Managing an Estate After Someone Dies: A Practical Guide

Losing someone you love is hard enough without the weight of paperwork, legal processes, and financial decisions pressing down on you at the same time. Yet when someone dies, their estate — everything they owned, owed, and were owed — needs to be carefully administered before it can be passed on to the people they've left behind.

This guide walks you through every stage of estate administration in plain English, so you know what to expect, what's required of you legally, and where to turn for help when you need it.

What Is an Estate?

In legal terms, a person's estate is the total of everything they owned at the time of their death: property, savings, investments, personal possessions, life insurance policies (paid into the estate), and any money owed to them — minus any debts they had outstanding. Administering an estate means collecting those assets, settling the debts, paying any tax due, and distributing what remains to the beneficiaries named in the will (or, where there is no will, according to the rules of intestacy).

Who Is Responsible for Managing an Estate?

If There Is a Will: The Executor

If the person who died left a valid will, they will almost certainly have named one or more executors — the individuals legally responsible for carrying out the instructions in the will. Being named as an executor is an honour, but it carries real legal duties. You can be a beneficiary and an executor at the same time, which is common.

If you have been named as an executor and feel unable or unwilling to take on the role, you can formally renounce your appointment, as long as you haven't already begun acting in the role. A solicitor can advise you on this.

If There Is No Will: The Administrator

When someone dies without a will — known as dying intestate — there is no named executor. Instead, a close relative (usually the spouse, civil partner, or adult child of the deceased) can apply to become the administrator of the estate. Administrators have broadly the same responsibilities as executors, but they must follow the strict rules of intestacy rather than the wishes expressed in a will.

First Steps After Someone Dies: What to Do About Their Estate

Before estate administration can begin in earnest, there are several immediate steps to take. If you haven't already, it's worth leaning on an NAFD-accredited funeral director /find-a-funeral-director/ at this stage — they can often point you towards local support services and take the enormous burden of the funeral arrangements off your shoulders, freeing you to focus on legal and administrative matters. If you're trying to understand likely funeral costs alongside estate administration, our funeral cost calculator /funeral-cost-calculator/ can give you a realistic guide figure for your area.

• Register the death — This must be done within five days in England, Wales, and Northern Ireland (eight days in Scotland). You'll receive the death certificate, which you'll need multiple certified copies of for banks, insurers, and the probate registry.
• Secure property and valuables — Ensure the deceased's home is secured and insured. Some home insurance policies become void if a property is left unoccupied for more than 30 days, so check immediately.
• Locate the will — Check with their solicitor, bank, and the National Will Register. The original will is required for the probate application.
• Use the Tell Us Once service — This free government service allows you to notify most government departments — including HMRC, the DVLA, the Passport Office, and the Department for Work and Pensions — of a death in a single step. You'll receive the Tell Us Once reference number when you register the death.

What Is Probate and How Does It Work?

What Is Probate?

Probate (or, in Scotland, confirmation) is the legal process by which the court confirms that a will is valid and grants the executor the authority to deal with the estate. The document issued is called a Grant of Representation — specifically a Grant of Probate if there's a will, or Letters of Administration if there isn't.

Without this document, most banks, building societies, and the Land Registry will not release funds or allow property to be transferred.

Do You Always Need Probate?

Not always. Probate is typically not required when:

• The estate is very small (most banks have their own threshold, often between £5,000 and £50,000, though this varies).
• All assets were held jointly with a surviving partner and pass automatically by survivorship.
• Assets were held in trust.

When in doubt, contact each institution individually — they will tell you whether they require a Grant of Representation before releasing funds.

How to Apply for Probate

1. Complete the probate application form (PA1P if there's a will, PA1A if there isn't) — available from the Government's probate service or a solicitor.
2. Complete the inheritance tax forms (even if no tax is due — see below).
3. Send the original will, the death certificate, the completed forms, and the application fee to the Probate Registry. As of 2026, the fee is £300 for estates over £5,000 (no fee for smaller estates), plus £1.50 for each additional sealed copy of the grant.
4. Once approved, you'll receive the Grant of Probate by post. The process typically takes between four and eight weeks if the application is straightforward.

Valuing the Estate

Before you can deal with inheritance tax or distribute assets, you must establish the total value of the estate at the date of death. This is known as the gross estate value.

What to Include

• Property (at open market value — you may need a formal RICS valuation)
• Bank and savings accounts
• Investments, shares, and ISAs
• Life insurance policies paid into the estate
• Personal possessions (jewellery, vehicles, antiques, artwork)
• Business interests
• Money owed to the deceased
• Gifts made in the seven years before death (relevant for inheritance tax)

What to Deduct

• Outstanding mortgage balances
• Credit card and personal loan debts
• Utility and household bills outstanding at death
• Funeral expenses (these are an allowable deduction)

The resulting figure is the net estate value, on which any inheritance tax liability is calculated.

Inheritance Tax: The Key Thresholds

Inheritance tax (IHT) is one of the areas that most concerns executors, but the reality is that the majority of estates in the UK do not pay it.

The Nil-Rate Band

In 2026, the standard inheritance tax threshold (nil-rate band) is £325,000. Estates below this value pay no inheritance tax at all. Estates above it are taxed at 40% on the amount over the threshold.

The Residence Nil-Rate Band

An additional allowance — the Residence Nil-Rate Band (RNRB) — of up to £175,000 applies when a main residence is passed to direct descendants (children or grandchildren). This means a single person can potentially pass on up to £500,000 free of inheritance tax.

Married Couples and Civil Partners

Transfers between spouses and civil partners are entirely exempt from inheritance tax. Crucially, any unused portion of the nil-rate band can be transferred to the surviving partner, meaning a couple can potentially pass on up to £1 million to their children (including the combined RNRB) before inheritance tax becomes payable.

When Is Inheritance Tax Due?

Inheritance tax must be paid to HMRC by the end of the sixth month after death. Interest is charged on any amount outstanding after that date. Notably, you must pay IHT before probate is granted — which can create a cash-flow challenge. HMRC's 'Direct Payment Scheme' allows some banks to release funds directly to pay an IHT bill before probate is obtained.

Paying Debts and Liabilities

Before distributing anything to beneficiaries, all of the deceased's debts must be paid. This is a legal requirement, and distributing assets before settling debts can make the executor personally liable.

The order in which debts are paid matters:

1. Secured debts (mortgages)
2. Funeral expenses
3. Costs of administering the estate
4. Taxes owed to HMRC
5. Unsecured debts (credit cards, loans, utility bills)

It is worth placing a Deceased Estates Notice in The Gazette (the official public record) and a local newspaper. This protects executors from personal liability if an unknown creditor later comes forward, provided you wait at least two months after the notice before distributing the estate.

Closing Accounts and Transferring Assets

Armed with the Grant of Probate, you can now begin collecting in assets:

• Contact each bank and building society with a certified copy of the Grant of Probate and request closure or transfer of accounts.
• Notify share registrars and investment platforms to transfer or sell holdings as instructed by the will.
• Cash in or transfer life insurance policies and pension death benefits (note: pensions usually sit outside the estate and have their own nomination process).
• Transfer vehicle ownership via the DVLA.
• If the Tell Us Once service has not yet been used, do so now to notify government departments simultaneously.

Selling Property as Part of an Estate

If the estate includes a property that needs to be sold — rather than transferred to a beneficiary — the executor has the legal authority to sell it once probate has been granted. Key considerations include:

• Valuation: Obtain at least two or three estate agent valuations, and consider a formal RICS valuation for a property of significant or unusual value.
• Capital Gains Tax: If the property increases in value between the date of death and the date of sale, the estate may be liable for Capital Gains Tax on the gain. The estate has its own CGT annual exempt amount.
• Maintenance costs: Council tax, insurance, and utilities continue to accrue on an empty property. Some local councils offer a council tax discount for probate properties, so it's worth enquiring.
• Timescales: Property sales typically take three to six months. This is often the longest part of estate administration.

Distributing the Estate to Beneficiaries

Once all debts, taxes, and expenses have been settled, the remaining assets can be distributed according to the will. Executors should keep meticulous records of every payment made and every asset transferred, and provide each beneficiary with a full estate account showing how the final figures were calculated.

Ask each beneficiary to sign a receipt. This protects you as executor and provides a clean record should any dispute arise later.

How Long Does Estate Administration Take?

A straightforward estate with a clear will, no property to sell, and no inheritance tax liability can sometimes be wrapped up in three to six months. More complex estates — those involving property sales, overseas assets, business interests, disputed wills, or significant inheritance tax — routinely take twelve to twenty-four months or longer. Beneficiaries should be given realistic expectations from the outset.

When Should You Use a Solicitor?

You are not legally required to use a solicitor to administer an estate, and many executors manage perfectly well without one. However, professional legal advice is strongly recommended when:

• The estate is large or complex (particularly if inheritance tax is due)
• The will is ambiguous or being contested
• The deceased had overseas assets
• There is no will and the rules of intestacy are unclear
• The deceased owned a business
• There are vulnerable beneficiaries, such as children or those lacking mental capacity
• You are unsure of your duties or feel overwhelmed by the process

Solicitor fees for probate are typically charged as either a percentage of the estate value (commonly 1–3%) or at an hourly rate. Always obtain a clear written quote upfront.

