How to Value an Estate for Probate

Valuing an estate for probate means working out what everything the person owned was worth on the date they died, taking off what they owed, and reporting that figure to HM Revenue and Customs. The valuation is what tells you whether inheritance tax is due and lets you apply for the grant.

The government describes this as three tasks: identify the assets and debts, estimate the estate's value, then report it (gov.uk, valuing the estate, as at July 2026). This guide walks through each one for England and Wales. It sits alongside our wider What Is Probate? guide and our estate planning guide. Figures are current as at July 2026 and are subject to change.

The three tasks in a valuation

A probate valuation breaks into three tasks. First, list everything the person owned and everything they owed at the date of death. Second, put a value on each item so you can estimate the total. Third, report that value to HMRC before applying for the grant (gov.uk, as at July 2026, subject to change). The value used is generally the open-market value on the date of death.

Step 1: list the assets

Start by listing everything the person owned on the date they died, at its open-market value. That covers property and land, bank and savings accounts, ISAs, investments, vehicles, personal possessions, cryptoassets, money owed to them, and certain insurance and pension death benefits (gov.uk, estimating the value, as at July 2026). The aim is a full picture, not a rounded guess.

Asset type	How it is usually valued
Bank, savings and ISA accounts	Balance at date of death, confirmed in writing by each provider
Property and land	Open-market value at date of death, often via an estate agent or surveyor
Shares and investments	Value at date of death, from the provider or the closing price
Personal possessions	Realistic resale value, not insurance or replacement cost
Money owed to the person	Amounts due back to the estate, such as loans made

Based on gov.uk/valuing-estate-of-someone-who-died, as at July 2026, subject to change. Ask each organisation to confirm the date-of-death value in writing.

Jointly owned assets are treated separately. Where a home or account was held as joint tenants, the deceased's share usually passes to the surviving owner outside the estate, while assets held as tenants in common are split by the shares owned. The way an asset was held can change the figure that enters the valuation.

Step 2: value the property

Property is often the largest single asset, so its value matters most. HMRC expects the open-market value at the date of death, meaning a realistic sale price rather than an optimistic or a rushed one. Many people obtain a written valuation from an estate agent, and for larger or taxable estates a RICS-qualified surveyor is common because HMRC can question a figure it considers too low.

Why the property figure is worth care. If inheritance tax is due, the estate is charged on value above the available thresholds, so an under-valued home can be challenged and a corrected figure can raise the bill. Where a home passes to children or grandchildren, the residence nil-rate band of up to £175,000 may also apply on top of the £325,000 nil-rate band (gov.uk, as at July 2026, subject to change). Getting the property value right early tends to avoid rework later. This is general information, not a valuation of any particular home.

Step 3: subtract the debts

Debts reduce the taxable value of the estate, so they need listing too. Common examples are an outstanding mortgage, credit cards, loans, utility arrears, and reasonable funeral costs. You record the debts owed at the date of death and deduct allowable liabilities from the assets to reach the net estate. Keep evidence, because HMRC may ask to see how a deduction was reached.

Mortgage or secured loans on any property in the estate
Credit cards, overdrafts and personal loans outstanding at death
Household bills unpaid at the date of death
Reasonable funeral expenses, which are generally deductible
Tax owed, such as an outstanding income tax bill

Gifts and trust interests

Some things outside the person's possessions at death still count. Gifts made in the seven years before death can be added back into the valuation, and any interest the person had in a trust may need including too (gov.uk, as at July 2026, subject to change). This is a step many people miss, so it is worth checking bank statements and asking the family about larger gifts.

A person can give away up to £3,000 in total each tax year under the annual exemption without it being added to the estate, plus separate small gifts of up to £250 per person (gov.uk, gifts, as at July 2026, subject to change). Gifts above those exemptions in the seven years before death may need to be brought into the figures, and where large gifts push the total over the threshold, taper relief can reduce the tax on the gift itself.

Estimate the total value

Once assets are valued and debts are deducted, you have an estimated value for the estate. That estimate does two jobs: it shows whether inheritance tax is likely to be due, and it is needed to apply for probate even when no tax is payable (gov.uk, as at July 2026, subject to change). An estate below the £325,000 nil-rate band is generally not taxed, though thresholds and reliefs can change the picture.

Whether tax is due is not just a matter of the total. Assets left to a spouse, civil partner or a UK charity are generally exempt, unused nil-rate band can transfer from a late spouse, and the residence nil-rate band may lift the effective threshold where a home passes to children (gov.uk, as at July 2026, subject to change). Because these interact, many people confirm the position before assuming tax is or is not payable. Our inheritance tax guide sets out the thresholds in more detail.

Threshold or rate	Level (July 2026)
Nil-rate band	£325,000
Residence nil-rate band	Up to £175,000
Combined, married couple / civil partners	Up to £1,000,000
Standard rate	40%
Reduced rate (10%+ to charity)	36%

Source: gov.uk/inheritance-tax. These thresholds are fixed until the end of the 2030-31 tax year (5 April 2031) (gov.uk), as at July 2026, subject to change.

