“What Do I Actually Need to Do?” - A Guide to Estate Accounts

If you’ve recently lost someone close to you and you’ve been asked to act as their executor, first of all I’m sorry for your loss. It’s a big responsibility, and I know from experience it can feel like a bit of a maze.

One of the final steps in the estate administration process is preparing a clear set of estate accounts a kind of financial summary that shows what came into the estate, what went out, and how much each beneficiary is entitled to.

Below, I’ve broken down what needs to be included and why it matters.

What are estate accounts?

Estate accounts are the final financial record of everything that’s happened during the

administration of someone’s estate. They cover:

. All the assets and liabilities

. Any income or interest earned during the process

. Any Inheritance Tax that was paid

. All the expenses incurred

. And finally, a breakdown of what’s going to each beneficiary

They’re really important because they give everyone, especially beneficiaries, transparency and reassurance that things have been handled properly.

What do you need to include?

Here’s a rough guide to what’s usually included in a full set of estate accounts:

. Front Sheet

Start with the basics: the name of the deceased, date of death, and a simple statement that these are the estate accounts.

. Assets

List everything the person owned bank accounts, investments, property, cars, jewellery.

You’ll need to include the value of each item at the date of death.

. Liabilities

This includes anything the deceased owed: mortgage balances, credit cards, tax due,

outstanding bills, etc.

. Inheritance Tax Account

If Inheritance Tax (IHT) was payable, this section should show your calculations. You’ll need to explain any exemptions or transferable allowances (e.g. if a spouse had unused nil-rate band).

Inheritance Tax is one area I’d recommend getting professional advice on mistakes here can lead to penalties for the executor.

. Capital Account

Sometimes assets change in value after the death for example, a house might sell for more or less than expected. These changes are recorded here.

. Income Account

During the administration period, the estate might earn income rent from a property,

interest from savings, or dividends from shares. If the income exceeds £100, there could be income tax to pay.

. Estate Expenses

This covers things like:

. Solicitor or accountant fees

. Probate application costs

. Estate agency or auction house fees

. Insurance for property or vehicles during the process

. Distribution Account

This page pulls it all together. It shows the final net estate value and how it’s divided

between beneficiaries according to the Will or the Rules of Intestacy.

. Signature Page & Receipts

As executor, you’ll sign a declaration confirming the accounts are accurate. It’s also good

practice to ask each beneficiary to sign a receipt when they receive their share.

Need a hand?

Being an executor can feel daunting especially if you’re also grieving. If you need help putting together estate accounts, dealing with tax, or just figuring out what to do next, I’m always happy to talk it through. You don’t have to navigate this alone.

Call 01727 634839

Or email contact@sbishestateplanning.com