Common Mistakes to Avoid

• Distributing assets too early — Always pay debts and taxes before making any distributions. Executors who pay out too soon can be held personally liable.
• Missing the inheritance tax deadline — IHT is due six months after death. Late payment attracts interest at HMRC's prevailing rate.
• Failing to advertise for creditors — Skipping the Gazette notice leaves you exposed to claims from unknown creditors after distribution.
• Undervaluing the estate — HMRC scrutinises estate valuations closely, particularly for property. Inaccurate figures can result in penalties.
• Ignoring the seven-year rule — Gifts made by the deceased in the seven years before death may be subject to inheritance tax. These must be declared even if they appear straightforward.
• Not keeping proper records — Every decision, every payment, and every communication should be documented throughout the process.

How NAFD Funeral Directors Can Help

At the very beginning of this process — when grief is freshest and the administrative demands feel most overwhelming — an NAFD-accredited funeral director can be an invaluable source of support. Beyond arranging the funeral itself, many NAFD members can signpost families towards bereavement support, specialist probate solicitors, estate clearance services, and financial advisers. Every NAFD member operates under a strict Code of Practice and is independently monitored, so you can trust that the guidance you receive is honest, professional, and genuinely in your family's best interests.

Use our funeral cost calculator to understand typical costs in your area, and search our directory to find a trusted, accredited funeral director near you.

Inheritance Tax: What You Need to Know in 2026

The Nil-Rate Band and Residence Nil-Rate Band

Inheritance tax (IHT) is charged at 40% on the portion of an estate that exceeds the available tax-free thresholds. For 2026, the standard nil-rate band remains £325,000. Married couples and civil partners can transfer any unused nil-rate band to their surviving partner, meaning a couple can effectively shelter up to £650,000 from IHT.

On top of this, the residence nil-rate band (RNRB) of £175,000 applies when a main home is left to direct descendants (children or grandchildren), taking the combined threshold for a couple up to £1 million in qualifying estates. The RNRB tapers away for estates valued above £2 million.

When Is Inheritance Tax Due?

IHT must be paid — at least in part — before probate is granted, which can create a cash-flow challenge. HMRC operates an instalment option for assets such as property that take time to sell. The tax must generally be paid within six months of the end of the month in which the person died, or interest accrues.

Gifts made in the seven years before death may also be drawn into the estate for IHT purposes, so it is worth reviewing the deceased's financial records carefully. A solicitor or specialist estate accountant can carry out a full IHT calculation and file the HMRC IHT400 return on your behalf if the estate is complex.

How to Value an Estate for Probate

Before you can apply for probate or calculate inheritance tax, you must compile a thorough valuation of everything the deceased owned and owed at the date of death. This is called the estate valuation or probate valuation, and accuracy matters — HMRC can investigate if they believe assets have been undervalued.

What to Include

• Property — Obtain a written valuation from at least two local estate agents, or commission a formal RICS surveyor's report for larger or more complex properties. The figure used must reflect the open-market value on the date of death.
• Bank and savings accounts — Request date-of-death balances in writing from each institution. Most banks have a bereavement team who can help.
• Investments and shares — Use the 'quarter-up' rule for shares listed on the London Stock Exchange: take the lower of the two prices quoted in the Stock Exchange Daily Official List on the date of death, then add a quarter of the difference between the two prices.
• Personal possessions — Jewellery, art, antiques, vehicles, and other valuable items should be professionally appraised. Everyday household contents can often be valued at a reasonable estimate, but keep a written record of your methodology.
• Life insurance and pension death benefits — Only include life insurance paid directly into the estate (not into a trust). Most modern pension death benefits are written in trust and do not form part of the taxable estate.
• Debts and liabilities — Mortgages, loans, credit cards, utility arrears, and outstanding income tax are all deducted from the gross estate to arrive at the net estate figure for IHT purposes.

Keep a written schedule of every asset and liability with supporting documentation. The probate registry and HMRC will both require this information.

Distributing Assets and Closing Accounts

Paying Debts Before Making Distributions

A critical rule of estate administration: debts must be paid before beneficiaries receive anything. As executor or administrator, you are personally liable if you distribute assets and later discover the estate had outstanding creditors. To protect yourself, consider placing a Statutory Notice to Creditors (under section 27 of the Trustee Act 1925) in The Gazette and a local newspaper. This gives creditors two months to come forward, after which your personal liability is limited.

Priority order for paying from the estate: funeral expenses first, then administration costs, then secured debts (such as a mortgage), then unsecured debts (credit cards, personal loans, utility bills).

Closing Bank Accounts and Financial Accounts

Once probate has been granted, you can present the Grant of Probate (or Letters of Administration) to each bank and financial institution. Most UK banks now have dedicated bereavement services and will transfer or release funds within a few weeks of receiving certified documentation. Keep a running record of every account closed and every balance transferred.

For smaller estates — typically under £5,000, though the threshold varies by institution — many banks will release funds directly to the next of kin without requiring a Grant of Probate, on production of a death certificate and proof of identity.

