Dealing with a Loved One's Estate: A Step-by-Step Guide

Losing someone you love is one of life's most difficult experiences. In the days and weeks that follow, you may find yourself facing a mountain of practical and legal responsibilities that can feel completely overwhelming — particularly when you're still in the early stages of grief.

Dealing with a loved one's estate after death is one of the most significant tasks a family member or executor will ever face. This guide is designed to walk you through every stage of the process clearly and compassionately, so you always know what to do next.

Whether you've been named as an executor in a will, or you're a family member navigating intestacy (where there is no will), this step-by-step guide covers everything you need to know about estate administration in England, Wales, Scotland and Northern Ireland.

A note on NAFD funeral directors: Before estate administration even begins, the very first steps involve registering the death and making funeral arrangements. An NAFD-accredited funeral director can guide you through those initial formalities, often pointing families towards helpful resources for the legal steps ahead.

Step 1: Register the Death

Before any estate administration can begin, the death must be formally registered. In England, Wales and Northern Ireland, you must register the death within five days. In Scotland, the deadline is eight days.

Registration takes place at your local Register Office. You'll need:

• The Medical Certificate of Cause of Death (issued by a doctor or, if referred to a coroner, a coroner's certificate)
• The deceased's NHS medical card (if available)
• Their birth certificate, marriage or civil partnership certificate (if available)

Once registered, you'll receive a Death Certificate. You'll need several certified copies — most solicitors, banks and financial institutions will require an original copy each, so order at least five to eight at registration (each costs around £11 in England and Wales in 2026).

You may also be able to use the Tell Us Once service, which notifies multiple government departments — including HMRC, the DWP, DVLA and the Passport Office — of the death in a single step. Ask the registrar about this service.

Step 2: Locate and Validate the Will

The next critical step is finding out whether the deceased left a valid will. Check obvious places first: a home filing cabinet, a safe, with their solicitor, or at their bank. You can also search the National Will Register (Certainty) or the Probate Registry's online will search tool.

What Makes a Will Valid?

In England and Wales, a valid will must have been:

• Made in writing
• Signed by the person making the will (the testator)
• Witnessed by two independent adults who also signed in the testator's presence
• Made when the testator had mental capacity

Scottish law differs slightly — a will only requires one witness. If there is any doubt about the validity of a will, seek legal advice promptly.

What If There Is No Will? Understanding Intestacy Rules

If no valid will can be found, the estate is dealt with under the rules of intestacy. These rules strictly determine who inherits, regardless of the deceased's wishes or family relationships. In England and Wales, the current intestacy rules (updated under the Inheritance and Trustees' Powers Act 2014) follow this order:

1. Spouse or civil partner (who may inherit the entire estate if there are no children)
2. Children (including adopted children, but not usually stepchildren)
3. Parents
4. Siblings
5. Half-siblings
6. Grandparents
7. Aunts and uncles
8. The Crown (if no relatives can be found)

Important: Under intestacy rules, unmarried partners — however long-standing the relationship — have no automatic right to inherit. If you believe this applies to your situation, seek urgent legal advice, as you may be able to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975.

In Scotland, intestacy rules operate differently and are governed by the Succession (Scotland) Act 1964. In Northern Ireland, the Administration of Estates Act (Northern Ireland) 1955 applies.

Step 3: Understand Your Role as Executor

If you've been named as an executor in the will, you have a legal duty to administer the estate in accordance with both the will and the law. This is a serious responsibility — and it can be time-consuming.

Key Executor Duties (Step by Step)

1. Obtain the Grant of Probate (or Letters of Administration if there's no will) — the legal authority to administer the estate
2. Value all assets and liabilities — bank accounts, property, investments, pensions, debts
3. Notify relevant institutions — banks, mortgage lenders, pension providers, insurers
4. Pay all outstanding debts — including utility bills, credit cards, loans and funeral costs
5. Calculate and pay any Inheritance Tax due before distribution
6. File a final income tax return for the deceased with HMRC
7. Distribute the estate in accordance with the will or intestacy rules
8. Keep detailed records of all transactions throughout

Executors can be held personally liable if they distribute an estate incorrectly or fail to pay debts and taxes. If the role feels beyond you — or you simply don't have the time — you can appoint a solicitor or professional administrator to act on your behalf.

Step 4: Value the Estate

Before you can apply for probate or calculate Inheritance Tax, you need an accurate picture of everything the deceased owned and owed at the date of death.

Assets to Value

• Property and land (usually requires a professional RICS valuation)
• Bank and savings accounts
• Investments, shares and ISAs
• Pension death benefits (note: most defined contribution pensions fall outside the estate for IHT purposes, though this is subject to ongoing legislative changes in 2026)
• Life insurance payouts (those not written in trust)
• Personal possessions, jewellery, vehicles
• Business interests
• Any money owed to the deceased

Liabilities to Record

• Mortgage balances
• Loans and credit card debts
• Utility and council tax arrears
• Any other outstanding bills
• Funeral costs (these are paid from the estate)

Once you have totalled assets minus liabilities, you have the net estate value — the figure used for Inheritance Tax calculations.

