Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
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Finding cash in a deceased person's home is more common than many people expect — some older individuals kept significant amounts of notes at home rather than in banks. Whatever the amount, cash belonging to the deceased is an estate asset. It belongs to the estate, not to whoever finds it, and the executor has a legal duty to account for it properly. The steps are straightforward: count it, document it, secure it, and declare it.
When someone dies, all their solely-owned assets — including physical cash — become part of their estate. In England and Wales an executor named in the will derives authority from the will itself, and the grant of probate proves it; an administrator, where there is no will or no willing executor, has no authority until the grant of letters of administration is issued. In Scotland, where the grant is confirmation, an executor has no title to deal with the estate until confirmation is granted.
This means:
Read our guide to what counts as an asset for probate for a comprehensive overview of what must be included in the estate.
Yes. Cash owned solely by the deceased forms part of their legal estate and is subject to the probate process. Until the estate's debts and tax are settled, the cash should be held safely and not distributed. Banks and other institutions will normally want to see the grant before releasing anything they hold, which in practice sets the pace for the rest of the administration.
The only exception would be if the cash was jointly owned — for example, if it was kept in a joint tin that clearly belonged to both the deceased and another person. Joint ownership of physical cash is difficult to establish and is a matter for legal advice if genuinely in dispute.
The best practice is to deposit all estate cash — including physical cash found in the home — into a dedicated executor account. This is a bank account opened in the name of the estate (typically styled as "The Estate of [Deceased's Name]") for the purpose of receiving estate funds and paying estate liabilities.
Keeping estate funds separate from your personal funds is an important safeguard. It protects you from allegations of misusing estate money and makes the final estate accounts much easier to prepare. Most high street banks offer executor accounts — contact their bereavement service to set one up.
When depositing cash, make a note in your estate records: "Cash found at [address] on [date]: £[amount]. Deposited into executor account [account number] on [date]."
Cash is included in the gross estate for inheritance tax purposes. There is no exemption for physical cash — it is treated the same as money in a bank account.
If the estate requires a full IHT400 return, cash goes in box 53 on the main form. There is no separate schedule for it. HMRC's notes say box 53 takes:
In England and Wales the probate application (PA1P or PA1A) also asks for the gross estate value, which includes the cash. In Northern Ireland the equivalent forms are NIPF1 and NIPF2; in Scotland the values go on form C1, ‘Inventory’, with the application for confirmation.
Check our guide on the probate threshold for 2026–27 to understand whether a full IHT400 is needed.
The risk is not that distributing early is unlawful in itself. It is that the executor carries the consequences. Hand cash to a beneficiary before the estate's debts and tax are settled, and if there is then not enough left to pay a creditor, you may be personally liable for the shortfall out of your own money.
Two further reasons to hold. HMRC needs the date-of-death figure, and cash that has already been handed out is harder to establish. And IHT403 records that a year after the death, executors and administrators become jointly liable for the tax on the deceased's lifetime gifts — a liability that can arrive after the estate looks settled.
If the deceased had foreign currency cash at home — euros, US dollars, or any other currency — it must be included in the estate at its sterling equivalent on the date of death.
Use the closing mid-price at the date of death. That is the basis HMRC's IHT400 notes set out for foreign-currency traveller's cheques, and it is the sensible basis for foreign notes too. HMRC does not require a particular source: its notes say “You can find currency conversions in the financial pages of a daily newspaper or you may also find this information on the internet.” Whatever you use, print it and keep it in your estate records as evidence of how you arrived at the sterling value.
HMRC's published exchange rates for customs and VAT are a different set of rates for a different purpose — do not use those.
Foreign cash can typically be exchanged at a bank or currency exchange after probate is granted.
This is a serious problem. If family members helped themselves to cash from the deceased's home before you arrived as executor — or even after — that cash was an estate asset and taking it without authority was not lawful.
As executor, you have a duty to the beneficiaries of the estate to account for all assets. If cash has been taken, your options include:
Do not ignore it. If the cash is not accounted for and the estate accounts do not balance, questions will be asked — both by beneficiaries and potentially by HMRC.
If the will includes specific cash bequests — for example, "I give £1,000 to my neighbour John Smith" — these are pecuniary legacies that must be paid from the estate after probate is granted and after all debts and taxes are paid. Physical cash found in the home is pooled into the general estate and can be used to satisfy cash legacies — it does not automatically go to the named person.
If the deceased had a safe deposit box at a bank or other secure facility, the contents — which may include cash, jewellery, documents, or other valuables — are estate assets. Access to a safe deposit box on death typically requires either:
Contact the bank holding the safe deposit box early in the estate administration process. They will advise on their specific requirements for access. Do not attempt to access the box before you are properly authorised. For a full overview of the steps that follow the grant, see our guide to what to do after the grant of probate.
Yes. Any cash belonging to the deceased — whether found in a wallet, under the mattress, or in a tin — is part of the estate. It goes in the gross estate on the probate application and, where a full account is needed, in box 53 of the IHT400. It should not be distributed until the liabilities are settled.
Paying the funeral out of estate cash is not distributing to a beneficiary — the funeral is an estate expense. HMRC treats it as one: box 81 of the IHT400 allows a deduction for funeral costs and reasonable mourning expenses, including a headstone, flowers, refreshments for mourners after the service and the executor's necessary expenses in arranging it. Keep the paper trail clean: deposit the cash in the executor account and pay the funeral from there. See our guide to accessing funds to pay for the funeral.
Use your best estimate based on the evidence available: bank withdrawal records, the deceased's spending patterns, or the recollection of people who were present. Document your reasoning. If the figure is provisional, say so — HMRC's notes make it the executor's responsibility to “tell us what the final figures are as soon as you know them”. Penalties under Schedule 24 to the Finance Act 2007 turn on behaviour, and there is none where reasonable care was taken.
No, not routinely. Cash found at home is presumed to belong to the deceased and forms part of the estate. There is no legal requirement to report it to the police unless you have reason to believe the cash was obtained through criminal activity — for example, if there are signs of drug dealing or other illegal conduct. In those circumstances, seek legal advice immediately before handling the cash.
No. Premium Bonds are not cash. They are National Savings and Investments products, listed on Schedule IHT406 and totalled into box 54 of the IHT400 — a different box from cash at box 53. They continue to take part in prize draws for 12 months after the death unless cashed in sooner. See our guide on what counts as an asset for probate for more detail.
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