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. If you are beginning to think about funeral costs, our funeral cost calculator can help you plan. /funeral-cost-calculator/

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 £12.50 in England and Wales as of 2026 (fees are set by the General Register Office and are subject to annual review — confirm the current fee with your local Register Office at the time of registration)).

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: How to Find and Validate the Will After Someone Dies

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.

Step 3: Do You Need Probate — and How Do You Apply?

Probate (called Confirmation in Scotland and Grant of Probate or Letters of Administration in England, Wales and Northern Ireland) is the legal process that gives you the authority to deal with the deceased's estate. Most banks, building societies and land registries will require evidence of probate before releasing funds or transferring property.

When Is Probate Required?

You will generally need probate if the estate includes:

• Property or land owned solely by the deceased
• Stocks and shares held in the deceased's sole name
• Bank accounts above the threshold set by the individual bank (often £25,000–£50,000, though this varies)

Jointly held assets (such as a joint bank account or jointly owned property) usually pass automatically to the surviving owner outside of probate.

How to Apply for Probate in England and Wales

You can apply online via the HMCTS Probate Service at gov.uk, or by post using form PA1P (if there is a will) or PA1A (no will). As of 2026, the probate application fee is £300 for estates valued over £5,000 (free for estates below this). Additional sealed copies cost £1.50 each — order at least five.

Processing times vary but currently average eight to sixteen weeks from submission. Using a solicitor or specialist probate service can reduce errors but will add professional fees, typically 1–3% of the estate's value or a fixed fee from around £1,500.

In Scotland, you apply for Confirmation through the local Sheriff Court. Small estates (under £36,000) can use a simplified 'small estate' procedure.

Step 3a: Valuing the Estate — Assets, Debts and Inheritance Tax

Before applying for probate, you must compile an accurate valuation of everything the deceased owned and owed. This figure determines whether Inheritance Tax (IHT) is due and forms the basis of your probate application.

What to Include in Your Valuation

• Property: Obtain a professional estate agent valuation or RICS survey for the open-market value at the date of death.
• Bank and savings accounts: Contact each institution for a date-of-death balance.
• Investments and shares: Use the 'quarter up' method — take the lower of the two prices quoted on the date of death and add a quarter of the difference between them.
• Personal possessions: Vehicles (check DVLA registered keeper), jewellery, antiques and collections above nominal value.
• Life insurance and pensions: Policies written in trust generally fall outside the estate; others may form part of it.
• Debts owed to the estate: Include any money the deceased was owed.

Deduct Debts and Liabilities

Subtract outstanding mortgages, loans, credit card balances, utility bills and funeral expenses from the gross total to reach the net estate value.

Inheritance Tax Thresholds in 2026

IHT is charged at 40% on the value above the nil-rate band. The standard nil-rate band remains £325,000. The residence nil-rate band (for passing a main home to direct descendants) adds a further £175,000, giving a potential combined threshold of £500,000 per individual (up to £1 million for married couples or civil partners). Gifts made within seven years of death may also be included — these are called 'potentially exempt transfers'. If IHT is due, it must be paid to HMRC before or at the point of probate application.

Step 5: Paying Debts and Distributing the Estate

Once you have the Grant of Probate (or Confirmation in Scotland), you have legal authority to collect assets, settle liabilities and distribute what remains to beneficiaries.

The Order in Which Debts Must Be Paid

As executor, you are legally required to pay the estate's debts before distributing anything to beneficiaries. The priority order is:

1. Funeral expenses
2. Secured debts (e.g. mortgage)
3. HMRC — income tax and IHT
4. Unsecured debts (credit cards, loans, utility bills)

Important: If you distribute assets to beneficiaries before paying all debts, you may become personally liable for any shortfall. If you are unsure whether all debts have been identified, consider placing a Section 27 notice (a statutory advertisement in The Gazette and a local newspaper). This protects you against unknown creditors after a two-month waiting period.

Closing Accounts and Transferring Assets

Present the Grant of Probate to each bank, building society and financial institution to release funds into the executor's account. For property, the Land Registry transfer form (TR1) will be required. Shares can be transferred via a stock transfer form.

Distributing to Beneficiaries

Once all debts, taxes and administration costs are settled, distribute the remaining estate in line with the will or intestacy rules. Keep detailed records of every payment. Each beneficiary should sign a receipt. Issue a final estate account — a clear statement of all assets collected, debts paid and distributions made — to all residuary beneficiaries before closing the estate.

Common Executor Mistakes — and How to Avoid Them

Even well-intentioned executors can make errors that delay administration, trigger tax penalties or create legal liability. Here are the most common pitfalls:

• Distributing assets too early: Never pay beneficiaries before all debts and taxes are settled. Executors can be held personally liable for any unpaid liabilities discovered later.
• Missing the IHT deadline: Inheritance Tax must be paid within six months of the end of the month in which death occurred. Interest accrues after this date at HMRC's standard rate.
• Failing to advertise for creditors: Without a Section 27 notice, you remain exposed to unknown claims indefinitely.
• Undervaluing assets: HMRC can challenge undervaluations, particularly for property. Always obtain a professional valuation.
• Not keeping records: Every transaction, letter and decision should be documented. Beneficiaries have the right to see the estate accounts.
• Overlooking foreign assets: Property or accounts held abroad may require separate legal processes ('resealing' the grant) in the relevant jurisdiction.
• Ignoring pension nominations: Most pension funds are written in trust and fall outside the estate — but trustees still need to be notified promptly.

If you are unsure at any stage, seek advice from a solicitor who specialises in probate and estate administration. The cost of professional advice is usually far less than the cost of putting mistakes right.

When to Get Professional Help with Estate Administration

Many straightforward estates can be administered without a solicitor — particularly where the estate is modest, there is a clear will and all beneficiaries agree. However, professional help is strongly advisable in the following situations:

• The estate is worth more than £325,000 and IHT may be due
• There is no will and the intestacy rules are disputed or complex
• The will is contested or a family member is considering a claim under the Inheritance (Provision for Family and Dependants) Act 1975
• The estate includes business assets, overseas property or complex investments
• There are multiple beneficiaries, including minor children or those lacking mental capacity
• The deceased's tax affairs were complicated or HMRC has raised queries
• You are the sole executor and feel overwhelmed by the responsibility

Probate solicitors typically charge 1–3% of the estate value, or a fixed fee from around £1,500 for simpler estates. Licensed probate practitioners and specialist online services can offer competitive alternatives. Always compare quotes and check credentials before instructing anyone. NAFD-accredited funeral directors can often point families towards trusted local legal professionals — ask your funeral director for a recommendation. /find-a-funeral-director/