In short
If someone has died and their estate includes a property, the executors usually need to know what that property was worth on the date of death – to work out whether Inheritance Tax is due, and to apply for probate. For most estates, a written valuation from an experienced local estate agent is suitable. More complex or high-value estates may need a formal RICS valuation.
Dealing with a loved one’s estate is hard enough without having to decode the paperwork. Here’s what a probate valuation is, and how to go about getting one.
What is a probate valuation?
It’s a valuation of the property as at the date of death – not today’s value, and not what you might hope to sell it for in the future. It should reflect the open market value: the price the property would reasonably have sold for, on the open market, on that date.
The executors use it to value the estate, to work out whether any Inheritance Tax is due, and to report the estate’s value when applying for probate.
When do you need one?
You’ll usually need a probate valuation if the person who died owned a property in their sole name, or a share of one. You may not need one if the property was jointly owned and passes automatically to the surviving owner – but it’s still worth checking with the probate solicitor or on GOV.UK, as the value may still need to be reported.
Who can provide it?
- An experienced estate agent. For most estates, particularly where no Inheritance Tax is likely to be due, a written valuation from a competent local agent is suitable.
- A RICS registered valuer. A formal “Red Book” valuation may be advisable where the estate is close to or over the Inheritance Tax threshold, the property is complex or unusual, or there’s any disagreement between beneficiaries.
Whoever provides it, it should be accurate, justified by evidence of comparable sales, and in writing.
Why accuracy matters
It’s tempting to think a low figure is best, but getting it wrong either way can cause problems:
- Too low – HMRC can challenge the figure, and if Inheritance Tax is due, it may then ask for more tax, with interest and possibly penalties. A low probate value can also mean more Capital Gains Tax when the property is later sold.
- Too high – you could pay more Inheritance Tax than necessary.
HMRC can ask the Valuation Office Agency to check a property valuation, particularly where tax is payable.
From experience
Our standard probate valuations are free and in writing, and there’s no obligation to use any of our other services. Executors often tell us it’s one less thing to worry about at a difficult time.
What does a probate valuation involve?
Usually a visit to the property, research into recent sales of similar homes nearby, and a written valuation letter for the executors to keep with their probate papers. If a formal RICS valuation turns out to be needed, a good agent will tell you – and can put you in touch with a local surveyor.
This article is general guidance for estates in England and Wales, not legal or tax advice. Rules can change: check the latest on GOV.UK, or ask a probate solicitor.