Report the value to HMRC

How you report depends on whether the estate owes inheritance tax. Many estates are "excepted", meaning no tax is due and you report only the value as part of the probate application. Where tax is due, you send full details on form IHT400. If the estate owes inheritance tax, its value must be reported within one year of the death using IHT400, and before applying for probate (gov.uk, as at July 2026, subject to change).

Payment runs on a separate clock. Inheritance tax must be paid by the end of the sixth month after the person died, and HMRC charges interest if it is not paid by that due date (gov.uk, paying inheritance tax, as at July 2026, subject to change). Because the grant is often held up until tax is reported, the valuation tends to be on the critical path, which is one reason some people ask a professional to help.

A worked example

Illustration only. Say a widower dies owning a house valued at £360,000, savings of £45,000, a car worth £8,000, and personal effects of about £4,000, so assets of £417,000. He owed an outstanding credit card balance of £3,000, and reasonable funeral costs came to £4,000, giving deductible debts of £7,000. The net estate is therefore about £410,000. Because his late wife's unused nil-rate band could transfer, and the home passes to their children, the combined nil-rate and residence nil-rate bands may exceed the £410,000 net figure, so no inheritance tax might be due (gov.uk, as at July 2026, subject to change). Even so, a valuation is still needed to apply for probate. Every estate is different, so this is general information rather than a calculation for any particular estate.

The example shows why the order matters. Value first, deduct second, then test against the thresholds that apply to that family. Where a transferred nil-rate band or the residence nil-rate band is in play, the arithmetic can shift from "tax due" to "no tax due", so it is generally worth confirming with a qualified professional before drawing a conclusion. See the executor duties guide for who is responsible for getting this right.

Valuing an estate in Scotland and Northern Ireland

This guide describes England and Wales. The valuation principles are broadly similar across the UK, but the surrounding process differs. Scotland uses confirmation rather than a grant of probate, granted by the sheriff court, and its succession law can give a spouse and children fixed legal rights to a share of an estate. Northern Ireland has a separate but broadly similar system with its own probate office. Where an estate touches more than one UK nation, it can be worth taking advice in each.

Frequently asked questions

How do you value an estate for probate?

You list everything the person owned at its open-market value on the date of death, deduct the debts they owed, and add in certain gifts or trust interests to reach a net figure. That value is then reported to HMRC. The government sets it out as three tasks: identify assets and debts, estimate the value, then report it (gov.uk, as at July 2026, subject to change).

Do you need a valuation for probate if no tax is due?

Usually yes. Even where an estate is below the £325,000 nil-rate band and no inheritance tax is payable, an estimate of the value is still generally needed to apply for probate (gov.uk, as at July 2026, subject to change). Many such estates count as "excepted", so you report the value rather than sending full details on form IHT400.

What date do you value an estate at?

The valuation is generally taken at the open-market value on the date the person died, not the date probate is granted or the date an asset is later sold. This applies to property, savings, investments and possessions alike. Asking each bank, provider and, for property, an estate agent or surveyor to confirm the date-of-death figure in writing helps support the valuation (gov.uk, as at July 2026, subject to change).

What debts can be deducted from an estate?

Debts the person owed at the date of death can generally be deducted, which reduces the taxable value. Common examples are an outstanding mortgage, credit cards, personal loans, unpaid household bills and any tax owed, along with reasonable funeral expenses. Keeping evidence matters, because HMRC may ask how a deduction was reached (gov.uk, as at July 2026, subject to change).

Do gifts count when valuing an estate?

They can. Gifts made in the seven years before death may be brought back into the valuation. A person can give up to £3,000 in total each tax year under the annual exemption without it being added to the estate, plus small gifts of up to £250 per person (gov.uk, gifts, as at July 2026, subject to change). Gifts above those exemptions may need including, so it is worth checking records.

How long do you have to value an estate?

There is no single fixed deadline for the valuation itself, but the reporting and payment deadlines drive the timing. Where inheritance tax is due, the estate's value must be reported within one year of the death using IHT400, and the tax is generally due by the end of the sixth month after death, after which HMRC charges interest (gov.uk, as at July 2026, subject to change).

Can you value an estate yourself?

Many people value straightforward estates themselves, using written confirmations from banks and an estate agent's figure for any property. More complex estates, for example those with business assets, agricultural property, trusts, foreign assets or a possible tax bill, often involve a solicitor, a STEP practitioner or an accountant. Because the person applying takes on responsibility for the figures, some choose to take advice first.

About Fairchild Oldfield

The Fairchild Oldfield team brings together estate planning, tax, independent financial advice and client care, working with families across England and Wales.

Fairchild Oldfield are estate planning specialists and will writers, not a firm of solicitors. This article is general information based on practical experience, not legal, tax or financial advice.

Important: This article is general information only and is not legal, tax or financial advice. Reading it does not create a professional relationship. It is based on the law of England and Wales, and other UK jurisdictions may differ. Figures and rules are current as at July 2026 and are subject to change. Before acting, many people choose to seek advice from a suitably qualified professional, such as a solicitor, a STEP practitioner, an accountant, or an FCA-authorised financial adviser, who can consider your individual circumstances.