Glossary · UK
What is Estate Administration?
The full process of dealing with a deceased person's affairs -- valuing assets, paying debts and tax, and distributing what remains -- of which obtaining probate is just one step.
Full Definition
Estate administration is the complete process an executor or administrator carries out after someone dies, of which obtaining a Grant of Probate (or Letters of Administration) is only one stage. It typically includes: registering the death and notifying asset holders; valuing all assets and debts as at the date of death; reporting the estate to HMRC and paying any Inheritance Tax due; applying for the grant; collecting in assets (closing bank accounts, selling property or investments); settling debts, funeral costs and any outstanding Income Tax or Capital Gains Tax; and finally distributing what remains to beneficiaries under the will or the intestacy rules. A simple estate can be wound up in a few months, but estates involving property sales, disputes, foreign assets or an IHT enquiry commonly take 6-18 months or longer, and executors can be personally liable if they distribute the estate before settling all debts and tax correctly.