The death of an individual naturally generates a broad scope of emotion in addition to the often overwhelming practical and legal steps that also need to be considered.

Probate (or intestacy) and estate administration is a combination of many duties and responsibilities for the executors/personal representatives or administrators (if the individual died without having made a valid will) not only from a legal perspective but also tax and financial elements are to be considered.

The terms “probate”, “intestacy” and “estate administration” are often not understood, which naturally causes concern and misunderstanding. We aim to clarify this here and explain where our solicitors in RRL Probate specialists can help with both the application for probate, and the estate administration process.

What is a person’s “estate”?

A person’s estate includes all of their assets (i.e. property, cash, possessions, investments, debts etc) net of any identified liabilities left behind by the person who died.

What is probate?

Probate is the legal process of validating the deceased individual’s last will.

One, some or all of the executors apply to obtain probate.

The grant of probate provides the executor/s/personal representative/s with the legal authority to mange and administer the deceased’s estate in accordance with the deceased’s last will.

What is intestacy?

If the deceased individual did not have a valid will in place when they died, the process is called intestacy.

The deceased’s assets are divided in accordance with the set laws of intestacy, which are summarised in our flowchart here.

Crucially, these rules may mean that the person’s estate may not be distributed in accordance with their actual wishes—one of the main reasons why it is so important to have a valid, up-to-date will in place.

The legal process is slightly different for an intestacy compared to probate. Letters of Administration need to be applied for to provide an appointed administrator (normally the closest living relative) legal authority to manage and administer the deceased’s estate in accordance with the rules of intestacy.

For more information on intestacy rules, see our guidance here. 

Inheritance tax

Executors/personal representatives or administrators are responsible for dealing with the inheritance tax reporting (if required) before making the application for the Grant of Probate/Letters of Administration.

Depending on the circumstances (beneficiaries of the estate, value of the estate etc) inheritance tax forms will need to be prepared and submitted to HM Revenue & Customs before making the application for the Grant of Probate/Letters of Administration.

In general, inheritance tax (IHT) is charged at 40% on the chargeable value (net of IHT reliefs and exemptions) of chargeable assets and the chargeable value of lifetime gifts made by the deceased within the final 7 years of their life above the available nil-rate bands. A lower rate of 36% may be applicable if at least 10% of the net estate is left to a registered charity in the Will.

Professional advice could be sought (and we’d strongly suggest that it was for estates liable for inheritance tax) to review and advise on the availability of reliefs (Business Property Relief and Agricultural Property Relief), exemptions and nil-rate bands (standard, residential and any transferable from a previously deceased spouse).  The inheritance tax position is complex and it is advisable to seek experienced, specialist tax advice here from a Chartered Tax Advisor.

In addition to the complexity, the inheritance tax position often also governs the capital gains tax position for the estate and/or the beneficiaries of chargeable assets.

The position will be further complicated by upcoming IHT changes such as changes to Business Property Relief and Agricultural Property Relief from April 2026 and the removal of the IHT exemption for pension funds on death from April 2027. The latter will inevitably provide significantly higher risks for executors/personal representatives or administrators – increasing the recommendation to involve professionals in estates containing pension funds on death post 5 April 2027.

IHT is due by the end of the sixth month after death. Interest is charged on unpaid amounts after that date.

If the IHT relates to land/property or shares, it is possible elect to pay the tax in instalments over 10 years. If cash is not available, payment plan arrangements can be applied for with HMRC. Interest is still payable is the tax is paid in instalments or via a payment plan arrangement.

Claims can be made to reduce IHT liabilities at a later date where land/property or certain “qualifying investments” (namely shares and securities listed on a recognised stock exchange, UK government stock or holdings in unit trusts) are sold for a lower amount than the amount they were originally valued at. This is often not appreciated and can be extremely valuable.

The complexity of inheritance tax is often overlooked and there are many misunderstandings – given the 40% tax rate, oversights or errors can be extremely costly. This is only getting more complex with the above changes. Additionally, the nil-rate bands have been frozen under current proposals until at least April 2031 – which will expose a higher number of estates to inheritance tax.

Our numerous chartered tax advisers in our sister accountancy and tax advisory business, RRL, are extremely experienced in advising on inheritance tax. This coupled with our legal expertise in RRL Probate provides, what we believe to be, a uniquely specialist offering for those estates subject to inheritance tax.

