Customer Dies Mid-Job: What Happens to the Money and the Work

‍‌​​‌‌‌​​‌​‌‌​‌​‌​‌​‌​‌​‌​‌‌‌‍Death mid-job is one of those situations nobody talks about until it happens -- then you're stood there with tools on site, money at stake, and a grieving family looking at you. This guide is about handling that with decency and protecting your business.

9.16.1 Big picture: what actually happens to the contract?

When a customer dies, their debts and contracts don't vanish -- they usually pass to their estate (the pot of money, property and belongings they leave behind).

In UK law:

• The contract is normally still valid, but now it's between you and the estate, not you and the individual.
• The people with legal power to deal with that estate are the personal representatives:
  • Executors (if there's a will naming them), or
  • Administrators (if there's no will -- they're appointed by the court). Sometimes you'll see "Letters of Administration (with will annexed)" where there's a will but it doesn't name executors, vs plain "Letters of Administration" where there's no will at all.

So in principle:

• If the job is still wanted and affordable, the estate can choose to let you finish and pay you under the original agreement.
• If not, they can stop the job and you become a creditor for what you've done up to that point.

It does not automatically mean "your contract is dead and you'll never see your money." It just means there's now a legal process in the way.

Joint-name contracts (couples)

A lot of domestic work is contracted with a couple -- Mr and Mrs, or joint homeowners. If one dies:

• The surviving partner's liability continues directly -- the contract is still live with them, no probate needed for their share.
• You deal with the surviving partner as your client, not the estate.
• This only applies where both names are genuinely on the contract or agreement. If only the deceased signed, you're back to dealing with the estate.

Worth knowing, because it changes your position completely on a lot of typical domestic jobs.

9.16.2 Probate in plain English

Probate (England & Wales / NI) or confirmation (Scotland) is just the court's way of saying "these are the people now in charge of the dead person's money and property."

Very roughly:

• The family, usually with a solicitor, applies for:
  • Grant of Probate (if there's a will), or
  • Letters of Administration (if there isn't).
• In Scotland, the Sheriff Court issues a Certificate of Confirmation instead -- same basic idea.

Once that's granted, the executors can:

• Collect money in,
• Sell assets,
• Pay debts,
• Then dish out what's left (if anything) to beneficiaries.

Timescales

• It can easily take months before anyone has formal authority.
• In that time, you may be in limbo -- no one officially able to sign new agreements or pay you.

That's why you don't rush in and start doing extra work on a half-finished job just because "the family wants it done" -- they might not be the ones legally allowed to instruct you or pay you.

9.16.3 Who can tell you to carry on or stop?

Legally, once the customer has died, only the personal representatives (executors/administrators) have authority over the estate and its contracts.

That means:

• Son/daughter/partner may be the right person -- but not always.
• "Next of kin" is not a legal role by itself -- it's whoever the court or the will gives power to.

On the ground, you'll often hear from:

• A family member ("Mum's died -- can you stop work / finish up?").
• Sometimes a solicitor ("We act for the estate, please send your account to us.").

Your safest move:

• Pause any new work beyond basic safety.
• Politely ask: "Who is dealing with the estate? Do you have the details of the executor or solicitor?"
• Once you know that, direct anything about money, finishing, or changing the job through them.

You can and should make the site safe (board up, make electrics/gas safe, secure tools), but don't plough on with fresh work on the assumption it will all be sorted later.

9.16.4 Money owed -- where you stand as a creditor

If you've done work and not been paid, you are a creditor of the estate.

Order of priority in probate (simplified)

1. Secured debts -- mortgages and loans secured on property.
2. Funeral and estate administration costs.
3. Taxes -- HMRC gets its bite.
4. Unsecured debts -- credit cards, loans, and trade debts like your invoice.
5. Personal IOUs between family/friends.

So you're not top of the list, but you're not last either -- you're in with the ordinary unsecured debts.

What you need to do

• Work out what's actually owed up to the date of death -- labour, materials on site, agreed extras.
• Put it in a clear written invoice, with your contract/quote attached.
• Send it to the executor or the estate's solicitor asking to be recorded as a creditor.

