying all assets, and notifying creditors—well within his protected period ending 1 March 2025.

Importantly, if specific cash gifts (pecuniary legacies) remain unpaid after one year from death, beneficiaries become entitled to statutory interest. The current rate is 4.50% (calculated as 0.5% above the Bank of England base rate of 4.00% as of August 2025). This interest runs from the first anniversary of death until the legacy is paid. So if Emma left £5,000 to her niece Sarah but James hadn't paid it by 1 March 2025, Sarah could claim interest at 4.50% from that date until payment. This interest provision applies only to pecuniary legacies—not to residuary beneficiaries who inherit "the rest of the estate," as their gift's value fluctuates during administration.

The executor's year is not a deadline to complete distribution—it's a minimum protection period. Most estates take 9-12 months to administer, and complex estates involving property sales, business valuations, or overseas assets legitimately take 14-18 months or longer. David's executor Sarah took 14 months to distribute his £570,000 estate because selling his house required six months and obtaining tax clearance took another three months. This timeline was entirely acceptable, as the executor's year simply meant beneficiaries couldn't force earlier distribution. However, executors must keep beneficiaries informed throughout the process and cannot delay unreasonably without just cause. After one year, beneficiaries have stronger grounds to question excessive delays.

Common Questions

"Does the executor have to distribute my inheritance within one year?" No, executors are not legally required to distribute the entire estate within one year. The 'executor's year' means they cannot be forced to distribute before one year has passed, but most estates take 9-12 months to administer. Complex estates often take longer due to property sales, tax clearances, or creditor claims.

"What happens if my cash gift isn't paid within the executor's year?" If you're entitled to a pecuniary legacy (specific cash gift) that isn't paid within one year of death, you can claim statutory interest on the unpaid amount. The interest starts from the first anniversary of death and continues until payment, currently at 4.50% (0.5% above Bank of England base rate). This right to interest does not apply to residuary beneficiaries.

"Can an executor delay distribution beyond one year?" Yes, executors can legitimately delay distribution beyond one year for valid reasons including obtaining tax clearances, resolving creditor claims, waiting out the six-month Inheritance Act challenge period, selling property, or investigating benefit overpayments. However, they must keep beneficiaries informed and cannot delay unreasonably without cause. If you receive no explanation or updates, you may wish to consult a solicitor.

Common Misconceptions

Myth: The executor must distribute the entire estate within one year or they're in breach of duty

Reality: The executor's year is a protection for executors, not a deadline. It means executors cannot be legally forced to distribute the estate before 12 months from death have passed. Most estates legitimately take 9-18 months to administer, and complex estates can take longer. Executors only breach their duty if they cause unreasonable delay without valid cause, not simply by exceeding 12 months.

Myth: If I don't receive my inheritance within a year, I can automatically claim interest on the full amount

Reality: Statutory interest only applies to pecuniary legacies (specific cash gifts like "£10,000 to my nephew") that remain unpaid after one year from death. It does not apply to residuary beneficiaries (those inheriting "the rest of my estate"). The current interest rate is 4.50%, running from the first anniversary of death until payment. Residuary gifts don't accrue interest because their value fluctuates during administration.

  • Executor: The person appointed in a will who benefits from the executor's year protection while administering the estate and distributing assets to beneficiaries.
  • Administrator: The person appointed to administer an intestate estate who has the same one-year protection period (sometimes called the "administrator's year").
  • Personal Representative: The umbrella term covering both executors and administrators, all of whom are protected by Section 44 of the Administration of Estates Act 1925.
  • Estate Administration: The comprehensive process of managing a deceased person's estate, for which the executor's year provides essential timeline protection.
  • Distribution: The act of transferring estate assets to beneficiaries, which cannot be legally forced during the executor's year protection period.
  • Beneficiary: The person entitled to receive an inheritance who must typically wait through the executor's year before receiving their gift.
  • Probate: The legal process of validating a will, typically obtained during the executor's year (though the year runs from death, not probate grant).
  • Grant of Probate: The legal document giving executors authority to act, which triggers the separate six-month Inheritance Act challenge period.

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Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.