It is also not uncommon for HMRC to raise queries in relation to the submitted account and we can deal with these on behalf of the estate.  The number of inheritance tax enquiries/investigations are significantly increasing year-on-year. In the 2024/25 tax year, 3,961 IHT investigations were opened by HMRC, representing a 41% increase from the previous year.  There is clearly a focus within HMRC targeting IHT, and additionally, given the fiscal drag created by the frozen nil-rate bands, and increasing number of estates are incurring IHT liabilities. Dealing with such enquiries can be arduous, stressful and costly for personal representations or administrators.

As part of our probate and estate administration service, we provide an included fee protection cover free-of-charge, to enable us to deal with any HMRC investigation for no additional fees. This is a significant benefit, as even a standard HMRC enquiry can result in us incurring £1,000s in time costs.

Additionally, we have the tax expertise to robustly deal with and manage HMRC enquiries/investigations.

The estate administration process

Once Grant of Probate or Letters of Administration have been obtained, if required, the deceased person’s estate can then be administered and distributed according to the deceased’s last will, or according to the rules of intestacy if no valid will exists.

As part of the process personal representatives or administrators have significant responsibilities, including collecting all assets, settling outstanding liabilities, and ultimately distributing the remaining estate in accordance with the will or rules of intestacy.

There is a significant amount of administration, risk and responsibility for personal representatives or administrators involved in this process. This is increasing.

Other taxes

Income tax and capital gains tax also need to be considered and robustly dealt with by the personal representatives or administrators – this forming part of the estate administration process. This is often overlooked where experienced tax advice isn’t obtained.

To put matters simply, there are three separate periods that need to be considered following death:

• The period to the date of death – taxable income and capital gains are reported on the late taxpayers’ personal self-assessment tax return.
• The period from the date of death to the end of the administration period (broadly this is before the assets have been put into the relevant beneficiaries’ names to own personally) – the income and capital gains need to be reported by the Estate itself; and
• The period following the end of the administration period – the income and capital gains realised need to be reported by the beneficiaries on their self-assessment tax returns (if relevant).

If the deceased was VAT registered, this also needs to be dealt with. Broadly, the executors/personal representatives or administrators must review the deceased’s VAT position and file any outstanding VAT returns and pay any outstanding VAT liabilities. The VAT position of a deceased VAT registered individual can be complex, and we would strongly recommend specialist advice is sought.

We have a useful briefing note on these matters that provides a very useful overview, see here.

Following the death of the deceased, the executors/personal representatives or administrators are responsible for ensuring these tax affairs are dealt with. Our sister accountancy business, RRL, is very experienced with dealing with these matters and can proactively advise, and prepare all of the required reporting to HMRC.

Our services

At RRL Probate we can assist you in navigating this complex process – combing multiple experienced professionals within the RRL Group to deal with both the legal and tax aspects (all tax aspects and not merely limited to inheritance tax).  By using RRL Probate (and the wider RRL Group) to provide such services, we can offer a cohesive, efficient and simplified approach, removing the need to coordinate between multiple professionals.

We will of course always discuss matters in details but as an example our services include:

• Advising the executors on all initial steps to be taken
• Liaising with beneficiaries of the Will
• Ascertaining the assets and liabilities of the estate
• Preparing and submitting the inheritance tax account including:
  • claiming all relevant reliefs and exemptions
  • calculating the inheritance tax due
• Fee protection cover
• Dealing with any HMRC investigation/enquiry
• Obtaining the Grant of Representation (Probate or Letters of Administration)
• Collecting in assets and settling liabilities
• Preparing estate accounts
• Dealing with income tax and capital gains tax during the administration period
• Distributing the estate

We can of course tailor our services to meet the needs of the personal representatives or administrators. We can either merely deal with obtaining the grant of probate or Letters of Administration (including the inheritance tax reporting/compliance) or this in addition to dealing with the whole estate administration process.

Each of the above elements can present its own challenges and potential complications. In addition the personal representatives have their own personal liability in their role, predominately ensuring all legal and tax requirements are met throughout the administration process. Such responsibility highlights the increasing importance of having professional guidance to ensure all duties are fulfilled correctly and completely.

We can assist with straightforward estates, but have the unique expertise of dealing with complex Estate Administration issues that require both probate specialists and tax specialists.

We have a personal client approach, ensuring clear communication and updates, and are transparent with fees and never seek to charge fees on a percentage basis of the value of the Estate – our fees being based on a time basis at our hourly rates, for more information on our costs see here.

In addition to estate administration the RRL Group including our sister business RRL Wills, can also provide advice in relation to estate and succession planning for beneficiaries – receipt of inherited assets typically prompting beneficiaries to consider their own inheritance tax and  estate planning positions.  We can also assist further with preparing Wills, Lasting Powers of Attorney, Trusts or other legal documents required.