Are funeral costs included as estate liabilities?

Funeral expenses are usually paid from the estate and should be recorded as an estate liability, provided they are reasonable and properly evidenced.

Should tax debts be included in the estate inventory?

Yes. Any Income Tax, Capital Gains Tax or Inheritance Tax due by the deceased or the estate should be recorded as a liability where applicable.

How do I find the deceased person’s debts?

Use statements, invoices, credit agreements, mortgage balances, care home accounts, HMRC correspondence and creditor letters to identify and evidence debts.

Who is responsible for listing estate debts?

The personal representatives, such as executors or administrators, are responsible for identifying, recording and paying valid estate debts.

Do beneficiaries have to pay the deceased’s debts?

Generally, debts must be paid from the estate before assets are distributed to beneficiaries. Beneficiaries are not usually personally liable unless they received assets too early.

What happens if the estate cannot pay its debts?

If the estate does not have enough assets to pay all debts, it may be insolvent. Executors should seek legal advice before paying creditors or distributing assets.

How are debts valued for an estate inventory?

Debts should be valued at the amount outstanding at the date of death, using lender statements or written confirmation from creditors where possible.

Should liabilities be shown separately from assets?

Yes. A complete Inventory of Assets should show both assets and liabilities so the net estate value can be calculated accurately.

Can an AI tool help create an estate inventory for the UK?

Yes. Our AI estate inventory document generator can help you structure an Inventory of Assets in English for use in the United Kingdom, including sections for liabilities and debts.

Where can I generate an Inventory of Assets document?

You can create the main estate inventory document using the estate inventory category page linked from this guide.

EN-GB>Wills>Inventory of Assets>Estate Inventory Liabilities In Britain

Estate Inventory Liabilities And Debts In Britain

Created: 9 Jun 2026

Understand how estate liabilities and debts affect asset valuation and probate planning. This dataset helps readers review obligations alongside the AI Generated British Inventory of Assets for clearer estate analysis.

