How executors pay beneficiaries of a will

The order things get paid in

An executor cannot pay the people named in the will first and settle the bills afterwards. There is an order, and getting it wrong makes the executor personally liable for the shortfall.

Reasonable funeral expenses come first, then the costs of administering the estate, including the probate fee, valuations, and the solicitor's charges where one is instructed. Then secured debts against the property securing them. Then preferred debts, then ordinary unsecured debts — credit cards, utilities, care fees, anything owed to HMRC.

Inheritance tax comes early in the order. Where tax is due it generally has to be paid before the grant is issued, so it comes out of the estate before anybody is thinking about distribution.

Only once everything owed has been paid or provided for does the will take effect: specific gifts of particular items, then pecuniary legacies of fixed sums, then the residue divided as the will directs.

Where the estate cannot pay everything, it is insolvent and a different statutory order applies. An executor who suspects that should stop and take advice before paying anybody, because paying an ordinary creditor ahead of a preferred one is the executor's problem.

The two waiting periods

Two separate periods explain why distribution takes time.

The creditor advertisement. Section 27 of the Trustee Act 1925 lets an executor advertise in the London Gazette and in a newspaper circulating where any land is held, giving creditors at least two months to come forward. Having advertised and waited, the executor can distribute without personal liability for debts they did not know about. Skipping it leaves the executor exposed to a creditor who appears after the money has gone.

The six months from the grant. A claim under the Inheritance (Provision for Family and Dependants) Act 1975 has to be brought within six months of the date the grant is first taken out. An executor who distributes inside that window and then faces a successful claim can be ordered to make up the difference personally.

Neither period is a rule that the estate must not be distributed, and both are protections the executor would be unwise to give up. A beneficiary pressing for early payment is asking the executor to take a personal risk on their behalf.

How long the executor has to pay beneficiaries

There is no fixed deadline for paying beneficiaries. Section 44 of the Administration of Estates Act 1925 provides that a personal representative is not bound to distribute the estate before the end of one year from the death. That is the executor's year, and it is the reason families are told to expect twelve months.

The executor's year is a protection for the executor. Within it, a beneficiary cannot insist on payment. After it, the executor is expected to be able to explain what is left to do and why. A straightforward estate with a house to sell, a few bank accounts and no inheritance tax can often be distributed within the year. An estate with a business, a property that will not sell, an HMRC enquiry or a claim under the 1975 Act can reasonably take longer.

The year also matters for money. A general pecuniary legacy that is still unpaid after the first anniversary of the death normally carries interest from that date until it is paid, so a delayed legacy costs the residuary beneficiaries.

Interim distributions

Estates are often paid out in stages. Once the value is known, the tax is settled and the main risks have passed, executors commonly make an interim distribution and hold a reserve back.

The reserve covers what is still uncertain: an HMRC enquiry into the inheritance tax account, income tax for the administration period, a property that has not sold, or a claim that has been intimated. The size of it is a judgement, and an executor who holds too much back for too long is as open to criticism as one who holds nothing.

A sensible interim distribution is accompanied by a short note saying what has been paid, what is being retained and why, and when the position will be reviewed. Most complaints about executors come from silence, and not from delay.

How the money is paid to beneficiaries

The mechanics are simpler than the timing. The executor collects everything into an executorship account or, where a solicitor acts, the firm's client account. Assets are sold or transferred, debts and tax are paid from it, and distributions go out by bank transfer to each beneficiary.

Before paying, an executor will confirm identity and bank details, and will usually insist on confirming account details by a separate channel. Redirection fraud against estate distributions is common, and a transfer made to a fraudulent account on an emailed instruction is money the executor may have to replace.

Assets can also be transferred in specie, with shares moved into a beneficiary's name or a property transferred to them, so nothing is sold. That can save capital gains tax and costs where the beneficiary wants the asset, and it needs the executor's agreement since they are responsible for realising the estate.

When an executor can withhold money from a beneficiary

An executor in the UK can withhold money from a beneficiary for as long as there is a good reason connected with the administration, and not otherwise. The executor's duty is to administer the estate and distribute it according to the will or the intestacy rules. Holding money back is part of that duty where it protects the estate, and a breach of it where it does not.

Legitimate reasons include debts and tax still to be paid, a reserve for an HMRC enquiry or income tax for the administration period, the six-month window for a claim under the 1975 Act, a creditor advertisement that has not expired, a claim against the estate that has been intimated, a dispute about the validity of the will, and a beneficiary under 18 who cannot give a valid receipt. In each case the executor should be able to say what is being held, why, and until when.

