Administering an estate

A guide to the estate administration process for executors, administrators, beneficiaries and others involved in dealing with a person's affairs after their death.

What is estate administration? 

Administering an estate involves dealing with a person's property, finances and affairs after they die. This responsibility usually falls to the executors named in a will, or to administrators if there is no will. 

There are a number of legal, tax and practical steps involved, and the administration process can vary depending on the complexity of the estate.

Executors and administrators can deal with an estate themselves or appoint a solicitor to assist with some or all of the administration. 

Overview of the process

In most cases, administering an estate involves:

Finding the will and identifying executors

Securing the estate and collecting key documents

Valuing the estate and calculating any tax

Applying for probate or letters of administration, if required

Collecting and managing assets

Paying debts, expenses and tax

Managing risks and claims

Distributing and finalising the estate 

The sections below explain the estate administration process in more detail, and answer common questions that can arise at each stage.

1. Find the will and identify the executors

Wills and codicils are often held by a solicitor or within personal records of the deceased. Executors named in the will are responsible for administering the estate and should be contacted early. If a will can’t be found, family members will need to make extensive enquiries to find out whether one exists.

If there’s no will, the estate will be dealt with under the intestacy rules, which determine who inherits when someone dies without a valid will. Administrators, rather than executors, must then be appointed to administer the estate.

Can an executor of a will be a beneficiary?

Yes. It’s common for an executor to also be a beneficiary of the will. For example, a spouse, child or other family member may be named as both.

This doesn’t usually cause any problems, provided the executor carries out their duties properly.

Does the executor of a will get paid? 

Professional executors may be paid for their time, while other executors aren’t entitled to payment (unless the will authorises it), although they can be reimbursed for reasonable expenses.

Can an executor of a will be removed?

Yes. Removing an executor of a will can be possible if they're unable or unwilling to carry out their duties, cause significant delays, or act improperly.

In some cases, the court can remove the executor and appoint someone else to administer the estate.

What happens if the executor of a will dies?

If an executor dies, it doesn’t cancel the will or stop the estate being dealt with.

The next step depends on the stage of the administration process and whether there’s another executor or replacement person who can act.

2. Secure the estate and collect key documents

One of the first and most urgent executor duties is to secure the assets.

This may include:

• Removing valuables from an unoccupied property  
• Telling the insurers  
• Meeting any insurance conditions  
• Redirecting post if the house is empty

If a solicitor is acting, they will require original documents such as title deeds, share certificates, bank or building society passbooks, insurance policies, bonds, National Savings certificates and bank statements.

They will also usually want official documents such as the deceased’s passport, driving licence and death certificate. The executor should also hand over bills and details of liabilities so they can be identified and paid during the administration.

3. Value the estate and calculate any tax

Valuations for property and possessions should be arranged. If a solicitor has been instructed they will usually coordinate this process. This is especially important for items such as jewellery, silver or paintings, which may need particular care and insurance.

This information is used to prepare an inventory for HM Revenue & Customs (HMRC) and determine whether inheritance tax (IHT) is payable. Accurate valuations are important both for IHT purposes and for distributing assets to beneficiaries. 

Executors are responsible for:

• Reporting the estate to HMRC
• Paying IHT
• Ensuring debts and expenses are settled

Raising funds to pay tax can sometimes be challenging and may involve using estate funds or arranging finance.

Do you have to pay IHT before probate is granted? 

Any IHT due must generally be paid before probate can be granted, although tax on some assets can be paid by instalments over ten years.

4. Apply for probate or letters of administration

In most cases, a grant of probate (where there’s a will) or letters of administration (where there’s no will) is needed before the estate can be dealt with. 

To obtain the grant, the executor must sign a statement confirming:

• The will and any codicils are the deceased’s last will and testament  
• The signer is named as executor in the will
• They will collect in and distribute the assets  

Where there’s no will (or no executor is appointed under the will), the administrator will sign the legal statement in similar terms, which confirms that they're the person with the right to administer the estate.