Liability Category	Typical Examples	Evidence to Check	Timing of Liability	Inventory Recording Notes
Residential mortgage
Secured Debt	Main home mortgage, buy-to-let mortgage, further advance	Mortgage statement, redemption statement, title register, lender correspondence	Both before and after death	Record balance at death and note property secured track post-death interest separately.
Equity release or lifetime mortgage
Secured Debt	Lifetime mortgage, home reversion balance, rolled-up interest	Equity release agreement, annual statement, redemption figure, legal charge	Both before and after death	Record lender redemption amount rolled-up interest may increase after death.
Second charge or secured loan
Secured Debt	Homeowner loan, secured consolidation loan, second mortgage	Loan agreement, charge register, lender statement, redemption quote	Both before and after death	List separately from first mortgage and identify the secured property.
Bridging loan
Secured Debt	Short-term property loan, auction purchase finance, refinance bridge	Facility letter, charge register, lender payoff statement, solicitor file	Both before and after death	Note high interest and expiry date update balance before sale or distribution.
Hire purchase debt
Secured Debt	Car hire purchase, furniture finance, appliance finance	Finance agreement, payment schedule, settlement figure, vehicle documents	Both before and after death	Record settlement balance and note asset may not be owned outright.
Conditional sale finance
Secured Debt	Vehicle conditional sale, retail goods finance	Agreement, settlement quote, statement of account, dealer paperwork	Both before and after death	Check ownership terms before listing the financed asset as estate property.
Personal contract purchase finance
Secured Debt	PCP car agreement, balloon payment, excess mileage charge	PCP agreement, finance statement, settlement figure, mileage records	Both before and after death	Record settlement sum and any return charges asset ownership may be conditional.
Pawnbroker loan
Secured Debt	Loan secured on jewellery, watches, antiques or valuables	Pawn receipt, credit agreement, redemption notice, valuation receipt	Before death	Record loan and note pledged item if recoverable by the estate.
Credit card balance
Unsecured Debt	Visa, Mastercard, store card, unpaid interest and charges	Card statements, creditor claim, online account, final balance letter	Before death	Use date-of-death balance exclude later fraud or unauthorised use.
Personal loan
Unsecured Debt	Bank loan, debt consolidation loan, peer-to-peer loan	Loan agreement, annual statement, settlement figure, bank payments	Before death	Record capital, interest and charges outstanding at death.
Bank overdraft
Unsecured Debt	Current account overdraft, arranged overdraft, unarranged overdraft charges	Final bank statement, bank confirmation, account closure letter	Before death	Record negative account balance separately from positive accounts.
Store card or retail credit
Unsecured Debt	Department store card, catalogue account, retail instalment plan	Monthly statements, online account, creditor balance confirmation	Before death	Record confirmed balance and identify any disputed purchases.
Catalogue shopping debt
Unsecured Debt	Mail order account, online catalogue credit, buy-now-pay-later catalogue balance	Statements, email invoices, online account, direct debit records	Before death	Check whether goods were returned or delivered after death.
Buy now pay later balance
Unsecured Debt	Deferred payment, instalment shopping balance, interest-free retail credit	App account, email invoices, bank payments, retailer order history	Before death	Record unpaid instalments for goods ordered before death.
Payday loan
Unsecured Debt	Short-term loan, high-cost credit, continuous payment authority debt	Loan agreement, creditor statement, bank card payments, email notices	Before death	Confirm capped charges and stop recurring payment attempts where appropriate.
Family or friend loan
Unsecured Debt	Private loan, unpaid IOU, family advance, agreed repayment balance	Written agreement, messages, bank transfers, repayment records	Before death	Require evidence distinguish loan from lifetime gift or moral obligation.
Guarantee or indemnity liability
Unsecured Debt	Business loan guarantee, rent guarantee, personal indemnity	Guarantee deed, lender demand, underlying loan statement, legal advice file	Both before and after death	Record contingent liability separately until liability and amount are confirmed.
County Court judgment debt
Unsecured Debt	CCJ, High Court judgment, enforcement costs, statutory interest	Court order, judgment register, claimant correspondence, enforcement notice	Before death	Record judgment amount plus enforceable interest and costs to death.
Rent arrears
Unsecured Debt	Residential rent, ground rent arrears, commercial rent, storage unit rent	Tenancy agreement, rent account, landlord statement, bank payments	Both before and after death	Split arrears at death from occupation or notice-period rent after death.
Service charge arrears
Household Bill	Leasehold service charge, reserve fund demand, estate management charge	Managing agent statement, lease, demands, completion statement	Both before and after death	Apportion pre-death arrears and post-death demands where possible.
Ground rent arrears
Household Bill	Leasehold ground rent, estate rentcharge, historic arrears	Ground rent demand, lease, freeholder account, managing agent statement	Both before and after death	Record arrears due at death keep later rent as estate expense.
Care home fees
Unsecured Debt	Residential care fees, nursing home fees, top-up fees, final invoice	Care contract, invoices, local authority assessment, care provider statement	Before death	Record unpaid fees to date of death and verify any local authority contribution.
