How to distribute an estate

The estate must be distributed according to the will, if there is one, or according to the laws of intestacy.

Alternatively, the distribution of the estate may have been varied by a deed of variation. See our guide, “What is a deed of variation?”.

Collect funds, sell assets and pay debts

Before the estate can be distributed, funds must be collected, assets sold, debts paid and so on.

See our guides “I’ve got the grant: what next?” and “Collecting funds from banks and others”.

You may be in a position to begin distributing the estate as soon as some funds are received. 

Beginning the distribution

You may not have to wait until all funds are received or all assets are sold before beginning the process of distribution.

For example, if the deceased’s house is on the market, it may be many months – or longer – until it is sold. Under these circumstances, you may wish to distribute the funds available and distribute the proceeds of sale of the house later.

The order of priority

It is good practice to use funds available in this order:

1. Pay all debts and taxes, such as inheritance tax, outstanding mortgages, funeral expenses, other expenses and all other debts. If you believe there may be debts that you are unaware of, you can and should protect your position by placing a “section 27 notice” in the London Gazette and a local newspaper. See our guide “What is a section 27 creditors notice?”.
2. Once all debts have been paid, and the section 27 notice time limit has expired (if applicable), the next step is to distribute “specific legacies”. That is, gifts of specific amounts of money, or specific items of property, listed in a will (ignore this step if there is no will). If there is property to be transferred, this may now be arranged.
3. Finally, distribute to the “residuary” beneficiaries. See our guide, “What is a residuary beneficiary?”

For more details on distributing an estate according to a will or intestacy, see our guides “Distributing an estate according to a will”, and “Distributing an intestate estate”.