What does estate administration involve?

Although the steps involved in administering an estate will vary for each estate, if you are acting as a Personal Representative (whether as executor or administrator), generally, it is likely that you will be responsible for the following.

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Obtaining the death certificate

You will usually need to visit a register office to obtain a death certificate. If the death occurred in England/Wales, it is generally best to visit the register office closest to the place of death.

Collating all necessary information about the deceased’s assets and liabilities

This will include investigating whether the deceased made any gifts during their lifetime and may also require you to arrange valuations of assets such as art, jewellery and properties.
You may also need to advertise for any unknown creditors to come forward to protect yourself from personal liability (if appropriate).

Opening a bank account for the estate

As a personal representative, you are legally responsible for all the estate assets from the date of death until everything has been distributed to the beneficiaries (known as the ‘administration period’).

Calculating the Inheritance Tax position and paying the tax when it is due

This may involve you having to negotiate with the HMRC on the values of assets such as properties.

Obtaining the Grant of Probate or Letters of Administration

This may not always be necessary and depends on the types and values of the assets in the estate. If required, most assets will not be released without it, but sometimes institutions will release funds to pay the inheritance tax directly to the HMRC.

Obtaining post-death estate planning and financial advice

You may want to consider this, if appropriate, to achieve inheritance tax savings for the deceased’s estate or the estate of any beneficiaries. This could involve drawing up legal documents such as a Deed of Variation.

Collecting in all assets and paying off all liabilities

This may involve selling assets such as properties and shares, which may result in you having to settle new income tax and/or capital gains tax liabilities from the estate funds. You may also have to submit corrective accounts to the HMRC to report any amendments in the values of assets.
You may be liable to pay any outstanding liabilities yourself as the personal representative if you distribute the estate without keeping sufficient assets in the estate to pay all of them off.

Distributing the estate to the beneficiaries

Beneficiaries may include legatees noted in a Will. If you are unable to collect in all assets straight away, you can use your discretion to make interim distributions to residuary beneficiaries.
Distribution may also involve the transfer of property or other assets to the beneficiaries rather than selling them.

Prepare final accounts

These should generally be approved and signed by you and the primary beneficiaries.

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