Deferred payment agreement for care
Secured Debt	Local authority deferred care fees secured on home	Deferred payment agreement, council statement, legal charge, care fee account	Both before and after death	Record council balance and any secured interest or administration charges.
Home care fees
Unsecured Debt	Domiciliary care invoices, agency care fees, personal assistant wages	Care plan, invoices, timesheets, local authority statements	Before death	Record unpaid pre-death care costs check direct payment balances.
Medical or private healthcare bills
Unsecured Debt	Private hospital bill, consultant fees, dental treatment, prescriptions	Invoices, insurance correspondence, treatment agreement, receipts	Before death	Deduct only unpaid charges not covered by insurance or NHS funding.
Employee or carer wages owed
Unsecured Debt	Domestic worker wages, carer wages, holiday pay, PAYE deductions	Payslips, contract, timesheets, PAYE records, bank payments	Before death	Record gross wages and related PAYE or National Insurance liabilities.
Business trade creditors
Unsecured Debt	Supplier invoices, contractor bills, stock purchases, professional subscriptions	Accounts payable ledger, invoices, statements, business bank records	Before death	Record business debts separately and avoid double-counting in business valuation.
Partnership liability
Unsecured Debt	Partnership overdraft, supplier debts, tax debts, lease obligations	Partnership agreement, accounts, creditor statements, bank facilities	Both before and after death	Record deceased partner share or personal liability after reviewing agreement.
Sole trader liabilities
Unsecured Debt	Supplier debts, business loans, unpaid expenses, customer refunds	Business accounts, invoices, bank statements, accountant correspondence	Before death	Include personal liability of sole trader reconcile with business asset value.
Overdrawn director loan account
Unsecured Debt	Money owed by deceased director to company	Company accounts, director loan ledger, board minutes, accountant letter	Before death	Record amount owed to company distinguish from shares owned by estate.
Income Tax due to HMRC
Tax	PAYE underpayment, self assessment tax, tax on pension or rental income	HMRC calculation, Self Assessment return, P45, P60, pension statements	Before death	Record tax due to date of death separate estate income tax after death.
Capital Gains Tax due before death
Tax	Unpaid CGT on property, shares, cryptoassets or business assets sold before death	CGT return, conveyancing statement, contract notes, HMRC account	Before death	Include unpaid CGT from disposals before death death itself is not a CGT disposal.
Estate Capital Gains Tax after death
Tax	CGT on estate property or share sale during administration	Sale completion statement, probate value, tax return, accountant calculation	After death	Record as administration tax, not date-of-death debt.
Inheritance Tax
Tax	IHT on estate, failed PETs, chargeable lifetime transfers, instalment interest	IHT400, IHT421, HMRC payment reference, valuation schedules	After death	Record separately from debts deducted to calculate taxable estate.
Inheritance Tax statutory charge
Tax	Tax charged on transfers of value and death estate	Inheritance Tax Act 1984, HMRC IHT account, grant papers	After death	Use for legal basis calculate amount using HMRC forms and reliefs.
VAT due to HMRC
Tax	Unpaid VAT return, late payment interest, VAT assessment	VAT returns, HMRC account, Making Tax Digital records, accountant letter	Before death	Include if deceased was sole trader or personally liable business owner.
National Insurance contributions due
Tax	Class 2, Class 4, employer NIC, PAYE settlement	Self Assessment return, payroll records, HMRC statement, accountant letter	Before death	Record unpaid personal or employer NIC to date of death.
PAYE owed as employer
Tax	PAYE income tax, employee NIC, employer NIC, payroll penalties	Payroll records, HMRC PAYE account, RTI submissions, payslips	Before death	Include where deceased employed carers, domestic staff or business employees.
Council Tax arrears
Tax	Unpaid council tax, liability order costs, empty property charge	Council tax bill, final account, local authority letter, bank payments	Both before and after death	Split pre-death arrears from post-death property charges and exemptions.
Business rates arrears
Tax	Shop rates, office rates, workshop rates, enforcement costs	Rates bill, council statement, lease, business accounts	Both before and after death	Record personal liability where deceased occupied or traded from premises.
Stamp Duty Land Tax due
Tax	Unpaid SDLT on property purchase completed before death	SDLT return, conveyancing completion statement, HMRC letter, solicitor file	Before death	Include only if liability arose before death and remains unpaid.
Land and Buildings Transaction Tax due
Tax	Unpaid LBTT on Scottish property transaction before death	LBTT return, Revenue Scotland correspondence, solicitor statement	Before death	Use for Scottish property transactions do not mix with SDLT.
Land Transaction Tax due
Tax	Unpaid LTT on Welsh property transaction before death	LTT return, Welsh Revenue Authority correspondence, solicitor statement	Before death	Use for Welsh property transactions do not mix with SDLT.
Gas and electricity arrears
Household Bill	Unpaid gas bill, electricity bill, standing charges, final meter read balance	Final bill, meter readings, online account, direct debit history	Both before and after death	Record arrears to death ongoing standing charges are estate expenses.
Water and sewerage charges
Household Bill	Water bill, sewerage bill, metered charges, standing charges	Final bill, meter reading, supplier account, bank payments	Both before and after death	Apportion charges to date of death where supplier bill spans periods.
Telephone, broadband and TV arrears
