Can I use rough valuations for probate?

Official guidance from HM Revenue & Customs states that, if the gross value of the estate is likely to be less than £250,000, or the estate is exempt because of the spouse, civil partner or charity exemptions, you can estimate the value of assets.

Estimated values

You should not guess, but try to estimate the value based on information available to you.

This could be, for example:

1. For bank accounts, the final balance from the latest bank statement;
2. For cars, the value of similar models (for example based on Auto Trader prices);
3. For a house, the recent sale price of a similar property nearby.

Writing letters to banks and others

In this case, you do not have to obtain accurate valuations from banks, brokers, estate agents and so on.

Nevertheless, it still may be a good idea to send letters. Many institutions will need to see an original copy death certificate, and they will supply closure forms and other helpful details once they have received written requests.

For these reasons, we recommend sending letters to banks and others. The Probate Wizard will compile many of these letters for you.

Larger estates

For estates worth more than £250,000, there is a greater onus on personal representatives to obtain accurate valuations. This is particularly true of taxable estates.

Even in this case, formal valuations are not a legal requirement. However, HM Revenue & Customs has the power to challenge valuations, and it often does so, particularly valuations of property.

So, for larger estates, we recommend obtaining formal valuations of bank accounts, shares, properties and other assets.

Gross value of the estate

The “gross value of the estate” is the value of all assets. It is the value of the estate before deducting mortgages, funeral expenses, debts and inheritance tax reliefs.

Exempt estates

If the deceased’s estate is passing to a surviving spouse or civil partner, and/or to a registered charity, it will be exempt from inheritance tax. Accurate valuations are usually not required in this case.