What you need to know about what to do when someone dies

Amanda Wesson — Wed, 27 May 2026 08:45:00 GMT

When someone dies there are several steps that need to be taken. The purpose of this guide is to set out each step and explain how to deal with each one.

The immediate priorities are:

Why understanding Inheritance tax is important

Kate Hilton — Wed, 27 May 2026 08:45:00 GMT

What is Inheritance Tax and how much does it cost?

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has died.

There is normally no tax to pay if:

The value of the estate is below £325,000. This is known as the nil-rate band.
Everything over £325,000 is left to a spouse, civil partner, charity or a community amateur sports club.

If the value of the estate is more than £325,000 tax will normally need to be paid at 40% on the part of the estate that is above that threshold (this may be reduced to 36% if at least 10% of the net value has been left to a charity).

However, transfers between married couples or civil partners are not usually subject to inheritance tax. If the first partner to die leaves their entire estate to the other, no tax will be payable. In addition, it is also likely that none of the deceased’s nil-rate band will be used and the partner can add the unused balance to their own, effectively doubling their threshold.

Further, if a main residence is left to direct descendants (e.g. children or grandchildren) an additional £175,000 (known as the residence nil rate band) is added to the tax free allowance, increasing this to £500,000 – £325,000 + £175,000.

This additional £175,000 only applies if the estate is worth less than £2 million. On estates worth more than £2 million the main residence allowance will decrease by £1 for every £2 above the £2 million that the deceased’s estate is worth.

When to pay Inheritance Tax?

Inheritance Tax should be paid 6 months from the end of the month in which the person died and will normally need to be paid before probate is granted.

If there is sufficient money in the deceased’s bank account this can normally be used to pay the tax. However, if the liquid assets in the estate are insufficient to pay the Inheritance Tax alternative funding solutions are available. This includes the Ampla Finance Executor Loan.

The executor or administrator may be able to pay the tax instalments over ten years, but the outstanding amount of tax will still get charged interest. If they pay the tax themselves they can claim it back from the estate.

Who pays the Inheritance Tax?

Inheritance Tax is paid by the executor of the will or, if there is no will, the administrator of the estate. If a solicitor is involved in dealing with the estate they can deal with the payment.

Beneficiaries of an estate do not normally pay tax on their inheritance.

A Will is important, find out why

Kate Hilton — Wed, 27 May 2026 08:30:00 GMT

What does a will do?

The role of an Executor or Administrator

Amanda Wesson — Wed, 27 May 2026 08:00:00 GMT

Executors/Administrators

If there is a will the deceased’s estate will be dealt with by the Executor. If there is not a will it will be dealt with by an Administrator. Please see other guides on website for more information.

Their responsibilities include:

1 - Ascertaining the whereabout of the will (if applicable)
Informing all institutions where the deceased held assets of the death

What you need to know about distributing the estate

Amanda Wesson — Wed, 27 May 2026 07:30:00 GMT

Strictly speaking, Probate is the legal right to deal with someone’s property, money and possessions (their “estate”) when they die. To obtain this right you need a “grant of representation”, of which there are two types:

Guides

What you need to know about what to do when someone dies

Why understanding Inheritance tax is important

A Will is important, find out why

The role of an Executor or Administrator

What you need to know about distributing the estate