Before you can apply for probate, you need to know what the estate is actually worth. That means putting a value on everything the person owned at the date they died — the house, the bank accounts, the car, the premium bonds — and setting their debts against it. It sounds daunting, but taken step by step it is a methodical job rather than a difficult one. This guide explains what to include, how to value each type of asset, and the traps that catch executors out.
Key Takeaways
- Everything is valued at its open-market value on the date of death — not what was paid for it, and not what it might fetch later
- The estate includes property, bank accounts, savings, investments, pensions that pay into the estate, vehicles and personal belongings
- Debts — the mortgage, loans, credit cards, utility bills and the funeral — are deducted to reach the net value
- Gifts made in the 7 years before death usually need to be identified and included in the inheritance tax assessment
- For most estates with no tax to pay, the figures go directly on the probate application — there is no separate account to send HMRC
- An accurate valuation protects the executor personally — guessing is the expensive option
The Golden Rule: Date-of-Death, Open-Market Value
This snapshot matters for two reasons. First, it determines whether inheritance tax is due — the nil-rate band is £325,000, with up to a further £175,000 residence nil-rate band where the home passes to direct descendants, and unused allowances are transferable between spouses. Second, the probate value becomes each asset's base cost for Capital Gains Tax, so an inaccurate figure now can create a tax problem years later.
Step by Step: Building the Valuation
Valuing the estate
- 1
Gather the paperwork
Bank statements, share certificates, pension letters, insurance policies, the property deeds and recent utility bills. The paperwork tells you what exists; missing paperwork is itself a clue to write to likely institutions.
- 2
Write to every institution
Each bank, building society and investment provider will confirm the exact balance at the date of death once they see the death certificate. Ask them at the same time whether any interest had accrued but not been paid.
- 3
Value the property
For many estates a written estate-agent appraisal (ideally two or three) is acceptable; where inheritance tax may be due, a formal RICS valuation is far safer. Our separate guide covers this in detail.
- 4
Value vehicles and belongings
Cars can be valued against the trade guides. Ordinary household contents are usually valued realistically as a job lot; individual items of real worth — jewellery, art, antiques — deserve a proper appraisal.
- 5
List the debts
The mortgage balance, loans, credit cards, outstanding bills and the funeral account are deducted from the gross estate. Funeral costs are payable from the estate before anything is distributed.
- 6
Check for gifts within 7 years
Significant gifts made in the seven years before death usually need to be identified and brought into the inheritance tax assessment. Go through bank statements and ask family members directly.
Jointly Owned Assets
Joint assets need care. Where a home or account was held as joint tenants, it passes automatically to the survivor — but the deceased's share still counts for the inheritance tax calculation. Where property was held as tenants in common, the deceased's share passes under the will and is valued as part of the estate. Which arrangement applies is not always obvious from the paperwork, and it changes both the valuation and who inherits.
Where the Figures Go
For most estates — where no inheritance tax is due — the values you have gathered go directly onto the probate application itself. There is no separate tax account to send HMRC for these "excepted estates". Where tax is or may be due, a fuller inheritance tax account is needed before the grant can issue, and the valuation evidence behind each figure matters much more. The probate application court fee is £300 for estates over £5,000.
When It Is Worth Getting Help
Plenty of straightforward estates are valued perfectly well by a careful executor. Help earns its keep when the estate is near or above the inheritance tax threshold, when there are lifetime gifts or trusts to untangle, when assets are unusual — a business, agricultural land, foreign property — or when family relationships mean an independent hand keeps the peace. Getting the valuation right at the start is considerably cheaper than unpicking it later.
Valuing an estate and not sure where to start?
We handle probate at a fixed fee, never a percentage of the estate — including the valuation, the inheritance tax position and the application itself. Tell us about the estate and we will set out exactly what is needed. The first call is free.
Book a Free CallLocal, Fixed-Fee Probate Help in East Yorkshire
Aaron Johnson is a solicitor and STEP-qualified Trust and Estate Practitioner who handles probate for families across Bridlington, Driffield, Filey, Hornsea, Beverley and the wider East Yorkshire area. Whether you want the whole estate handled or just a second pair of eyes on the valuation before you apply, the first conversation is free and without obligation.
Frequently Asked Questions
List everything the person owned at the date of death — property, bank accounts, savings, investments, vehicles and belongings — and value each at its realistic open-market value on that date. Banks and investment providers confirm exact date-of-death balances; the property usually needs an estate-agent appraisal or, where inheritance tax is in point, a formal RICS valuation. Debts and the funeral account are then deducted to reach the net estate.
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