If the estate is solvent (enough assets), your debt should be paid in its turn. If the estate is insolvent (not enough to pay everyone), there's a strict order, and you may only get a fraction or nothing.

Time limits -- claim early, don't wait

• Ordinary contract debts (like your invoice) are generally subject to the six-year limitation period in England/Wales and similar rules elsewhere.
• But executors can distribute the estate after the statutory notice period (usually around two months from the s.27 Trustee Act 1925 notice in the press/London Gazette). If they distribute before you've claimed and there's nothing left, you may be out of luck even if your six years haven't run out.
• The message: get your claim in as soon as you know who's dealing with the estate. Don't leave it months hoping it'll sort itself out.

9.16.5 Does your contract survive the customer's death?

Usually, yes.

UK contract law position in plain terms:

• The benefit of the contract (e.g. getting the building work done) passes to the estate/personal representatives.
• The obligation to pay for work properly done up to death sits with the estate.
• Your quote/contract does not normally just vanish.

But:

• The estate is not obliged to finish the project just because the deceased wanted it -- they can decide it's not financially sensible.
• If they stop the job, you're entitled to payment for work properly done and materials supplied up to that point, as per your contract terms.

Deposits

• If you've taken a deposit and genuinely done work and bought materials in line with the contract, you don't automatically have to hand it back -- it's part of settling up.
• If you've taken money for work/materials you haven't done/ordered and won't ever do because the job is stopped, you should expect to refund that part.
• Credit card payments: if the customer paid any amount over £100 by credit card, Section 75 of the Consumer Credit Act means the card company may also have liability. The estate or card company might come asking questions about refunds -- keep your records clean so you can show exactly what was done and what wasn't.

The safest route is to produce a clear statement showing:

• Value of work completed.
• Materials bought and on site.
• Less any payments/deposits already received.

Then show how you've arrived at any balance owed or any refund due.

9.16.6 Access: your tools and materials on site

When someone dies, their house doesn't become "free for all" -- it becomes part of the estate.

Your gear and your unfixed materials are still yours -- but you can't just kick the door in to fetch them.

Best practice

As soon as you're told about the death, stop work and agree a time with the family or executor to visit and:

• Make the site safe,
• Remove your tools,
• Agree what's happening with any materials.

Fixed vs unfixed materials

• If materials are fixed into the property (bricks laid, tiles on, windows in), they've effectively become part of the property and belong with the house -- you claim for them as part of your invoice, you don't rip them out.
• If they're loose or clearly not yet part of the build (bundles of bricks, packs of tiles, stored units), you can usually remove them, with agreement, because you've paid for them and they're still your goods.

If there's a dispute about access

• Stay calm, don't trespass, and don't start ripping things out -- that's how you end up in court.
• Ask for the executor/solicitor's details and put your request in writing.
• If you're getting nowhere and the value is high, that's when you talk to a solicitor -- but that's rare in domestic jobs.

9.16.7 Can you put a lien on the property?

In the UK, builders' liens (legal charges over property for unpaid work) are possible, but they're not quick, easy or automatic.

In broad terms:

• A builder's lien is a security interest you register against a property when you've not been paid.
• It usually involves court action and/or registering a claim, within specific time limits.
• Until it's sorted, the property can't easily be sold or refinanced without dealing with your claim.

Reality for a small domestic tradie

• It's a heavy, legal route -- you're into solicitors, court fees and time.
• It might be worth it on big jobs, but on typical domestic jobs you're more likely to:
  • Register your invoice as a debt in the estate, and
  • Only consider a formal lien/charge for larger, clear-cut sums where a solicitor says it's realistic.

Don't throw the word "lien" around at bereaved families as a threat. If you go this way, it's via legal advice, not shouting at the door.

9.16.8 Scotland and Northern Ireland -- what's different?

The broad idea is the same across the UK: debts are paid from the estate, not by relatives personally, and personal reps control the process.

Scotland

• Process is called confirmation, via the Sheriff Court.
• Once confirmation is granted, executors effectively "step into the shoes" of the deceased and only they can deal with debts and assets.
• You still submit your claim as a creditor of the estate.