Step 5: Apply for Probate (or Letters of Administration)

In most cases where the estate includes property or significant assets, you will need to apply to the Probate Registry for a Grant of Probate (if there is a will) or Letters of Administration (if there is no will).

As of 2026, the probate application fee in England and Wales is £300 for professional applications and the same for personal (non-professional) applications on estates over a certain value. There is no fee for estates under £5,000. Applications can be made online via the Government's probate service or by post.

Not every estate requires probate. Small estates — particularly those consisting only of jointly held assets (which pass automatically to the surviving owner) or assets under a certain threshold — may not need it. However, most banks and financial institutions will require a Grant of Probate before releasing funds over approximately £20,000–£50,000, though thresholds vary.

In Scotland, the equivalent process is called Confirmation and is obtained through the Sheriff Court.

Step 6: Deal With Inheritance Tax

Inheritance Tax (IHT) is charged at 40% on the value of an estate above the nil-rate band threshold. In 2026, the standard nil-rate band remains £325,000. Additional allowances may apply:

• Residence Nil-Rate Band: Up to £175,000 extra when a main residence is passed to direct descendants
• Transferred nil-rate band: Unused threshold from a deceased spouse or civil partner can be transferred, potentially doubling the threshold to £650,000 (or up to £1 million with both residence nil-rate bands)
• Spouse/civil partner exemption: Assets left to a surviving spouse or civil partner are generally exempt from IHT
• Charity exemption: Gifts to registered charities are IHT-exempt; leaving 10% or more of the net estate to charity reduces the IHT rate to 36%

Important: IHT must usually be paid — at least in part — before probate is granted. HMRC allows payment in instalments on certain assets (such as property), but interest accrues. IHT is due within six months of the end of the month in which the person died.

Given the complexity of IHT planning and calculation, many families choose to work with a specialist solicitor or tax adviser. This is particularly worthwhile for larger or complex estates.

Step 7: Notify Institutions and Collect Assets

Once probate is granted, you can begin the practical work of collecting in the estate's assets. This involves writing to (or visiting) banks, investment platforms, pension providers, HMRC and any other relevant institutions, providing a certified copy of the Grant of Probate with each request.

Keep a detailed written record of every institution contacted, the date, and the response. This protects you as executor and makes the final accounting to beneficiaries much cleaner.

Step 8: Pay Debts and Final Taxes

Before any beneficiary receives a penny, all of the estate's debts must be settled. The order of priority for paying debts in England and Wales is set by law:

1. Funeral expenses
2. Costs of administering the estate
3. Secured debts (e.g. mortgages)
4. Preferential debts (e.g. certain employee wages)
5. Unsecured debts (e.g. credit cards, personal loans)

You must also submit a final Self Assessment tax return on behalf of the deceased, covering income from the start of the tax year to the date of death. Any tax owed is paid from the estate. Similarly, if the estate generates income during the administration period (e.g. rental income or dividends), this may also be taxable.

Step 9: Distribute the Estate to Beneficiaries

Once debts, taxes and administration costs are paid, you can distribute what remains to the beneficiaries named in the will — or, in intestacy, according to the rules that apply.

Before making any distributions, it's wise to place a statutory advertisement for creditors in The Gazette (the official public record) and a local newspaper. This protects executors from unknown creditors coming forward after distribution.

Once distributions are made, provide each beneficiary with a clear estate account showing all assets collected, debts paid, costs incurred and the final distribution. Keep your records for at least 12 years.

Common Mistakes Executors Make — And How to Avoid Them

• Distributing the estate too quickly — always wait for creditors' advertisement periods to pass
• Missing the IHT deadline — interest and penalties apply; set calendar reminders
• Overlooking digital assets — email accounts, online savings, cryptocurrency and online subscriptions all need to be addressed
• Ignoring the deceased's tax affairs — HMRC must be notified and any outstanding tax paid
• Failing to keep records — if a beneficiary later challenges the administration, detailed accounts are your best protection
• Not seeking professional help when needed — complex estates, disputed wills or estranged family members are situations where a solicitor's involvement more than pays for itself

When Should You Seek Professional Help?

Many straightforward estates can be administered by a capable executor without professional help. However, consider instructing a probate solicitor or specialist estate administrator if:

• The estate is worth more than £1 million
• The deceased owned property abroad
• There is no will and the intestacy rules are unclear or disputed
• The will is being contested
• There are complex business assets or trusts involved
• You simply don't have the time or confidence to manage the process alone

Solicitors typically charge either a fixed fee or a percentage of the estate value (usually 1–4%). Always get a clear quote in writing before instructing anyone.

How Long Does Estate Administration Take?

A straightforward estate can typically be wound up within six to twelve months. Complex estates — particularly those with property, international assets or IHT complications — can take two years or more. The probate registry itself has, at various points in recent years, experienced significant delays, so building extra time into your planning is wise.

If you're ready to find an accredited funeral director to support you from the very first steps, search our directory of NAFD-accredited funeral homes near you. Every NAFD member adheres to a strict Code of Practice and offers transparent pricing — so you can focus on what matters most.