In England when somebody dies if there assets are over a certain amount Probate must be applied for. There are two types of Probate, one is Probate where there is a Will whereby the executors of the Will apply for a Grant of Probate, the second is where there is no Will and the person responsible becomes known as the Administrator and applies for a Letter of Administration (or Letters of Administration). Most financial institutions will allow a surviving relative to complete a "Small Estates Indemnity" form if the deceaseds persons assets are under £5000.
In either of the two probate scenarios detailed above an estate account must be sent to the Inland Revenue before Probate will be granted. To compile an estate account you need Inland Revenue form IHT205, there are certain questions on this form that if answered a certain way will tell you to stop filling in this form and compile a full estate account on form IHT200 instead (IHT200 will soon change to IHT400, both are accepted until Oct 2009). If you do manage to complete the IHT205 the estate will be known as an excepted estate.
Please note by becoming the Administrator or Executor you are becoming personally liable for a persons debts so we strongly advise you to seek professional help. For more details please visit us at www.iwc-ltd.co.uk/probate.html.
A failure or omission on the part of the executor or administrator can lead to personal liability. However, they are not in general personally liable for the debts of the decedent. They are personally liable for performing all their duties in a lawful and reasonable manner. If they have done so they are not personally responsible to pay a shortfall. If the executor has inadvertently distributed the assets of the estate to the beneficiaries without paying all the creditors then the creditor could pursue the executor personally. That rule is common to the UK and the US. Oversight by a professional who is an expert in probate law should always be a part of the probate process.