An executor cannot withhold a beneficiary's share because of a family disagreement, to pressure the beneficiary into agreeing to something, or because the executor would like to keep an asset. Nor can an executor who is also a beneficiary favour their own share. A beneficiary who believes money is being withheld without reason should ask in writing for the reason and for estate accounts to date, and if that produces nothing, the court can order an inventory and account, and in a serious case remove the executor.

Whether the executor gets paid

The executor of an estate does not get paid for their time unless the will allows it or they act in a professional capacity. A family member acting as executor is entitled to be reimbursed from the estate for expenses incurred in the administration, such as travel, postage, court fees and professional advice, under section 31 of the Trustee Act 2000, which section 35 applies to personal representatives. A will sometimes leaves the executor a legacy in recognition of the work, and that legacy is the executor's to keep.

A professional executor, such as a solicitor or a trust corporation, can charge where the will contains a charging clause, under section 28 of the Trustee Act 2000. Where there is no charging clause, section 29 allows a trust corporation to receive reasonable remuneration, and allows a professional acting in a professional capacity to be paid where each other executor agrees in writing, but it does not apply to a sole professional executor. Professional charges are a cost of administration and come out of the estate before the beneficiaries are paid.

Residuary beneficiaries are entitled to see those charges in the estate accounts. A beneficiary who thinks the charges are too high can raise it with the executor, and an executor instructing a solicitor should ask for an estimate of costs at the outset.

Legacies, residue and interest

A specific legacy is a particular thing: a named painting, a car, shares in a named company. It passes as it is, and if it no longer exists at the death the gift fails.

A pecuniary legacy is a fixed sum of money. These are paid before the residue is worked out, and they are paid in full unless the estate cannot meet them, in which case they abate proportionately.

The residue is everything left after debts, tax, costs, specific gifts and legacies. Residuary beneficiaries carry the risk of the estate being worth less than expected, and they receive whatever is left.

Where the estate is short, the residuary beneficiaries receive less, or nothing, before any legacy is reduced.

Estate accounts and receipts

At the end of the administration the executor prepares estate accounts showing what came in, what went out and how the residue was divided.

A residuary beneficiary is entitled to see them, because they have an interest in the whole. A beneficiary of a fixed legacy generally is not: they are entitled to their legacy and to know it has been paid, and they have no right to inspect the rest of the estate.

Executors normally ask residuary beneficiaries to approve the accounts and sign a receipt before the final payment. Signing is not compulsory, and a beneficiary who does not understand an entry should ask before signing.

Beneficiaries under 18, missing or abroad

A beneficiary under 18 cannot give a valid receipt, so the executor cannot simply pay the money over. The will usually directs that the share is held on trust until a stated age, and where it does not, the executors hold it as trustees until the beneficiary is 18.

A beneficiary who cannot be traced is a common cause of delay. The executor can instruct a tracing agent, take out missing beneficiary insurance, or apply to the court for an order allowing distribution on the footing that the person is dead or cannot be found. Distributing and hoping is the one option that is not available.

A beneficiary abroad adds identity checks and, in some countries, withholding or reporting obligations. It does not change entitlement, and it can change the timetable.

Where a beneficiary lacks mental capacity, payment has to go to somebody with authority to receive it, which means an attorney under a registered lasting power of attorney or a deputy appointed by the Court of Protection.

The tax that holds estates up

Two tax positions run past the grant and can delay a final distribution.

Inheritance tax. The account filed before the grant is an estimate in places, particularly on property and private company shares. HMRC can open an enquiry, and until clearance is obtained the executor does not know the final figure. Clearance is applied for once the administration is otherwise complete, and it takes time. An executor who distributes everything and then receives a determination has to find the money.

Income and capital gains during the administration. The estate is a separate taxable entity between the death and the final distribution. Rent, interest and dividends arising in that period are taxed on the estate, and beneficiaries receive a statement showing what was paid on their behalf. If assets are sold for more than their value at the date of death, the estate pays capital gains tax on the difference, with its own annual exempt amount.

That second point drives a practical decision. Where an asset has risen since the death and the beneficiary wants it anyway, transferring it to them instead of selling it can avoid a gain arising in the estate. Where it has fallen, selling within the estate may allow relief against the inheritance tax paid. Which is better depends on the figures, and it should be worked out before anything is sold.

