This is a difficult time, particularly for loved ones. There may be a myriad of things to think about and potentially do. 

Immediate Issues

Of immediate concern is registering the death with the Registry office. Firstly, the death needs to be registered within five days. The Personal Representatives will need to obtain a number of death certificates. These will be needed, as some asset holders will require a copy before releasing money. 

The Personal Representatives (or Executors of the deceased’s Will) can start dealing with the immediate and urgent issues. These may include:

- Using the government’s ‘Tell Us Once’ service- this informs people like HMRC, the DWP and other parties what has happened and when. This is accessible via: 
-  https://www.gov.uk/after-a-death/organisations-you-need-to-contact-and-tell-us-once 
-  Securing the deceased’s assets and estate, e.g. making sure their property is safe and insured, informing suppliers, e.g. utilities / broadband / the council / DVLC and any insurers.  This list is not exhaustive, there may be many others to inform.
- Locating the most recent Will (if there is one)
-  Arranging and paying for a funeral and dealing with relatives and others

Who begins to sort out the estate of the deceased?

If the deceased had a Will, it will normally say who the ‘Executors’ are. They are responsible for acting, and need to locate the deceased’s Will to that is can be used to obtain a Grant Of Probate.

If the deceased did not have a Will, their ‘Personal Representatives’ (usually next of kin) will need to act instead, and need to apply for  a Grant of Letters of Representation

This is the legal authority that will enable them to wind up the deceased’s estate. Professional advice may well be needed, depending how complex the deceased’s estate is. 

Before applying for a Grant

The next stage is to detail the assets and liabilities contained in the estate and work out their value. This can be a lengthy process if the deceased had substantial holdings. Asset holders such as banks and building societies, stockbrokers, fund managers, pension providers, HM Revenue & Customs, lenders and any other likely organization to which the deceased could have owed money, need to be informed. 

If the deceased owned a property, that will also need to be valued. Probate will generally be required if the property is to be sold. 

  In the case of some small estates, a Grant may not be necessary. This will depend on the amount of assets held. Banks each have their own limit above which they will require sight of a Grant of Probate before closing an account and releasing funds. This can range from £5,000 to £50,000, depending on the bank. 

Any cash gifts that the deceased made over the previous seven years will also need to be included in the value of the estate. If Inheritance Tax is payable, it will be payable on these on a sliding scale, depending on how long ago they were made.

There is not any legal timeframe for applying for probate, however much of the estate administration will not be possible until this is received, so it is generally one of the first things that is done.

Applying for probate 

Where probate is required, there is a set procedure to go through before an application for the grant is made to the Probate Registry.  Dealing with Inheritance Tax is priority, as it needs to be paid promptly.

If the estate is ‘Excepted’ ( i.e. there is no Inheritance Tax due) then an application can be made online.

https://www.gov.uk/applying-for-probate/apply-for-probate

Where Inheritance Tax is potentially due

The probate application form will need to be completed along with an Inheritance Tax form stating the value of the estate. If the deceased was entitled to any Inheritance Tax relief, then this should be included. For example, if their spouse pre-deceased them, they may be able to take advantage of any unused Inheritance Tax allowance they had left over. 

The probate fee should accompany the application. Once this has been accepted, Inheritance Tax should be paid. It may be possible to pay this from one of the deceased’s bank accounts if you are able to provide the bank with the relevant form showing the amount due. Alternatively, HM Revenue & Customs may be prepared to accept payment in instalments. 

Distributing the estate to beneficiaries etc

Once the Grant is issued, the Executors/Personal Representatives can distribute the deceased’s estate accordingly.

The winding up of an estate can be a lengthy process, particularly if there is a property that needs to be sold. Generally, obtaining probate as soon as possible will help set things in motion and allow accounts to be closed and assets to be transferred/sold etc.