Estate Administration

The Estate is the person’s property, money, investments, personal possessions, business interests as well as debts, mortgages and tax liabilities.

The main stages included the following:

Immediate steps

• Registering the death and arranging a funeral
• Locating the Will (and any codicils) and identifying executors (people who will handle the process) and beneficiaries (people and/or organisations who will inherit any assets)
• If there is no Will, identifying and locating the next of kin who qualify under the rules of intestacy
• Securing any property and valuables, maintaining insurance
• Notifying the relevant institutions of death

Valuation of the estate

• Obtaining the date of death values for all assets (bank accounts, investments, shares, properties)
• Establishing all the debts
• Locating insurance policies and pension benefits

Tax position

• Assessing the Inheritance Tax (IHT) position and submitting the account to HMRC
• Pay IHT (if due) and follow the correct deadlines
• Check the income tax and capital gains tax position, some tax accounts may still be outstanding before death and further tax accounts and payments may be necessary during the administration period

Apply for the Grant of Probate or Letters of Administration

• Submitting an application to the Probate Registry to obtain a Grant of Probate (where there is a Will) or Letters of Administration (where there is no Will or it is incomplete) – the Grant confirms who is the administrator of the estate

Collecting in assets and settling debts and expenses

• Closing accounts, cashing in or transferring investments, selling property, and collecting any money due to the estate.
• Paying funeral expenses (if they haven’t already been settled by a bank), administration expenses, creditors, and taxes. This must be done in the correct order and from the correct sources (especially if the estate may lack enough funds).

Distribution and estate accounts

• Preparing estate accounts showing all assets, receipts, payments out, taxes and the shares of each beneficiary.
• Distributing anything left in the estate to the beneficiaries in accordance with the Will or the rules of intestacy.
• Taking into account any potential claims (e.g., claims under the Inheritance (Provision for Family and Dependants) Act 1975) and protective steps such as creditor notices where appropriate.
• Assessing and following any Deed of Variation which may redirect the distribution of assets.