What Happens to Business Shares and Property Portfolios When Someone Dies

When someone in the UK dies owning business shares or a property portfolio, these assets become part of their estate. The estate includes everything they owned at the time of death, such as money, property, investments, and personal belongings.

According to the Office for National Statistics, around 51% of UK adults have some form of investment, and over 4.4 million people in England own multiple properties, so these situations are very common.

The process of dealing with the estate depends on whether the person left a will, what type of assets they owned, and whether there are any debts or taxes to pay.

Business Shares After Death

If the person owned shares in a private company, the company’s articles of association and any shareholder agreements usually set out what happens next. Sometimes the shares can be transferred to the heirs, while in other cases, the remaining shareholders may have the right to buy them first.

For public company shares, ownership usually passes to the executor named in the will or the administrator if there is no will. The executor can then transfer or sell the shares according to the instructions in the will or under intestacy rules if there was no will.

HM Revenue & Customs brought in £8 billion between April 2024 and January 2025, with a significant part of inheritance tax being paid coming from estates that included investments like shares. This shows how important it is to handle them correctly for tax purposes.

Property Portfolios and the Estate

Property portfolios are also part of the estate. Whether it is a single buy-to-let property or a large portfolio of rental homes, ownership transfers to the executor or administrator before being passed to heirs or sold to pay debts or taxes.

If the properties are jointly owned, the rules depend on the type of ownership. Under joint tenancy, the surviving co-owner automatically inherits the deceased person’s share. Under tenancy in common, the share passes according to the will or intestacy rules.

Jessica Hall of J Property Management explains that: “Properties in a portfolio may continue to generate rental income during the estate administration process – and could be managed by relatives, executors or by using a management agency.”

“The executor must manage this income, pay any expenses like mortgages or repairs, and keep clear records until ownership is fully transferred.”

The Role of Executors and Administrators When Someone Dies

The executor or administrator is responsible for valuing all assets, paying off debts and inheritance tax, and then distributing the remaining estate according to the will or the law. This process is called probate. It can take several months, sometimes longer if the estate is large or complicated with many properties and business interests.

They may need professional help from solicitors, accountants, or financial advisers to handle valuations, tax forms, and transfers, especially when the estate involves company shares or multiple properties.

Can Assets Be Sold?

Yes, business shares or properties can be sold if needed to pay debts, inheritance tax, or to divide the estate fairly among heirs. In some cases, heirs prefer to keep the properties or shares, but this is only possible if all taxes and expenses can be covered from other parts of the estate.

With thousands of UK estates paying inheritance tax each year, selling assets is often the easiest way to release funds quickly. Executors must always follow the will’s instructions or intestacy rules when deciding whether to sell or transfer these assets.

Planning Ahead

Having a clear will and, for business owners, a shareholder or partnership agreement makes everything much simpler. It allows heirs to avoid disputes, reduces delays, and ensures the assets are handled according to the person’s wishes rather than default legal rules.

For families inheriting business shares or property portfolios, early communication with professionals can save time, reduce costs, and help protect the value of these important assets.