Administering & distributing the estate
After the grant, the personal representatives realise the assets, discharge the liabilities and account to the beneficiaries before final distribution.
What "Administering & distributing the estate" covers
- Collect in the assets, then pay the funeral, testamentary and administration expenses and the deceased's debts.
- Pay the inheritance tax; an instalment option is available for land, a business and certain shares, and IHT is often due before the grant issues.
- Apply assets to debts in the statutory order under the Administration of Estates Act 1925 (undisposed-of property first, and so on).
- Prepare estate accounts and, where appropriate, obtain HMRC clearance before the final distribution.
- Assent assets to the beneficiaries; an assent of land must be in writing: Administration of Estates Act 1925 s.36.
- PRs have powers including appropriation under Administration of Estates Act 1925 s.41 and the statutory powers of investment.
- Distribute the legacies and residue, retaining a reserve for any contingent liabilities or unascertained claims.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For administering & distributing the estate, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Distributing before the inheritance tax and creditors have been settled.
- Assenting land without a written assent.
- Distributing prematurely and losing the protection of the executor's year against creditor pressure.
Learn this subtopic in the course
A video lesson, notes and exam-style practice on administering & distributing the estate.
FAQ
Is administering & distributing the estate tested on SQE1?
Yes — administering & distributing the estate is part of the SQE1 Wills & Administration of Estates syllabus (FLK2) and can appear in single best answer questions.
How is administering & distributing the estate examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (AEA 1925 s.36 (assent of land), AEA 1925 s.41 (appropriation)) helps.