Losing a loved one is always an emotional and difficult time.
 
Alongside the grief, you and your family will also likely have to deal with practical and financial matters. Altogether, it can be a lot to cope with.

With research suggesting that two in five people in the UK don’t understand what happens when they inherit from a relative or friend, this added layer of the unknown could leave you feeling overwhelmed. [1]
 
There are three key areas that cause confusion: 
1.    The probate process
2.    The timescales involved
3.    How Inheritance Tax is handled. 

Read on to find out more about each area.

What does probate involve?
 
Probate is the process that ensures the deceased’s estate – including property, money, investments, and possessions – is distributed according to their will. If they die without a will, their estate will be divided according to the rules of intestacy.

The steps involved in probate:

• Applying for a grant of probate (or letters of administration) – This legal document gives the executor (if there’s a will) or administrator (if there isn’t one) authority to deal with the estate.
• Valuing the estate – Identifying all assets and any debts that need to be settled.
• Paying debts and taxes – Before any inheritance is distributed, outstanding bills, loans, and Inheritance Tax (IHT) must be paid.
• Distributing the estate – Once everything is settled, the remaining assets can be passed on to the beneficiaries.

Your solicitor or financial planner could help to ease the burden, ensuring everything is carried out correctly and goes as smoothly as possible.

How long does it all take? 

From start to completion, administering an estate takes, on average, between nine months and a year.
 
While some cases are resolved relatively quickly, others can take considerably longer – particularly if there are property sales involved, disputes between beneficiaries, or overseas assets.

The four key stages are:

• Initial administration – Gathering paperwork, valuing assets, and preparing probate applications (typically one to three months).
• Probate application – Waiting for the court to issue the grant of probate (between two and four months, depending on workload/complexity).
• Paying debts and tax – This can take several months, particularly if HMRC needs to confirm Inheritance Tax calculations.
• Final distribution – Once debts and taxes have been cleared, assets can be transferred to the beneficiaries.

While you’ll need to practise patience, seeking support from someone familiar with handling probate could help to reduce delays and ensure everything is handled correctly.

How is Inheritance Tax paid?

Not all estates will have to pay IHT. 

In the 2025/26 tax year, spouses and civil partners do not pay IHT, but anyone else who inherits money could be liable if you inherit more than the nil-rate band of £325,000.
 
If you receive the main residence from your parent, grandparent, or great-grandparent as part of your inheritance, you could benefit from the residence nil-rate band of an additional £175,000.
 
Read more: Is your family prepared for the ‘great wealth transfer’?

Here’s how it works:

• The estate, rather than beneficiaries, is usually responsible for paying IHT. Executors or administrators arrange the payment to HMRC before distributing assets.
• IHT must typically be paid within six months of the person’s death. If the payment is late, HMRC will charge interest.
• You can pay in instalments. This can be especially useful if property is involved. 

Importantly, beneficiaries will typically only receive their inheritance once any IHT bill has been paid.

A financial planner could provide peace of mind

Nothing can take away the devastation of losing someone you love. But unnecessary stress can exacerbate the hardship you experience, especially where money is concerned.

If you’ve been bereaved and want to seek advice, it’s never too late to gain bespoke guidance from an independent professional.

Get in touch

To learn more about how we could help you take important steps after a bereavement, please get in touch. Email info.wp@titanwh.com or call us on 0800 048 0150.

Please note
The information contained in this article is based on the opinion of Titan Wealth Planning and does not constitute financial advice or a recommendation for any investment or retirement strategy.
All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning.