When someone dies, everything they owned such as money, property, possessions, and even debts, becomes part of what’s called their estate. What happens next depends on whether they left a valid Will and how their affairs were set up. In the following article we explain the key stages of the estate administration process.
1. Establishing who is responsible for the estate
The first step is to identify the person legally responsible for dealing with the estate:
- If there is a Will, the executor(s) named in the document are responsible for administering the estate.
- If there is no Will, the estate is dealt with under the rules of intestacy, and a close relative (usually a spouse, civil partner or child) can apply to be appointed as an administrator.
Executors and administrators have a legal duty to deal with the estate properly, in accordance with the law and the wishes of the deceased where a valid Will exists.
2. Identifying assets and liabilities
Before the estate can be administered, there needs to be a full picture of what the person owned and owed. This can include:
- Bank accounts and savings
- Property (like a house or land)
- Personal belongings (cars, jewellery, furniture)
- Investments and pensions
- Debts (loans, credit cards, mortgages)
Collectively, these form the value of the estate.
3. Applying for probate (legal permission)
- In most cases, the person dealing with the estate will need legal authority before they can access funds or deal with assets. With a Will: they apply for probate
- Without a Will: they apply for letters of administration
This legal authority allows executors or administrators to deal with banks, sell property and distribute the estate. This process generally takes approximately 3 – 6 months if the estate is straightforward. However, if the estate is more complex and inheritance tax is payable, it can take 6 – 12 months.
4. Paying debts, expenses and tax liabilities
- Before any distribution to beneficiaries can take place, all liabilities must be settled from the estate. This includes: Funeral costs
- Outstanding debts
- Taxes (like inheritance tax, if applicable)
If there isn’t enough money to cover debts, the estate is considered insolvent, and strict legal rules determine the order in which creditors are paid. .
5. Administering the estate and finalising tax affairs
- Once the estate assets have been collected and any necessary sales completed, the personal representatives must: Pay any income tax due during the administration of the estate
- Prepare a final tax return (if required)
- Prepare detailed estate accounts to show all funds received and distributed
6. Distributing the estate to beneficiaries
- Once all debts, taxes and expenses have been settled, the remaining estate can be distributed. If there’s a Will, assets are distributed to the people named (beneficiaries) in accordance with the instructions set out in the Will.
- If there’s no Will, the law decides who inherits (this is called intestacy rules). These set out a strict order of entitlement, typically prioritising spouses, civil partners and children
Some key points to remember
- The whole probate and estate administration process can take months or even over a year, especially if property or tax issues are involved
- Having a valid, well drafted Will makes things much easier and faster
- Disputes can arise, especially if there’s no Will or where the Will is unclear or contested
- Some assets (like jointly owned property or certain pensions) may pass directly to someone outside of the estate and are not governed by the Will
How Bridge McFarland can help
When you lose a loved one, dealing with their estate can feel like a lot to take on, especially when you’re also dealing with bereavement. There are forms to complete, legal steps to follow and often tax or property matters to consider, which isn’t always straightforward if you’ve never done it before.
At Bridge McFarland LLP, our probate and estate administration team is here to make things as simple and stress-free as possible. We regularly support executors and families with everything from applying for probate or letters of administration through to dealing with inheritance tax, managing assets and distributing the estate.
We’ll talk you through what needs to happen, explain things clearly and handle the legal side so you don’t have to worry about getting it wrong.
If you need advice or support with probate or estate administration, please contact us to speak to a member of our team.
We can explain your options clearly and guide you through the next steps. Call us on 0800 987 8800 or email enquiries@bmcf.co.uk.
