Closing Accounts After Distribution: Completing Estate Administration

Making the final distribution

Before closing the administration, the executor must be satisfied that:

• All assets have been collected and realised
• All debts and liabilities have been paid
• All IHT, income tax, and CGT obligations have been settled
• Estate accounts have been prepared and approved by beneficiaries — see our estate accounts guide
• All specific legacies and pecuniary legacies have been paid — see our distributing the residuary estate guide
• Signed receipts have been obtained from all beneficiaries — see our beneficiary receipt guide

Closing the estate bank account

Once the final distribution has been made and receipts obtained, the estate bank account should be closed. The executor requests the closing balance — which should be zero or near-zero after final distribution — and closes the account.

If there is an unexpectedly small balance remaining after distribution (e.g., due to bank charges or rounding), the executor should arrange for this to be distributed to the residuary beneficiaries and obtain updated receipts before closing the account.

Retain the final bank statements and closing confirmation letter with the estate records.

Notifying HMRC

If the estate was registered for Self Assessment (i.e., SA900 returns were being filed), the executor must notify HMRC that the administration is now complete. Write to HMRC with:

• The estate's UTR (Unique Taxpayer Reference)
• The deceased's name, date of death, and NI number
• Confirmation that the administration period has ended and all income has been distributed to beneficiaries
• The date of final distribution

HMRC will deregister the estate from Self Assessment. They may request a final SA900 return for the partial tax year in which the administration closed. See our SA900 guide for the return process.

For CGT on any property sales, ensure all 60-day returns have been filed and tax paid. See our CGT on inherited assets guide.

IHT clearance certificate

If the estate paid inheritance tax, the executor may wish to obtain a formal clearance certificate (IHT30) from HMRC Inheritance Tax, confirming that all IHT due on the estate has been settled. This provides additional comfort before closing the administration.

Note that IHT clearance does not cover lifetime gifts made by the deceased — HMRC can still raise queries about such gifts for up to 20 years. However, for the estate itself, the IHT30 provides closure.

Issuing R185 forms

Before closing, the executor should ensure that all R185 (Estate Income) forms have been issued to beneficiaries for any income distributed during the administration. Beneficiaries need these to complete their own tax returns. See our income tax estate administration guide.

Record retention

The executor must retain all estate records for at least 12 years after the administration is closed. The 12-year limitation period applies to most claims under a deed (including executor liability claims in some circumstances). For simple money claims, the period is 6 years, but 12 years is the safe standard.

Records to retain include:

• The original will and grant of probate
• All estate accounts and supporting schedules
• Bank statements for the estate account
• Asset closing statements and sale completion documents
• All HMRC correspondence (IHT, income tax, CGT)
• Signed beneficiary receipts
• The Gazette notice (if placed)
• Any correspondence with creditors, beneficiaries, or solicitors

The executor's ongoing liability

Distribution does not end the executor's liability. The executor remains personally liable for the following until the limitation period expires:

• Claims from beneficiaries that they received too little or the wrong assets
• Claims from creditors who did not receive notice (where no Gazette notice was placed)
• HMRC claims for underpaid IHT or income tax
• Claims relating to the administration of any trust created by the will

Obtaining signed approval of the estate accounts before distributing is the best protection. If a beneficiary approved the accounts and signed a receipt, it is very difficult for them to later claim the distribution was wrong.

For the formal process of stepping down as executor and the ongoing liability position, see our stepping down as executor guide.

For the full post-grant process, see our what to do after grant of probate guide and estate administration checklist. For the full probate context, see our complete UK probate guide 2026. Farra can help — get started here.