When you're responsible for administering someone's estate, one of the first major tasks is working out exactly what they owned — and what everything was worth when they died.

For many executors, this is where the scale of estate administration starts to become clear.

There's the house, bank accounts and perhaps a pension or investment portfolio. But what about the car? Jewellery? Furniture? Shares? An old collection? Jointly owned assets? Or financial accounts nobody knew existed?

What actually needs to be valued for Probate — and how accurate do those valuations need to be?

Establishing the value of an estate is an important part of the Probate and estate administration process. The figures can affect tax reporting, the information supplied as part of the Probate process and, ultimately, what is available for beneficiaries.

In this guide, we explain what executors should consider when valuing an estate in England and Wales, why the date-of-death value matters and when professional help may be appropriate.

Why Does an Estate Need to Be Valued?

Before an estate can be administered properly, the executor or administrator needs to establish its financial position.

Broadly, that means identifying:

Assets – what the deceased owned.

Liabilities – what the deceased owed.

The value of the estate may be relevant to Inheritance Tax reporting and the Probate process, as well as the eventual estate accounts.

It also gives the executor a much clearer picture of the estate they are responsible for administering.

If you're at the beginning of this process, our Probate & Estate Administration information can help you understand the wider steps involved.

What Is a Date-of-Death Valuation?

One of the most important concepts to understand is that assets generally need to be considered by reference to their value at the date of death, rather than what they might be worth several months later.

This matters because values change.

A house may increase or decrease in value while Probate is progressing.

Shares can move significantly.

Vehicles depreciate.

The eventual sale price of an asset therefore isn't necessarily the same as its relevant date-of-death value.

Keeping evidence showing how a valuation was established can be very useful later in the administration.

Which Assets Need to Be Identified and Valued?

The exact position will depend on the individual estate, but executors may need to consider a much wider range of assets than they initially expect.

These can include:

• property and land;
• current accounts;
• savings accounts;
• ISAs;
• investments;
• shares;
• Premium Bonds;
• business interests;
• vehicles;
• jewellery;
• antiques;
• artwork;
• collections;
• valuable household contents;
• certain digital assets;
• money owed to the deceased;
• foreign assets.

Some pension and life assurance arrangements may also need to be investigated, although whether they form part of the estate can depend on the particular arrangement.

The important first step is therefore identification.

You can't accurately value an asset you don't know exists.

How Is a Property Valued for Probate?

For many estates, the property is the largest single asset.

The value required isn't simply what the family thinks the house might sell for.

The executor needs to establish an appropriate value at the relevant date.

Depending on the estate and circumstances, this might involve obtaining professional property advice or a formal valuation.

Factors affecting value can include:

• location;
• condition;
• size;
• tenure;
• comparable properties;
• development potential;
• land;
• restrictions affecting the property.

Where the value may have tax implications, obtaining appropriate professional advice can be particularly important.

Is a Probate Valuation the Same as an Estate Agent's Sale Valuation?

Not necessarily.

An estate agent may provide a suggested asking price or an indication of likely market value for sale purposes.

A Probate valuation serves a different purpose: establishing an appropriate value for the estate at the date of death.

The right type of valuation will depend on the circumstances.

If you're uncertain about what is required, seek advice rather than simply choosing the highest or lowest estimate available.

Harrisons' Property Services can assist with practical property matters during estate administration.

What About Bank Accounts and Savings?

Bank accounts are generally more straightforward because the relevant financial institution can usually provide the balance at the date of death.

Executors should identify all accounts held by the deceased, which could include:

• current accounts;
• savings accounts;
• ISAs;
• fixed-term savings;
• online accounts.

But there is an obvious problem:

What if you don't know where all the accounts are?

Modern financial affairs are increasingly paperless. Someone may have opened an account online without ever receiving regular statements through the post.

Where financial records appear incomplete, further investigation may be appropriate.

Harrisons works with Verafi to provide specialist Asset Searches, helping executors investigate potential financial assets that may otherwise be overlooked.

How Are Shares and Investments Valued?

Investments may include:

• individual shares;
• investment funds;
• portfolios;
• bonds;
• investment accounts.

Their value can fluctuate considerably, which makes the date of death particularly important.

Executors should contact the relevant provider, registrar or investment manager to establish the appropriate valuation.

Records should be retained as part of the estate administration file.

Do Household Contents Need to Be Valued for Probate?

This is an area executors can easily underestimate.

A house full of possessions may appear to contain mostly ordinary furniture and personal belongings.

But there can be individual items of significant value.

Examples include:

• jewellery;
• watches;
• paintings;
• antiques;
• designer furniture;
• coins;
• stamps;
• wine;
• books;
• memorabilia;
• specialist collections.

Executors shouldn't automatically assume household contents have little or no value.

Equally, the original purchase price isn't necessarily relevant. What matters is the appropriate value at the relevant time.

Where potentially valuable items are present, a specialist valuation may be sensible.

What About Jewellery?

Jewellery deserves particular attention.

A family member may see sentimental value in a ring or watch without knowing whether it also has significant financial value.

Conversely, something originally purchased for a substantial amount may have a much lower second-hand market value.

Executors shouldn't guess.

For higher-value pieces, specialist professional valuation can provide a clearer and more defensible figure.

Valuable jewellery should also be kept secure while the estate is being administered.

Do Cars Need to Be Valued?

Vehicles owned by the deceased may form part of the estate and should therefore be identified and appropriately valued.

Factors may include:

• make and model;
• age;
• mileage;
• condition;
• specification;
• market demand.

Classic, rare or specialist vehicles may require expert valuation.

It's also worth checking whether the vehicle was actually owned outright or subject to a finance agreement.

