We use cookies
We use cookies to enhance your experience, maintain your session, and remember your preferences. Some cookies are essential for the platform to function properly. Learn more in our Privacy Policy
One of the most important early tasks is valuing the estate, and it can feel daunting if you're not sure where to start.
If you've recently been named as an executor, you're probably dealing with a lot at once. Grief, paperwork, phone calls, and a process you may never have navigated before. One of the most important early tasks is valuing the estate, and it can feel daunting if you're not sure where to start.
This guide walks you through everything you need to know, step by step, in plain English. You don't need a legal background to do this well.
Before you can apply for a Grant of Probate (or Confirmation in Scotland), you need to know the value of the estate. This figure matters for two key reasons:
First, it determines whether inheritance tax (IHT) is payable. The standard nil-rate band is £325,000. If the net estate falls below this threshold, no IHT is due. In reality, only around 4% of UK estates pay any inheritance tax at all, so there's a good chance the estate you're dealing with won't be affected.
Second, it shapes which HMRC forms you'll need to complete. Simpler estates use a shorter declaration process, while larger or more complex estates require the full IHT400 form and its schedules.
Getting the valuation right protects you as an executor too. You can be personally liable if assets are undervalued and taxes go unpaid, so it's worth taking care with this step.
Every asset in the estate must be valued at its worth on the date the person died. It doesn't matter if an investment rises or falls afterwards, or if the house is sold six months later for a different price. The date of death is the reference point for everything.
Keep a note of where each value came from and when you obtained it. Good record-keeping protects you and makes the probate application much smoother.
The estate includes everything the person owned in their sole name at the date of death. This typically covers:
Property and land - any residential or commercial property, or land, held solely in their name. If the property was jointly owned, the rules depend on how it was held (joint tenancy vs tenancy in common), which we'll cover below.
Bank and savings accounts - current accounts, savings accounts, ISAs, Premium Bonds, and cash held anywhere.
Investments - shares, unit trusts, investment bonds, and other financial products held in their name.
Pensions - the estate value of pensions is more nuanced (see below), but some pension funds may form part of the estate depending on their structure.
Life insurance policies - policies written "in trust" usually fall outside the estate. Policies not in trust are included.
Vehicles - cars, motorcycles, boats, or caravans owned outright.
Business interests - shares in a private company, a sole trader's business assets, or a partnership share.
Personal possessions - furniture, jewellery, art, antiques, and other valuables.
Money owed to the deceased - any loans the person made that haven't been repaid.
Not everything transfers through the will or probate process. Assets that pass outside the estate include:
Jointly owned property (joint tenancy) - if the property was held as joint tenants, it passes automatically to the surviving owner by what's known as the right of survivorship. You still need to note this, but it doesn't count towards the taxable estate in the usual way.
Pensions with a nominated beneficiary - most modern pension schemes allow the holder to nominate who receives the death benefits. These funds go directly to the beneficiary, not through the estate.
Life insurance written in trust - again, this passes directly to the named beneficiary.
Assets held in a trust - depending on how the trust is structured, these may not form part of the estate.
It's worth identifying these early, as they affect both the IHT calculation and which assets you actually have authority to deal with as executor.
Property is usually the most significant asset in an estate, and it needs to be valued by a qualified surveyor or estate agent. You should get a formal valuation in writing, as HMRC may scrutinise property values if they seem too low.
Ask two or three local estate agents for a written opinion of value at the date of death, or commission a Chartered Surveyor's report. The figure to use is the open market value, meaning the price a willing buyer would pay a willing seller on the open market.
If the estate owns a share of a property (for example, as tenants in common), include only the proportionate share. A valuation discount may sometimes apply to minority shares, but this is a complex area where professional advice is helpful.
Contact each bank, building society, or savings provider in writing (using the death certificate as authority) and ask for a written confirmation of the account balance at the date of death, including any accrued interest.
For National Savings and Investments products such as Premium Bonds, contact NS&I directly. Premium Bonds themselves are not transferable but the holder's bonds remain valid for a period after death and any prizes are still payable.
For shares listed on the London Stock Exchange (or other recognised exchanges), the value is calculated using a specific formula: the lower of two figures taken from the closing prices on the date of death, or the average of the highest and lowest prices for that day. This is known as the "quarter-up" rule, and your stockbroker or a financial adviser can help calculate it.
For unit trusts, OEICs (open-ended investment companies), or investment bonds, contact the fund manager directly for the bid price on the date of death.
For unlisted shares (for example, shares in a private company), valuing them is more complex and you will usually need a specialist accountant.
Stocks and shares ISAs are valued at market value on the date of death. Cash ISAs are valued at the account balance, including accrued interest. The ISA wrapper itself ceases on death, but the value is still included in the estate.
Everyday household items (furniture, clothing, ordinary appliances) are usually valued at second-hand selling price, which is often quite low. Jewellery, art, antiques, collectibles, or anything of potential value should be professionally appraised by a specialist.
If you're unsure whether something has significant value, a valuation from a reputable auction house such as Christie's or Bonhams is usually free and gives you a defensible written record.