Household Bill	Mobile contract, landline, broadband, TV package, early termination fee	Final bill, contract, online account, cancellation confirmation	Both before and after death	Record arrears and contractual charges challenge inappropriate post-death fees.
TV licence balance
Household Bill	Unpaid licence fee, instalment plan balance	TV Licensing letter, payment plan, bank records, refund notice	Both before and after death	Check for refund if licence no longer needed after death.
Insurance premium arrears
Household Bill	Home, car, contents, pet, private medical or life policy premiums	Policy schedule, direct debit record, insurer statement, cancellation notice	Both before and after death	Record unpaid premiums maintain necessary estate property insurance separately.
Subscriptions and memberships
Household Bill	Gym, clubs, newspapers, streaming, professional body subscriptions	Bank statements, app accounts, invoices, membership emails	Both before and after death	Cancel promptly record only enforceable arrears or notice-period charges.
Parking or traffic penalties
Other	Penalty Charge Notice, congestion charge, ULEZ charge, private parking charge	Penalty notice, enforcement letter, vehicle records, council portal	Before death	Check whether charge is enforceable and arose before death.
Court fines or compensation orders
Other	Magistrates court fine, victim compensation order, prosecution costs	Court notice, fines officer letter, enforcement letter, solicitor file	Before death	Confirm enforceability against the estate before payment.
Child maintenance arrears
Unsecured Debt	CMS arrears, court-ordered maintenance arrears, collection fees	CMS statement, court order, payment schedule, correspondence	Before death	Record arrears accrued before death future maintenance usually ends at death.
Spousal or family maintenance arrears
Unsecured Debt	Maintenance order arrears, periodical payments arrears, consent order arrears	Court order, consent order, payment records, solicitor correspondence	Before death	Record arrears due at death check order terms for survival or variation.
Divorce financial order debt
Unsecured Debt	Lump sum order, costs order, property adjustment payment	Financial remedy order, consent order, payment receipts, solicitor file	Before death	Record enforceable unpaid sums take advice if order terms are conditional.
Legal costs order payable
Unsecured Debt	Adverse costs order, assessed costs, interim costs payment	Court order, bill of costs, assessment certificate, solicitor correspondence	Before death	Record confirmed costs treat disputed or unassessed costs as contingent.
Pending claim against deceased
Other	Contract claim, negligence claim, property dispute, debt claim	Claim form, letter before action, solicitor file, insurance correspondence	Both before and after death	Record as contingent or disputed until settlement or judgment.
Personal injury claim liability
Other	Accident claim, employer liability claim, occupiers liability claim	Claim letter, insurer file, accident report, solicitor correspondence	Both before and after death	Check insurance cover before reserving estate funds.
Tenant deposit or landlord claim
Other	Deposit repayment, property damage claim, cleaning charge, rent set-off	Tenancy agreement, deposit scheme record, inventory, checkout report	Both before and after death	Record net liability after deposit protection scheme decision or agreement.
Property repair invoices
Household Bill	Builder, plumber, electrician, roofer or gardener invoice	Invoice, quote, work order, bank payment, email correspondence	Both before and after death	Separate unpaid pre-death invoices from repairs ordered by executors.
Funeral expenses
Funeral or Estate Expense	Funeral director, coffin, cremation or burial fee, celebrant, flowers	Funeral invoice, receipts, bank payment, funeral plan paperwork	After death	Record reasonable funeral costs separately from lifetime debts.
Funeral plan shortfall
Funeral or Estate Expense	Uncovered disbursements, plan contribution shortfall, optional service costs	Funeral plan contract, provider statement, funeral director invoice	After death	Record only the estate-funded shortfall after plan benefits are applied.
Burial plot or memorial costs
Funeral or Estate Expense	Grave purchase, interment fee, headstone, inscription, grave maintenance	Cemetery invoice, memorial mason quote, deed of grant, receipts	After death	Record separately consider whether costs are reasonable estate expenses.
Death registration and certificate costs
Funeral or Estate Expense	Death certificates, copy certificates, coroner-related document fees	Registrar receipts, certificate orders, coroner correspondence	After death	Record as administration or funeral-related expense, not pre-death debt.
Probate application fees
Funeral or Estate Expense	Probate application fee, sealed office copies, court service fee	Probate application receipt, HMCTS payment confirmation, solicitor bill	After death	Record as estate administration expense after death.
Estate property maintenance after death
Funeral or Estate Expense	Locks, alarm, clearance, gardening, heating, repairs, insurance compliance	Invoices, receipts, agent statements, insurance requirements	After death	Record as administration expense do not deduct as date-of-death debt.
House clearance and storage costs
Funeral or Estate Expense	Clearance company, skip hire, storage unit, removal costs	Quotes, invoices, receipts, estate agent requirements	After death	Record as estate expense offset any sale proceeds from chattels.
Property sale costs
Professional Fee	Estate agent commission, EPC, auction fees, conveyancing sale costs	Agency agreement, completion statement, solicitor invoice, auction account	After death	Record as sale or administration expense, not date-of-death debt.
Probate solicitor fees
