Sorting a loved one’s finances after their death – what you need to know

Death admin is a task that no one wants, but knowing what to expect from the process can be helpful.

Financial anxiety is often talked about, but rarely in the context of bereavement. Following the death of a loved one, relatives usually have to complete a range of financial “death administration” tasks.

These can be anything from closing bank accounts and settling utility bills to managing probate (things like property sales, asset management and inheritance distribution). The UK Commission on Bereavement has estimated that 61% of adults struggle to deal with such time consuming and time sensitive administrative responsibilities.

While research has begun to shed light on some of the financial difficulties bereaved people can face after the death of a spouse or a family member, the emotional toll of navigating financial admin after bereavement remains largely invisible.

But the good news is there are several resources that can help bereaved people to navigate these processes, including the UK government’s own step-by-step guide. We conducted research on death admin in collaboration with the National Bereavement Service, an organisation that provides free practical and emotional support for anyone who has lost a loved-one. The study showed how government services provide a gateway to sorting out a range of financial issues.

Financial organisations require proof of the death through a death certificate. This is provided when you register a death with the local registrar of births, marriages and deaths. Where there is an inquest, an interim death certificate will be issued.

Often, multiple copies of the death certificate are needed. And, at £12.50 for each copy (£12 in Scotland), the financial burden falling on bereaved people can quickly grow.

In terms of tax, pensions and benefits, the registrar provides a unique reference number that bereaved people can use to inform the government through a service called Tell Us Once.

This is an initiative that notifies national and local government bodies including HM Revenue and Customs (to deal with personal tax and to cancel certain benefits and tax credits) and the Department for Work and Pensions (to cancel benefits and entitlements like universal credit or the state pension). The government website also provides help on how to value the person’s estate and work out inheritance tax.

Avoiding family fall-outs

But other financial aspects of death administration can be more challenging to navigate.

Probate, for example, is the legal right to deal with someone’s property, money and possessions (their “estate”) when they die. You can check on the UK government website whether you require probate.

It remains one of the most challenging aspects of death administration. Our research shows that people often seek legal advice to manage probate because they are scared to get things wrong, or because they want to avoid future disputes with family members.

The process of closing bank accounts and managing assets can be straightforward when the deceased person had made clear arrangements and had few bank accounts. But financial concerns often arise in situations where there are multiple or complicated banking systems. As one of the participants in our research stated: “It’s been a real mess … my dad had quite a few properties, and it’s been quite difficult winding those down.”

Worse still, bereaved people can face threatening letters from companies like utilities providers in relation to bills and closing accounts. We found organisations often lack compassion in this context.

We encountered cases of companies continuing to write directly to the deceased person, causing further distress to their loved-ones. One of our participants told us that their stepmother was “still getting the bill with my father’s name on, which distresses her”.

It is also worth noting that certain types of death present particular administrative and financial challenges. For example, in 2022 17% of deaths in England and Wales were subject to a coroner’s inquest.

These deaths can be more difficult to administer on the Tell Us Once initiative due to the time-lag and extra bureaucracy involved. In addition, many people die without a will, which usually makes navigating financial issues much harder.

The location of the death can also have financial implications. For example, our research shows how financing a care home stay is usually interconnected with inheritance or selling the person’s house, which places extra pressure on those trying to release the funds.

Many organisations could make their administrative processes clearer and train their staff to be more compassionate towards people who have recently been bereaved.

There are, however, glimmers of hope that things are improving. My own father died last year and while my experiences of helping my mum deal with the financial aspects of death administration have been mixed, we did experience many acts of kindness and compassion along the way.

There is also excellent practical guidance out there from organisations like the National Bereavement Service, which along with emotional support from charities like Cruse Bereavement Support are vital to helping people navigate complex administrative systems.

The COVID pandemic and death of the queen in 2022 have likely meant that, as a society, we are talking more about death and grief both publicly and privately. Death and bereavement happen to us all, and it is crucial that we talk more openly, not just about our emotional concerns, but about the practical and financial implications too.

Professor Kate Reed received funding from UKRI Research England.