Money Matters: A Step-by-Step guide what to do when someone dies
Losing someone close to you is one of life’s most difficult experiences. Aside from the emotional strain of grief, there are also practical matters that need prompt attention. This guide is designed to help you navigate the essential steps following a death in the UK, offering clarity and support during a time that can feel overwhelming.
Whether you're a family member, friend, or executor, the following checklist outlines what needs to be done - from registering the death and arranging the funeral, to managing legal and financial affairs. Take things one step at a time and ensure you seek help from professionals or support services when needed.
1. Immediately After Death
Report the death to a doctor or hospital.
A Medical Certificate of Cause of Death will be issued by the medical examiner or coroner – you will need this to register the death.
Make an appointment at your local register office – you must register the death within 5 days (in England, Wales, and Northern Ireland). You can purchase copies of the death certificate (£12.50 each). It’s well worth requesting 5-10 of these as it is usual for a bank, insurer of financial institution to ask for an original to be sent to them.
Ensure the deceased’s property is left secure and is suitably insured.
2. Funeral Arrangements
Check for a pre-paid funeral plan or over-50s life insurance:
- Ask family members.
- Review the will, bank statements, and insurance documents.
- Contact the local funeral director.
If the deceased or their partner was on certain benefits, you may be eligible for government help with funeral costs (see point 4 below)
3. Legal and Financial Matters
If the deceased had a Power of Attorney in place, this can no longer be used.
Notification of the death:
- The gov.uk “Tell Us Once” service can be used to notify HMRC, DWP, the Passport Office, DVLA, local council and some public sector pension schemes.
- Inform banks, insurers, financial adviser, pension providers, and other relevant institutions.
- Notify creditors to reduce the risk of future claims.
Joint assets usually transfer automatically to the surviving owner.
Will or Intestacy - Locate the will. If there is none, the estate will be distributed according to intestacy rules.
Administering the Estate:
- In almost all cases you will need to engage a solicitor to help administer the estate – although costly, it is very time-consuming work, and you could otherwise be personally liable for any mistakes!
- Identify and value all assets owned by the deceased at the date of death – it’s not unusual to find some under an incorrect name or with lost certificates or documents.
- Identify any debts
- Find details of all financial gifts made within the last 14 years for inheritance tax purposes.
- Probate is required in about 50% of cases, usually if the deceased owned property in their own name or had over £30,000 in bank accounts or financial products.
- Calculate and pay any Inheritance Tax (IHT), claiming all available reliefs, exemptions and allowances before settling any debts and distributing the estate
- Calculate and report income and capital gains tax for the deceased.
- Update beneficiaries and ensure they are informed.
4. Support for the Bereaved
- Available if the surviving spouse/partner is under state pension age and the deceased paid National Insurance for at least 6 months since 1975 or died due to a work-related accident or disease.
- £2,500 lump sum + £100/month for 18 month or, if children under 18 and in receipt of Child Benefit: £3,500 lump sum + £350/month for 18 months
- Available if you have at least one dependent child
May be available based on value of deceased’s estate and your income and will be deducted from any money you receive from the deceased’s estate.
- Interest-free loan available to those on income-related benefits to help with funeral and other costs.
- A surviving partner may be entitled to their deceased partner’s pension or a bereavement-related benefit if they were already on a pension.
5. Your Own Arrangements
Many people make changes to their own arrangements following a bereavement such as:
- Making or amending a will
- Checking beneficiary nominations on any pension plans
- Taking out a funeral plan
- Engaging the support of a financial adviser to help tailor plans to their changed circumstances, including ensuring loved ones are provided for and that any potential inheritance tax on their own estate can be paid easily
- Ensuring details of their financial arrangements are easily accessible to their loved ones in the event of their own death, whether hard copies or digitally stored.
We’re here to help.
If you would like help getting your own finances in order, or need help to manage an estate following the death of a loved one, please contact us today to speak to one of our thoughtful advisers.
Written by Rupert Lovesy