Obtaining probate is only the start of an executor’s task. GOV.UK says a personal representative, meaning an executor or administrator, is legally responsible for the money, property and possessions of the person who died from the date of death until everything has been passed to the beneficiaries, a stretch called the administration period. This guide summarises GOV.UK’s guidance on dealing with an estate and on valuing it for Inheritance Tax. It covers England and Wales; Scotland uses confirmation rather than probate and Northern Ireland has its own forms. It is general information, not legal advice, and larger estates or those with trusts often justify professional help.
What the role involves
GOV.UK lists the tasks that may arise: paying debts left by the person who died, selling assets such as property or shares, paying Income Tax on income such as rent or interest, paying Capital Gains Tax on profits from sales, and reporting the estate’s value, income and tax liability to HM Revenue and Customs (HMRC). Where there is more than one personal representative, they should agree where to hold financial assets (an ‘executorship account’ can be opened), the rules for withdrawals, and which assets to sell and when. The earlier steps are covered in the guide to applying for probate yourself.
Debts and the notice to creditors
GOV.UK says the personal representative must pay unpaid bills and personal taxes, claim any tax refunds, complete a Self Assessment return for income earned before death if needed, and repay overpaid benefits. HMRC can be contacted directly or through the Tell Us Once service, after which GOV.UK says it can take at least 30 days for HMRC to make contact. Employers and pension providers should be told so that HMRC receives any last salary or pension figures.
The central protection is a notice in The Gazette giving creditors two months to claim. GOV.UK says the estate’s assets should not be distributed until the two months are up, because a representative who distributes early and then finds the estate cannot afford a debt may have to pay it personally.
Inheritance Tax timing
Most estates owe no Inheritance Tax, but when it is due the deadlines matter. GOV.UK states the tax must be paid by the end of the sixth month after the death to avoid interest; for a death in January that means 31 July. If the estate owes tax, its value must be reported within one year on form IHT400, and probate cannot be applied for until that is done. The tax normally has to be started before probate is granted, but certain assets that take time to sell, such as a house, can be paid by yearly instalments. HMRC usually issues the code needed for the probate application within 20 working days.
Income and gains during administration
The estate pays Income Tax on everything it receives between the day after the death and the final distribution, such as rent, business profits, interest and dividends. GOV.UK says estates get no allowances. Dividends received on or after 6 April 2026 are taxed at 10.75% (8.75% for 6 April 2022 to 5 April 2026) and other income at 20%. If assets that have risen in value since death are sold, Capital Gains Tax may be due, and on residential property it usually has to be reported within 60 days; transferring an asset directly to a beneficiary does not create a charge on the estate.
Reporting to HMRC
For income received from 6 April 2024, GOV.UK says no report is needed if the estate’s income from all sources is £500 or less in a tax year, but if it is higher everything must be reported. Estates valued below £2.5 million at death, with total Income Tax and Capital Gains Tax below £10,000 and no more than £500,000 of assets sold in any tax year, can report by letter at the end of the administration period. Others must register the estate online by 5 October after the relevant tax year and file a Trust and Estate Tax Return (form SA900): a paper return by 31 October, or an online return by 31 January, following the tax year, with any tax payable by that 31 January.
Distributing and closing the estate
Once debts and taxes are paid, or the representative is sure the estate can cover them, the estate is distributed under the will or, if there is no will, under the law; the guide to intestacy rules explains the order. GOV.UK says anyone receiving taxed income should be given a statement of income from estates, and the Land Registry property register must be updated when a property is passed on. Final estate accounts are then prepared and should be approved and signed by the representative and the main beneficiaries. A beneficiary who disputes the will may have a separate remedy, described in the guide to contesting a will.
FAQs
Is probate always needed?
No. GOV.UK says it may not be needed where the person had only savings, or held money or property jointly with others that passes automatically to the survivors. Each financial organisation has its own rules, so they should be asked.
Can the estate be shared out as soon as probate arrives?
GOV.UK says to distribute once debts and taxes are paid, or when the estate is certain to cover them, and not before the two-month creditor period has ended.
What if the estate runs short after distribution?
GOV.UK warns that the representative may have to pay remaining debts and tax bills personally.
The bottom line
In England and Wales an executor is responsible for the estate until the last beneficiary is paid, which means paying debts, settling Inheritance Tax and income tax liabilities, reporting to HMRC where required and keeping proper accounts. Waiting out the two-month creditor notice before distributing, watching the six-month Inheritance Tax deadline and keeping a separate record of estate income protect the executor from personal liability. This is general information, not legal advice.
Sources
- Dealing with the estate of someone who’s died (gov.uk)
- How to value an estate for Inheritance Tax and report its value (gov.uk)
- Applying for probate: What is probate (gov.uk)