What to do if an executor is not paying

Start by asking in writing for a progress update and, if the administration has been going on for more than a year, for a copy of the estate accounts to date.

If nothing comes back, a beneficiary can apply to the court for an inventory and account, which requires the executor to set out what the estate held and what has been done with it. That is usually enough on its own.

Where an executor is failing to progress the estate, has a conflict of interest or has become incapable, an application can be made to remove and replace them under section 50 of the Administration of Justice Act 1985. It is a serious step and the costs often come out of the estate, which reduces what everybody receives.

Where the complaint is against a solicitor acting in the estate, the firm's own complaints procedure comes first, and the Legal Ombudsman after that.

If you are an executor deciding when and how to pay the beneficiaries, or a beneficiary waiting for payment, send us the will, the grant of probate if it has issued, and any correspondence about the estate. We will tell you what can be paid now, what should be held back and for how long, and what to do next.

Frequently asked questions

How long does the executor have to pay the beneficiaries?

There is no fixed deadline. Section 44 of the Administration of Estates Act 1925 says a personal representative is not bound to distribute the estate before one year from the death, which is the executor's year and the reason families are told to expect twelve months. A complicated estate can reasonably take longer. A general pecuniary legacy still unpaid after the first anniversary of the death normally carries interest from that date until it is paid.

Can an executor withhold money from a beneficiary in the UK?

Only for a reason connected with running the estate. An executor can hold money back to pay debts, tax and costs, to keep a reserve for an HMRC enquiry, while the six-month window for a 1975 Act claim is open, or while a claim or a dispute about the will is unresolved. An executor cannot withhold a share because of a family disagreement or to put pressure on a beneficiary. Ask in writing for the reason and for estate accounts, and the court can order an inventory and account.

Does the executor of an estate get paid?

Not for their time, unless the will allows it or they act professionally. A lay executor can be reimbursed from the estate for expenses incurred in the administration under section 31 of the Trustee Act 2000, applied to executors by section 35. A professional executor can charge under a charging clause in the will, and without one a trust corporation, or a professional acting alongside other executors who agree in writing, can receive reasonable remuneration under section 29. Charges come out of the estate before distribution.

Why do executors wait six months after probate?

Because a claim under the Inheritance (Provision for Family and Dependants) Act 1975 has to be brought within six months of the grant being taken out. An executor who distributes inside that window and then faces a successful claim can be ordered to make up the shortfall personally. Separately, executors advertise for creditors under section 27 of the Trustee Act 1925 and wait at least two months, which protects them against debts they did not know about.

Can I get some of my inheritance early?

Often yes, through an interim distribution. Once the estate value is known, inheritance tax is settled and the main risks have passed, executors commonly pay out part and hold a reserve back for an HMRC enquiry, income tax for the administration period, an unsold property or an intimated claim. Asking for payment before the protective periods have run is asking the executor to take a personal risk on your behalf.

Am I entitled to see the estate accounts?

If you are a residuary beneficiary, yes, because you have an interest in the whole estate. If you were left a fixed sum or a specific item, generally no: you are entitled to receive your legacy and to know it has been paid, and you have no right to inspect the rest. If an executor will not engage, you can apply to the court for an inventory and account.

What gets paid before the beneficiaries?

Reasonable funeral expenses, then the costs of administering the estate including the probate fee and any professional charges, then secured debts against the assets securing them, then preferred and ordinary debts such as credit cards, utilities, care fees and anything owed to HMRC. Inheritance tax generally has to be paid before the grant is issued. Only then do specific gifts, fixed legacies and the residue get paid.

What happens if a beneficiary cannot be found?

The executor cannot simply distribute and hope. The options are to instruct a tracing agent, take out missing beneficiary insurance so the estate is covered if the person appears later, or apply to the court for an order permitting distribution on the basis that they cannot be found. Distributing without one of those protections leaves the executor personally exposed if the beneficiary turns up afterwards.

Sources & further reading

• Trustee Act 1925, section 27
• Inheritance (Provision for Family and Dependants) Act 1975
• Administration of Estates Act 1925, section 44: the executor's year
• GOV.UK: applying for probate
• Administration of Justice Act 1985, section 50
• Trustee Act 2000, Part V: remuneration and expenses (sections 28 to 33)
• Trustee Act 2000, section 35: personal representatives

This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 29 September 2026. AD Solicitors Limited is a recognised body regulated by the SRA (no. 8011228).