Four steps to make passing down estates less painful

Dealing with the loss of a family member is an extremely taxing process that most people know too well. While dealing with the grief, there is unfortunately also a legal side that needs to be handled to distribute their estate, which often falls to a family member. This includes tasks like gaining the legal right to deal with the departed's estate (probate), and paying for any tax when it's passed down.

Despite the process already being overwhelming, the fee for probate is set to rise from £300 to £526 on 13 July. The fee has nearly doubled since 2024, when it cost £273.  

Having to pay a fee for probate is bad enough, given it creates an endless pile of admin for those you leave behind, so a 75% hike in the fee is adding insult to injury. The government says the hike is due to inflation, investment, and improving the service.

For those who can’t afford it, there’s a Help with Fees remissions scheme, to cover the cost. For everyone else, this is one more horrible hoop to jump through that makes the paperwork and processes after death such a nightmare. It means we could all benefit from taking steps to make the process easier for our loved ones after our death.

1. Make a will

More than half of people don’t have a will, including half of those in their 50s and early 60s. If you die without one, nobody has any say on who gets what you leave behind, because it’s divided according to the rules of intestacy. These are complex and may not work as you expect. So, for example, if the estate is worth more than £322,000, the married partner shares the estate with any children. Meanwhile, unmarried partners get nothing.

Within the will you’ll also need to name an executor, who will deal with your estate. It’s your chance to name someone you trust, who can also handle the job. If you don’t do this, it will fall to your closest living relative.  

2. Simplify your finances

It’s easy to pick up accounts as you go along – whether that’s old savings accounts, pensions from former employers or forgotten investments. Think about what you can bring together, without losing any valuable guarantees on pensions or busting your FSCS protection limits on your savings. For every account you consolidate, that’s one less person the executor will have to contact. It’ll make keeping on top of things while you’re around easier too.

As you do this, draw up a list of all your financial arrangements, which you can keep with your will. The technical name for this is a register of assets and it will make it much easier for an executor to track everything down.

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3. Write a letter of wishes

This is another thing to keep with your will, and has a number of uses. If you have details of how you want to leave certain possessions, this can be a good place to write everything down, because it’s much easier and less expensive to update. You can also include information about what you want for your funeral. It’s a good place to explain yourself too. The will is made public, but the letter remains private, so if you have left someone out of the will, or left one person more than another, you can clearly explain why.

4. Don’t forget your pension

When you started a pension, you will have been asked to complete an expression of wish form. This lets you name the person – or people – you would like to get the death benefits from your pension – and in what proportions. Death benefits aren’t usually covered by a will, so it’s what’s written here that counts. It’s something that’s worth checking regularly to make sure it still reflects your wishes. You’d be amazed at how many people still have an ex-partner on their paperwork.

5. Consider any outstanding tax return

You don’t have to spring into action every 6 April, but if you tend to leave your tax return to the last minute, it’s worth having the paperwork in place, so that any tax return done after you die is straightforward. That means having receipts for expenses, bank statements, dividend information, details of charity donations and pension contributions, and any capital gains. Try to keep them filed carefully, so your last tax return is less of a headache.