Professional Fee	Probate advice, estate administration, conveyancing, beneficiary correspondence	Client care letter, fee estimate, invoices, completion statement	After death	Record as professional administration expense separate from deceased unpaid legal bills.
Unpaid legal bill before death
Professional Fee	Conveyancing bill, litigation invoice, divorce solicitor invoice	Solicitor invoice, engagement letter, statement of account, file correspondence	Before death	Record as estate debt if services were provided before death.
Accountant or tax adviser fees
Professional Fee	Final tax return, estate accounts, IHT schedules, business accounts	Engagement letter, invoice, fee quote, tax return correspondence	Both before and after death	Split deceased unpaid fees from executor-instructed administration fees.
Valuation fees
Professional Fee	RICS property valuation, jewellery valuation, business valuation, share valuation	Valuer engagement letter, valuation report, invoice, receipts	After death	Record as administration expense valuation supports asset figures.
Financial adviser or investment fees
Professional Fee	Adviser fees, platform charges, discretionary manager fees, exit charges	Fee agreement, platform statement, adviser invoice, portfolio report	Both before and after death	Record accrued fees to death separately from estate management fees.
Executor expenses
Funeral or Estate Expense	Postage, travel, document copies, property visits, bank transfer fees	Receipts, mileage log, invoices, estate account entries	After death	Record reasonable out-of-pocket expenses with receipts avoid personal costs.
Executor remuneration
Professional Fee	Professional executor fee, trust corporation fee, will charging clause fee	Will charging clause, engagement terms, invoice, estate accounts	After death	Record only if authorised by will, agreement or law.
Statutory creditor notice costs
Funeral or Estate Expense	London Gazette notice, local newspaper notice under Trustee Act 1925 section 27	Gazette notice, newspaper invoice, publication confirmation	After death	Record publication cost notice helps protect personal representatives before distribution.
DWP benefit overpayment
Other	Pension Credit, Universal Credit, Attendance Allowance or PIP overpayment	DWP letter, benefit statements, bank credits, repayment notice	Both before and after death	Record recoverable overpayment check whether payments after death were reclaimed.
State Pension overpayment
Other	Pension paid after death, arrears adjustment, DWP recovery claim	DWP letter, bank statement, Tell Us Once confirmation, repayment request	After death	Record repayment due to DWP separately from date-of-death liabilities.
Private pension overpayment
Other	Workplace pension paid after death, annuity overpayment, scheme recovery	Pension provider letter, scheme statement, bank credits, repayment invoice	After death	Record confirmed reclaim offset any arrears or death benefits separately.
Care funding repayment or adjustment
Other	Local authority care charge adjustment, NHS funding clawback, direct payment balance	Council statement, NHS decision letter, care account, direct payment ledger	Both before and after death	Record confirmed repayment or reserve for disputed care funding decision.
Student loan balance
Other	Student Loans Company balance, income-contingent repayment arrears	SLC statement, payslips, HMRC records, correspondence	Before death	Check cancellation rules many income-contingent loans are cancelled on death.
Tax credit overpayment
Other	Working Tax Credit or Child Tax Credit overpayment	HMRC notice, award letters, bank credits, repayment demand	Both before and after death	Record recoverable amount after HMRC confirms final position.
Deprivation of assets recovery claim
Other	Council claim linked to assets given away to reduce care fees	Council assessment, correspondence, gift records, bank statements	Both before and after death	Record as disputed or contingent unless council liability is established.
Investment or policy loan
Secured Debt	Loan secured on life policy, investment bond or share portfolio	Loan agreement, policy statement, platform statement, lender confirmation	Before death	Record debt and identify asset charged or subject to set-off.
Margin loan or trading account deficit
Unsecured Debt	CFD loss, spread betting debt, margin call, broker debit balance	Broker statement, margin notice, trading history, closure statement	Before death	Record confirmed debit balance note volatile or disputed valuation date.
Cryptoasset loan or exchange debt
Unsecured Debt	Crypto-backed loan, exchange negative balance, DeFi borrowing	Exchange account, wallet records, loan dashboard, transaction history	Before death	Record sterling value and source at death note exchange or wallet evidence.
Foreign debt
Other	Overseas mortgage, foreign tax, foreign credit card, overseas utility arrears	Foreign statements, tax notices, translated documents, exchange rate evidence	Both before and after death	Convert to sterling at appropriate date and note jurisdiction and exchange rate.
Foreign tax liability
Tax	Overseas income tax, property tax, inheritance or succession tax	Foreign tax assessment, local adviser letter, tax return, payment receipt	Both before and after death	Record separately and consider double tax relief or local estate process.
Customer refund liability
Unsecured Debt	Customer deposit, advance payment, unfulfilled order, client refund	Sales ledger, contracts, invoices, customer correspondence, bank receipts	Before death	Record where deceased business owed refunds or deposits personally.
Tenant deposit repayment owed
Other	Residential tenancy deposit, holding deposit, deposit scheme repayment	Deposit certificate, tenancy agreement, scheme account, bank receipt	Both before and after death	Record tenant money separately do not treat protected deposit as estate asset.
Trust or client money liability
