Probate: Dealing with the financial affairs of someone who has died

Probate is the legal process that gives you the authority to collect a deceased person’s assets, settle their debts, and distribute what remains to beneficiaries. Most straightforward estates can be completed within a year, though delays with HMRC, property sales, or missing documents can push that considerably further. Understanding the key steps — and your legal responsibilities as executor — helps you avoid costly mistakes.

When someone dies, their financial affairs do not pause. Bills still arrive, direct debits still run, and institutions need formal notification before they will release anything. The sooner you get to grips with the process, the smoother things tend to go.

What does “dealing with the financial affairs” actually involve?

In practice, sorting out someone’s estate after death means piecing together a financial picture that the person themselves may never have fully documented. You might find yourself writing to banks, building societies, pension providers, and insurers — sometimes dozens of institutions — to establish exactly what existed and what it was worth at the date of death.

There is a logical order to things, though it does not always feel logical at the time. First, you need to identify all the assets and liabilities. That includes property, savings, investments, and personal belongings of value, but also mortgages, credit cards, and any outstanding tax. Then you apply for the grant of probate itself (or a grant of letters of administration if there is no Will). Only once you hold that grant can you begin collecting in the assets and paying what is owed.

One thing that catches people off guard is Inheritance Tax. If the estate exceeds the attributable allowances, which vary in themselves, typically, you need to pay at least some of the tax before the grant is issued. That sometimes means families borrowing against the estate or using the Direct Payment Scheme to release funds from the deceased’s bank account to cover the bill. It is not intuitive to pay tax before you have access to the money, but that is how HMRC operates.

How long does probate take?

Honestly, it varies enormously. A straightforward estate with a single property, a few bank accounts, and a clear Will might take six to nine months from start to finish. But “straightforward” is doing a lot of heavy lifting in that sentence.

Common delays include:

• Estates involving property sales often stall because the property market moves at its own pace. If a house needs clearing, repairs, or simply sits on the market longer than expected, the entire administration stretches out.
• Missing or unclear Wills create problems, too. If a Will cannot be found, or if its validity is challenged, the process can grind to a halt while disputes are resolved — sometimes through the courts.
• HMRC enquiries are another frequent hold-up. If HMRC raises questions or the estate involves complex assets, such as business interests or overseas holdings, it may take months to issue clearance. We have seen cases where a single HMRC query has added four or five months to the timeline.
• Then there are the less obvious delays. Tracking down beneficiaries who have moved. Waiting for life insurance companies to release policies. Dealing with assets held jointly where the surviving owner’s position needs clarifying. Each one adds time, and they tend to arrive together.

Executor duties explained: what are your legal responsibilities?

Being named as an executor in someone’s Will is a mark of trust, but it is also a serious legal responsibility. You are personally liable for the proper administration of the estate, which is a fact that surprises many people who assume the role is largely ceremonial.

Your core duties include securing the deceased’s assets from the moment of death, valuing the estate accurately, paying all debts and taxes owed, and distributing the remainder according to the Will. You must keep detailed records of every transaction.

Beneficiaries are entitled to see estate accounts, and if anything looks amiss, you could face a personal claim.

One area where executors frequently stumble is advertising for creditors. Under the Trustee Act 1925, you should place statutory notices in the London Gazette and a local newspaper, giving unknown creditors time to come forward. Skip this step, and you risk being personally responsible if an unknown debt surfaces after you have distributed the estate.

It is also worth knowing that you do not have to do this alone. Many executors instruct us to handle the administration on their behalf, particularly where the estate is large, complex, or likely to involve disputes. The cost of professional help often pays for itself in avoided mistakes and reduced stress.

If you are an executor and feeling uncertain about any aspect of your responsibilities, getting early advice is almost always worthwhile. The mistakes that cause the most trouble tend to happen at the beginning of the process, when people act before fully understanding what is required of them.

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If you require legal support with any issues covered in this article, please get in touch with our specialist private client team by using our online enquiry form or by calling 0330 191 4448.