Valuing an estate means establishing what everything was worth on the date of death, less any debts. This guide explains the principle of open market value, how to list assets and debts, the inheritance tax thresholds, and when a professional valuation helps.
General information only. Always confirm current rules on GOV.UK and consider professional advice.
Fair Vintage is a specialist buyer and valuer of items such as jewellery, watches, gold, coins and antiques. We are not a solicitor, accountant, tax adviser or probate service, and this article is general information, not legal, tax or financial advice. Rules and figures change. Always check the official guidance on GOV.UK and, where an estate is at all complex, take advice from a qualified professional.
When someone dies, the person dealing with their affairs — the executor or administrator — usually needs to work out the value of the estate. In simple terms, that means adding up everything the person owned and subtracting everything they owed, using values as at the date of death. The result is used to apply for probate (the legal right to deal with the estate) and to work out whether any inheritance tax is due.
The guiding principle throughout is open market value: what each asset would realistically have sold for on the open market at the date of death. That is not the same as an insurance replacement figure, a sentimental value, or what something originally cost.
Go through everything the person owned and record a value for each. Typical categories include:
From the total assets you deduct what the person owed at the date of death. Common deductions include an outstanding mortgage, loans and credit cards, outstanding household bills, and reasonable funeral costs. The result is the net value of the estate.
Most estates pay no inheritance tax, because tax is only charged above a threshold. As a guide:
| Allowance | Guide figure | Applies to |
|---|---|---|
| Nil-rate band | £325,000 | All estates |
| Residence nil-rate band | up to £175,000 | A home left to direct descendants |
| Rate above the threshold | usually 40% | The taxable portion |
Unused allowance can often be transferred between spouses or civil partners, which can effectively double the amount that passes tax-free. These figures have been frozen for several years, but the exact amounts, the freeze end date and the detailed rules change over time — so treat the numbers above as a guide only and confirm the current thresholds on GOV.UK for the date you need.
Reporting requirements changed for deaths on or after 1 January 2022: many estates that do not owe inheritance tax no longer complete a separate short account and instead report values as part of the probate application. Estates that owe tax, or that do not qualify as excepted, use the fuller inheritance tax account. The current forms and rules are set out on GOV.UK.
Everyday household contents are often recorded as a single modest total, but individually valuable items should be valued separately and honestly at open market value. This is where getting the figure right matters most, because HMRC can question values it considers too low, and because families often either over- or under-estimate what pieces are worth.
Items that usually deserve a separate, written valuation include:
A written valuation gives the executor a defensible open market figure and a clear record. Fair Vintage can provide a written valuation of items in these categories; for property you would use a suitable property valuer or estate agent.
Where inheritance tax is payable, it generally needs to be paid by the end of the sixth month after the person died, and interest may be charged on late payment. Tax on some assets, such as property, can sometimes be paid in instalments. Because these deadlines and options change, and getting them wrong can be costly, always check the current position on GOV.UK and consider professional advice.
This guide is general information about the process and is not legal, tax or financial advice. It does not cover every situation, and the rules change. For your own circumstances, rely on the official guidance at GOV.UK and a qualified solicitor or tax adviser.
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Get a free estimate →Valuing an estate means working out what everything the person owned was worth at the date of their death, then subtracting what they owed. This covers property, money, investments, vehicles and personal possessions, less any debts such as a mortgage, loans and funeral costs. The figure is used to apply for probate and to work out whether any inheritance tax is due. Values should reflect the open market value on the date of death.
There is normally no inheritance tax to pay if the estate is below the nil-rate band, which has been set at 325,000 pounds, and an additional residence nil-rate band of up to 175,000 pounds can apply when a home is left to direct descendants. Above the threshold the rate is usually 40 percent. These figures and the rules around them change over time, so always confirm the current thresholds on GOV.UK for the date you need.
It depends on the estate. For straightforward, lower-value items a reasonable estimate may be acceptable, but for higher-value or unusual assets such as property, jewellery, antiques or a collection, a professional valuation gives a defensible open market figure. HMRC can question values it considers too low, so a written, independent valuation for significant items helps support the figures you report. Always check the current GOV.UK guidance.
Personal possessions, sometimes called chattels, are valued at their open market value on the date of death, which is what they would realistically sell for, not their insurance replacement cost or original price. Everyday household items are often grouped as a modest total, while individually valuable pieces such as jewellery, watches, gold, coins or antiques should be assessed separately. A written specialist valuation is useful for anything of real value.
Where inheritance tax is due, it generally needs to be paid by the end of the sixth month after the person died, and interest can be charged on amounts paid late. Tax on some assets, such as property, can sometimes be paid in instalments. Because deadlines and options change, and mistakes can be costly, check the current rules on GOV.UK and consider taking professional advice from a solicitor or tax adviser.
For the jewellery, watches, gold, coins and antiques within an estate, we provide a clear written valuation at open market value. Send a photo for a free estimate. Anything you decline comes back free.