As a personal representative (an executor or administrator) you鈥檙e legally responsible for the money, property and possessions of the person who died (the 鈥榚state鈥檚 assets鈥�). You鈥檙e responsible for the assets from the date of death until the date everything has been passed on to the beneficiaries. This is known as the 鈥榓dministration period鈥�. You may have to apply for probate before you can deal with some assets. During the administration period you may have to: pay any debts left by the person who died sell assets such as properties or shares pay Income Tax on things like rental income from property, profits from a business or interest from investments pay Capital Gains Tax on profits from selling shares, investments or property report the estate value, income and tax liability to HM Revenue and Customs You can get professional legal advice and help , such as from a solicitor, to deal with any estate. You should consider this if the estate has a lot of assets or includes things like trusts. You may be able to get free tax advice if you鈥檙e on a low income. This guide is also available in Welsh (Cymraeg) . If you鈥檙e dealing with the estate with someone else If you鈥檙e not the only personal representative you should agree with the others: where to hold financial assets - you can set up a bank account known as an 鈥榚xecutorship account鈥� if needed rules on making withdrawals or payments from any accounts connected to the estate what assets you need to sell and when

Settling debts and taxes

You must pay any debts and settle the taxes for the person who died. This includes: paying any unpaid bills paying any unpaid personal taxes applying for tax refunds filling in a Self Assessment return for income the person earned before they died if needed repaying any overpaid benefits To find out what taxes are owed or if any tax refunds are due, you can either: use the Tell Us Once service contact HM Revenue and Customs ( HMRC ) directly to ask It can take at least 30 days for HMRC to contact you after using the Tell Us Once service. Tell any employer or private or workplace pension provider about the person鈥檚 death. Ask them to tell HMRC if there鈥檚 a last salary or pension payment. HMRC needs this to calculate the final amount of Income Tax due. Place a notice in The Gazette giving any creditors 2 months to claim anything they鈥檙e owed. Do not distribute the estate鈥檚 assets until the 2 months is up. If you do and the estate then cannot afford to pay a debt, you may have to pay it yourself. Other taxes you might need to pay You must also check if you need to: pay tax on any new income the estate generates after the person has died聽 pay Inheritance Tax

Managing and selling assets

You may have to pay taxes for the estate if there is any new income while you鈥檙e dealing with it, for example profits from selling things like shares or property, or dividends from investments. Selling shares or property If you sell shares, investments or property that belong to the estate you may have to pay Capital Gains Tax on them if either: they鈥檝e gone up in value since the person died they鈥檝e gone up in value since being valued for Inheritance Tax You do not pay Capital Gains Tax from the estate if you transfer assets directly to a beneficiary, for example property. Read guidance on: tax when you sell property tax when you sell shares Capital Gains Tax rates and allowances for estates how Capital Gains Tax applies when someone dies If you owe Capital Gains Tax on residential property you usually have to report this within 60 days. If you sell land or property you must also update the property register with HM Land Registry. Savings, dividends or other income Some assets can continue to generate income after the death until you transfer or sell them. This could include: rental income from property profits and payments from the person who died鈥檚 trade or business interest or dividend payments on savings, shares and other investments You must work out and pay Income Tax on the full amount of income the estate receives between the day after the death and the date everything has been distributed. Estates do not get any allowances on savings, income or dividends. Estates pay tax at the basic rates of 8.75% on dividends and 20% on any other income.

