After someone dies, it can be a very difficult time. Yet there is complex and sometimes urgent legal paperwork, sometimes called ‘sadmin’, to deal with. This guide aims to help you make sense of the legal steps that you will need to take and explain what some of the commonly used terms mean.

It gives you a brief overview of the different parts of the process to help you understand how it works. If you need more detailed advice, our dedicated briefing covers the process. Or you can get expert advice from STEP members all over the UK who are qualified as a Trusts and Estates Practitioner (TEP).

What is an executor?

The executor is the person who is named in a will who will deal with the administration of the deceased’s estate, which means their money, property, possessions and valuables as well as any debts they may have. There can be more than one executor named to deal with the estate but as a general rule there would not be more than four executors.

What is probate?

Probate is the legal right to deal with someone’s estate when they die. You may need to apply for the grant of probate, which is a certificate issued by the probate court, to sell a house, cash in the assets and pay the debts.

Who can apply for probate?

If there is a will, then the executors named in the will can apply. If there isn’t, the closest living relative can apply to be the administrator of the estate in order to obtain the grant of letters of administration, which is the equivalent to the grant of probate.

How do I get probate?

Firstly, check if you need it. Banks and other financial institutions each work differently and so not all of them require it. You may not need to apply for probate if the person:

• In England and Wales, there is usually no need to apply for probate if the estate is worth less than £5,000.
• Owned shares or money with others – this automatically passes to the surviving owners unless they’ve agreed otherwise, or
• Owned land or property as ‘joint tenants’ with others. This will have been decided when the property was registered with the Land Registry. Such property automatically passes to the surviving owners.

If you do need to apply, you will need to estimate the value of the person’s estate and find out if you need to pay inheritance tax. You can apply for probate online.

How do I calculate the value of the estate of the person who died?

You will need to include the value of:

• the things the person owned (their assets) on the day they died,
• any gifts they gave, such as cash or items of value, in the seven years before they died and
• the value of any trusts where the person had a beneficial interest. (Read more about what trusts are here)

You can find out more about how to value an estate in this article

To start with, you will only need enough information to decide if you need to pay inheritance tax. If you do, His Majesty’s Revenue and Customs (HMRC) may ask for more details.

What is inheritance tax?

Inheritance tax is a 40% tax on an estate (property, money and possessions), which is charged when you die.

How much is inheritance tax?

It depends on what the estate is worth. In most cases you only have to pay it if the estate is worth more than £325,000. This amount is known as the ‘nil rate band’ – the amount up to which no inheritance tax is paid.

How do you pay inheritance tax?

If there is a will, the executor will arrange for inheritance tax to be paid. If there isn’t a will, then someone can apply to be an administrator.

When do you have to pay it?

Inheritance tax is paid once the estate has been valued. It is best to pay it within six months to avoid any interest becoming payable.

Is it true that some people don’t pay inheritance tax even if their estate is worth more than £325,000?

Yes – most people don’t pay it if they leave everything above the £325,000 threshold to their spouse, civil partner or any qualifying charitable purpose.

Do I need to use a professional advisor to administer an estate?

It all depends on your particular circumstances. While not everyone needs professional advice, more complicated estates would be much harder for a lay person to administer. For example, if the deceased had a second family or property abroad, a qualified professional can give independent advice to help everyone navigate the decisions that need to be made.

If you need professional advice, you can seek a STEP member in your area who is qualified as a Trusts and Estates Practitioner (TEP).