How to value an estate for probate in the UK

Valuing an estate is the step that sits between the death and the probate application. The executor has to work out what the deceased owned, what they owed, and what it is all worth on the date of death. The total determines whether inheritance tax is due, which form is needed, and in some cases whether probate is needed at all.

This guide walks through the steps in order, with enough detail to see the process through from start to finish without getting lost.

Why the valuation matters

The value of the estate at the date of death drives several things at once.

It determines whether inheritance tax is owed. Estates below the nil rate band (£325,000 for a single person, potentially up to £1 million for a married couple or civil partners using both sets of allowances including the residence nil rate band) pay no inheritance tax.

It determines which form the executor uses. An "excepted estate" below the threshold uses a simpler process. A larger estate requires form IHT400 and the supporting schedules.

It sets the starting values for capital gains tax if any assets are sold later during estate administration at a different price.

It gives the beneficiaries a clear picture of what they will inherit.

HMRC can investigate valuations for up to 20 years after an estate is settled. Executors are personally liable if they get it significantly wrong. The exercise needs to be thorough, even when it feels tedious.

The four stages

Valuing an estate breaks down into four stages, best done in this order.

Stage one: make a list of everything. Go through paperwork, bank statements, investment statements, insurance documents, pension paperwork, and anything else that indicates an asset or a debt. Talk to family members, the deceased's accountant if they had one, and the deceased's solicitor if they had one. Review the last few years of bank statements for clues about accounts, subscriptions, or recurring payments that might indicate assets or debts.

Stage two: establish the value of each asset at the date of death. Not the current value, not the value when the deceased bought it, but the value on the specific date the person died. This is the key distinction that trips people up.

Stage three: identify and value the debts. Include mortgages, loans, credit card balances, unpaid bills, and funeral expenses. Funeral costs are deductible from the estate even if a family member paid them and expects reimbursement.

Stage four: calculate the gross and net figures. The gross estate is the total value of assets. The net estate is gross minus debts. It is the net figure HMRC uses to calculate whether inheritance tax is due.

What counts as an asset

The complete list of what needs to be valued:

• The main home and any other properties, at open market value on the date of death

• Bank accounts, savings accounts, and cash ISAs, including accrued interest to the date of death

• Investment accounts, stocks and shares ISAs, unit trusts, OEICs

• Directly-held shares and bonds (including old paper share certificates, which are easy to miss)

• Premium Bonds and other NS&I holdings

• Defined contribution pensions (currently outside the estate for inheritance tax but included in the inventory; this changes from April 2027)

• Life insurance policies not written in trust

• Personal possessions: vehicles, jewellery, art, antiques, collectibles, household contents

• Money owed to the deceased (unpaid wages, tax refunds, dividends declared but not received)

• Business interests and partnership shares

• Interests in trusts

Jointly held assets also need to be identified. How they are valued depends on the nature of the ownership. A joint bank account usually passes entirely to the surviving holder under the right of survivorship, but the deceased's share is still counted for inheritance tax. A property held as joint tenants passes automatically but its value is included. A property held as tenants in common has a defined share that passes through the estate.

How to value each type of asset

Different asset types need different approaches. The important thing is being able to justify each figure if HMRC asks.

Property. For a modest estate clearly below the inheritance tax threshold, two or three estate agent valuations are usually sufficient. Take an average. For an estate close to or above the threshold, or with an unusual property, a formal RICS chartered surveyor valuation is worth the cost. HMRC's own District Valuer may challenge an estate agent estimate and demand a professional valuation if the initial figure looks low.

Zoopla and Rightmove figures can be used as a sanity check but are not sufficient on their own. Keep records of how the figure was reached.

Bank accounts and savings. Request a closing balance from the bank as at the date of death, including accrued interest. Most banks produce this as a standard bereavement service. Joint accounts should be reported with the deceased's share identified (usually 50% for a spouse or civil partner, unless there is evidence of a different split).

Investments. Request a valuation as at the date of death from the investment platform or fund manager. Most platforms produce this automatically on notification of death. Individual shareholdings can be valued using the closing price on the date of death (midpoint between bid and offer, using the "quarter-up" rule for probate purposes).

NS&I and Premium Bonds. Request values from NS&I directly using their bereavement service. See our Premium Bonds guide for more detail on how those work.

Pensions. Request the fund value from each provider as at the date of death, together with any expression of wish form on file. Until April 2027, most defined contribution pensions sit outside the estate for inheritance tax but should still be included in the inventory. From April 2027, they are included. See our pension guide for more detail.

Personal possessions. HMRC does not expect every item in the house to be itemised. A reasonable estimate for general household contents is acceptable. Items worth more than £500 each should be valued individually, and items worth more than £1,500 (jewellery, art, collectibles) need a professional valuation from an auctioneer or specialist. Keep records of how any estimate was reached.

Business interests. These need a professional valuation, ideally from an accountant with experience of probate valuations. Rules for business property relief (BPR) and agricultural property relief (APR) changed in April 2026, with 100% relief now capped at £2.5 million per person on qualifying assets. Above that threshold, relief is 50%.

Debts and liabilities

The net estate is gross assets minus debts. Include all of the following:

• Outstanding mortgage balance

• Credit card balances and personal loans

• Outstanding bills (utilities, council tax, phone, subscriptions)

• Income tax owed to HMRC (the deceased's tax position up to the date of death)

• Funeral expenses (even if paid by someone else, these count as a deduction)

• Costs of administering the estate (though some of these can only be added later)

Legal fees, probate fees, and estate agent commissions on any sales during administration are not usually deducted from the estate valuation for inheritance tax purposes. They come out of the proceeds later.

The excepted estate route

Most UK estates do not need to submit full inheritance tax paperwork. They qualify as "excepted estates" and a simpler process applies.

An estate is usually excepted if one of these applies:

• The gross value is below the nil rate band (£325,000 for a single person, or up to £650,000 where a transferable nil rate band from a deceased spouse is being claimed).

• The deceased left everything to a surviving spouse, civil partner, or charity, and the gross estate is under £3 million.

• The deceased lived permanently outside the UK and had UK assets worth £150,000 or less.

For excepted estates, the executor reports the estimated values directly in the probate application and does not submit form IHT400.

There are exceptions to the excepted status even for small estates, including where the deceased had given away more than £250,000 in the seven years before death, had complex pension arrangements, or had certain trust interests. Check the gov.uk excepted estate checklist if there is any doubt.

When IHT400 is required

If the estate is over the nil rate band, or if any of the exceptional circumstances apply, form IHT400 and the relevant schedules must be completed.

This is a substantial document with multiple schedules for different asset types (property, bank accounts, pensions, shares, gifts, business assets, and others). It is typically where a probate solicitor or a chartered tax adviser is worth the cost, particularly if the estate is close to or above the nil rate band.

Inheritance tax must usually be paid by the end of the sixth month after the month of death. Probate will not be granted until at least some of the tax has been paid, creating a cashflow problem for many estates. HMRC's direct payment scheme, the instalment option for property and certain other assets, and bridging loans are all possible solutions.

For more on the inheritance tax landscape generally, see our guide on the inheritance tax threshold in the UK.

Records HMRC expects you to keep

The executor should keep complete records for 20 years after inheritance tax is paid. This includes:

• All valuations obtained (estate agent letters, surveyor reports, share price records)

• Bank and investment statements showing the date-of-death balances

• Receipts for debts paid

• Documentation of the transferable nil rate band claim if applicable

• Correspondence with HMRC

• The final estate accounts distributed to beneficiaries

Good records at the valuation stage make later questions much easier to answer and protect the executor from personal liability if any issue is raised later.