Estate Administration UK (2026): Complete Step-by-Step Guide for Executors

Estate administration is the legal and financial process of winding up a deceased person's affairs. It covers: registering the death and obtaining death certificates; locating and validating the will; notifying relevant organisations (banks, HMRC, DWP, pension providers); valuing all assets and liabilities at the date of death; applying for the grant of probate (or letters of administration if there is no will); collecting in assets; paying debts, taxes, and expenses in the correct priority order; filing and paying inheritance tax; preparing estate accounts; and distributing the estate to beneficiaries. The process typically takes 6–18 months for a straightforward estate; complex estates (property sales, IHT disputes, overseas assets, contested wills) can take 2–3 years.

If the deceased left a valid will, the executor(s) named in the will administer the estate. Executors can be individuals (family members, friends, professionals) or trust corporations. If the deceased had no will (died intestate), an administrator is appointed by the Probate Registry — usually the closest surviving relative in the priority order set by the Non-Contentious Probate Rules (spouse/civil partner first, then children, then parents, etc.). Both executors and administrators are called 'personal representatives.' They have the same duties and the same personal liability for mistakes.

The law sets a strict priority order under the Administration of Estates Act 1925. Debts must be paid before any legacy or beneficiary receives anything. The order is: (1) secured creditors (mortgage lenders etc.) — paid from the secured asset; (2) funeral expenses; (3) testamentary expenses (probate court fees, estate agent fees, solicitor fees); (4) preferred debts (wages owed to employees); (5) ordinary unsecured debts — credit cards, loans, utilities, HMRC; (6) interest on unsecured debts; (7) deferred debts (e.g. loans from family that rank below ordinary creditors). Beneficiaries receive nothing until all debts, taxes, and expenses have been paid. An executor who distributes to beneficiaries before paying creditors is personally liable to those creditors.

A simple estate (no property, no IHT, no disputes, assets below financial institution thresholds) can sometimes be administered in 3–6 months. A typical estate with property and some bank accounts takes 9–12 months: 2–3 months to value the estate and prepare the IHT return; 2–4 months to obtain the grant of probate; 1–3 months to collect in assets and deal with the property sale or transfer; 1–2 months to prepare and approve estate accounts and distribute. Complex estates — those with IHT disputes, foreign assets, a business, a contested will, missing beneficiaries, or insolvent debts — routinely take 18 months to 3 years. Beneficiaries cannot pressure an executor to distribute faster than the administration allows; however, an executor has a duty to administer within a reasonable time (the 'executor's year' convention).

There is no legal requirement to use a solicitor for estate administration. Executors are entitled to administer the estate themselves ('lay administration'). Solicitors are worth considering for: estates with inheritance tax (IHT400 forms are complex); property owned overseas; contested wills or disputed claims under the Inheritance Act; insolvent estates (where liabilities exceed assets — special rules apply); very large or business-owning estates; or where the executor simply does not have the time or confidence to manage the process. Solicitor costs for estate administration vary from fixed-fee packages (£2,000–£5,000) to percentage charging (1–3% of estate value). These costs are payable from the estate before distribution.

Required HMRC forms depend on the estate: IHT205 (excepted estate — below IHT threshold, no IHT payable — simplified form); IHT217 (to transfer unused NRB from deceased spouse); IHT400 plus schedules (full IHT return for estates above threshold or with complex assets); probate application (online via HMCTS probate service or paper PA1P); SA900 (Trust and Estate Tax Return — required if the estate generates income above £500 during administration, typically from rental property, dividends, or bank interest). An executor is also responsible for filing the deceased's final personal tax return (SA100) for the period up to the date of death. HMRC enquiries into estate valuations are common — keep all valuation evidence.

An insolvent estate (one where liabilities exceed assets) must be administered under insolvency rules (Administration of Insolvent Estates of Deceased Persons Order 1986). This means the priority order for paying debts changes to mirror personal insolvency rules, and the executor may need to apply for a court-supervised insolvency administration. The key protection for executors: if you discover insolvency after distributing assets to beneficiaries, you are personally liable to unpaid creditors. Always place a Trustee Act s27 notice in the London Gazette and local newspaper before distributing, wait the 2-month statutory period, and consider an insolvency search before final distribution to protect yourself from personal liability.