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. The executor is the legal administrator of that estate, and their authority covers all estate assets including cash found in the home.
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. The Grant of Probate gives the executor authority to deal with all estate assets, including cash. Until the Grant is issued, the cash should be held safely and not distributed.
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 is typically reported as part of the deceased's monetary assets. For the probate application itself (PA1P or PA1A), cash is included in the gross estate value. Be accurate — if HMRC discovers that cash reported to be in the estate was not declared on the IHT return, there can be penalties.
Check our guide on the probate threshold for 2026–27 to understand whether a full IHT400 is needed.
This is a critical rule. Distributing any estate asset — including physical cash — before the Grant of Probate is issued and all debts and taxes have been paid creates personal liability for the executor. If you hand cash to a beneficiary early and it later turns out there are debts that cannot be paid from remaining estate funds, you may be personally liable to creditors for the amount you distributed.
Even if the beneficiary is pressing you, even if the amount seems small, and even if the will clearly specifies a cash bequest — wait until probate is granted and all liabilities are settled before distributing.
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 HMRC exchange rate for the date of death. HMRC publishes exchange rates for all major currencies at gov.uk exchange rates. Print the relevant rate page and keep it in your estate records as evidence of how you arrived at the sterling value.
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 must be declared on the probate application and the IHT return, and it cannot be distributed until probate is granted and all liabilities are settled.
Technically, this is distributing an estate asset before probate, which creates personal liability. However, in practice many banks and advisers accept that funeral costs are an immediate priority and that using a small amount of estate cash to cover funeral expenses is unlikely to cause problems, especially if the estate is clearly solvent. The safest approach is to open an executor account, deposit the cash, and pay the funeral costs from the executor account with a clear paper trail. See our guide to accessing funds to pay for the funeral.
Use your best estimate based on any evidence available: bank withdrawal records, the deceased's spending patterns, or the recollection of people who were present. Document your reasoning. HMRC understands that personal cash holdings are difficult to verify precisely — what matters is that you have made a reasonable, good faith effort to establish the value.
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 registered financial instruments held with NS&I. They must be reported to NS&I on death and are dealt with separately from physical cash. The bonds continue to be entered into prize draws for up to 12 months after death. See our guide on what counts as an asset for probate for more detail.
Comprehensive guide to what forms part of the probate estate — property, bank accounts, investments, pensions, life insurance, digital assets — and what passes outside probate.
When executors face personal liability. Distributing before paying debts, Section 27 Gazette notices, and when to consider an executor's bond.
Complete guide to filing IHT400 with HMRC: who needs to file, schedules required, step-by-step walkthrough, and common mistakes. IHT205 abolished from 2024.
Comprehensive estate administration checklist for UK executors. Step-by-step guide covering probate, asset collection, debt payment, and distribution with timelines.
Named as executor in a will? Learn your first 10 steps: registering the death, locating the will, valuing the estate, and applying for probate. UK 2026 guide.
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