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: What to Do Immediately

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 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.

• 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.

Understanding Probate

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.