Can an executor inherit from a will?

The role of an executor is primarily to administer the estate of a deceased individual and ensure that the instructions in their will are carried out. While executors play a crucial role in the distribution of assets and settling debts, they can also inherit from a will if they are named as a beneficiary.

Unlike some other jurisdictions, Scottish law does not automatically prohibit an executor from inheriting from the estate they administer. However, the law does place certain restrictions and safeguards to maintain fairness and ensure that the process is unbiased and followed correctly.

Executors and beneficiaries

When someone passes away, it is important to understand the distinction between the roles of an executor and a beneficiary in relation to the deceased person’s estate.  An executor’s tasks include identifying assets and debts, obtaining a grant of Confirmation from the court, paying outstanding debts and taxes and distributing the estate to the beneficiaries. The beneficiary’s only role is to receive the financial assets of the estate that they are entitled to. This depends on the wording of the will and can include the deceased person’s house, money, or personal belongings. There may be multiple beneficiaries named in the will, or there could be just one. Unless they are appointed as an executor as well, the beneficiary is not involved in the estate administration.

Inheriting as an executor 

There are no restrictions preventing someone from appointing the same person as both executor and beneficiary. In fact, it is quite common. However, if you are named an executor-beneficiary you should be cautious about potential conflicts that may arise and it’s important to remember that you must act in the best interests of all beneficiaries, not just your own. Furthermore, an executor’s entitlement is limited to their share as a beneficiary. They cannot claim additional fees or expenses, only the costs associated with the administration of the estate are deducted from the estate funds, such as legal fees and outlays. It’s worth noting that the role of an executor can be complex and time-consuming. If the executor feels overwhelmed or lacks the necessary expertise, they can seek professional advice from solicitors.

Acting impartially and fairly

It is the executor’s duty to act impartially and in the best interests of the deceased and their beneficiaries. This means that as an executor you must set aside any personal interests or desires and focus on ensuring that the distribution of assets is carried out transparently and fairly. In cases where the estate is particularly contentious and there is a possibility of a conflict of interest between the roles of executor and beneficiary, the executor may decide to appoint an independent executor and resign from their role.

The court may also intervene if there are concerns about the fairness of the distribution. If there is evidence that the executor has not acted impartially or has breached their fiduciary duty, the court can make orders to protect the interests of the beneficiaries and ensure a just outcome.

McSherry Halliday’s expert solicitors can help guide you through the executry process so you can be confident you are fulfilling your duties accurately and effectively.