Estate Administration Deadlines Explained

When someone passes away, their Personal Representatives may need to take out a Grant of Probate (if there was a Will) or a Grant of Letters of Administration (if there was no Will or there are no Executors).

While most estates are dealt with in a timely manner, it is not uncommon for it to be months (and in some cases years) for the estate administration process to be started, especially where the deceased held an interest in a property that their surviving spouse or children continued to live in.

If you are the person responsible for dealing with someone's estate, certain key dates and deadlines need to be kept in mind. Our Wills, Trust & Probate team have outlined them below.

If the estate owned certain shares and investments which, when adding all of the sales together, sold for a loss in the 12 months after the death, Inheritance Tax can be reclaimed on the loss. The claim must be made within 4 years from the end of that period.

If the personal representatives need to complete a full Inheritance Tax account (IHT400), it must be submitted within 12 months of the date of death; otherwise, a penalty will be payable, and of course, interest will also be accruing on any unpaid Inheritance Tax. The penalty starts at £100 but can be up to £3200, depending on the circumstances.

If any land sold in this period is sold for an overall loss, it is possible to reclaim Inheritance Tax on the loss. Any claim must be submitted within 7 years of the date of death.

In most cases, it is advisable for personal representatives to place "Section 27" notices, advertising for any creditors of the estate. If the adverts are not placed, the estate is distributed, and creditors later come forward, the personal representatives can be liable personally for the debts.

If the adverts are placed, no creditors come forward within 2 months of the date the adverts are placed, and the personal representatives distribute to the estate; as long as the personal representatives were unaware of the debts, liability will transfer to the beneficiaries.

If you are a personal representative or beneficiary of an estate, you should keep the above dates in mind. If you are a personal representative, you have certain duties to comply with, including administering the estate on time, and you may be personally liable for any loss caused by not meeting the above deadlines.