Other	Money held for another, client account balance, trustee reimbursement duty	Trust deed, client ledger, bank account records, beneficiary correspondence	Both before and after death	Exclude beneficially owned third-party money from estate assets where confirmed.
Lease dilapidations or reinstatement claim
Other	Commercial lease repairs, reinstatement, yielding-up obligations, landlord claim	Lease, schedule of dilapidations, surveyor report, landlord correspondence	Both before and after death	Record estimated or contingent amount until agreed or determined.
Regulatory cleanup or compliance liability
Other	Waste removal, contamination cleanup, enforcement notice compliance	Regulator notice, survey report, contractor quote, business records	Both before and after death	Record as contingent or estimated until scope and liability are confirmed.
Contractual compensation or damages owed
Unsecured Debt	Breach of contract damages, refund claim, warranty claim, settlement sum	Contract, settlement agreement, claim letter, court documents	Both before and after death	Record agreed or adjudicated amount otherwise list as disputed contingent liability.
Charitable pledge or subscription owed
Unsecured Debt	Enforceable donation pledge, membership subscription, fundraising commitment	Pledge form, charity correspondence, direct debit mandate, gift agreement	Before death	Record only if legally enforceable distinguish from intended legacy.
Unpaid personal purchase invoice
Unsecured Debt	Furniture, jewellery, car repair, travel booking, home goods invoice	Invoice, receipt, order confirmation, delivery note, bank records	Before death	Record unpaid amount if goods or services were supplied before death.
Travel booking liability
Unsecured Debt	Holiday balance, cancellation fee, cruise payment, travel agent invoice	Booking terms, invoice, cancellation notice, travel insurance correspondence	Both before and after death	Record net liability after refunds, cancellation rights and insurance claims.
Vehicle-related arrears
Household Bill	Vehicle tax, garage invoice, tolls, insurance premium, breakdown cover	DVLA record, garage invoice, toll account, insurer statement	Both before and after death	Separate ownership and finance liabilities from running cost arrears.
Salary or employment overpayment
Unsecured Debt	Overpaid wages, expenses advance, season ticket loan, employer equipment claim	Employer letter, payslips, payroll records, contract, expense account	Both before and after death	Record confirmed net repayment after final salary and death-in-service benefits.
Employer or pension scheme loan
Unsecured Debt	Season ticket loan, relocation loan, hardship loan, pension scheme advance	Loan agreement, payroll deductions, employer statement, pension scheme letter	Before death	Record outstanding balance and check any waiver on death.
Care equipment hire charges
Household Bill	Mobility equipment hire, hospital bed hire, oxygen equipment, alarm pendant	Hire agreement, invoices, return receipt, care provider records	Both before and after death	Record unpaid hire and return charges arrange prompt return to limit costs.
Veterinary or pet care bills
Household Bill	Vet invoice, boarding kennel, pet insurance excess, cremation charge	Vet invoice, insurer statement, boarding agreement, receipts	Both before and after death	Separate pre-death pet debts from executor-approved animal care costs.
Bankruptcy or insolvency debt
Other	Bankruptcy estate claim, IVA balance, DRO-related debt, trustee costs	Insolvency register, trustee letter, IVA supervisor statement, court order	Both before and after death	Take specialist advice insolvency rules may override ordinary distribution.
Insolvent estate administration order
Other	Administration in bankruptcy where estate cannot meet debts	Insolvency Act 1986 section 421, insolvency petition, court order	After death	Use where estate may be insolvent do not distribute without insolvency advice.
Administration bond or surety premium
Professional Fee	Surety bond, administration bond, insurance premium required for grant	Court requirement, bond policy, premium invoice, probate correspondence	After death	Record as estate administration cost if needed to obtain grant.
Attorney accounting liability
Other	Unreconciled attorney spending, repayment owed to estate, third-party claim	LPA accounts, bank statements, receipts, OPG correspondence	Before death	Record only confirmed estate liability attorney misuse may be estate asset claim.
Lifetime gift tax adjustment
Tax	Failed PET, gift with reservation, chargeable lifetime transfer tax	Gift records, bank statements, property transfers, HMRC IHT schedules	After death	Record for IHT calculation distinguish estate debt from tax borne by recipients.
Insurance excess or uninsured loss
Other	Home insurance excess, motor claim excess, uninsured repair liability	Insurer settlement letter, repair invoice, policy schedule, claim file	Both before and after death	Record net estate liability after insurer payment is confirmed.
Unpresented cheque or pending payment
Unsecured Debt	Cheque written before death, pending bank transfer, card transaction	Cheque book, bank statement, payment confirmation, creditor receipt	Before death	Record if underlying obligation remains unpaid after account freeze.
HMRC penalty or interest
Tax	Late filing penalty, late payment interest, inaccurate return penalty	HMRC notice, tax account, appeal correspondence, adviser calculation	Both before and after death	Allocate to pre-death tax or executor administration depending on cause.
Estate rentcharge or communal estate charge
Household Bill	Freehold estate charge, rentcharge, communal grounds fee, management company charge	Transfer deed, management company statement, demand, title register	Both before and after death	Record arrears and ongoing estate ownership charges separately.

