Understanding Power Reserved in the Role of Executor

When a Will designates more than one Executor, it’s possible that not all of them will wish to take an active role in the administration of the estate. This is where the concept of “Power Reserved” comes into play. 

If one of the Executors doesn't want to carry out their duties, they can have Power Reserved to them. This means that they won’t have to actively participate in the management of the estate. The remaining Executor(s) will then assume the full responsibilities of Probate.

What is Power Reserved?

Power Reserved essentially allows an Executor to step back from actively managing the estate while still retaining their position as Executor. If multiple Executors are named in the Will, one may choose to not be involved in the process. In this case, the acting Executor will file a formal notice stating that they will be taking out the Grant of Probate solely in their name. The court will then issue the Grant of Probate for the acting Executor only, with a note indicating that Power has been Reserved for the other Executor.

It’s important to understand that if an Executor does not want to take action but hasn’t renounced their position entirely, Power Reserved is the required process. The Will must name additional Executors who are willing to take on the duties; if not, the named Executor must officially renounce their position, which is a separate process from Power Reserved.

When Is Power Reserved Used?

Power Reserved is typically used when one of the named Executors is unable or unwilling to fulfil their responsibilities. There are several common situations where this might apply. For instance, an Executor who lives abroad may find it impractical to manage tasks such as signing documents or handling estate administration duties. In this case, they may choose to have Power Reserved while allowing the other named Executor(s) to step in.

Another example could involve an Executor who is in poor health or residing in a care facility. The role of an Executor can be physically or mentally demanding, so Power Reserved ensures that the individual does not need to participate actively, while still maintaining their position as Executor.

It’s worth noting that being an Executor requires significant time and effort. The duties can range from organising the estate’s assets to ensuring debts are settled, which may require attention to detail and regular communication. If an Executor is unable to perform these tasks, Power Reserved allows the other Executors to carry on with the work without delay.

Can Power Reserved Be Reversed?

Yes, Power Reserved can be reversed. The Executor who has reserved their power can choose to become actively involved at any time during the estate’s administration if they wish to take on a more active role. It’s important to note that Power Reserved is not a permanent decision. Rather, it is a temporary arrangement that allows the Executor to step back while still retaining the option to become involved later if needed.

In essence, Power Reserved gives the Executor flexibility, enabling them to manage their personal situation while ensuring that the estate is still handled appropriately by the other appointed Executors.

Power Reserved can be a helpful mechanism for ensuring that an estate is administered smoothly, even if all of the named Executors are not able or willing to actively participate. Whether due to geographic distance, health issues, or simply a preference to not get involved, Power Reserved offers a solution that allows one Executor to handle the estate’s administration while the other retains their position without the responsibility.

Get in touch with our expert team today.

At Jordans Solicitors, our team have extensive experience serving clients throughout Yorkshire.

Call our office to speak to a member of our Wills and Probate team on 01924 387110 to discuss the process further and costs involved.