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Distributing the estate to beneficiaries is the final step of estate administration — but it requires careful preparation. Distributing too early, without proper receipts, or without settling all taxes and debts first, can expose you to personal liability. This guide explains what must be done before and during distribution. For the broader administration timeline, see our executor first steps guide.
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Before distributing a single penny to beneficiaries, confirm that all of the following are complete:
If the estate is large or administration is taking a long time, beneficiaries may ask for an interim distribution. This is permissible as long as you retain a contingency reserve — typically 10–15% of the estimated estate — to cover any debts or costs that have not yet been identified or finalised.
When making an interim distribution, clearly document it as such and obtain a receipt. Inform beneficiaries that the interim payment is not their final entitlement and that deductions may be made on the final distribution.
The will directs how the estate is distributed. Common distributions include:
Always obtain a signed receipt from each beneficiary confirming:
Without a receipt, a beneficiary could later claim they did not receive their share. Receipts are also needed for the estate accounts.
If the estate received income during administration (interest, dividends, rental income) and you have filed an SA900, you must issue each beneficiary with a form R185E (Estate income — certificate of deduction of income tax). This shows the beneficiary's proportionate share of estate income and the tax already paid.
Beneficiaries who are non-taxpayers may be able to reclaim tax from HMRC; higher rate taxpayers may owe additional tax. The R185E allows them to account for this on their personal tax return. You must issue R185E for each tax year in which the estate received income.
If a beneficiary is under 18, you cannot pay the inheritance directly to them. Options include:
If a beneficiary cannot be found, do not distribute their share to other beneficiaries. Options include:
For the full estate administration checklist, see our estate administration checklist. For preparing final accounts, see our guide to executor final accounts. Use our free estate administration tool to build your personalised task list.
What executor final accounts must contain, how to prepare them, the format to use, and when beneficiaries can demand them. UK estate administration guide 2026.
How to formally renounce the executor role. Form PA15, the point of no return, what happens when all executors renounce, and power reserved.
When to use a solicitor for estate administration. Simple DIY estates vs complex ones, typical solicitor fees, and the grant-only service option.
What actions executors can legally take before the Grant of Probate. Arranging the funeral, notifying organisations, and what cannot be done without a grant.
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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