Dealing with a loved one's estate is one of the most significant legal and financial responsibilities many people will face. This guide explains every stage of the probate and estate administration process in England and Wales for 2026, including inheritance tax thresholds, IHT400 deadlines, executor duties and how to distribute assets correctly to beneficiaries.
Probate is the legal process by which a court confirms that a will is valid and grants an executor the authority to administer the deceased's estate. In England and Wales, the Probate Registry issues a document called a Grant of Probate, which gives the executor legal authority to collect assets, pay debts and distribute what remains to beneficiaries. Where there is no will, a similar document called Letters of Administration is issued to an administrator instead.
Not every estate requires probate. Banks, building societies and investment providers each set their own thresholds -- typically between GBP 5,000 and GBP 50,000 -- below which they may release funds on production of a death certificate and relevant identification. Jointly owned assets (such as a property owned as joint tenants or a joint bank account) pass automatically to the surviving owner by right of survivorship and do not form part of the estate for probate purposes, though they are still counted for inheritance tax.
If the deceased owned property in their sole name, a Grant of Probate is almost always required before the Land Registry will transfer or register a sale of that property. Similarly, if the estate is liable for inheritance tax, you will need to submit IHT forms to HMRC before the Probate Registry will issue the grant. This creates a practical challenge: you often need probate to access funds, but you need to pay IHT before you can get probate.
Scotland and Northern Ireland have different systems -- in Scotland the document is called Confirmation rather than a Grant of Probate -- but the broad principles around inheritance tax are the same across the UK.
Inheritance tax (IHT) is charged at 40% on the taxable value of an estate above the available nil-rate band. Understanding the thresholds is essential before you can work out how much IHT, if any, the estate owes.
The standard nil-rate band (NRB) is GBP 325,000. This has been frozen at this level since 2009 and remains unchanged for 2026/27. On top of this, the residence nil-rate band (RNRB) of GBP 175,000 applies where the deceased leaves a qualifying residential property to direct descendants -- children, grandchildren or step-children. This gives a potential combined threshold of GBP 500,000 for a single person who owns their home.
Married couples and civil partners benefit from transferable nil-rate bands. Any NRB or RNRB that was unused on the first death can be claimed on the second death, effectively doubling the threshold to a maximum of GBP 1,000,000 for a couple (GBP 650,000 NRB plus GBP 350,000 RNRB). To claim a transferred NRB you must submit form IHT402 alongside the main IHT400. The RNRB begins to taper away when the net estate exceeds GBP 2,000,000, reducing by GBP 1 for every GBP 2 above that figure.
If the will leaves at least 10% of the net estate to charity, the IHT rate on the remainder is reduced from 40% to 36%. This can be a useful planning tool where the estate is already inclined to give charitably. Certain assets are also exempt or relieved from IHT: transfers between spouses and civil partners are fully exempt; business property may qualify for Business Property Relief at 50% or 100%; and agricultural property may qualify for Agricultural Property Relief on similar terms.
The taxable estate includes not just assets owned at death but also gifts made within the seven years before death (potentially exempt transfers or PETs) and any assets held in certain trusts. Executors must carefully reconstruct the deceased's gift history to report all relevant transfers on form IHT403.
An executor's job begins the moment the person dies and does not end until every asset has been distributed and all tax matters are settled. The main steps are set out below in the order they typically arise, though in practice many overlap.
You must register the death within five days in England and Wales (eight days in Scotland). The registrar will issue a Death Certificate; you should order multiple certified copies (typically eight to twelve) because banks, insurers, pension providers, HMRC and the Probate Registry will each need one and originals are not always returned.
Notify all financial institutions, pension providers, insurers and government departments (including the Department for Work and Pensions and HMRC) of the death. Collect details of every asset and liability: bank and savings account balances on the date of death, investment portfolio values, the open market value of any property (a professional RICS valuation is advisable for IHT purposes), outstanding mortgage balances, credit card debts, utility bills and any other liabilities. The valuation date is the date of death, not the date you carry out the exercise.
If the estate is above the IHT threshold, or if it does not qualify as an excepted estate, you must complete and submit IHT400 along with all relevant schedules to HMRC. IHT must be paid by the end of the sixth month after the month of death. If the estate cannot raise the cash in time -- for example because the main asset is a property that has not yet sold -- you can ask HMRC to agree instalment payments on qualifying assets. HMRC will provide a receipt (form IHT421) once they are satisfied with the account, which you then submit to the Probate Registry.
Once HMRC has stamped the IHT421 (or confirmed the estate is below the threshold), you can apply to the Probate Registry online or by post. You will need to submit the original will, the death certificate, the IHT421 and the probate application form PA1P (if there is a will) or PA1A (if there is no will). The Probate Registry charges a fee of GBP 300 for estates above GBP 5,000, plus GBP 1.50 for each official copy of the grant you order. Allow eight to sixteen weeks for a straightforward application.
Once you have the Grant of Probate, you can present certified copies to banks and other institutions to collect in the estate's assets. Before distributing anything to beneficiaries, you must pay all of the estate's debts, including any outstanding income tax, council tax, utility bills, credit cards, mortgages and funeral expenses. It is good practice to place a statutory notice in The Gazette and a local newspaper, which limits your personal liability as executor if unknown creditors emerge after distribution.
You must file the deceased's final income tax return (to the date of death) and account for any income earned by the estate during the administration period. Once all taxes are settled and a clearance certificate from HMRC is obtained if appropriate, you can prepare the estate account and distribute assets to beneficiaries in accordance with the will or intestacy rules. Keep copies of all correspondence, valuations, bank statements and accounts -- executors can be required to account for their actions for up to twelve years.
