How to Value an Estate for Probate

Valuing the estate accurately is one of the most important parts of the probate process. The valuation forms the basis of the IHT400 and determines whether Inheritance Tax is due. Errors can cause delays, HMRC queries, or an incorrect tax calculation.

Property

Residential property should be valued at its open market value at the date of death, typically a written estate agent valuation or formal RICS report. HMRC may challenge values that appear inconsistent with market conditions.

Bank accounts and savings

Contact every bank and building society for the balance as at the date of death. Request written confirmation for IHT400 evidence.

Investments and pensions

Contact investment platforms and stockbrokers for date-of-death valuations. For pensions, most death benefits are paid outside the estate, but check with each provider as some types do form part of it.

Personal possessions

Value vehicles, jewellery, antiques, art, and other valuable items. For everyday household contents, a reasonable estimate is generally acceptable. For significant items, a professional valuation provides stronger evidence.

Gifts made before death

Gifts made in the seven years before death may need to be declared to HMRC. YouCanDoProbate captures gift information through the platform walkthrough and handles all calculations automatically.

Deducting liabilities

From the gross estate value, deduct all outstanding debts: mortgages, loans, credit cards, utility bills, and funeral costs. The result is the net estate value on which IHT is assessed.