How to Value an Estate for Probate in the UK

How to Value an Estate for Probate in the UK

Before you can apply for probate, you need to work out the total value of everything the person who died owned, minus everything they owed. This figure determines whether inheritance tax is due and forms the basis of the estate administration that follows.

It sounds daunting, but it is a methodical process. This guide walks you through it step by step.

Why Estate Valuation Matters

You need an accurate estate valuation for two reasons:

1. The probate application itself. You must declare the estate's value on the probate application form (PA1P or PA1A) and the inheritance tax form.
2. Inheritance tax. HMRC uses your valuation to assess whether tax is owed. Getting it wrong can lead to penalties, interest charges, or delays.

The valuation date is the date of death, not the date you get around to checking. All assets and debts should be valued as at that specific date.

Step 1: Identify All Assets

Start by building a complete picture of what the deceased owned. This typically falls into several categories.

Property and Land

This is often the largest single asset. You need the market value of any property the deceased owned or part-owned on the date of death.

How to get a valuation:

• For most estates: Get at least one estate agent valuation (free) and ideally two or three from different agents. Ask them to confirm the value in writing, specifying the date of death as the valuation date.
• For inheritance tax purposes: HMRC may accept estate agent valuations, but they can challenge them. If the estate is close to the inheritance tax threshold or the property is unusual, consider instructing a RICS-qualified surveyor for a formal valuation (typically £250 to £500).
• Joint property: If the deceased owned property jointly as tenants in common, only their share is included. If they owned it as joint tenants, the property passes automatically to the surviving owner but is still included in the estate value for tax purposes.

Bank Accounts and Savings

Write to every bank and building society where the deceased held an account. Ask for:

• The balance on the date of death
• Any accrued interest up to that date
• Details of any standing orders or direct debits

Most banks have a dedicated bereavement team and will respond within a few weeks. You will need to provide a copy of the death certificate.

Investments and Shares

For stocks and shares, the valuation is based on the mid-market price on the date of death (the average of the highest and lowest trading prices that day).

• Listed shares: Check the London Stock Exchange historical data or ask the registrar (such as Computershare or Equiniti)
• ISAs and investment funds: Contact the fund manager or platform (Hargreaves Lansdown, Vanguard, etc.) for a date-of-death valuation
• Premium Bonds: Contact NS&I, who will confirm the holding and check for any unclaimed prizes

Pensions

Not all pension benefits form part of the estate. Many modern pensions are held in trust and paid at the scheme's discretion. Contact each pension provider to find out:

• Whether any lump sum death benefit is payable
• Whether it falls inside or outside the estate for tax purposes
• The value of any remaining pension fund

Life Insurance

Similar to pensions, life insurance policies written in trust do not form part of the estate. Policies not in trust do. Contact each insurer for the payout value.

Personal Possessions

You need to value the deceased's personal belongings, including:

• Vehicles (check similar listings on AutoTrader or request a dealer valuation)
• Jewellery and watches (get a professional valuation for anything potentially valuable)
• Antiques, art, and collectibles (specialist valuation if significant)
• Household contents (a reasonable estimate is acceptable for everyday items)

For most estates, HMRC does not expect you to value every teacup. A sensible overall figure for household contents is acceptable, unless there are obviously valuable items.

Other Assets

Do not forget:

• Money owed to the deceased (personal loans to friends or family)
• Tax refunds due
• Business interests or partnership shares
• Overseas assets
• Trust interests
• Cryptocurrency holdings (check wallets and exchanges)

Step 2: Identify All Debts and Liabilities

Debts reduce the estate's value. Common ones include:

Debt Type	How to Confirm
Mortgage	Contact the lender for the outstanding balance on the date of death
Credit cards	Write to each provider for the balance plus any accrued interest
Personal loans	Contact lenders directly
Utility bills	Request final statements
Care home fees	Ask for the final invoice
Funeral costs	Include the actual cost once paid
Outstanding tax	Contact HMRC for any income tax or capital gains tax due

You can also deduct reasonable costs of administering the estate, such as probate fees and certain legal costs.

Step 3: Calculate the Net Estate Value

The formula is simple:

Total assets minus total debts = net estate value

This is the figure you report to HMRC and use in your probate application.

Inheritance Tax Thresholds (2026)

• Nil-rate band: £325,000 (no tax on the first £325,000)
• Residence nil-rate band: Up to £175,000 extra if a home is passed to direct descendants
• Transferable allowances: A surviving spouse or civil partner can inherit unused allowances from the first to die

If the net estate is below the applicable threshold, no inheritance tax is due, but you still need to report the value.

Step 4: Complete the Right HMRC Form

Which form you use depends on the estate's size and complexity:

• IHT205 (or the online equivalent): For estates where no inheritance tax is due and the estate is not "excepted" under the new rules
• IHT400: For estates where inheritance tax is payable, or the estate exceeds certain thresholds even after reliefs

Since January 2022, many simpler estates no longer need to submit a full IHT form. Check the current HMRC guidance or use the GOV.UK tool to determine which applies.

Common Mistakes to Avoid

Undervaluing property. HMRC has its own data and will challenge valuations that look low. It is better to be realistic from the start than to face a lengthy dispute later.

Forgetting joint assets. Even assets that pass automatically to a joint owner (like joint bank accounts) need to be declared for tax purposes.

Missing assets entirely. Use the deceased's paperwork, bank statements, and post to trace accounts. Services like the Unclaimed Assets Register can help find forgotten accounts.

Not checking for gifts. Any gifts made in the seven years before death may be subject to inheritance tax. Check bank statements for large transfers.

Rushing the valuation. Take the time to get accurate figures. An incorrect valuation can cause problems months or years down the line.

When to Get Professional Help

You can value most estates yourself, but consider instructing a solicitor or probate specialist if:

• The estate includes business assets or agricultural property
• There are assets in multiple countries
• The inheritance tax position is complex
• There are disputes between beneficiaries about asset values
• You are uncertain about trust arrangements

Keeping Records

Keep a copy of every valuation letter, bank statement, and calculation you use. HMRC can query estate valuations for several years after probate is granted, so thorough records protect you as executor.

If you are finding the administration overwhelming, tools like GetPassage can help you track what needs doing and keep everything organised in one place.

Valuing an estate is detailed work, but it is manageable when you take it one category at a time. Start with the big items, work through methodically, and do not be afraid to ask institutions for help. They deal with these requests every day.