When Someone Dies: The Financial Guide for the First 90 Days
Exactly what to do, in the right order, with the UK-specific numbers that matter
Someone has died.
You are not thinking about money. You are thinking about the person. The absence. The logistics of notifying friends and family. The funeral. The paperwork you suddenly have to do.
This guide is not going to tell you to think about money now. You will when you are ready.
But when you are ready, here is exactly what to do, in the right order, with the UK-specific numbers that matter.
The first principle: do not make big financial decisions in the first 72 hours. Grief affects judgment. Banks and HMRC know this. They build time into the system for a reason.
The second principle: most of what you worry about will not happen. The tax bill is smaller than you fear. The pension is not lost. The ISA does not disappear.
Read this when you need it. Come back to it. Use it as a checklist, not a lecture.
The First 72 Hours: What Not To Do
Before anything else, three things to avoid:
Do not cancel direct debits immediately
If the person had ongoing payments (gym membership, subscriptions, magazine renewals), cancelling these immediately can trigger early closure fees and complicate estate administration. Make a list. Cancel them in the first week, not the first hour.
Do not move large sums of money
The estate must be administered through probate. Moving money before probate can look like asset concealment, even if your intentions are innocent. HMRC can investigate. The process becomes slower and more stressful.
Do not make large purchases in the deceased's name
Even if you have their card. Even if you are the sole beneficiary. Wait for the death certificate and the grant of probate.
These are not rules designed to make your life difficult. They exist because people do panic, and these protections exist for everyone.
The Five Financial Decisions to Make in 90 Days
Once you are through the first few days, there are five decisions to make. You do not have to make them all at once. But you should make them within 90 days.
1. Register the death and notify the key organisations
This sounds obvious. It is on every checklist. What is less obvious is the order:
- First: Register the death at the local registry office. You will need the medical certificate. This takes 24 to 48 hours to process and gives you the death certificate copies you will need for everything else.
- Second: Notify the bank. Not just the person's bank. Their joint account bank if they had one. The bank will freeze the accounts pending probate. They will not release funds without the grant of probate, but they will tell you what paperwork they need.
- Third: Notify the pension provider. This is where people lose money. The pension does not automatically go to the family. It requires a specific claim process. If you do not claim it, you lose it.
- Fourth: Notify HMRC. Not to pay tax immediately. To let them know. HMRC will calculate what, if anything, is owed. Waiting to notify them can complicate this.
The number that surprises people: Most workplace pensions pay a death benefit of two to four times the annual pension contribution. If the person was paying £200 per month into a workplace pension, the death benefit could be around £9,600. This is not automatically paid. You have to claim it.
2. Find all the accounts, policies, and assets
This is harder than it sounds. People have more financial relationships than they realise.
What to find:
- Bank accounts (current, savings, ISAs)
- Pension pots (workplace, personal, stakeholder)
- Investment accounts (stocks and shares ISA, general investment accounts)
- Life insurance policies (some are written in trust and do not form part of the estate)
- Property (owned solely, jointly, or via a mortgage)
- Any debts (mortgage, loans, credit cards)
How to find things: Look for paperwork. Statements. Emails. The person may have had a folder, physical or digital. Check if they used a financial adviser. Check if their employer had a death-in-service benefit.
The number that surprises people: The average UK adult has £31,000 in unclaimed pension assets from previous jobs. When someone dies, these pots can sit unclaimed for years. Tracking down all pension pots is worth the effort.
3. Understand what tax is actually owed
This is the part that frightens people most. The good news: it is usually less than you fear.
Inheritance Tax (IHT)
The threshold is £325,000 per person. Everything above this threshold is taxed at 40%. But there are significant reliefs:
- The residence nil-rate band: if the property goes to children or grandchildren, you get an additional £175,000 allowance (2024/25 tax year)
- Spousal transfer: anything left to a spouse or civil partner is exempt
- Charitable donations: leaving more than 10% of the estate to charity reduces the rate from 40% to 36%
- Write to HMRC within 12 months of death: any tax owed can be paid in monthly instalments interest-free over 10 years
The number that surprises people: Only 4% of estates in the UK actually pay Inheritance Tax. The combination of the spouse exemption and the nil-rate band means most families do not owe anything.
Income Tax
The estate does not pay income tax on the deceased's behalf. But any income received after death (interest, dividends, rent) is taxable. Inform HMRC. They will tell you what, if anything, is due.
Capital Gains Tax
If assets are sold as part of administering the estate, there may be CGT due. The estate gets a CGT allowance of £6,000 (2024/25). Gains above this may be taxable. But the calculation is complex and depends on when assets were acquired and their value at death.
Practical action: Contact HMRC's bereavement helpline. They are helpful. The number is 0300 200 3310. They will tell you exactly what needs to be paid and when.
