Passing on property – The rules when it comes to transferring or selling property after a person’s death
Andy Noton, 6 May 2026
Andy Noton, 6 May 2026
When you are suddenly responsible for someone’s property after they have died, it is natural to wonder what you are supposed to do next.
Unless you have been through the process before, the paperwork and tax rules involved will likely be unfamiliar to you.
If your plans are to sell the property or transfer ownership of it, getting the right advice early can help avoid delays or unexpected issues.
You cannot sell or transfer ownership of a property belonging to the deceased without having the legal authority to do so.
How you go about obtaining this authority depends on whether the person left a valid Will.
If there is a Will, the executors apply for a Grant of Probate.
If there is not one, the next of kin will need to apply for Letters of Administration.
These documents will give the personal representatives the right to deal with the property.
Depending on the estate's complexity, the process typically takes 8–12 weeks, but delays or missing information can easily extend it to several months.
We encourage clients to manage expectations of how quickly they can get things moving to minimise frustrations.
A proper valuation is needed at the date of death so it can be used when applying for probate and when working out any tax due.
For smaller estates, an estate agent’s estimate may be enough. However, where the property is higher in value, a formal valuation from a surveyor is usually the safer option.
The property is often included in the estate when calculating any Inheritance Tax liability.
Whether tax is due depends on the estate's overall value and the allowances available.
The nil rate band is applied first, along with any residence nil rate band, where the property is left to direct descendants. Anything above these thresholds may be taxed at 40 per cent.
In some cases, IHT must be paid before probate is issued, but there may be an option to pay in instalments where a property is involved.
Once probate has been granted, the personal representatives can decide how to deal with the property.
If it is sold, the proceeds are paid into the estate and distributed as outlined in the Will or via the intestacy rules.
If the property has increased in value since the date of death, there may be Capital Gains Tax (CGT) to pay on that increase.
If ownership of the property is transferred to a beneficiary, this is done through an assent. There is no Capital Gains Tax at this stage, as the transfer is treated as taking place at the probate value.
That value becomes the beneficiary’s base cost for any future sale.
If the property is rented out before it is sold or transferred, any rental income must be reported to HMRC.
The estate is responsible for paying Income Tax on that income during the administration period. Once ownership has passed to the beneficiary, any future income is taxed on them instead.
How the property was owned will affect what happens next.
If it were held as joint tenants, it would pass automatically to the surviving owner and would not form part of the estate for probate.
If it were held as tenants in common, the deceased’s share passes under the will or intestacy rules and must go through the estate.
Delays can arise, especially where probate takes time or there are disagreements between beneficiaries.
Keeping accurate records and taking advice early can help avoid problems later.
Dealing with property after a death can be complex, particularly where probate, tax and legal considerations overlap.
Our advisers can support you with:
If you have any questions about selling or transferring property, please get in touch with our property Partner Andy Noton (andrewnoton@lubbockfine.co.uk).
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