What can be done before estate administration?
Before the estate administration process can start, there are few things that need to be done. In this article, we will cover all the steps you should follow, depending on the value of the estate and whether the deceased left a Will or not.
First step before estate administration
The first thing to do is to deal with time-sensitive post-death tasks. These include:
- Registering the death at the registry office and obtaining a death certificate.
- Notifying family and friends of the death. This is not a legal requirement, but it is encouraged.
- Notifying other relevant parties, such as the deceased’s employer, educational establishments, social services, and care providers (if applicable).
- Arranging the funeral.
- Looking after the estate and obtaining special insurance to protect its value.
- Find the Will (if there is one), as it might include deceased wishes regarding their funeral, as well as details of the Executor and beneficiaries.
Second step before estate administration
This step is crucial in deciding if you will need to apply for the Grant and if tax needs to be paid on the estate value.
- Calculate the value of the estate, which includes gathering all the assets, debts, and lifetime gifts. All assets need to be valued at their open market value or what they would be sold for at the time of death, so take into account age, wear and tear, and the quality of each item.
- Advertise to creditors. This can be done by putting a notice in the local gazette/ newspaper. If you choose to appoint a professional Executor, they will be able to notify all financial institutions and locate all assets and liabilities for you.
- Calculate house content value and again be realistic about which items are valuable on the open market and which items have more of a sentimental value. Antiques, valuable artwork, or other collectables should be valued by a professional. Alternatively, if you don't think the contents have any value, you can clear out the house or hire professionals to do it for you.
Third step before estate administration
At this point, you will find out if Inheritance tax (IHT) has to be paid and if you will be required to apply for the Grant. If IHT is due, this will have to be paid before you can apply for a Grant.
- Report the estate’s value by filling in an IHT return form if applicable.
- Pay IHT.
- Apply for the Grant of Probate if there was a valid Will, or a Grant of Letters of Administration if there was no valid Will.
To find out more about which forms to submit and how to apply for probate, you can read about the process of applying for probate.
Please note, if the estate is in joint name or valued under £5,000, you won’t need to apply for the Grant, and you can move on to estate administration. Find out more about when probate is required.
Fourth step: Estate administration
At this point, you have either received the Grant (Grant of Probate or Letters of Administration) or you know the Grant is not required and can administer the estate.
These are some (not all) of the tasks you can finally get on with:
- Register unregistered properties or change ownership;
- Set up postal redirection;
- Set up any Trusts that may be in the Will;
- Sell or transfer shares;
- Settle all debts and administrative costs, such as funeral costs, IHT loans, etc.;
- Sell properties and assets;
- Produce a set of accounts.
Once these tasks have been completed and assets have been distributed to the rightful beneficiaries, the probate process is complete.
