Estate Administration Guide

This guide is an overview of the process of administering an estate. Although every person is unique and every estate is different, this factsheet sets out some of the common milestones in the process and the timescales in which you can expect the matter to progress. At the end of the factsheet is a glossary of common terms that you will hear throughout the process. You may find it helpful to refer to both documents as we go along.

The Personal Representatives are responsible for making sure that the estate is administered correctly. If there is a Will, they are called Executors and will ensure that the instructions in the Will are carried out. If there is no Will, they are called Administrators and will follow the rules for inheritance set out by the law. We will use the term Personal Representatives in this factsheet.

The first three months

In the first three months after a person dies the Personal Representative will need to:-

• Register the death
• Arrange the funeral
• Instruct a legal adviser to assist, if you wish
• Gather details of all the person’s assets and liabilities
• Write to the asset holders and creditors to obtain valuations of the estate – if we are advising you, we can do this for you
• Obtain three independent valuations of the person’s property
• Value all the person’s household goods and possessions
• Make a list of all gifts made by the person in the seven years prior to their death
• Arrange insurance for any property and contents
• Inform utility providers and the council that the person has died
• Notify government institutions such as the DWP and HMRC
• Review Income Tax position up to the date of death
• Assess whether you need a formal Grant of Representation to administer the estate
• Prepare the Inheritance Tax and Probate Application forms
• Start Estate Accounts Estate Administration
• Consider whether the estate qualifies as a Complex Estate which needs to be reported to the Trust Registration Service
• Obtain contact details for beneficiaries and inform them of their inheritance

Three to six months

The Personal Representatives, or their legal advisers, should now be ready to:-

• Finalise the Inheritance Tax and Probate Application forms
• Sign the Inheritance Tax and Probate Application forms stating that they have made their best efforts to disclose all relevant information. Failure to do this may be perjury and could result in a fine or a prison sentence where wrong information is reported
• fraudulently or negligently.
• Submit the Inheritance Tax account to HMRC
• Pay any Inheritance Tax due
• Submit the Probate Application form to the Probate Registry
• Pay the Probate Registry fee for the Grant of Representation and any copies of the Grant
• Answer any queries raised by the Probate Registry
• Receive the Grant of Representation

Six to twelve months

• Now that the Personal Representatives have the Grant of Representation they will need to:-
• Complete forms to close bank accounts
• Complete forms to close or transfer investments or shares
• Place statutory notices advertising for creditors
• Notify the council that the Grant of Representation has been issued
• Start paying liabilities and administration expenses
• Put any property on the market for sale
• Arrange for the property to be cleared and personal possessions sold or transferred to a beneficiary
• Once a sale has been agreed, instruct conveyancing solicitors
• Consider any Capital Gains Tax mitigation measures if assets are selling for more than the valuation submitted with the application for a Grant of Representation
• On completion of the sale, take final meter readings and submit to the utility providers
• Notify the buildings and contents insurers and council of the sale
• Report any Capital Gains to HMRC
• Work out whether any refund of Inheritance Tax is due after the sale of assets
• Complete forms to claim any Inheritance Tax refund
• Submit bankruptcy searches before making any payments to beneficiaries
• Pay any legacies contained in the Will
• Consider whether an interim payment to the residuary beneficiaries is appropriate
• Update Estate Accounts

Twelve to eighteen months

• We are now approaching the end of the administration process. To finalise the estate the Personal Representatives will need to:-
• Finalise Income and Capital Gains Tax for the period of administration. Work out whether a tax return is required or if the submission can be made informally.
• Pay final Income Tax
• Obtain Inheritance Tax clearance from HMRC
• Prepare forms confirming each residuary beneficiary’s share of income received from the estate
• Prepare final Estate Accounts for approval by the Personal Representatives and residuary beneficiaries
• Submit bankruptcy searches before making any payments to beneficiaries
• Arrange a final distribution to the residuary beneficiaries

Other things to consider

• It is possible that someone may make a claim against the estate or say that the Will is invalid. The costs of such challenges are generally paid out of the estate. It is important that you take specialist advice as soon as you become aware of any potential challenge.
• A beneficiary can choose to vary or disclaim their inheritance. This must be completed in a formal way and within specific timescales. This can have an impact on the
• Inheritance Tax payable and you should take advice if you are unsure of the effect of a variation on the estate.
• A person may set up a Trust in their Will. There are different types of Trust which have different rules and different tax treatment. You should take advice to understand how the Trust affects the distribution of the estate.

This guide can be downloaded here, alongside our glossary of terms for estate administration.