Reporting an estate鈥檚 income to HMRC

You may need to send information to HM Revenue and Customs ( HMRC ) about the estate鈥檚 income from the day after the death until the date everything has been passed on to beneficiaries (the 鈥榓dministration period鈥�). What you need to send depends on: the value of the estate how much income it generated during this time if there was any tax to pay When you do not need to report the estate Up to 5 April 2024, if the only income the estate received during the administration period was from bank account interest which was less than 拢500, you do not need to report the estate to HMRC . From 6 April 2024, if the estate鈥檚 income from any sources is less than 拢500, you do not need to report the estate to HMRC . The 拢500 tax-free amount applies:聽 for every tax year of the administration period, but you cannot carry over unused amounts from one year to the next to all types of income, except ISAs, which continue to be exempt from Income Tax or Capital Gains until the estate is closed or up to 3 years after the person鈥檚 death Reporting on 鈥榮imple鈥� estates Report tax owed in the administration period simply by writing to HMRC (known as 鈥榠nformal arrangements鈥�) if all of the following apply: the estate was valued at less than 拢2.5 million when the person died the total Income Tax and Capital Gains Tax due is less than 拢10,000 you did not sell more than 拢500,000 worth of assets in any single tax year during the administration period To report the estate send a letter to HMRC at the end of the administration period, including: your name, address and phone number the name, address, National Insurance number, and Unique Taxpayer Reference ( UTR ) of the person who died any Income Tax and Capital Gains Tax still due for the whole administration period any Income Tax and Capital Gains Tax you have reported and paid during the administration period, for example if you sold property Pay As You Earn and Self Assessment HM Revenue and Customs BX9 1AS United Kingdom HMRC will then send you details on how to pay any tax the estate owes. Reporting on 鈥榗omplex鈥� estates If you cannot use informal arrangements you must register the estate online and send a Self Assessment tax return for the estate. There are different processes for completing a Self Assessment tax return for income earned before the death or an Inheritance Tax return . You must register by 5 October after the tax year you鈥檙e sending a return for. For example, to send a return for the 2023 to 2024 tax year (ending 5 April 2024) you must register by 5 October 2024. To register an estate you鈥檒l need: to make a Government Gateway account as an 鈥極rganisation鈥� - you can create this before you sign in for the first time an email address your details, including your National Insurance number or passport number the details of the person who died, including their National Insurance number You need a separate Government Gateway user ID for each estate you register. If you鈥檙e an agent, you鈥檒l need to use your agent services account . You鈥檒l need permission from the personal representative to access the estate details. Register an estate online . Once you register, you can manage information about the estate. Sign in to your account to: update your details update the estate鈥檚 details appoint an agent close the estate once it has been distributed After you鈥檝e registered an estate HMRC will send you a UTR for the estate within 15 working days. Use this to either: fill in a Trust and Estate Tax Return (form SA900) and post it to HMRC by the 31 October of the following tax year send a return online using tax software that supports SA900 reporting by 31 January of the following tax year You must pay any tax due by the next 31 January following the tax year in your return (the same deadline as for sending a return online).

Distributing the estate

Once you have paid any debts and taxes, or you are sure the estate has enough money to do so, distribute the estate according to: the will the law if there鈥檚 no will You may have to pay any remaining debts and tax bills yourself if you distribute the estate and do not keep enough money or assets in the estate to pay them. If you paid tax on any income during the administration period, give anyone receiving that income a completed statement of income from estates form . There is guidance for beneficiaries about tax on property, money and shares they inherit . If you distribute property If you are passing on a property you must update the property register with HM Land Registry. Prepare final accounts Once all the estate is distributed you can prepare the final estate accounts . These should be approved and signed by you and the main beneficiaries.

Dealing with the estate of someone who's died: Overview

Dealing with the estate of someone who's died

Overview

As a personal representative (an executor or administrator) you鈥檙e legally responsible for the money, property and possessions of the person who died (the 鈥榚state鈥檚 assets鈥�).

You鈥檙e responsible for the assets from the date of death until the date everything has been passed on to the beneficiaries. This is known as the 鈥榓dministration period鈥�.

You may have to apply for probate before you can deal with some assets.

During the administration period you may have to:

pay any debts left by the person who died
sell assets such as properties or shares
pay Income Tax on things like rental income from property, profits from a business or interest from investments
pay Capital Gains Tax on profits from selling shares, investments or property
report the estate value, income and tax liability to HM Revenue and Customs

You can get professional legal advice and help, such as from a solicitor, to deal with any estate. You should consider this if the estate has a lot of assets or includes things like trusts.