4. Decide what happens to the pension
This is the most commonly missed financial task after a death. Pensions behave differently to other assets.
What happens to a workplace pension
Most workplace pensions pay a death benefit to the nominated beneficiary. This is not part of the estate. It does not go through probate. It is paid directly to whoever was nominated.
If there was no nomination, the pension provider decides who to pay. They usually pay to the estate, which then gets distributed according to the will or the rules of intestacy.
What happens to a personal pension
Similar rules. The pension provider pays to the nominated beneficiary. If there is no nomination, they pay to the estate.
The tax treatment
Pension death benefits are usually paid tax-free if the person died before age 75. If they died after 75, the beneficiary pays income tax on the amount received, at their marginal rate.
What surprises people: You can inherit a parent's pension. You do not have to take it as a lump sum. You can often leave it invested and draw from it in retirement. This is particularly relevant for younger beneficiaries who have time on their side.
The one thing to do: Contact all pension providers. Ask if there is a death benefit. Ask what paperwork they need. Ask what the options are for taking it.
5. Get the grant of probate
Probate is the legal document that gives you authority to administer the estate. If there is a will, you apply for probate as the executor. If there is no will, you apply for letters of administration as the administrator.
How long it takes: The average is 16 weeks. Complex estates take longer. If the estate is straightforward (small, no property, simple holdings), it can be faster.
What it costs: There is a probate registry fee of £273 plus any solicitor fees if you use one. If the estate is under £5,000, you may not need probate at all.
What you need:
- The death certificate
- The will (if there is one)
- An inventory of all assets and liabilities
- Values as at the date of death
The practical reality: Most people use a solicitor for probate, especially for larger estates or where there is property involved. The cost is usually proportionate to the complexity, not a fixed fee. Get two or three quotes.
What Happens to Specific Assets
ISAs
ISAs do not lose their tax-efficient status when someone dies. The ISA investments are sold and the proceeds become part of the estate. However, there is a specific ISA bereavement allowance that allows the spouse or civil partner to inherit some or all of the ISA investments tax-free.
If you are the surviving spouse: you can usually claim additional ISA allowances based on what the deceased held. This is called an "extra allowance" and it can be significant.
Property
If the property was owned jointly, it passes automatically to the surviving owner. This is called survivorship. It does not go through probate.
If the property was owned solely, it goes to the estate. The will (or intestacy rules) determines who receives it. If there is a mortgage, the property can be sold to pay the mortgage, or the inheritor can take over the mortgage.
The question to ask: Can the inheritor afford the mortgage? If not, selling the property may be the only option. This is why knowing the financial position matters before grief makes decisions harder.
Cash and Bank Accounts
These form part of the estate. They are frozen until probate is granted. The executor or administrator then distributes according to the will or intestacy rules.
If there is urgent need (funeral costs, living expenses), the bank can sometimes release funds for this purpose before probate. You need to write to them explaining the circumstances.
The One Call to Make Now
If you do only one thing, make this call:
Call the Pension Service on 0800 731 0469.
Ask about any State Pension death benefits. If the deceased was receiving a State Pension (or had enough National Insurance contributions), there may be a State Pension death benefit for the surviving spouse or civil partner. This is worth up to £900 per year (2024/25 rate), paid weekly.
This is not automatic. It requires a specific claim. It is not means-tested. If you are entitled, you should receive it.
After 90 Days
Once the initial decisions are made, there is usually a longer administrative process:
- Selling or transferring property
- Closing accounts and transferring investments
- Distributing the estate to beneficiaries
- Filing a final tax return for the deceased
This can take months. Some estates take a year or more to fully administer.
That is normal. There is no deadline that makes this urgent beyond the initial 90 days. HMRC will write to you. The law gives you time.
The Summary
The five things to do in the first 90 days:
- Register the death, then notify banks, pension providers, and HMRC
- Find all the accounts, policies, and assets
- Understand what tax is actually owed (usually less than you fear)
- Claim the pension death benefit (it will not come to you automatically)
- Apply for probate or letters of administration
The one call today: the Pension Service on 0800 731 0469. Ask about death benefits.
Note on related content: We previously published a shorter checklist covering what to do when a parent dies. This guide is more comprehensive and supersedes that checklist. If you followed that path already, this guide fills in the gaps.
This guide is for informational purposes. It does not constitute financial advice. The specifics of your situation will depend on the individual circumstances. If you are unsure, consult a financial adviser.
See Your Full Financial Picture
When you are ready to understand your own financial position, Delphina shows you everything in one place. Your pensions, your ISA, your property, your debts. See where you stand and know what to do next.
Frequently Asked Questions
CEO & Co-founder at Delphina
Syd got fed up with being kept confused by the UK personal finance industry. So he built the tool he wished existed. Qualified to provide financial advice, prefers to provide financial clarity. No agenda. Just someone who finally got clear and wanted everyone else to be able to too.