When a loved one passes away, managing their estate can feel overwhelming. If you have been named as an executor in a will, you have a legal responsibility to administer the estate in accordance with the law in England. This can be a complex and time-consuming process, requiring careful attention to legal requirements and financial considerations. Our team of Cheltenham probate solicitors is here to guide you through the probate process, ensuring you fulfil your duties correctly and efficiently, minimising potential complications.
What is Probate?
Probate is the legal process of administering the estate of a deceased person. It involves proving the validity of a will (if one exists), settling debts, and distributing assets to beneficiaries. If there is no will, the estate is handled according to the rules of intestacy, which determine the order in which relatives inherit. The probate process can take several months to complete, depending on the complexity of the estate and any disputes that may arise.
Step 1: Determine Whether Probate is Required
Not all estates require probate. Probate is usually necessary when:
- The deceased owned property or significant assets solely in their name.
- Financial institutions require a Grant of Probate before releasing funds.
If assets were held jointly, they typically pass directly to the surviving owner and probate may not be needed. In some cases, smaller estates may also avoid probate, depending on the financial thresholds set by banks and other institutions.
Step 2: Apply for a Grant of Probate or Letters of Administration
If a will exists, the executor must apply for a Grant of Probate from the Probate Registry. If there is no will, a close relative can apply for Letters of Administration, giving them authority to manage the estate.
The application can usually be made online and includes:
- The original will (if applicable)
- A Legal Statement containing details of the deceased, the executor or administrator and the probate value of the estate.
Once the application is submitted, processing times can vary, and additional documentation may be required if the estate is complex or contested.
Step 3: Pay Any Inheritance Tax Due
Before probate is granted, any Inheritance Tax (IHT) must be calculated and, if applicable, an initial instalment paid. The current nil-rate band (as of 2025) is £325,000, with tax at 40% on the amount exceeding this limit.
This nil-rate band may be reduced if the deceased made substantial lifetime gifts.
Some estates may qualify for the residence nil-rate band, which can increase the tax-free threshold when passing property to direct descendants. It is also possible to claim a transfer of any unused nil-rate bands if the deceased was a surviving spouse.
Other reliefs covering legacies to charities or business or agricultural assets may also be available.
The initial instalment of Inheritance tax must usually be paid before probate is issued, which may require arranging short-term financing. Executors should be aware of potential penalties for late payment and consider professional advice when dealing with large or complex estates.
Step 4: Collect and Manage Estate Assets
Once probate is granted, the executor or administrator has the legal authority to deal with the assets in the estate, including:
- Selling or transferring properties.
- Closing down bank accounts.
- Selling or transferring shares.
Proper record-keeping is essential at this stage, as executors are legally responsible for ensuring assets are managed correctly and fairly.
Step 5: Settle Outstanding Debts and Liabilities
Executors are legally required to pay any debts before distributing the estate. This includes:
- Funeral expenses.
- Outstanding bills, loans, or mortgages.
- Income tax and other liabilities.
It is sometimes advisable to place a Section 27 notice in The Gazette and a local newspaper to notify potential creditors and protect against future claims. Executors should ensure they fully understand the deceased’s financial obligations to avoid legal complications later.
Step 6: Distribute the Estate to Beneficiaries
After debts and expenses are cleared, the executor can distribute the estate according to the will. If no will exists, distribution follows the rules of intestacy, prioritising spouses, children, and other close relatives.
Executors should keep clear records of all transactions to ensure transparency and avoid disputes. In some cases, disputes may arise between beneficiaries, requiring legal mediation or court intervention to resolve inheritance disagreements.
Step 7: Finalising the Estate and Reporting to HMRC
Once all assets are distributed, and any remaining tax liabilities are settled, the executor may need to account to HM Revenue & Customs (HMRC) and pay income tax if the estate has received significant income during the administration period. This ensures that all financial matters are properly accounted for and that there are no outstanding tax obligations. At this stage, the estate can be considered officially closed, and the executor’s duties are complete.
If there are any unresolved issues, such as contested wills or complex trust arrangements, further legal advice may be required before the estate is finalised.
Need Help with Probate?
Acting as an executor can be complex and time-consuming. Our Cheltenham Probate solicitors at Midwinters provide expert legal advice on probate matters, ensuring compliance with the latest regulations. Whether you need help applying for probate, handling disputes, or navigating inheritance tax, we are here to support you every step of the way.
Partner Hugh Harries heads the department, working alongside fellow partner Mark Lynham and experienced solicitors Andrew Hart and Laura Lyes, as well as former partner Alexis Cassin, now a consultant. Together, they offer a wealth of experience in estate administration and probate law, helping clients manage even the most complex estates with confidence.
To contact one of our specialists, call 01242 514674. Our team is ready to assist with any probate or estate administration concerns, ensuring that you receive expert guidance throughout the process.