What Debts Should Be Included In A UK Estate Inventory?

An estate inventory should distinguish debts owed at the date of death from expenses arising after death. Date-of-death debts, such as mortgages, credit cards, unpaid tax, care home fees and utility arrears, normally reduce the estate value. Post-death costs, such as probate fees, estate administration expenses and property maintenance, should usually be recorded separately as administration expenses.

Which Estate Liabilities Need Extra Care?

Secured debts, especially mortgages and equity release, should be checked against lender redemption statements because interest may continue after death and the debt may be tied to a specific property.
Joint debts should be reviewed carefully: the estate may remain liable for a joint mortgage or overdraft, while some joint household accounts may transfer to the survivor depending on the contract.
Tax liabilities can include Income Tax, Capital Gains Tax, Council Tax and Inheritance Tax. HMRC guidance confirms that Inheritance Tax may be payable before probate can be granted in many estates.
Funeral expenses are commonly paid from the estate, but only reasonable costs should be recorded and receipts should be kept.

How Can Executors Verify Estate Debts?

Executors should collect statements, invoices, redemption figures, tax notices and correspondence showing the balance at death. For uncertain creditors, a statutory notice under section 27 of the Trustee Act 1925 may help protect personal representatives who distribute the estate after giving proper notice, although it does not remove valid creditor claims against beneficiaries.

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FAQs

What is an estate inventory in Britain?

An estate inventory is a detailed list of a deceased person’s assets, liabilities and debts. In Britain, it helps personal representatives understand the estate’s value for probate, tax and distribution purposes.

What liabilities and debts should be included in an estate inventory?

Why must debts be recorded in an Inventory of Assets?

Which debts count as estate liabilities?

What is the difference between secured and unsecured debts in an estate?

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