When someone passes away, there are necessary steps to manage their estate, which encompasses all the money and property they owned at the time of their death. At Sydney Mitchell, we have a dedicated team of experts, including specialists in handling high net worth and complex estates, such as those involving business or agricultural properties.
Dealing with an estate after a person’s death requires several steps, which depend on various factors such as whether the deceased left a valid will, whether a grant of representation is needed, and whether the estate is subject to inheritance tax.
In the presence of a valid will
If the deceased left a valid Will, it usually names executors—individuals with the authority to manage the estate. These executors may need to apply for a Grant of Probate, if required, to administer the estate.
In the absence of a will (intestacy)
If there is no valid Will, the administration of the estate is governed by the “rules of intestacy.” These rules determine who is entitled to manage the estate.
Understanding grants
A grant is a legal document authorising executors or administrators to manage and distribute the deceased’s estate.
There are many different types of grant but the two main types are
- Grant of Probate – used when there is a valid will
- Grant of Letters of Administration – used when someone dies without a will (intestate)
A grant is typically required if the estate exceeds £5,000, but this depends on the types of assets and whether they are held solely or jointly. The application process for a grant varies based on the type of grant needed, the size of the estate and any IHT liabilities.
Executors or administrators must first assess the deceased’s assets and liabilities before applying for a grant. If IHT is due, it must be paid prior to the court issuing the grant.
Next steps
After obtaining the grant (if necessary), executors or administrators must:
- Collect the estate’s assets, such as bank accounts, investments, property, or shares
- Settle outstanding liabilities from the date of death or incurred during the estate administration
- Calculate and report any tax liabilities, like income or capital gains tax, to HM Revenue and Customs
- Distribute the estate according to the will or the intestacy rules if there is no will
- Provide an estate account document to the residuary beneficiaries
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