Estate administration is the process of managing the assets of someone who has recently passed away.
Aside from being an emotional undertaking, it can be complex depending on the assets involved, the beneficiaries, and whether there is an existing valid Will or not.
This guide aims to help improve understanding of the estate administration process, and offer insight into the steps that your solicitor will take to complete the final estate accounts and distribute the assets.
The definition of estate administration
When someone passes away, they may have owned property, had investments or debt, and will likely have owned a variety of personal possessions.
Estate administration collates everything that a person owned at the time of their death, and looks to manage and distribute those assets in line with their wishes.
As part of the process of estate administration, you may also need to obtain a Grant of Probate, although this is not always required. We have explained below when this is typically required, and if so, your solicitor can assist with acquisition.
What does estate administration include?
There are many aspects related to estate administration, but a typical process includes the following:
- Obtaining death certificates
- Collating all property, assets, possessions and investments
- Collating any debts in the deceased’s name
- Locating a Will, if there is one
- Confirming the beneficiaries
- Valuing all assets
- Determining if probate is necessary and applying for a Grant of Probate if needed
- Calculating and paying inheritance tax if required
- Paying any debts
- Selling property or assets
- Preparing estate accounts
- Distributing the estate to the beneficiaries
When is probate needed?
Probate is not a mandatory requirement as part of estate administration. It is only required when:
- The deceased was the sole owner of a property
- They owned significant investments above a certain value (financial institutions have different thresholds)
- There are complex, or disputed assets
- Inheritance tax is owed (the current standard tax-free threshold is £325,000).
It is a common misconception that probate is always required to administer an estate. In fact, it depends on the nature and ownership of the assets. Probate may not be required for certain assets—such as jointly owned assets held as joint tenants, assets below a financial institution’s release threshold, pensions or life policies with named beneficiaries, or assets held in trust. However, probate will still be necessary where the estate includes assets held solely in the deceased’s name or above applicable thresholds
Who is responsible for carrying out estate administration?
The responsibility for carrying out estate administration can lie with either: the Executor(s) of the Will, or the Administrator(s) if the deceased passed away intestate (without a Will).
Administrators are typically appointed by the court after a close relative applies for a legal document called Letters of Administration. Both titles are known as Personal Representatives (PR), and hold the same level of responsibility. If the Executor or Administrator chooses to undertake estate administration without the support of a solicitor, the list of tasks above falls to the PR.
This means they need to gather the assets and have them valued, collate and pay any debts, go through the probate process if required, and prepare estate accounts before distributing to the relevant beneficiaries. As this can be a complex, time consuming and emotional process, many opt to employ the services of a trained solicitor to manage all estate administration tasks.
If the deceased has passed away intestate, an Administrator is appointed. However, the law determines the beneficiaries of the estate. The rules of intestacy stipulate a priority of heirs:
- A spouse or civil partner (including those who are separated, but not yet divorced)
- Children of the deceased including any adopted children
- Living parents
- Full-blood siblings
- Half-blood siblings
- Grandparents
- Aunts and uncles
- Half-blood aunts and uncles
How long does this process take?
The time it takes to complete estate administration depends on a number of factors, including (but not limited to):
- The value and complexity of the estate
- Whether inheritance tax is payable
- Whether a Grant of Probate of Letters of Administration need to be applied for
- How long it takes to liquidate or sell any assets
- How long it takes to consolidate and pay any outstanding debts
Estate administration can take as little as 3-6 months, but may also stretch to two years or so, depending on the complexity. Your Estate Administration Solicitor will be able to give you a typical timeline based on your personal circumstances.
Common challenges and how solicitors can help
There are a variety of challenges that an Executor may encounter when proceeding with estate administration. Typically, tax calculations, collating outstanding debt and ensuring all assets are successfully valued can be difficult to manage, which is why many choose to employ a solicitor to provide support and aid the process.
Your solicitor will be able to streamline proceedings and provide support through applying for necessary legal documentation, settling any debts, managing inheritance tax, preparing estate accounts and distributing to the beneficiaries at the right time. They will also be able to assist with collating assets to ensure nothing is missed.
Having a solicitor on board acts as protection from personal liability across various aspects of estate administration, such as tax clearance, unknown creditors post-distribution, estate accounts and missing beneficiaries.
How Eric Robinson Solicitors can help
Estate administration can be a difficult process both legally and emotionally, with many different elements to organise and manage.
Our team of Estate administration solicitors has extensive experience in helping families and individuals navigate this process and successfully distribute the estate to the correct beneficiaries.
If you would like to know more about how we can support you, visit your closest office, or give our team a call on 02380 218000.
We have solicitor offices in:
- Southampton
- Hedge End
- Chandlers Ford
- Winchester
- Lymington
- Shoreham-by-Sea
- Marlborough
- Richmond Upon Thames
