Administering Estates - Procedures and Pitfalls

Updated: July 2025

Administering an estate after someone passes away—whether they have made a valid will or died intestate—can be complex and emotionally charged. A recent survey revealed that over 10% of people believed to have died without a will (intestate) may actually have made one. Similarly, a significant number of wills initially thought to be the deceased's final will are later found to have been superseded by newer versions.

In this guide, we outline key legal responsibilities for executors and estate administrators, highlight common risks such as contentious probate and Inheritance Tax pitfalls, and explain how to avoid costly mistakes.

Why Disputes Arise When Administering Estates

One major cause of probate disputes is late-in-life changes to wills. Individuals often change their testamentary wishes or create a will for the first time—without informing family members. This can result in confusion, contested wills, and lengthy legal proceedings.

Disputes may also arise under the Inheritance (Provision for Family and Dependants) Act 1975, which allows individuals who were financially dependent on the deceased to make a claim if they are not sufficiently provided for in the will. Claims of this nature can significantly delay the estate administration process and increase costs.

Dying Intestate: Legal and Financial Consequences

When a person dies without a valid will, their estate is distributed according to the rules of intestacy. This can produce results the deceased may never have intended. For example, if the estate is worth more than £250,000 and there are children, the surviving spouse will not inherit the full estate. This often leads to financial hardship, especially if the estate includes the family home.

Dying intestate also removes the opportunity for effective Inheritance Tax (IHT) planning, potentially increasing the tax burden on the estate and reducing the overall inheritance available to beneficiaries.

Legal Duties of Executors and Administrators

Whether you're named as an executor in a will or appointed as an administrator for an intestate estate, the legal responsibilities are significant and carry personal liability if handled incorrectly.

Key duties include:

• Collecting estate assets and settling outstanding liabilities, including debts, taxes, and funeral costs

• Filing Inheritance Tax and Income Tax returns with HMRC, and obtaining tax clearance before applying for probate

• Applying for a grant of probate (or letters of administration if no will exists)

• Distributing assets in line with the terms of the valid will or, if none exists, under the statutory rules of intestacy

Executors must ensure that all liabilities and potential claims have been addressed before distributing the estate, as mistakes may lead to personal liability. Maintaining detailed records and understanding allowable estate expenses is essential.

Challenging a Will: The Role of a Caveat

One way to dispute a will is by lodging a caveat at the probate registry. This stops a grant of probate from being issued and triggers a contentious probate process. A caveat lasts for six months but can be renewed. Crucially, it can be entered without informing the executor, often causing delays and unexpected legal complications.

Estate Tax and ISA Interest During Administration

From 6 April 2018, any interest earned on ISA funds during the administration of an estate is exempt from UK income tax. This rule continues to apply during the probate period and can impact tax planning for the estate.

Expert Probate and Estate Administration Advice

At Willett & Co Solicitors, we have extensive experience handling estate administration, advising executors and beneficiaries, and resolving contentious probate disputes. Whether you are dealing with a straightforward estate or a complex situation involving intestacy or inheritance claims, our probate solicitors can guide you through every step.

📞 Contact our Private Client team today for expert advice on wills, probate, and estate administration.