An Estate Administration Guide

Step-by-step: from day one to the distribution to the beneficiaries

This a step-by-step guide which we hope is helpful and provides you with a checklist of most of the actions the executor or administrator of the estate must take.  

1) First 1–7 days: immediate tasks

·      Secure things: lock the home, care for pets, safeguard valuables, take meter readings, and notify insurers (home/car) that the property is unoccupied.

·      Register the death and get certified copies of the death certificate (ask for several).

·      Arrange the funeral. Funeral costs can be paid directly from the deceased’s bank before probate.

·      Tell government departments using the Tell Us Once to notify DWP, DVLA, HMRC and others (available after you register the death). 

·      Use the free online Death Notification Service to notify participating banks and building societies. 

2) Find the will and identify who will act

·      Locate the original will and any codicils (check the home, solicitor, bank, or search the national will register).

·      The will usually names executors. If there is no will, the next of kin can apply as administrator under intestacy rules.

·      If a named executor doesn’t want to act, they can:

• keep “power reserved” (sit out now, step in later), or

• appoint someone (an attorney) to apply on their behalf, or

• permanently renounce before intermeddling.

3) Value the estate (assets & debts)

·      Make a full list of assets (property, bank/investment accounts, vehicles, valuables, business interests) and debts (mortgage, loans, utilities, tax). Get date-of-death valuations.

·      Some things pass outside the estate:

·      Joint assets held as joint tenants usually pass to the survivor automatically (not via the will). (Tenants in common do not.) 

·      Pension death benefits and life policies written in trust usually bypass the estate.

·    HMRC’s website provides guidance on valuing an estate and when more detail is required.    If you are required to report the assets and liabilities of the estate to HMRC then the deceased’s share of the joint assets and you may need to include the assets in trust.

4) Work out Inheritance Tax (IHT) – and pay if due

·    For deaths in 2025, the nil-rate band is £325,000 and the residence nil-rate band (if conditions are met) is up to £175,000. Thresholds are currently frozen until April 2028.  

·    Deadline: IHT is due by the end of the 6th month after death; interest is charged after that. HMRC publishes the current IHT interest rate.

·    Paying IHT from the deceased’s bank: many banks will send HMRC payment directly using the Direct Payment Scheme. 

Reporting:

•      Many low/medium value or spouse/charity-exempt estates are “excepted” (no full IHT account), declared within the probate application.

•      Taxable or complex estates must file IHT400 (+ schedules). HMRC’s “How to value an estate” explains when full details are required. 

5) Apply for the Grant

·      Grant of Probate (will) / Letters of Administration (no will) Apply online or by post (forms PA1P with a will, PA1A without). The application fee is £300 (assets over £5,000) plus £1.50 per sealed copy. 

·      The timescales vary.  An online application is quicker, and the postal application takes much longer. You’ll usually get the grant between 6 and 16 weeks.

·      You don’t have a choice of which application to make, generally if an executor is applying then it is an online application; if there is no Will and the application is made by anyone other than the spouse then a postal application must be made. 

If you’re unsure whether you need a grant, then the financial institution holding the asset will be able to tell you if the grant is necessary (for example, some joint or small accounts may be released without it). 

6) After the grant: collect in, settle, protect

•      Collect assets into an executorship account, sell items as needed, and settle debts/expenses/taxes.

•      Consider placing a creditors’ notice under s.27 Trustee Act 1925 in The Gazette to limit personal liability for unknown claims (creditors must respond within at least 2 months).

•      Keep meticulous estate accounts (money in/out, valuations, distributions). Beneficiaries are entitled to see them on request. 

•      If the estate receives income or makes gains during administration, deal with any Income Tax/CGT and returns as required (HMRC guidance varies by case).  You will need to be aware of the time limits for reporting the income and gains. 

7) Distribute to beneficiaries

•      Prepare final estate accounts showing the calculation of each beneficiary’s entitlement.

•      Obtain signed receipts. Where minors or life interests are involved, take advice.

•      If beneficiaries want to change who gets what for tax or personal reasons, they can use a deed of variation within 2 years of death (specific conditions apply).  

•      Keep records. Store the will, grant, accounts, tax paperwork, and key correspondence safely.

Typical timeline (indicative)

1.         Week 1–2: Register death, secure property, funeral, notifications. 

2.         Weeks 2–8: Value estate, complete IHT reporting, pay any IHT due/initial instalments. 

3.         Weeks 8–20: Apply for and receive the grant (may take longer if queries/caveats). 

4.         After grant: Collect/sell assets, settle debts/taxes, advertise for creditors if desired, prepare accounts, then distribute. 

Practical checklists

Documents to gather early

•      Death certificate (several copies)

•      Will & codicils (originals)

•      Photo ID and proof of address for executors/administrators

•      Bank/investment statements, share certificates, pension/insurance letters

•      Property title information (tenancy type; mortgage statements) 

Valuations to obtain (date of death)

•      Property (estate agents/RICS)

•      Vehicles (dealer/trade guide)

•      Investments (brokers/providers)

•      Personal valuables (jewellery, art, collections)

•      Outstanding debts (utilities, credit, tax) 

Risk-reduction steps for personal representatives

•      Don’t distribute until debts and taxes are paid and any HMRC queries resolved. 

•      Consider a local newspaper and Gazette notice for creditors (s.27).

•      Keep clear accounts and beneficiary communications. 

Final notes

•      This is a general guide; individual estates (business assets, overseas property, trusts, disputes, insolvent estates) can be complex—consider getting professional help for peace of mind.

•      If anything, here feels daunting, tell me a bit about the estate (will/no will, approximate size, property/bank accounts), and I’ll tailor a simple action plan.