This blog explains the stages and timescales involved when you are the executor of someone’s affairs and have a legal responsibility to administer their estate.
Stage one
- Arrange valuations of all assets and obtain details of all liabilities, both held in the sole name and jointly owned. 8-12 weeks
- Obtain income information for Income Tax Return to date of death. 8-16 weeks
Stage two
- Prepare HM Revenue & Customs (HMRC) Inheritance Tax account and Oath for Executors or Administrators. 2 weeks
- Arrange for the papers to be signed and Oath sworn by Executors or Administrators. Dependent on Executors availability
- Arrange to fund and pay Inheritance Tax, where applicable, and submit Inheritance Tax account (within six months of death) and obtain HMRC receipt to include receiving receipted Probate Summary. 4-10 weeks
- Submit HMRC receipt and await issue of Grant of Probate or Letters of Administration (Grant of Representation). 2-3 weeks
- Assess pre-death Income and Capital Gains Tax position and, where necessary, submit Income Tax Return to date of death. Ongoing, dependent on HMRC
Stage three
- Register Grant of Representation and collect assets. 6-8 weeks
- Pay liabilities, legacies and where appropriate, make interim distributions. 4-8 weeks
- On sale of freehold or leasehold properties, pay outstanding Inheritance Tax, finalise utilities and where applicable, make further interim distributions. Dependent on the property sale
Stage four
- Finalise Inheritance Tax position, deal with HMRC requisitions, submit Corrective Account and loss on sale claims where applicable and obtain clearance. 9-12 months dependent on HMRC
- Commence closing administration of estate to include preparation of administration period Income Tax Return, prepare Tax Deduction Certificates and obtain HMRC clearance. Dependent on HMRC
- Finalise Estate Accounts and obtain Executors and beneficiaries approval of the Estate Accounts and indemnities, and make final distributions. 6-10 weeks
