Handling the Estate of a Deceased Loved One: A Beginner’s Guide
Dealing with the death of a loved one can be complex enough, but when you also have to tackle the legal minefield of managing their estate, it can be a double blow. Following the death of a loved one, you will need to locate the will and manage the legal process of distributing the person’s assets. This can only occur after all debts have been paid off and the funeral expenses have been covered.
There is a legal process to follow in the wake of a death, and while a solicitor might be able to help you to navigate this, it’s helpful to know what is going on. This can help to avoid common pitfalls that could delay the process. And when dealing with a large estate, it’s important to be present in the process to avoid anyone taking advantage of the situation.
In this beginner’s guide, we’re looking at the key stages in the process, common terminology and what you need to know to keep things moving forward smoothly.
Understanding the Role of an Executor or Administrator
Following a death, someone needs to be assigned the role of executor or administrator of the person’s estate. An executor is someone named in the will, and an administrator is someone selected by the courts in the event there is no will.
This person is legally responsible for managing the estate. Things like the funeral costs, unpaid debts and distribution of assets will fall to this individual.
Where there is a will, the process will be much easier, as the individual will simply carry out their wishes in accordance with the law. If there is no will, then the estate will have to be managed in their fairest way possible, in line with legal guidelines. These are the general steps you can expect when handling the estate of a loved one:
Gathering important documents and information
The first step in the process is to gather the relevant legal documents that will allow you to value and distribute the estate. Start with the most recent legal copy of the will. This should outline the assets, but there may be additional assets to consider.
You’ll need to locate things like:
- Property deeds
- Financial assets, such as bank accounts, shares, investments, bonds and money owed
- Vehicles
- Other assets such as life insurance payouts
Once you have details of these, you can reach a valuation of the estate. The assets can either be sold and the value divided between the beneficiaries, or you could distribute the assets.
Notifying relevant authorities and institutions
You’ll need to inform the government of the death and register the death. This is required before you can move forward with executing the will. The government “Tell Us Once” service will allow you to report the death, and this information will be distributed to all relevant departments. You may also need to inform banks, utility companies and anyone with a financial relationship to the deceased.
Paying debts, taxes, and funeral expenses
Death does not mean the end of financial obligations. As the executor or administrator of the estate, you will have the authority to pay any outstanding debts, taxes and funeral expenses from the estate. You may also have to pay inheritance tax on the value of the estate.
Bear in mind there are rules about how you can access this money, and you won’t have open access to the accounts.
Once all of the final debts have been paid and accounts are settled, you’ll have a final value of the estate.
Distributing the estate to beneficiaries
Often the final step will be to divide the value of the estate according to the will. If there is no will, then the assets may be passed to the person’s married partner or civil partner. If the estate is worth more than £322,000 then it will also be divided between children.
This step can get very complicated if there isn’t a will in place. This is why it is beneficial to seek legal support to help guide the process and ensure everything is done correctly. This could avoid the process being delayed by individuals disputing the distribution of assets.
Dealing with property and personal belongings
The final step will be to decide what to do with your loved one’s possessions. It’s common for sentimental items to be shared between family members, but if there are very expensive items such as jewellery, this can become more complex. After valuable and sentimental items have been handled, you could host an estate sale to sell the remaining items. Anything left over at the end could then be donated to charity.
Getting professional help and legal advice
With so many stages in the process, and so much at stake, it makes sense to get professional help from the start. A solicitor specialising in probate law can simplify the process while also easing some of the administrative burden during this emotionally taxing time.
You’ll enjoy the reassurance of knowing that your actions are always in line with legal requirements, which could minimise the risk of delays and disputes. A dispute in the way the estate should be distributed can increase costs for everyone, as you’ll be liable for things like utilities and insurance on properties until it is decided what should be done.
Looking after your own wellbeing
It’s common to become overwhelmed by the legal process of handling a loved one’s estate. While a will might help to streamline the process, it’s still an incredibly emotionally fraught time, and it’s common to struggle.
It’s important to take time for managing your grief during the probate process, and avoid masking your feelings with admin responsibilities. While things might feel urgent and pressing, you can ask your solicitor to give you some time when things get too much to handle. This is far better than making important decisions at a time when you are feeling overwhelmed by the death of a loved one.