What About Jointly Owned Assets?

Joint ownership can make estate valuation more complicated.

Examples include:

• jointly owned property;
• joint bank accounts;
• jointly held investments.

How an asset passes after death and what needs to be reported can depend on the type of ownership and circumstances.

Don't assume that because an asset is jointly owned it can simply be ignored for estate valuation purposes.

Where the position is unclear, professional advice should be obtained.

What About Assets Abroad?

Foreign property, overseas bank accounts and international investments can add another layer of complexity.

Executors may need to establish:

• ownership;
• local valuations;
• exchange rates;
• local legal requirements;
• relevant tax implications.

If an estate contains significant overseas assets, appropriate legal and tax advice may be required in both jurisdictions.

What About Digital Assets?

Digital assets are becoming increasingly relevant to estate administration.

Depending on the individual, these might include:

• cryptocurrency;
• online investment accounts;
• digital businesses;
• monetised websites;
• intellectual property;
• certain online financial accounts.

Not every digital account has a financial value, but executors shouldn't automatically assume that something existing only online is worthless.

Identifying these assets can sometimes be particularly difficult where the deceased kept limited records.

Do Debts Reduce the Value of the Estate?

Liabilities form an important part of understanding the estate's overall financial position.

Potential liabilities might include:

• mortgages;
• loans;
• credit cards;
• unpaid bills;
• tax;
• care fees;
• other money owed.

Different rules can apply to different liabilities, so executors should obtain appropriate advice about what can properly be taken into account.

The aim isn't simply to total everything the deceased owned. It's to establish a reliable picture of the estate as a whole.

What If You Discover an Asset After the Estate Has Been Valued?

It happens.

An executor might later discover an old savings account, investment or valuable possession that wasn't included in the original information.

Don't ignore it because Probate has already progressed.

The appropriate action will depend on the asset, its value, the stage of administration and any tax implications.

Seek advice and correct the estate information where necessary.

Finding these issues early is one reason thorough initial enquiries are so valuable.

What Happens If an Asset Is Undervalued?

A genuine valuation isn't about choosing the lowest possible figure.

Executors should aim to provide accurate and supportable information.

If a valuation later proves materially inaccurate, there may be tax or administrative consequences depending on the circumstances.

Keeping evidence of how the original figure was reached can therefore be extremely helpful.

Do Executors Need Professional Valuations for Everything?

No.

Not every household item requires its own expert report.

The approach should be appropriate to the estate and the asset involved.

A professional valuation is more likely to be worth considering where:

• an asset is potentially valuable;
• the value is difficult to establish;
• there could be significant tax implications;
• beneficiaries disagree about value;
• the asset is unusual or specialist;
• there is a significant property interest.

When in doubt, ask for professional guidance.

Don't Forget the Beneficiaries

Valuing the estate tells you what exists.

You still need to know who is entitled to receive it.

Where family information is incomplete, beneficiaries are missing or the deceased died intestate, professional genealogical research may be required.

Our Genealogy & Family Research services can help establish family relationships and trace beneficiaries in the UK and internationally.

Keep Evidence of Your Valuations

Executors should retain documents showing how significant values were established.

These might include:

• professional valuation reports;
• bank correspondence;
• investment statements;
• photographs;
• inventories;
• estate agent correspondence;
• vehicle valuations;
• specialist reports.

This can help when preparing estate accounts and answering questions from beneficiaries later.

Frequently Asked Questions About Probate Valuations

Does everything in a house need to be valued for Probate?

Household and personal possessions forming part of the estate need to be appropriately considered, but that doesn't necessarily mean obtaining an individual professional valuation for every item.

Potentially valuable or specialist items may require particular attention.

How do you value a house for Probate?

The appropriate approach depends on the estate and circumstances. Professional property valuation advice may be required, particularly where the value has tax implications.

Can I use an estate agent's valuation for Probate?

An estate agent's market appraisal and a valuation required for estate or tax purposes aren't necessarily the same thing. Obtain advice about the level and type of valuation appropriate to the estate.

Do bank accounts need valuing?

The balance at the date of death will normally need to be established. Financial institutions can usually provide this information.

Do cars count as part of an estate?

If the deceased owned the vehicle, it may form part of the estate and should be considered accordingly.

What if I find another bank account after Probate?

Don't ignore it. The appropriate next steps will depend on the circumstances, and professional advice may be required.

Do jointly owned assets count for Probate?

Joint ownership can affect how an asset is treated, but it shouldn't simply be disregarded. The ownership structure and circumstances need to be established.

What if I don't know whether I've found all the assets?

Where financial records are incomplete, additional enquiries or a professional asset search may help provide greater confidence.

Valuation Starts With Knowing What Exists

It's tempting to think of estate valuation as a simple exercise in adding up numbers.

In reality, the most difficult part can be establishing what needs a number attached to it in the first place.

A forgotten investment, unidentified bank account, valuable collection or overlooked property interest can materially change the picture.

Taking a thorough approach at the beginning of estate administration can make everything that follows considerably easier.

How Harrisons Can Help

At Harrisons Private Client Solutions, we help executors and families deal with the practical work involved in administering an estate.

Not Sure You've Identified or Valued Everything?

If you're administering an estate and the asset picture isn't completely clear, speak to Harrisons before uncertainty becomes a problem later in the process.

Whether you need help investigating potential financial assets, dealing with an estate property, tracing beneficiaries or coordinating the practical work involved in administration, our team can help.

Contact us to talk through the estate and find out what support may be appropriate.

Email: ciara@harrisons-pcs.com
Telephone: 01923 943499

This article provides general information relating to estate administration in England and Wales and should not be treated as legal, financial or tax advice.