Estate Accounts Probate: Executors

What are estate accounts?

Estate accounts are the executor's closing record of an estate. Once the estate is distributed, the executor prepares final estate accounts, and these should be approved and signed by the executor and the main beneficiaries (gov.uk, distributing the estate, as at July 2026, subject to change). They pull together the opening position at death, everything received and paid out since, and the final sum available to those who inherit.

What goes into estate accounts?

Estate accounts bring together three things: a snapshot of the estate at the date of death, a record of money in and out during the administration, and the closing balance to be shared. In practice this means listing assets and their date-of-death values, debts and liabilities, income the estate received, and the administration expenses paid, so the accounts reconcile from the starting figure to the amount distributed.

Section of the accounts	What it typically records
Capital account (assets)	Property, bank accounts, investments and possessions at their date-of-death value.
Liabilities	Mortgage, loans, utility bills, funeral costs and other debts owed at death.
Income account	Interest, dividends or rent the estate received after death during administration.
Administration expenses	Probate fees, valuations, and any professional costs of administering the estate.
Distribution account	The final balance and how it is split between the beneficiaries.

Section of the accounts

What it typically records

Capital account (assets)

Property, bank accounts, investments and possessions at their date-of-death value.

Liabilities

Mortgage, loans, utility bills, funeral costs and other debts owed at death.

Income account

Interest, dividends or rent the estate received after death during administration.

Administration expenses

Probate fees, valuations, and any professional costs of administering the estate.

Distribution account

The final balance and how it is split between the beneficiaries.

General structure based on the executor's duty to keep records and account to beneficiaries; see gov.uk, distributing the estate, as at July 2026, subject to change. The exact layout is a matter of practice and varies between estates. See our note on valuing an estate for how date-of-death figures are reached.

Debts and taxes come before beneficiaries

The accounts follow the order in which an estate is settled. Bills, debts and taxes are paid, or set aside, before anything is shared with beneficiaries. Executors should distribute only once they have paid any debts and taxes, or are sure the estate has enough to do so, and an executor who distributes without keeping enough back may have to meet a remaining debt personally (gov.uk, distributing the estate, as at July 2026, subject to change).

To guard against debts nobody knew about, many executors place a notice in The Gazette giving creditors two months to claim, and do not distribute the estate's assets until that period is up (gov.uk, settling debts and taxes, as at July 2026, subject to change). The estate accounts then show those debts as paid before the distribution figure is reached.

See how the residue is then shared in our guide to distributing an estate.

How tax appears in estate accounts

Two kinds of tax often feature. Inheritance tax on the estate is dealt with as part of the probate process, and the standard rate is 40% on the part of an estate above the available tax-free bands, with the nil-rate band at £325,000 per person (gov.uk, inheritance tax, as at July 2026, subject to change). Separately, the estate itself can owe income tax on income received during the administration, which the accounts should record.

On income the estate receives between the day after death and the date everything is distributed, an estate generally pays income tax at 20% on most income, and 10.75% on dividends received on or after 6 April 2026, with no personal allowances available to the estate (gov.uk, managing and selling assets, as at July 2026, subject to change). Both figures belong in the income account so the closing balance is accurate.

A worked example (illustration only). An executor administers an estate of £480,000: a home valued at £360,000 at the date of death, plus £120,000 in savings. During the year of administration the savings earn £900 of interest, on which the estate pays income tax at 20%, that is £180 (gov.uk, as at July 2026, subject to change). Funeral costs and debts of £14,000 are settled, and £3,000 of administration expenses are paid. The estate accounts would open at £480,000, add £900 of income, deduct £180 of income tax, £14,000 of debts and £3,000 of costs, leaving £463,720 to distribute. This is a simplified illustration, not a calculation for any real estate; every estate differs and the figures change.

Who approves and signs the accounts?

The executor draws up the accounts, and the main beneficiaries approve and sign them. Final estate accounts should be approved and signed by the executor and the main beneficiaries, and copies of the final accounts are sent to all beneficiaries along with anything showing how money, property or belongings were distributed (gov.uk, distributing the estate, as at July 2026, subject to change). Sign-off matters because it records that beneficiaries have seen how the estate was handled.

The executor prepares them. The person administering the estate compiles the figures and reconciles them.

Beneficiaries approve them. The main beneficiaries review and sign to confirm they accept the accounts.

Copies are shared. Beneficiaries receive the final accounts and a record of what they were paid.

Estate accounts in Scotland and Northern Ireland

This note describes practice in England and Wales. The idea of accounting to beneficiaries is broadly shared across the UK, but the surrounding process differs. Scotland administers estates through confirmation rather than a grant of probate, with its own executry practice and its own succession rules, including legal rights that can give a spouse and children a fixed share. Northern Ireland has a separate but broadly similar system to England and Wales. Where an estate touches more than one UK nation, it can be worth taking advice in each.

Frequently asked questions

Are estate accounts a legal requirement?

An executor has a general duty to keep proper records and to account to the beneficiaries for how the estate was handled. In practice this means preparing final estate accounts, which should be approved and signed by the executor and the main beneficiaries (gov.uk, as at July 2026, subject to change). They are not lodged with a court like a grant application, but beneficiaries can generally expect to see them.

What is the difference between estate accounts and the probate valuation?

The probate valuation captures what the estate was worth at the date of death, which feeds the grant and any inheritance tax. Estate accounts go further: they take that opening position and record everything that happened afterwards, including income, debts paid and expenses, down to the final amount distributed. One is a snapshot; the other is the full story from death to distribution. See our note on valuing an estate.

Do beneficiaries have to approve the estate accounts?

The main beneficiaries are usually asked to approve and sign the final estate accounts, and copies are then sent to all beneficiaries (gov.uk, as at July 2026, subject to change). Sign-off records that they have seen how the estate was administered. If a beneficiary has concerns, it can be worth raising them with the executor, or discussing with a qualified professional, before the accounts are signed.

Does an estate pay tax on income during administration?

It can. On income received between the day after death and full distribution, an estate generally pays income tax at 20% on most income, and 10.75% on dividends received on or after 6 April 2026, with no personal allowances (gov.uk, as at July 2026, subject to change). That tax is recorded in the estate accounts before the balance is worked out.

When can an executor distribute the estate?

Generally once debts and taxes are paid, or the executor is sure the estate can meet them. Many executors first place a notice in The Gazette giving creditors two months to claim, and do not distribute until that period is up, because distributing too early can leave them personally liable for a later debt (gov.uk, as at July 2026, subject to change). The final accounts follow this ordering.

Should an executor use a professional to prepare estate accounts?

Not always. Straightforward estates are often administered by the executor alone, while larger or contested estates, or those with trusts or property to sell, can be more involved. Where the figures or the family situation are complex, many people choose to involve a solicitor or an accountant. It can be worth discussing the workload and any fees with a qualified professional before deciding.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.

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