How to value the estate of someone who has died

When valuing a deceased person's estate you must include property, possessions and money they owned at the time of their death, as well as certain gifts they may have made up to seven years before they died. Your valuation must reflect the current market value of the assets.

When you have to value an estate

Valuing the estate of someone who has died is one of the first things to do if you’re acting as the executor or personal representative for that estate.

You normally can’t get access to the assets in the estate until you’ve received a grant of probate (or confirmation in Scotland).

You need to know the estate’s worth to fill in the probate application forms and show whether or not Inheritance Tax is due.

Find out more about Inheritance Tax

Assets that typically make up an estate

Assets are anything that has a value, such as:

money in bank, building society or savings accounts
houses and land, including farmland
businesses, or business assets, owned by the deceased (or a business partnership of which they were a member)
investments such as stocks and shares
personal belongings, including jewellery, antiques and other collectibles
furniture, fixtures and fittings in a house
motor vehicles
pensions that include a lump sum payment on death (versus an ongoing annuity to a surviving partner)
assets in a trust from which the deceased benefited
payouts from life insurance policies
foreign assets held abroad

You must also evaluate the following to see if they are exempt (and if they aren’t exempt, you should include them in your valuation):

any assets given away in the seven years before the person died
any asset that the deceased gave away at any time, but in which they kept an interest - for example a house they gave away but lived in rent-free
any assets owned jointly with someone else - for example a house

See what gifts are exempt from Inheritance Tax

The deceased’s debts and liabilities

Debts are anything the deceased owed at the time of death. Liabilities include expenses from administering the estate. Examples include:

outstanding mortgages
credit card balances
bank overdrafts
unpaid personal taxes such as Income Tax
household bills (eg electricity)
outstanding personal loans
funeral expenses

Key steps in valuing the deceased’s estate

Step 1 - Work out the total value of the assets and gifts

Find out the market value (a realistic selling price) of all of the assets at the time of death. This may be lower than the insurance value.

To value some assets you may need to make more detailed enquiries. You don’t have to use a professional valuer such as a chartered surveyor, but if you do you’ll have to pay their fees. (You can try organisations such as the two listed below but not all professionals are registered with them.)

You may be able to claim the fees back from the estate once you get the grant of probate (or confirmation in Scotland) and pay any Inheritance Tax due.

Remember to include any gifts (money, property or assets) that the deceased gave away that were not exempt. If you don’t know the exact value of any item and the value of the estate is likely to be less than £200,000 you can use an estimated figure but be as accurate as possible.

Add this all together to get the total value of the assets and gifts.

Find a chartered surveyor to help with the valuation - Royal Institute of Chartered Surveyors website

Find a stockbroker to help you value stocks and shares - London Stock Exchange website

Step 2 - Deduct any debts

Deduct from the total market value of the assets anything that the deceased or the estate owed.

See more about what debts and liabilities you can deduct

Step 3 - Make a record of your valuation

The value of all of the assets minus all of the debts is the value of the estate. It’s a good idea to make a list of all the assets and debts. Keep a record of paperwork you used to obtain valuations, as well as invoices or receipts for expenses. You will need these to fill in the Inheritance Tax and probate forms.

See what Inheritance Tax forms and paperwork you should keep

See an example calculation for Inheritance Tax

Step 4 - Decide if Inheritance Tax is due and which forms you need to complete

You need different forms depending on where the deceased lived and whether Inheritance Tax is due.

Find the forms you need for probate and Inheritance Tax

Check the Inheritance Tax threshold to see if Inheritance Tax is due

If the affairs of the estate are complicated, you may want to work with a solicitor to help you value the estate and pay the tax. You’ll find some links below to professional organisations - though not all professionals are registered with them.

Find a solicitor on the Law Society of England and Wales website

Find a solicitor on the Law Society of Northern Ireland website

Find a solicitor on the Law Society of Scotland website

Get help from the Society of Trust and Estate Practitioners - STEP website

More help?

Contact the Probate and Inheritance Tax Helpline