Do you need an accountant when someone dies? The tax side explained

You do not have to hire an accountant to deal with an estate. The people responsible, called personal representatives (an executor if there is a will, an administrator if not), can do the work themselves. What an accountant adds is the tax side. That means valuing the estate, working out whether Inheritance Tax is due, and settling Income Tax and Capital Gains Tax during the administration. This guide sets out those rules as GOV.UK publishes them, so you can decide how much help you need.

Figures were checked against GOV.UK on 11 October 2026 and apply to the 2026 to 2027 tax year. This is general information, not legal or tax advice. If you are doing this after a bereavement, the first firm deadline is usually six months from the death, when any Inheritance Tax must be paid to avoid interest.

What a personal representative is responsible for

You are responsible for the estate's money, property and possessions from the date of death until everything has been passed to the beneficiaries. GOV.UK calls this the administration period. During it you may have to pay debts and sell assets. You may owe Income Tax on income such as rent or interest, and Capital Gains Tax on sales. You also report the estate's value, income and tax liability to HMRC (dealing with the estate of someone who has died).

You also settle the person's own tax affairs. That covers unpaid tax, any refunds due, and a Self Assessment return for income they had before they died, if one is needed.

Inheritance Tax: when it applies

Inheritance Tax is charged on the part of an estate above the threshold. There is normally nothing to pay if the estate is below £325,000. The same applies if everything above that amount goes to a spouse, civil partner, charity or community amateur sports club (how Inheritance Tax works). Unused threshold can pass to a surviving spouse or civil partner. Beneficiaries do not normally pay Inheritance Tax on what they receive.

Gifts made in the seven years before death can count towards the estate, and you must value the estate before applying for probate. GOV.UK says most estates are not taxed, but you may still need to report the value even when no tax is due (valuing an estate). If tax is owed, you must report within a year and cannot apply for probate until you have. You will normally need to start paying before probate is granted.

Tax during the administration period

This part applies even when no Inheritance Tax is due.

• Income Tax on estate income. The estate pays Income Tax on everything it receives from the day after the death until the estate is fully distributed. That includes rent, interest and dividends. Estates get no allowances against savings, income or dividends. Dividends received on or after 6 April 2026 are taxed at 10.75%, and other income at 20% (dealing with the estate of someone who has died).
• Capital Gains Tax on sales. If you sell shares or property that have gone up in value since the death, or since the Inheritance Tax valuation, you may owe Capital Gains Tax. The rate for personal representatives is 24% for 2026 to 2027. The annual exempt amount is £3,000 in the tax year of death and the two years after it (Capital Gains Tax rates and allowances).
• Residential property. Capital Gains Tax on residential property usually has to be reported within 60 days (GOV.UK guide for personal representatives). GOV.UK also says you do not pay Capital Gains Tax from the estate when you transfer an asset directly to a beneficiary.

Where an accountant helps, and where a solicitor does

The tax tasks above are the usual reason to involve an accountant. They include gathering and valuing assets, completing the Inheritance Tax forms, the person's final Self Assessment return, and the estate's Income Tax and Capital Gains Tax calculations. GOV.UK suggests asking friends, family and any solicitor or accountant the person used when you trace their assets. An existing accountant may already hold the tax history.

The legal side is different: the will, the application for the grant of probate and any dispute. Solicitors who handle wills and probate are the usual route for that.

The two are not always separate. ICAEW says it has regulated accountancy firms offering non-contentious probate services for almost a decade. So some accountancy firms can run an uncontested administration from start to finish (ICAEW). ICAEW is a professional body for accountants, so treat its case for using one as one view. Check that any firm is authorised to do probate work before you instruct it for that.

When help is most likely to be worth it

GOV.UK says to consider professional help if the estate has a lot of assets or includes trusts, and that valuing an estate takes longer when it is large or complicated, for example with trusts or tax to pay (valuing an estate). Following the rules above, these are the situations where an accountant is most likely to earn their fee:

• the estate may be above the Inheritance Tax threshold, or gifts in the last seven years could count towards it
• the estate includes trusts
• you expect to sell shares or property that have risen in value, so Capital Gains Tax may arise
• the person had rental income, business profits or investment income that continues after death
• the person's own tax position is unclear: an unfiled return, or a possible refund

A small estate below the threshold, with no income-producing assets and no sales planned, is more likely to be manageable without tax advice.

Questions to ask before you instruct anyone

• Is the fee fixed or hourly, and what does it include: valuation, the Inheritance Tax forms, tax returns for the estate?
• Is the firm authorised to carry out probate, or is it only advising on tax?
• Could you do some of the legwork yourself? ICAEW describes "unbundling", where you take on some administrative tasks to reduce the bill.
• Which returns and calculations will be needed, who files them, and by when?
• Did the person who died already have an accountant who holds their tax records?

To compare accountants near you, find an accountant by city. If a final tax return is needed, start from self-assessment. Whoever you choose, write down the fee and the scope before they begin.