Estate administration explained

We understand that the task of administering someone’s estate after their passing can be a confusing and complicated process, especially whilst dealing with the death of a loved one or friend. Being given this responsibility is often a testament to the trust and close relationship you may have had with someone who’s passed away. It’s often viewed as somewhat of an honour to be involved in organising the affairs of those who have departed and shouldn’t be taken lightly. Here at Kings Court Trust, we understand that you may not have prior knowledge of what estate administration is, but also, the many technical terms it involves, until you are required to start the process yourself. We strive to make this time as simple, pain-free, and easy as possible for anybody embarking on this journey. That’s why everything we do has the wellbeing of our clients at its very core. With that in mind, we have created a jargon-busting glossary of terms to explain the ins and outs of estate administration as clearly as possible for you.

What is estate administration?

Estate administration is the process of dealing with all of a deceased person's assets, debts, and taxes, before distributing any inheritance to the beneficiaries. This must be done in accordance with the wishes in the Will (if there is one). However, even estates where the deceased has passed away without leaving a Will need to be administered. This is done by an Executor or Administrator, depending on whether there is a Will or not. The estate consists of all assets (possessions, property, money, savings, investments, pensions, and anything else owned) minus debts and taxes. Once this has been finalised, estate accounts can be produced and the final value can be distributed to the beneficiaries. This is the final step of the estate administration process. 

What is an Executor?

A substantial number of people act as an Executor every year, however, you may be unaware of the responsibilities that come with the role until you are named as one yourself. An Executor is responsible for handling the affairs of someone when they die. If you have been named as an Executor in someone's Will, you will be required to carry out the instructions in their Will and take care of all the legal and financial affairs that need to be handled after their death. This means you become legally responsible for the money, property, and possessions of the person who has died from the date of their death, until the date everything has been passed over to the beneficiaries. You might not be the only Executor however, as up to four people can be named as Executor in a Will. You also may not find out you have been named as an Executor until someone has died, however, most people who make a Will tend to tell those they have named as Executors they have done so.

If you have been named as an Executor, you have the right to instruct professionals to help. This could be just to help in a specific specialist area such as selling a property or obtaining the Grant of Probate, or you can pass the responsibility to a professional estate administration provider such as Kings Court Trust, who can take care of everything. 

Take a look at the list below to find explanations for some other common phrases you may come across:

Administrator

A person (usually next of kin) who is authorised to deal with an estate when someone dies if they have left no Will.

Beneficiary/Beneficiaries

A person or entity who benefits from the estate, Trust or Life Assurance policy.

Capital Gains Tax

Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.

Confirmation

The legal document in Scotland which is issued by the court to give the Executor(s) authority to administer the estate.

Family tree

Genealogical data presenting the generational makeup of a family.

Grant of Probate/Representation

A generic term for the document that the Probate Registry issues authorising the named Executor(s) or Administrator(s) to act on behalf of the estate.

Income Tax

A tax imposed on individuals or entities that vary with respective income or profits and may be paid by the estate.

Inheritance Tax

A tax on the estate (property, money and possessions) of someone who’s died.

Nil Rate Band Discretionary Trust

A trust added in a Will for estate planning purposes, to protect assets and potentially reduce inheritance tax if payable at the point of death.

Personal Representative

The term used to describe both Executors and Administrators.

Trust

The Trustees are the legal owners of the assets held in Trust. Their role is to deal with the assets according to the Trust Deed or the terms of the Trust that may be within a Will.

Will (formally known as Last Will and Testament)

A legal document by which a person, the Testator, expresses their wishes as to how their property and wealth are to be distributed at death.

Kings Court Trust is a probate and estate administration provider that offers award-winning solutions to support every family.

Whether you need a hand obtaining the Grant of Representation, completing the complicated tax and legal work, or anything in between, you’re in safe hands with our team of specialists.

If you have any questions about the estate administration process, including applying for the Grant of Representation, call our Client Services Team on 0300 303 9000 or fill in the form below.