Deceased director

Two builders set up a company to develop six houses. The project was financed by the limited company taking out loans.

To keep the loans to a minimum it was agreed that only one of the directors would draw a salary while the development was in progress and it was intended that the other director would draw his remuneration when the project was completed and all houses were sold.

Unfortunately the director who intended to draw the salary at the later date died in March 2010 and the final house was not sold until recently.

We now wish to pay salary to the deceased director who was paying 40% in 2009/10. A dividend is not possible because there are four shareholders. Can we pay salary in 2010/11 to a deceased individual and if so how is this done and does he get a personal allowance?

Query...