After the death of a loved one, families often face a wave of grief mixed with the responsibility of managing practical and legal matters. While it can feel overwhelming, understanding the legal and financial steps ahead—particularly around wills, probate and the estate—can help bring order during an emotionally uncertain time.
This guide walks you through what’s required, from understanding wills to applying for probate, and where to seek professional guidance.
Understanding Wills and Rules of Intestacy
What is a will?
A will is a legal document that outlines how someone’s estate (money, property, and possessions) should be distributed. If your loved one had a valid will, the executor(s) named in the document will be responsible for administering the estate.
If there is no will:
This is known as dying “intestate,” and the estate is divided according to the laws of intestacy. Typically, this means the next of kin (spouse, civil partner, or children) will inherit in a fixed order. In this case, a close relative must apply to become the administrator of the estate.
Key First Steps:
- Locate the will (it may be stored at home, with a solicitor, or at the bank).
- Determine who the executor(s) or administrator(s) will be.
- Make an initial inventory of assets and debts.
Applying for Probate: When Is It Needed?
What is probate?
Probate is the legal process of obtaining permission to deal with a deceased person’s estate. This involves applying for a “Grant of Probate” (if there is a will) or “Letters of Administration” (if there isn’t).
When is probate needed?
Probate is usually required if:
- The estate includes property
- There are significant assets held solely in the deceased’s name
- Financial institutions request it before releasing funds
Some banks may waive the need for probate if the estate is small—usually under £5,000–£50,000 depending on the institution.
How to apply:
- Online via uk/applying-for-probate
- Or with help from a probate solicitor or professional
Required documents may include:
- The original will (if applicable)
- The death certificate
- An estimate of the estate’s value (assets and debts)
- Application fee (usually £273 in England and Wales)
Checking Tax Obligations and Debts During Estate Administration
When administering an estate, it’s important to understand that certain tax responsibilities and debt considerations may still apply after someone has passed away. Managing these correctly helps avoid unexpected liabilities and ensures the estate is handled in line with UK law.
Income Tax and Capital Gains Tax
During the administration period, the estate may still generate income, for example, from bank interest or rental payments. This income may be subject to income tax, which must be declared and paid from the estate.
If you sell assets belonging to the estate, you may also need to pay capital gains tax (CGT) if they have increased in value since the date of death. The probate valuation acts as the baseline for calculating gains. If the sale price is higher than this value, CGT may be due.
Tip: If you’re unsure how to calculate tax owed, or if the estate involves complex assets such as property or investments, it’s wise to seek specialist tax advice.
Inheritance Tax (IHT)
You must inform HMRC of the death unless the estate qualifies as an excepted estate. You can check the criteria for excepted estates on the GOV.UK website.
Inheritance tax may be payable if:
- The estate is valued above £325,000 (known as the “nil-rate band”)
- There are no exemptions, such as assets left to a spouse, civil partner or charity
Additional property allowance: If the deceased owned a home (or a share in one) and leaves it to direct descendants (children, stepchildren, foster or adopted children, or grandchildren), an extra £175,000 allowance may apply—provided the estate is worth less than £2 million.
Managing Debts
It’s important to identify and settle any outstanding debts before distributing the estate:
- Contact all known creditors to inform them of the death
- Place a notice in The Gazette (the UK’s official public record) and in a local newspaper where the deceased lived or worked. This protects the executor or administrator from personal liability if new creditors come forward later.
If the estate cannot cover all debts, creditors generally cannot recover the balance from surviving relatives, unless the debt was in joint names or secured against jointly owned property. In some cases, insurance policies such as payment protection insurance may cover the debt.
Professional Support: When to Get Help
The legal and financial aspects of estate administration can be complex, especially if:
- There are disputes over the will
- There are overseas assets
- The estate involves trusts or inheritance tax
In these cases, seeking specialist advice is highly recommended.
Trusted resources include:
- Solicitors for the Elderly (SFE): A national network of legal professionals who specialise in supporting older people and their families with probate, wills, and elder law.
- Society of Later Life Advisers (SOLLA): Offers access to accredited financial advisers who understand the unique financial planning needs after bereavement.
When to Get Help
The legal and financial aspects of estate administration can be complex, especially if:
- There are disputes over the will
- There are overseas assets
- The estate involves trusts or inheritance tax
In these cases, seeking specialist advice is highly recommended.
Trusted resources include:
- Solicitors for the Elderly (SFE): A national network of legal professionals who specialise in supporting older people and their families with probate, wills, and elder law.
- Society of Later Life Advisers (SOLLA): Offers access to accredited financial advisers who understand the unique financial planning needs after bereavement.
Many families are unaware of the support available during estate management. If you are unsure where to begin, our experienced team can help point you in the right direction—whether that’s identifying a solicitor, contacting financial institutions or accessing probate resources.
What Happens to a Bank Account When Someone Dies?
When a person passes away, their bank accounts are effectively “frozen” as soon as the bank is notified. This means that no money can be withdrawn, standing orders are cancelled, and direct debits are stopped, except for certain permitted payments.
Joint vs. Sole Accounts
- Joint accounts – In most cases, the surviving account holder automatically becomes the sole owner of the account, and funds remain accessible. This is known as the “right of survivorship.” The bank will usually ask for a copy of the death certificate before updating their records.
- Sole accounts – Accounts in the deceased’s sole name will be frozen until the executor or administrator presents the necessary documentation (such as the grant of probate or letters of administration).
Payments the Bank May Release Without Probate
Even before probate is granted, most banks can release funds to pay:
- Funeral expenses (directly to the funeral director)
- Inheritance tax due to HMRC
- Outstanding care home fees or utility bills in the deceased’s name
The executor will need to provide invoices or evidence of these expenses.
Closing or Transferring the Account
Once probate is granted (if required), the executor or administrator can:
- Withdraw funds to settle debts and taxes
- Transfer remaining balances to the estate account for distribution
- Close the account entirely once all administration is complete
Bank-Specific Thresholds
Each bank or building society has its own limit for releasing funds without probate. This can range from £5,000 to £50,000, so it’s worth checking the institution’s policy. If the total funds are under their threshold, they may accept a death certificate, completed withdrawal form, and proof of your identity instead of probate.
Tip: Always notify banks as soon as possible to prevent fraud, stop interest or charges from accruing, and ensure any insurance linked to the account is activated where applicable.
Read our guide on settling finances after a death for more information.
Patricia White’s Tip:
Many families are unaware of the support available during estate management. If you are unsure where to begin, our experienced team can help point you in the right direction—whether that’s identifying a solicitor, contacting financial institutions or accessing probate resources.
Why Choose Patricia Whites for Support After Bereavement?
At Patricia Whites, we understand that managing a loved one’s estate can be daunting—especially while grieving. Our role extends beyond care; we are here to support you through the administrative journey with compassion and clarity.
- Practical advice and emotional support from trained carers and care managers
- Guidance on equipment retrieval, final care billing, and documentation
- Access to trusted professional networks including legal, financial, and bereavement services
Reach out to Patricia Whites today for guidance, support and a compassionate ear during this transitional time. You don’t have to manage it all alone—we’re here to help you move forward, step by step.