Use a reputable valuation guide such as Parkers or Glass's Guide to find the market value of any vehicles on the date of death. Keep a screenshot or printout with the date, as HMRC may ask for evidence.
Sole trader businesses, partnerships, or private company shares require specialist valuation. This is one area where working with an accountant experienced in estate matters is genuinely worthwhile, as Business Relief may reduce or eliminate the IHT liability on qualifying business assets.
Most pension death benefits do not form part of the taxable estate, because they fall under the discretion of the pension scheme trustees. However, this is changing: from April 2027, unused pension funds will be included in the estate for IHT purposes. For the moment, check each pension with the provider to understand whether any lump sum forms part of the estate.
Once you have the gross estate value, you can deduct liabilities to arrive at the net estate value:
Funeral costs are deductible, including the cost of the funeral itself and any headstone, provided they are reasonable.
Debts owed by the deceased at the date of death are deductible. This includes mortgages, credit card balances, personal loans, utility arrears, and any other outstanding liabilities.
Other costs directly arising from the death may also be deductible in some circumstances.
The net estate is the figure used to assess whether IHT is payable.
If the person who died made significant gifts in the seven years before their death, these may still be subject to IHT under what are called potentially exempt transfers (PETs). Gifts that survive the full seven years become exempt entirely, but those made within seven years are "tapered" and may add to the taxable estate.
As executor, you'll need to track down any gifts above the annual exemption (£3,000 per year) made in this period. Bank statements, letters, and family recollections are all useful here.
How jointly owned assets are treated depends on the form of ownership:
Joint tenancy means both owners own the whole property together. On death, the surviving owner automatically inherits the deceased's share. The share does not pass through the will and is not administered as part of the estate, though it may still need to be declared to HMRC for IHT purposes.
Tenancy in common means each owner holds a defined share (which may or may not be equal). The deceased's share does pass through their will or the intestacy rules, and is included in the estate.
The title deeds or Land Registry record will confirm which applies for property. For bank accounts, a joint account passes to the surviving account holder without going through the estate.
The estate valuation determines which forms you complete:
For most estates in England and Wales (where the estate is "excepted" from the full IHT process, typically because it falls below the threshold), the valuation is now reported as part of the online probate application itself. Separate IHT205 forms are no longer required for deaths on or after 1 January 2022.
For estates where IHT may be due, you will need to complete the IHT400 and relevant schedules (such as IHT401 for domicile, IHT405 for property, IHT411 for listed shares, and so on). IHT must be paid, or at least the first instalment made, before probate will be granted.
In Scotland, the equivalent for excepted estates is the C5 form, submitted alongside the C1 application for Confirmation.
If this feels like a lot to hold in your head at once, you're not alone. Most executors have never done this before, and the combination of grief and administrative complexity can be genuinely overwhelming.
EstateCopilot is designed for exactly this situation. Once you create an account, the platform guides you through each stage of the estate administration process, starting with a step-by-step asset discovery checklist that makes sure nothing gets missed. The built-in inheritance tax assessment tool walks you through the calculation and tells you which HMRC forms apply to the estate you're dealing with, whether it's in England and Wales, Scotland, or Northern Ireland.
If you're ready to start bringing some order to the process, you can create your free account at EstateCopilot and begin at your own pace. There's no deadline to start, and no obligation to continue if it's not the right fit.
Do I need a professional valuation for everything?
Not necessarily. Bank balances and investment values are straightforward to obtain in writing from the relevant institutions. Property, business interests, and significant personal possessions (jewellery, art, antiques) should have a formal written valuation from a qualified professional. For everyday household contents, a reasonable estimate is usually acceptable.
What if I can't find all the accounts?
It's common to discover accounts or policies that weren't mentioned in the will. Start by checking the person's paperwork, bank statements, and any correspondence from financial institutions. A service called Unclaimed Assets Register and My Lost Account can help trace dormant accounts.
What happens if I get the value wrong?
HMRC can investigate estate valuations, particularly for property. Honest errors are treated differently from deliberate undervaluation. If you've obtained professional valuations and kept good records, you're in the strongest position. If you're uncertain, it's better to seek advice early than to correct a submission later.
Does valuation change if there's no will?
No. The process of valuing the estate is the same whether or not there is a will. What changes is who has authority to administer it (an administrator instead of an executor) and how the estate is distributed (the intestacy rules instead of the will's instructions).
When do I need to get professional help?
It's worth speaking to a solicitor or specialist estate administration service if the estate includes foreign property, business interests with complex structures, assets held in trust, a contested will, or if IHT is likely to be due. EstateCopilot is built for straightforward estates and will flag when professional advice is recommended.
Valuing an estate takes time and care, but it's manageable when you break it down. The key steps are:
If you'd like a structured checklist to work through this process, step by step, EstateCopilot's guided platform is there when you're ready. Take a look and see if it feels right for you.
This article is for general information only and does not constitute legal or financial advice. Estate administration rules can be complex, and individual circumstances vary. If you are uncertain about any aspect of the process, we recommend speaking with a qualified solicitor or estate administration specialist.