Bereavement is overwhelming. The financial side of it should not add to that burden. A practical, plain-English guide to the steps that matter — and the ones that can wait.
This is not an easy article to write, and I imagine it is not an easy one to read. If you have come here because someone in your life has recently died, I want to start by saying: the financial steps can wait. Most of them can wait for days or weeks without meaningful consequence. Looking after yourself and the people around you is more important than any form or phone call.
When you are ready, this guide is here. It is intended to be practical without being cold — a plain-English map of what needs to happen, roughly in what order, so that the financial side of bereavement does not feel as bewildering as it otherwise might.
The first formal step is registering the death. In England and Wales, this must be done within five days (with some exceptions) at the local register office. You will receive the death certificate — you will typically need several certified copies, as financial institutions, pension providers, and solicitors will all ask for one.
If the person who died had a will, now is a good time to locate it. The will names an executor — the person responsible for carrying out the wishes of the deceased and administering the estate. If you are the executor, that responsibility now falls to you. If the person died without a will (intestate), the rules of intestacy determine who inherits and who has authority to act.
In terms of urgent finances: if you are a surviving partner and you shared a bank account, joint accounts typically pass to the surviving holder automatically. Individual accounts will be frozen until the estate is administered. Banks will usually allow access for immediate funeral costs upon request, even before probate.
Probate is the legal process of proving that a will is valid and giving the executor the formal authority to deal with the estate. Not all estates require probate — smaller estates or those held in joint names may not — but many do, particularly where property is involved.
The probate process can take several months or longer, depending on the complexity of the estate. During this time, most assets cannot be distributed. This is one of the reasons why life insurance policies and pensions can be so valuable after a death — they typically sit outside the estate and can be paid out much more quickly, often within a matter of weeks.
If the estate is complex — involving property, business interests, or significant assets — it is worth engaging a solicitor who specialises in probate. The cost is usually proportionate and the peace of mind is worth it.
Once you have death certificates, you can begin notifying the relevant institutions. This includes banks and building societies, pension providers, HMRC, the Department for Work and Pensions (if the deceased was receiving any state benefits), and any insurance providers.
The Tell Us Once service (available through your local council) allows you to report a death to multiple government departments in a single notification. It covers HMRC, DVLA, the Passport Office, DWP, and various local council services. It does not cover private financial institutions, which you will need to contact separately.
Most financial institutions have dedicated bereavement teams who are experienced at handling these conversations sensitively. Do not hesitate to tell them you are going through a bereavement and to ask for time or assistance if you need it.
If the person who died had life insurance, the claim process begins by contacting the insurer directly. You will need the death certificate and the policy documentation. The insurer will have a claims process — it is usually straightforward, and most claims are paid within a few weeks.
Pension death benefits work differently. As mentioned elsewhere in these articles, pension pots (for defined contribution schemes) sit outside the estate and can be passed to nominated beneficiaries. Contact the pension provider and ask them to confirm who is nominated to receive the benefits and what the process is.
If the deceased was already drawing from a pension in drawdown, the unspent pot can typically be inherited. If they were receiving an annuity, whether any payments continue will depend on the type of annuity — some include a spouse's pension, some do not.
Inheritance tax (IHT) is charged at 40% on the value of an estate above the nil-rate band, which is currently £325,000. There are various reliefs and exemptions — a surviving spouse or civil partner inherits free of IHT, and there is an additional residence nil-rate band of up to £175,000 when a main home is left to direct descendants.
If IHT is due, it typically needs to be paid before probate is granted — which can create a timing problem if the assets are frozen. There are arrangements that allow payment by instalments for certain assets, such as property.
IHT is a complicated area and one where specialist advice — from a financial adviser and potentially a solicitor — pays dividends both in planning ahead and in navigating it after a death.
The administrative burden of dealing with a death can be genuinely exhausting, particularly when you are also grieving. There is no obligation to deal with everything at once. Make a list of what needs doing and take it one task at a time. Ask for help — from family, from professionals, from anyone who offers. Most financial institutions have bereavement support teams who are trained to help people through exactly this.
If you are dealing with the financial aspects of a bereavement and would find it helpful to talk things through with someone, Jack is available for a conversation. No agenda — just a calm, honest discussion about what you are facing.