How to value an estate for probate in the UK
This guide covers the valuation date rule, what counts as an asset and a debt, how to value each type, and when form IHT400 is required.
What date do you value an estate at?
Every asset in the estate is valued at its open market value on the date of death, not at the value when the deceased bought it and not at today's value.
The date of death value also sets the starting value for capital gains tax on inherited property and any other asset sold at a different price during the administration.
The net total decides whether inheritance tax is owed and which form the executor uses. Estates below the nil rate band pay no inheritance tax: £325,000 for a single person, and potentially up to £1 million for a married couple or civil partners using both sets of allowances including the residence nil rate band. Current figures are in the guide to the inheritance tax threshold.
HMRC can investigate valuations for up to 20 years after an estate is settled, and the executor is personally liable if the figures are significantly wrong, a risk that comes with what an executor of a will does.
What counts as an asset when you value an estate for probate?
Everything the deceased owned on the date of death counts, from property and bank accounts to jewellery, unpaid wages and business interests.
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 and 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, outside the estate for inheritance tax until April 2027 but included in the inventory
Life insurance policies not written in trust
Personal possessions, including vehicles, jewellery, art, antiques, collectibles and household contents
Money owed to the deceased, such as unpaid wages, tax refunds and dividends declared but not received
Business interests, partnership shares and interests in trusts
Start with the paperwork: bank statements, investment statements, insurance documents and pension paperwork. Ask family members and the deceased's accountant or solicitor, and check the last few years of bank statements for recurring payments that point to an account. Jointly held assets need identifying too.
How do you value a house for probate purposes?
Valuing a house for probate purposes means establishing its open market value on the date of death, and how much evidence you need depends on how close the estate is to the inheritance tax threshold.
A modest estate clearly below the threshold: two or three estate agent valuations, averaged.
An estate close to or above the threshold, or an unusual property: a formal RICS chartered surveyor valuation, worth the cost.
Zoopla and Rightmove figures: a sanity check only, not sufficient on their own.
HMRC's District Valuer may challenge an estate agent estimate and demand a professional valuation if the figure looks low. Keep records of how you reached it.
How do you value bank accounts, investments and pensions?
Ask each provider for a valuation as at the date of death, which most produce automatically as a standard bereavement service.
Bank and savings accounts: a closing balance as at the date of death, including accrued interest.
Joint accounts: the deceased's share identified, usually 50% for a spouse or civil partner unless there is evidence of a different split.
Investments: a valuation as at the date of death from the platform or fund manager.
Individual shareholdings: the closing price on the date of death, taking the midpoint between bid and offer under the quarter-up rule for probate.
NS&I and Premium Bonds: values requested from NS&I through its bereavement service.
Pensions: the fund value from each provider as at the date of death, with any expression of wish form on file.
Until April 2027, most defined contribution pensions sit outside the estate for inheritance tax but are still listed in the inventory. From April 2027 they are included. See what happens to premium bonds when someone dies and what happens to a pension when someone dies for the detail.
How do you value personal possessions and business interests?
HMRC does not expect every item in the house to be itemised, and a reasonable estimate for general household contents is acceptable.
Individual jewellery items worth £1,500 or more: listed and valued separately on HMRC's IHT407 form, rather than grouped in with general contents.
Vehicles, antiques, art and collections: listed individually too, with a professional valuation attached to the return if one has been obtained.
Business interests and partnership shares: a professional valuation, ideally from an accountant experienced in probate valuations.
Keep records of how any estimate was reached. Business property relief (BPR) and agricultural property relief (APR) rules changed in April 2026, with 100% relief now capped at £2.5 million per person on qualifying assets. Above that cap, relief is 50%.
What debts can you deduct from the estate?
The gross estate is the total value of assets, the net estate is gross minus debts, and the deductible debts are what the deceased owed at the date of death plus the funeral costs.
