Closing a Deceased Relative's Estate

Within 5 working days of death (England and Wales): book an appointment at the Register Office; take the doctor's medical certificate of cause of death; get certified copies of the death certificate (£11 each — get 5-10 copies). At the Register Office, use the Tell Us Once service: notifies DWP, HMRC, council tax, DVLA, passport office. Notify the funeral director if not already. The bereavement support payment may be available for surviving partner under State Pension age.

Search for the will: with the deceased at home; with their solicitor; in a will-storage service; at the Probate Registry (registered wills); in safe-deposit boxes. The will names executor(s) — these are the people legally responsible for administering the estate. If no will is found, the next of kin can apply for Letters of Administration under the intestacy rules. Multiple executors may act jointly or some may renounce (decline) the role.

Make a list of all assets and approximate values at date of death: property (get a valuation), bank accounts, investments, premium bonds, pensions (death benefit), life insurance payouts, personal belongings, cars. Plus list debts: mortgage, credit cards, utility bills, funeral cost. The estate value determines whether IHT applies (threshold £325,000 + £175,000 residence nil-rate band for direct descendants). Use HMRC IHT400 calculator for complex estates; IHT205 for excepted estates. Pensions and life insurance held in trust are usually outside the estate for IHT purposes.

If estate has any assets above institution thresholds (typically £5,000-£50,000), you need a grant. Online application at gov.uk/applying-for-probate. Court fee £300 (waived if estate under £5,000). Complete IHT400 if estate above the threshold; pay any IHT before applying. Grant typically issued 8-16 weeks after application. The grant proves your legal authority to act on behalf of the estate. Banks, pensions, Land Registry need the grant to release funds or transfer property.

Once you have the grant, collect in assets from banks etc. Open an estate bank account if needed. Pay debts in order: secured debts (mortgage), funeral expenses, IHT (if not already paid), other unsecured debts (utility bills, credit cards). The estate may need to sell assets to pay debts. If the estate is insolvent (debts exceed assets), specific insolvency rules apply — get advice before paying anyone.

Once debts and IHT are paid, distribute the residue (what's left) according to the will. Specific gifts ("my watch to John") go first; pecuniary legacies ("£10,000 to Sarah") next; residue split among residuary beneficiaries. Keep detailed records of all transactions — beneficiaries can request the estate accounts. Distributions of property may need separate Land Registry forms. Distributions over £325,000 to a non-spouse may trigger CGT considerations for the beneficiary.

Once all assets are distributed: produce final estate accounts; share with beneficiaries; close the estate bank account. Keep records for 6 years (HMRC may audit). Consider a Deed of Variation if it would help reduce IHT or skip a generation (must be within 2 years of death). If property was sold, address any CGT. Provide R185 forms to beneficiaries showing income received (for their own tax returns).

If a will is challenged: caveat at Probate Registry preventing grant; respond to the warning if served. Inheritance Act 1975 claims by spouse, cohabitee, child, dependant must be made within 6 months of grant. Use mediation through Inheritance Disputes Resolution; specialist contentious probate solicitor for serious disputes. Costs in contested probate £30,000-£150,000+ per side. Most disputes settle before trial.