Northern Ireland

• Similar concept to probate -- Grant of Probate/Letters of Administration via the NI courts.
• Priority of debts and basic rules are broadly similar to England & Wales.

You don't need to be an expert in the differences -- the key is knowing you'll be dealing with executors/administrators, not "the family" in the loose sense.

9.16.9 VAT and tax -- your obligations don't change

Quick note: if you're VAT registered and you've invoiced the estate, the VAT position doesn't change. You still owe HMRC the VAT on work done, whether the customer is alive or dead, and whether or not the estate has paid you yet.

Same goes for income tax -- the money you earned is still taxable income. "Client died" is not a reason to leave it off your return.

If the debt ends up being written off (estate insolvent, nothing recovered), you can adjust your VAT return at that point -- but talk to your accountant about the mechanics.

9.16.10 The human side -- being decent while protecting yourself

This is someone's home and someone's mum, dad, partner or grandparent -- not just a "client that died".

Steps that keep you on the right side of both:

First contact

• Express simple sympathy: "I'm really sorry to hear that."
• Say you'll make the site safe and won't rush them about money.

Make safe, then pause

• Do what's needed to remove immediate danger -- open trenches, live cables, temporary supports.
• Then stop, and explain: "I'll pause work now until we know what the family/estate want to do."

Move the money talk to the right place

• Ask for the executor or solicitor contact.
• Tell the family: "I'll deal with the estate about the account, so you're not stuck in the middle."

Be fair on the numbers

• Don't see this as a chance to dump every scrap of cost on a grieving family.
• Bill honestly for work done and materials genuinely committed.

Handled well, you keep your reputation intact, you're more likely to see some money, and you're the grown-up in the room at a bad time.

9.16.11 What if you die mid-job?

Worth a brief thought the other way round. If you're a sole trader and something happens to you:

• Your family or executor will need to deal with your outstanding contracts, tools on site, and money owed to you.
• If nobody knows where your jobs are, what's been paid and what's outstanding, it's a nightmare for them on top of everything else.

At a minimum:

• Keep a clear, up-to-date list of live jobs, client contacts, amounts owed and amounts due.
• Make sure someone close to you knows where to find it.
• If you've got employees or regular subs, have a basic plan for who contacts clients and how work gets wound down.

See guide 8.16 (scaling from one-man band) for more on building a business that doesn't fall apart if you're not there.

What to do next

If you find out a customer has died mid-job:

• Stop new work and make the site safe.
• Collect your tools and unfixed materials with the family's agreement.
• Ask calmly who is dealing with the estate (executor/solicitor).
• Put together a clear record of work done, materials supplied, payments received and what's outstanding.
• Send that to the executor/solicitor and ask to be registered as a creditor of the estate.
• Don't agree to big changes or extra work until the person with legal authority confirms what they want and how it will be paid.
• If the sums are large, or the estate looks messy, consider a short chat with a solicitor who does construction or probate work -- one phone call can save a lot of grief later.

Sources

• Administration of Estates Act 1925 -- legislation.gov.uk/ukpga/Geo5/15-16/23/contents -- how estates are administered and debts prioritised in England & Wales.
• Trustee Act 1925, s.27 -- legislation.gov.uk/ukpga/Geo5/15-16/19/section/27 -- statutory notice provisions allowing executors to distribute after the notice period.
• Limitation Act 1980 -- legislation.gov.uk/ukpga/1980/58/contents -- six-year time limit for simple contract debts.
• Inheritance (Provision for Family and Dependants) Act 1975 -- legislation.gov.uk/ukpga/1975/63/contents -- claims by dependants against estates (not directly about trade debts, but relevant background).
• Consumer Credit Act 1974, s.75 -- legislation.gov.uk/ukpga/1974/39/section/75 -- credit card company liability for purchases over £100.
• Succession (Scotland) Act 2016 -- legislation.gov.uk/asp/2016/7/contents -- Scottish succession and confirmation rules.
• Commentary on effect of death on building contracts and personal representatives stepping into the employer's shoes.
• Probate, confirmation and estate administration -- plain-English guides from GOV.UK, Citizens Advice, and Law Society resources.

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