Outstanding mortgage balance
Credit card balances and personal loans
Outstanding bills, including utilities, council tax, phone and subscriptions
Income tax owed to HMRC, covering the deceased's tax position up to the date of death
Funeral expenses, deductible even if a family member paid them and expects reimbursement
Costs of administering the estate, though some can only be added later
Legal fees, probate fees and estate agent commissions on sales during the administration are not usually deducted from the valuation for inheritance tax, and come out of the proceeds later. On who ends up paying, see what happens to debt when you die.
How is jointly held property valued for probate?
A jointly held asset is valued in full, and the deceased's share is counted for inheritance tax even where the asset passes automatically to the surviving owner.
A joint bank account: usually passes entirely to the surviving holder under the right of survivorship, with the deceased's share still counted for inheritance tax.
A property held as joint tenants: passes automatically to the surviving owner, and its value is still included in the estate.
A property held as tenants in common: has a defined share that passes through the estate rather than to the co-owner.
Report the deceased's share, and record how you arrived at the split.
Does the estate qualify as an excepted estate?
Most UK estates qualify as excepted estates, which means a simpler process and no form IHT400. An estate is usually excepted if one of these applies.
Gross value 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 claimed.
Everything left to a surviving spouse, civil partner or charity: where the gross estate is under £3 million.
The deceased lived permanently outside the UK: with UK assets worth £150,000 or less.
The executor of an excepted estate reports the estimated values directly in the probate application. Exceptions apply even to some small estates, including where the deceased gave away more than £250,000 in the seven years before death, had complex pension arrangements, or had certain trust interests. Check GOV.UK's excepted estates checklist if there is any doubt.
When do you have to complete form IHT400?
Form IHT400 and the relevant schedules must be completed if the estate is over the nil rate band, or if any of the exceptions to excepted estate status apply.
IHT400 is a substantial document, with schedules for property, bank accounts, pensions, shares, gifts and business assets. A probate solicitor or a chartered tax adviser is typically worth the cost for an estate 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, which creates a cashflow problem. Three routes are common.
HMRC's direct payment scheme: the tax paid to HMRC from the deceased's accounts before probate.
The instalment option: for property and certain other assets.
A bridging loan: where the estate has no accessible cash.
The figures then go into the application itself, covered in how to apply for probate.
What records do you need to keep, and for how long?
The executor should keep complete records for 20 years after inheritance tax is paid.
All valuations obtained, including estate agent letters, surveyor reports and 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 one is made
Correspondence with HMRC
The final estate accounts distributed to beneficiaries
Good records make later questions easier to answer, and protect the executor from personal liability.
Frequently asked questions
For a modest estate clearly below the inheritance tax threshold, two or three estate agent valuations averaged are usually enough. For an estate close to or above the threshold, or an unusual property, use a RICS chartered surveyor. HMRC's District Valuer can challenge an estate agent estimate.
The date of death value is the starting value for capital gains tax, so a later sale at a higher price can create a gain during the administration. That is why the date of death figure has to be defensible. Keep the valuations behind it.
Yes. Funeral expenses are deductible even if a family member paid them and expects reimbursement. Legal fees, probate fees and estate agent commissions on sales during the administration are not usually deducted from the valuation for inheritance tax, and come out of the proceeds later.
Request the fund value from each pension provider as at the date of death, and include it in the inventory. Until April 2027, most defined contribution pensions sit outside the estate for inheritance tax. From April 2027 they are included in the estate.
HMRC can investigate valuations for up to 20 years after an estate is settled, and the executor is personally liable if the figures are significantly wrong. Keep every valuation, statement and receipt for 20 years after inheritance tax is paid, with all HMRC correspondence.
This article is for general information only and does not constitute legal advice. Individual circumstances vary. If you are dealing with an estate, consider taking advice from a solicitor who specialises in probate. For other guidance specific to your circumstances, speak to a funeral director, Citizens Advice, or a regulated financial adviser.