Receiving your Grant of Probate (or Grant of Letters of Administration) is a significant milestone. It confirms that you have the legal authority to deal with the deceased’s estate. But it is not quite the end of the process. There are several important steps to complete before the estate can be distributed.
Step 1: Get copies of the Grant
When you apply, you will have requested a number of official copies of the Grant at £2 each. Once received, send these to each financial institution, mortgage lender, and investment platform holding assets in the deceased’s name. Banks will not release funds without seeing an official copy, so ordering enough upfront avoids delays.
Step 2: Place a Statutory Notice for Creditors
Before distributing a single penny, place a notice in The Gazette under the Trustee Act 1925. This notifies any unknown creditors of the death and gives them a period of at least two months to come forward with claims. If you skip this step and distribute the estate, then a creditor appears later, you as executor could be personally liable for that debt. Placing the notice shifts that liability to the beneficiaries.
Step 3: Collect in the estate assets
Contact every bank, building society, investment platform, pension provider, and other institution holding assets and provide them with the official copy of the Grant. They will then either transfer the funds to an estate account or confirm they are satisfied the legal authority is in place.
Step 4: Pay outstanding debts, bills, and taxes
Before distributing anything to beneficiaries, pay off all outstanding liabilities:
- Any remaining mortgage or secured loans
- Credit card balances and personal loans
- Utility bills and council tax up to the date of death
- Any outstanding income tax or capital gains tax owed by the deceased
- Funeral costs, if not already settled
Step 5: Seek tax clearance from HMRC
Where IHT, income tax, or capital gains tax has been a factor in the estate, formally request clearance from HMRC before distributing. This confirms there are no outstanding tax liabilities and protects you as executor from later claims.
Step 6: Prepare estate accounts
Draw up a clear record of everything that has come in and gone out since the date of death. Estate accounts should show all assets collected, all income earned, all debts and expenses paid, and the final balance available for distribution. Beneficiaries are entitled to see the accounts before receiving their share.
Step 7: Distribute the estate
Once debts are cleared and accounts are in order, you can fulfil the wishes set out in the will (or follow the Rules of Intestacy if there is no will). Distribute specific gifts first, then cash legacies, then the residuary estate to the residuary beneficiaries. Get receipts from beneficiaries for anything of value.