Making Distributions to Beneficiaries

Once all debts, taxes, and administration costs have been settled, you can distribute the remaining assets to beneficiaries as set out in the will (or intestacy rules). Obtain a signed receipt from each beneficiary. Produce a full set of estate accounts — a clear record of all assets collected, debts paid, and distributions made — and share these with all residuary beneficiaries. This protects you as executor and gives beneficiaries confidence the estate has been handled properly.

A straightforward estate can typically be wound up within 6 to 12 months. Complex estates involving property sales, overseas assets, business interests, or IHT disputes may take considerably longer — sometimes two years or more.

Selling Property from an Estate

Residential property is often the largest single asset in an estate, and selling it correctly is one of the most important — and most stressful — parts of estate administration. You cannot exchange contracts on a property sale until the Grant of Probate has been issued, although you can begin marketing the property and accept an offer beforehand.

Practical Steps for an Estate Property Sale

• Instruct an estate agent — Choose an agent experienced in probate sales. They will understand the sensitivities involved and can advise on realistic timescales.
• Obtain a probate valuation — As noted above, a formal valuation at the date of death is required for IHT purposes. This figure may differ from the eventual sale price.
• Instruct a solicitor — You will need a solicitor or licensed conveyancer to handle the legal aspects of the property sale. Many firms offer combined probate and conveyancing services, which can streamline the process.
• Capital Gains Tax considerations — The estate itself does not pay Capital Gains Tax on the property's value at the date of death. However, if the property increases in value between the date of death and the date of sale, Capital Gains Tax (CGT) may be payable on the gain. The estate has its own CGT annual exempt amount — currently £3,000 for 2026/27.

Be patient: estate property sales can take longer than a standard sale because of the additional legal steps involved. Buyers' solicitors will carry out thorough probate searches, and any complications with the Grant of Probate will delay exchange.

When to Use a Solicitor or Professional Estate Administrator

Not every estate requires professional legal help, but knowing when to seek it can save you considerable time, money, and stress. You can apply for probate yourself using the government's online probate service (for estates in England and Wales), but this is only straightforward for simple, uncomplicated estates.

Consider Using a Solicitor If:

• The estate is subject to inheritance tax
• The will is being contested, or its validity is in doubt
• The deceased owned business assets, agricultural property, or overseas assets
• There are complex family arrangements (estranged relatives, children from multiple relationships, trusts)
• The deceased died intestate and the family situation is complicated
• You simply do not have the time or confidence to manage the process yourself

What Does a Probate Solicitor Cost?

Solicitors typically charge either a fixed fee or a percentage of the estate's value — often between 1% and 5% of the gross estate, plus VAT. For a £400,000 estate, that could mean fees of £4,000 to £20,000. Always ask for a written fee estimate before instructing anyone, and compare at least two or three quotes. Some firms offer a free initial consultation.

As an alternative to a solicitor, specialist probate practitioners and estate administration companies can handle the process at competitive rates. Whichever route you choose, ensure the firm is authorised and regulated by the Solicitors Regulation Authority (SRA) or the Council for Licensed Conveyancers (CLC).

Your NAFD-accredited funeral director /find-a-funeral-director/ may also be able to recommend trusted local professionals who have supported other families they have worked with.

Common Mistakes to Avoid When Managing an Estate

Estate administration is a legal process, and errors can have real financial consequences — for you personally as executor, and for the beneficiaries waiting on their inheritance. Here are the most common pitfalls, and how to avoid them.

• Distributing assets before settling all debts and taxes — If you pay beneficiaries and then discover an unpaid creditor or an IHT liability, you may be personally liable to make good the shortfall. Always clear liabilities first.
• Missing the IHT payment deadline — Inheritance tax must be paid within six months of the end of the month of death. Late payment attracts interest (currently at HMRC's late payment rate). Budget carefully and explore HMRC's instalment options for property.
• Failing to account for gifts made before death — Gifts made within seven years of death may be subject to IHT under the 'potentially exempt transfer' rules. Review bank statements and financial records thoroughly.
• Not keeping proper records — Beneficiaries are entitled to see estate accounts. Poor record-keeping can lead to disputes and, in extreme cases, legal action against the executor.
• Intermeddling then trying to renounce — Once you have taken any action as executor (even opening post or contacting a bank on behalf of the estate), you lose the right to formally renounce the role. Take legal advice early if you are unsure.
• Assuming small estates don't need probate — Some financial institutions will release funds without a Grant of Probate, but others will not — regardless of the amount. Check with each institution individually before assuming you can bypass the process.
• Overlooking digital assets — Cryptocurrency, online businesses, PayPal balances, and even premium social media accounts can have real monetary value. Include these in your estate valuation and check the deceased's terms of service for each platform, as some accounts cannot be transferred.