One of the most common challenges executors face is the IHT payment deadline arriving before they have access to the estate's funds. HMRC requires IHT to be paid by the end of the sixth month after death, but you cannot usually access bank accounts or sell property without a Grant of Probate, which you cannot obtain until HMRC confirms it has received the IHT account.
There are several practical options. First, many high-street banks now operate the Direct Payment Scheme, allowing them to transfer funds from the deceased's account directly to HMRC in payment of IHT before probate is granted, provided the executor supplies the right documentation. This is often the simplest route where there are sufficient liquid funds in the estate.
Second, where the main asset is property or another illiquid holding, HMRC allows IHT to be paid in ten equal annual instalments on those assets. Interest accrues on unpaid instalments. The first instalment is due by the usual six-month deadline; subsequent instalments fall due on the same date each year. The outstanding IHT becomes payable in full if the asset is sold during the instalment period.
Third, executors can take out a short-term executor's loan (sometimes called a probate loan) to bridge the gap. These specialist products are repaid once the estate's assets are released. Interest costs are deductible against the estate for income tax purposes during the administration period. Whichever route you use, notify HMRC as early as possible and keep records of your timeline to demonstrate good faith if there is any query about late payment interest.
When someone dies without a will, or when a will is successfully challenged, the estate is distributed under the intestacy rules. In England and Wales the order of priority for intestate succession is: spouse or civil partner, then children, then parents, then siblings, then half-siblings, then grandparents, then aunts and uncles, then half-aunts and half-uncles. If a spouse or civil partner survives alongside children, the spouse receives all personal chattels, the first GBP 322,000 outright, and half of any remainder. The other half is divided equally among the children, but held on statutory trusts if they are under 18.
Unmarried cohabitants -- however long they lived together -- receive nothing under intestacy. A surviving cohabitant may be able to make a claim under the Inheritance (Provision for Family and Dependants) Act 1975, but this requires court proceedings and is not guaranteed. This underlines why making a will is so important.
A will can be challenged on several grounds: lack of testamentary capacity (the testator did not understand what they were signing), undue influence, fraudulent calumny (false statements about a beneficiary) or failure to comply with the formal requirements of the Wills Act 1837. A successful challenge does not automatically mean the estate passes under intestacy -- an earlier valid will may be reinstated. Disputes can add months or years to the administration and generate significant legal costs, which are usually met from the estate.
Other complications that can delay administration include: missing beneficiaries (you may need to instruct a specialist tracing agent and take out insurance); overseas assets (each country has its own probate process and you may need local legal advice); business interests (valuation disputes with HMRC are common, especially regarding Business Property Relief); and deeds of variation, which allow beneficiaries to redirect inheritances within two years of the death for IHT and CGT purposes.
Inheritance tax is the tax most closely associated with death, but executors must also manage capital gains tax (CGT) and income tax during the administration period.
For CGT purposes, assets are treated as acquired by the estate at their probate value -- the open market value at the date of death. If an asset is sold during administration for more than the probate value, the gain is subject to CGT. The estate's CGT annual exempt amount (AEA) is GBP 3,000 for 2026/27, the same as for individuals. Gains above that threshold are taxed at the relevant CGT rate. For residential property the rate is 24% for higher and additional rate taxpayers, and 18% for basic rate; for other assets the rates are 24% and 18% respectively. Business Asset Disposal Relief (BADR) applies at 18% in limited circumstances for qualifying business assets.
Income earned by the estate during the administration period -- interest, dividends, rental income -- is taxable as the estate's income. The estate has a tax-free amount for savings income (GBP 500 standard savings allowance applies at the basic rate equivalent) and no personal allowance. Estate income is reported to HMRC on a form SA900 (Trust and Estate Tax Return) each year. Once income is distributed to beneficiaries, HMRC treats it as the beneficiary's income in the year they receive it and issues a form R185 (Estate Income) so the beneficiary can report it on their own tax return.
The deceased's own income tax position must also be finalised. HMRC will open an informal administration to collect any tax owed up to the date of death. The executor must submit the deceased's final Self Assessment return if one is required, and HMRC will issue a P800 reconciliation for PAYE taxpayers. Any tax refund due belongs to the estate; any outstanding tax is a debt of the estate payable before distribution.
Many executors administer straightforward estates themselves, particularly where there is a simple will, no IHT to pay, liquid assets only and a small number of beneficiaries. HMRC and the Probate Registry provide online tools and guidance, and the process -- while time-consuming -- is manageable for a confident layperson.
Professional help becomes advisable where: the estate is liable for IHT and the forms are complex; the will is ambiguous or likely to be challenged; there are overseas assets; the estate includes a business interest; there are minor or vulnerable beneficiaries; or there are missing beneficiaries. A specialist probate solicitor can also help where the executor is a professional who wishes to charge fees (a charging clause must be included in the will or they cannot charge).
Solicitor fees vary widely. Many charge a percentage of the estate -- typically 1% to 3% plus VAT -- though fixed-fee and hourly-rate arrangements are also available. For an estate of GBP 400,000 a solicitor charging 1.5% would earn GBP 6,000 plus VAT. On top of solicitor fees, the Probate Registry charges GBP 300 for the grant plus GBP 1.50 per official copy. IHT, if due, is the estate's largest single cost.
Whatever approach you take, keep meticulous records of every action, every valuation, every payment and every communication. Estate accounts -- a formal summary of all assets received and payments made -- should be prepared and agreed with all residuary beneficiaries before the estate is closed. Beneficiaries are entitled to see these accounts and can challenge them if they believe something is wrong.