The legal statement, original will (if there’s one) and HMRC receipt confirming payment of tax are lodged with the Probate Registry, and the grant is then issued.

The grant will be issued by the Probate Registry within 12 weeks of submitting the application (although the turnaround time can vary depending upon the Probate Registry’s workload and processing times). If there are requisitions or requests for further information, the grant is likely to take longer to be issued. 

When’s a grant required in England? 

A grant is usually required when someone dies owning property (where there’s no surviving owner), bank accounts, investments or shares in their own name.

However, it may not be needed for jointly owned assets or assets that automatically pass to a named beneficiary.

A grant isn’t always required for lower-value accounts and there’s no set value above which probate is always required.

5. Collect and manage estate assets

After probate is granted, executors can collect and deal with the assets.

This may include:

• Transferring or selling the house  
• Closing bank or building society accounts  
• Selling or transferring shares, unit trusts and savings certificates  
• Claiming life assurance policy monies payable to the estate  
• Dealing with any pension arrears or death benefits  
• Selling personal effects  

A dedicated executors’ bank account is often used to manage estate funds during administration. 

6. Pay debts, expenses and tax

Executors and administrators are responsible for paying all outstanding debts and dealing with ongoing financial matters during the administration period, including tax returns.

The estate will also need to pay:

• Funeral costs (unless these have been settled from the deceased’s bank account)
• Solicitor’s fees (if a solicitor has been instructed)
• Income tax and capital gains tax for the period up to death and, where relevant, during the administration period 

7. Manage risks and potential claims

Executors should check carefully for anyone who may have a claim against the estate before making a final distribution.

This can include:

• Dependants – such as a spouse, former spouse or child
• Creditors
• People who may dispute the will

To reduce the risk of personal liability, executors may decide to wait before distributing the estate or use statutory notices where appropriate.

The key point is that the estate shouldn’t be paid out until any possible claims have been considered.

What's the time limit for a claim against an estate?

The time limit depends on the type of claim.

For many dependants’ claims under the Inheritance (Provision for Family and Dependants) Act 1975, the usual time limit is six months from the date that the grant has been issued, although the court can permit claims out of time.

Other claims, such as creditor claims, may be subject to different limitation periods.

Can a beneficiary contest a will?

Yes. A beneficiary, or someone who expected to benefit, may challenge the validity of a will if there are legal grounds. This can include concerns about capacity, undue influence or due execution.

Separately, certain categories of applicant may be able to bring a claim for reasonable financial provision from the estate. However, a challenge must be supported by legal grounds and evidence.

8. Distribute the estate

Once executors have paid the debts, expenses and tax, the next step is to distribute the estate to the beneficiaries.

Executors usually distribute:

1. Legacies – eg, a fixed sum of money, a named item, or a particular asset left to a person
2. The remaining estate (residue) – everything left after the debts, expenses, tax and legacies have been paid

How long does a will take to settle?

This depends on the size and complexity of the estate, whether IHT is due, and whether any claims or disputes arise. Many straightforward estates are settled within a year, while more complex estates can take a year or longer.

There’s no fixed deadline for executors to pay beneficiaries, but they should only distribute the estate once debts, tax and other liabilities have been dealt with.

Can you change a will after death?

A will itself can’t be changed after death. However, beneficiaries may be able to redirect all or part of their inheritance using a deed of variation. This can sometimes be useful for tax or family reasons and should be considered before final distributions are made.

What happens if there's a missing beneficiary?

Executors must make every effort to trace beneficiaries. If a beneficiary can’t be found, executors may be able to take out insurance that protects the estate if that beneficiary comes forward later. Depending on the circumstances, executors may also consider making a court application or paying funds into court.

9. Finalise the estate

At the end of the estate administration, estate accounts should be prepared showing how the assets and liabilities have been dealt with. If a solicitor is acting, they will usually prepare these accounts and deal with any remaining tax requirements with HMRC. Once any remaining funds have been distributed to the beneficiaries, the administration is complete.

If you’d like advice on any aspect of estate administration, please get in touch with our specialist solicitors who can help.

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