What to do after a death

April 18, 2023

There are a number of things that need to be done after a death. Whether it’s a family member, friend, or business colleague, it can be difficult to know where to start. This brief guide aims to give you an overview of the key tasks that need to be carried out.

Probably the most authoritative step-by-step guidelines are published by the government online – and also note where the procedures may vary in the different nations of the UK:

Register the death

The first step is to register the death itself – indeed, it is a criminal offence not to do so and registration must be made within five days of the death (eight days in Scotland). Registration may be made locally by the Registrar of Births, Deaths and Marriages or may also be made online.

To complete the registration, you may also need the death certificate issued by a doctor. The doctor or the police may refer the death to the local authority’s coroner but anyone who is concerned about the cause of death can make such a referral, notes Citizens Advice.

If a director of a limited company has died, there is a legal obligation to inform Companies House within 14 days of the death – this, too, may be made by post or the online version of form TM01 (Termination of the appointment of a director).

Probate

When the death has been registered, you will need to check whether probate is needed – this grants the legal authority for executors to manage the financial affairs of the deceased, pay official and business creditors, and distribute the remainder of the deceased’s estate.

If the deceased left a will, the executors named in it can apply for probate; if there is no will, this may be done by the closest living relative. Getting probate can take anything from 6 weeks to 6 or more months.

Executors’ duties

Probate can be a complicated matter since it involves every aspect of the deceased person’s financial affairs.

As the Consumers’ Association’s Which? magazine points out, the matters involved are likely to include banks, local and national government departments (everyone from the local council and HM Revenue & Customs), building societies, utility companies, and creditors.

The government’s “Tell Us Once” service is useful for informing all the relevant central government departments – such as HMRC, the Passport Office, the Department for Work and Pensions (if the deceased was in receipt of any welfare benefits or State pension), and the DVLA.

The executors have a serious responsibility for correctly and diligently managing the estate of the deceased – indeed, they may be held personally liable for any losses incurred by the estate as a result of their actions or failure to act.

Property and assets

The executors’ responsibilities are especially onerous when it comes to protecting any property and assets of the deceased’s estate. Protecting the financial interests of the estate is likely to be a question of ensuring sufficient and appropriate insurance.

Whether or not you will be acting as an executor, therefore, you might want to contact your insurance broker to give the contact details for the executors, together with a copy of the death certificate, and any other documents relevant to safeguarding the deceased person’s estate:

Property

• if the estate includes any property, one of the principal responsibilities of an executor is to ensure the premises has adequate insurance;

• the executor is liable for any loss or damage to the property, so appropriate property insurance is essential;

• if the property remains empty during probate, of course, the appropriate insurance will be unoccupied property insurance;

Company shares

• the death of a company director can pose significant challenges for a small, limited company with the potential for disruption to normal trading and interference in the business by beneficiaries of the deceased who have no relevant experience of the business;

• for that reason, it is typically considered essential for the remaining shareholder or shareholders to have the right to buy and to be in a position – with sufficient funds – to buy out the shares of the deceased shareholding director;

• this is usually secured through a cross-option agreement and life insurance cover for the individual shareholders to cover the cost of purchasing the newly available company’s shares;

• the executors will also ensure that an application is made for business property relief on the deceased director’s estate so that his or her family can save an otherwise steep Inheritance Tax liability.

Upon the death of a family member, friend, or director of a limited liability company, therefore, the executors appointed to manage the deceased’s estate have a weighty and responsible role to fulfil in managing and safeguarding the deceased’s estate.