You may be able to get free tax advice if you鈥檙e on a low income.

This guide is also available in Welsh (Cymraeg).

If you鈥檙e dealing with the estate with someone else

If you鈥檙e not the only personal representative you should agree with the others:

where to hold financial assets - you can set up a bank account known as an 鈥榚xecutorship account鈥� if needed
rules on making withdrawals or payments from any accounts connected to the estate
what assets you need to sell and when

View a printable version of the whole guide

Step 1 Register the death
1. Register the death
Check what to do if:
Step 2 Tell government about the death
The Tell Us Once service allows you to inform all the relevant government departments when someone dies.
1. Use the Tell Us Once service to tell government
2. If you cannot use Tell Us Once, tell government yourself
You'll also need to tell organisations outside government, like employers and private pension providers, banks, and utility companies.
Step 3 Arrange the funeral
Step 4 Check if you can get bereavement benefits
You might be eligible for financial help.

Check if you can get:
and Deal with your own benefits, pension and taxes
Your tax, benefit claims and pension might change depending on your relationship with the person who died.
1. Manage your tax, pensions and benefits if your partner has died
2. Check how benefits are affected if a child dies
and Find bereavement support and services
Get help with managing grief and the things you need to do when someone dies.
1. Find bereavement help and support
2. Find bereavement services from your local council
and Check if you need to apply to stay in the UK
If your right to live in the UK depends on your relationship with someone who died you might need to apply for a new visa.

Check the rules if:
- you're in the UK as the partner of a British Citizen or someone with indefinite leave to remain
- your partner who died served as a member of HM Forces
1. Contact UKVI to check the rules for other visas
Step 5 Value the estate and check if you need to pay Inheritance Tax
To find out if there鈥檚 Inheritance Tax to pay, you need to estimate the value of the property, money and possessions (the 鈥榚state鈥�) of the person who died.
1. Estimate the value of the estate to find out if you need to pay Inheritance Tax
1. Find out how to report the value of the estate
1. Pay Inheritance Tax if it鈥檚 due
Step 6 Apply for probate
You might need to apply for probate before you can deal with the property, money and possessions (the 鈥榚state鈥�) of the person who died.
1. Check if you need to apply for probate
1. Apply for probate
Step 7 Deal with the estate
Pay any debts or taxes owed by the person who's died. You can then distribute the estate as set out in the will or the law.
1. You are currently viewing: Deal with the estate
1. Update property records

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Dealing with the estate of someone who's died

Overview

If you鈥檙e dealing with the estate with someone else

Step 1 Register the death

Step 2 Tell government about the death

Step 3 Arrange the funeral

Step 4 Check if you can get bereavement benefits

and Deal with your own benefits, pension and taxes

and Find bereavement support and services

and Check if you need to apply to stay in the UK

Step 5 Value the estate and check if you need to pay Inheritance Tax

Step 6 Apply for probate

Step 7 Deal with the estate

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Dealing with the estate of someone who's died

Overview

If you鈥檙e dealing with the estate with someone else

Part of What to do when someone dies: step by step

Step 1: Register the death

Step 2: Tell government about the death

Step 3: Arrange the funeral

Step 4: Check if you can get bereavement benefits

and Deal with your own benefits, pension and taxes

and Find bereavement support and services

and Check if you need to apply to stay in the UK

Step 5: Value the estate and check if you need to pay Inheritance Tax

Step 6: Apply for probate

Step 7: Deal with the estate

Is this page useful?

Help us improve 188体育

Help us improve 188体育

Step 1 Register the death

Step 2 Tell government about the death

Step 3 Arrange the funeral

Step 4 Check if you can get bereavement benefits

Step 5 Value the estate and check if you need to pay Inheritance Tax

Step 6 Apply for probate

Step 7 Deal with the estate