How to Value an Estate for Probate: UK Complete Guide

Why Valuing the Estate Matters

Accurate estate valuation is required for three critical reasons:

• Inheritance Tax: Estates over £325,000 (or £500,000 with a surviving spouse) owe tax on the excess. You must value assets correctly to calculate any IHT liability.
• Probate Application: HMRC requires a complete asset list and valuations (Form IHT400) to grant the Probate.
• Fair Distribution: Beneficiaries must know the estate size to settle any debts, taxes, and costs before dividing what remains.

Undervaluing assets can lead to HMRC penalties and legal liability for the executor. Overvaluing can unnecessarily burden the estate with excessive tax.

What Counts Towards the Estate Value?

Included in the estate (value as of date of death):

• Property owned solely by the deceased
• Bank and building society accounts
• Savings and premium bonds
• Stocks, bonds, and investment portfolios
• Pensions (usually included in estate value)
• Life insurance (if payable to the estate)
• Business interests and shares
• Vehicles (cars, motorcycles, caravans)
• Jewellery, antiques, and collectibles
• Digital assets and online accounts
• Personal possessions (furniture, clothing, etc.)

Excluded from the estate (not valued for IHT):

• Joint assets (pass automatically to the surviving joint owner)
• Life insurance payable directly to named beneficiaries
• Certain pension death benefits (depends on scheme rules)
• Assets in a trust (may be outside the estate)
• Gifts given more than 7 years before death

How to Value Different Asset Types

1. Property

Property is usually the largest asset in an estate, so accurate valuation is essential.

Property type	Valuation method
Residential property (main residence)	Professional surveyor valuation or estate agent estimate
Buy-to-let or rental property	Professional surveyor — must be as of date of death
Commercial property	Professional valuation or business valuation expert
Land (undeveloped)	Agricultural valuation or land agent estimate
Shared ownership or part-owned	Valued proportionately with updated mortgage statements

Tip: Get a professional surveyor valuation for any property worth over £100,000. For properties under £100,000, an estate agent estimate is acceptable to HMRC. Always date the valuation to the date of death.

2. Bank Accounts and Savings

These are straightforward to value — just the balance on the date of death. Contact each financial institution:

• High Street banks (HSBC, Barclays, Lloyds, NatWest, etc.)
• Building societies (Nationwide, Yorkshire, Coventry, etc.)
• NS&I (Premium Bonds, Savings Certificates)
• Online banks (Wise, Monzo, etc.)
• Foreign currency accounts

Get statements as of the date of death and reconcile them with the deceased's records. Don't forget ISAs, fixed-term bonds, or savings accounts in different names.

3. Investments and Shares

Value investments at their market price on the date of death. For:

• Publicly traded shares: Use the closing stock market price on date of death (available from Reuters, Yahoo Finance, or your stockbroker)
• Investment funds/ISAs: Contact the fund manager for NAV (Net Asset Value) as of date of death
• Private company shares: Professional valuation required — use an accountant or business valuer
• Premium Bonds: NS&I will value them at face value

4. Pensions

Pension valuation is complex and depends on the pension scheme type:

Pension type	Valuation
Defined Contribution (DC) pension	Fund value on date of death (ask provider)
Defined Benefit (DB) pension	Usually outside the estate (beneficiary gets ongoing payments)
Self-invested Personal Pension (SIPP)	Value of investments held at date of death
Pension annuity	Usually terminates at death (no estate value)

Important: Contact the pension provider directly — they'll provide the exact estate value. Some pensions pass directly to beneficiaries and don't count toward IHT.

5. Life Insurance

Value depends on who the policy is payable to:

• Payable to the estate: Include the full payout value
• Payable to named beneficiaries: Excluded (passes directly to them)
• Payable to a trust: Usually excluded from the estate

Check the policy terms — if it's payable to the estate, ask the insurer for confirmation of the sum assured.

6. Vehicles

Value at second-hand market value as of the date of death. Use:

• Glass's Guide or CAP — professional car valuation services
• Auto Trader — average selling price of similar vehicles
• Local garage estimates — informal but acceptable

Factor in the vehicle's condition, mileage, and any modifications. HMRC will scrutinise valuations that seem too high.

7. Personal Items and Valuables

Items like jewellery, antiques, art, and collectibles should be professionally valued if the total value exceeds £5,000. Use:

• Fine art and antiques: Art valuers or auctioneers (Sotheby's, Christie's)
• Jewellery: Jewellery specialist or goldsmith
• Watches and collectibles: Specialist dealers or auction houses
• Furniture and household items: Rough valuations acceptable (often £1–5 per item unless high-value pieces)

For modest personal effects not individually valuable, a general appraisal of "contents of home" at £5,000–£15,000 is often accepted by HMRC.

8. Digital Assets

Don't forget:

• Online bank accounts: Check all banks and building societies
• PayPal, Wise, Stripe: Contact platforms for outstanding balances
• Cryptocurrency: Value at market price as of date of death
• Domain names and websites: Value if generating income
• Social media accounts: Usually no monetary value unless branded/commercial

The Valuation Date: Why It Matters

All assets must be valued as of the date of death, not the date of probate application. This is critical:

HMRC allows two alternative valuation dates for certain assets:

• Primary valuation: Date of death
• Alternative valuation: If the executor opts for it, 6 months after death — useful if assets have fallen in value

This "alternative valuation" can reduce IHT if the estate has depreciated, but it must apply to all assets or none.

Creating a Valuation Schedule

Once you've valued all assets, prepare a formal schedule for the probate application. Include:

1. Asset type (property, shares, savings, etc.)
2. Asset description (address, account number, quantity)
3. Valuation as of date of death
4. Source of valuation (surveyor, bank statement, stockbroker, etc.)
5. Supporting documents (valuations, statements, deeds)

This schedule becomes part of the probate file and HMRC may request evidence to support valuations.

Frequently Asked Questions

Does HMRC accept online valuations for property?

For properties over £100,000, professional surveyor valuations are strongly recommended. Online estimates (Zoopla, Rightmove) are not reliable enough for probate. For properties under £100,000, an estate agent estimate is usually acceptable.

What if the property value has changed between death and probate?

You use the value as of the date of death, regardless of current market value. This is fixed for probate and IHT purposes. If you sell later at a different price, that's separate from the probate valuation.

Do I need professional valuations for every item of jewellery?

Only if total jewellery value exceeds £5,000–£10,000. For modest items, a general estimate is acceptable. If in doubt, ask a jewellery specialist for a quick appraisal.

What if I can't find valuations for some assets?

Do your best with available evidence (bank statements, accountant records, comparable sales). Document your methodology. HMRC understands that some valuations are estimates, especially for unique items.