How to value listed shares for probate

UK “Plc” (public limited) companies are listed on the London Stock Exchange. A probate valuation is the open-market value of a shareholding at the date of death (not the date the shares are valued).

Methods for valuing shares for probate

Unless the estate is particularly large or taxable, or the deceased held particularly large or varied shareholdings, we recommend obtaining probate valuations using an online finance tool. Many of these tools contain historical data stretching back many years, with most (if not all) public companies included. They are free to use. See below for a step-by-step guide on how to use Google Finance.

Another method, suitable for many estates, is to appoint a stock broker. For this and other ways to obtain probate valuations, see our guide “More ways to value listed shares for probate: stock broker, eDOL and SEDOL”.

Valuing shares for probate using Google Finance

Suitable online finance tools with historical data include Google Finance and Yahoo Finance. Both are free to use. Here is a step-by-step guide to obtaining share valuations using Google Finance:

1. collect together the deceased’s share certificates
2. go to http://www.google.co.uk/finance (no need to register or log in)
3. in the main search box, type the name of a company and select that company from the list that appears
   
   
    
4. in the left-hand menu, click “Historical prices”
   
   
    
5. in the date boxes, enter the date of death in both boxes, or, if the death was at a weekend, enter the dates of the Friday before and the Monday after.
6. for smaller estates (total gross value less than £250,000), choose the figure in the “close” column and skip to step 8. For a more accurate valuation, see the next step. If a weekend, choose figures from either the Friday or the Monday (more on this below).
7. the most accurate way to value shares is to take the “low” figure and the “high” figure for that day’s trading, and find the value a quarter-up from the low figure. This is recommended for any estate with a total gross value of over £250,000, including taxable estates (if you are unsure, use this method).
   
   
   
   Taking the figures in the above screenshot, the calculation is: 183.00 (high) – 179.70 (low) / 4 + 179.70 (low) = 180.53. This is the “quarter-up” value (note: prices are in pence, not pounds).
   
   Confused? Try our...

   Quarter-up calculator

   Quarter-up calculator To help you value shares for probate. Enter the high and low values for one share on the date of death.
   High price:	pence per share
   Low price:	pence per share
   Quarter up value:	pence per share

    
8. take this figure and multiply it by the number of shares that the deceased held in that company. This is the value of the deceased’s shareholding at the date of death.
9. repeat for shareholdings in other companies.

What happens if the deceased died at a weekend?

The London Stock Exchange is closed at a weekend. If the deceased died on Saturday or Sunday, you (the personal representatives) can choose share data from either the Friday or Monday. If the estate is subject to inheritance tax, you might want to choose the lower figures (less tax), otherwise you might want to choose the higher figures (because this value is the “base value” for capital gains tax). It’s beyond the scope of this guide to go into more detail, but usually the figures are so similar, or the values so small, that for most estates it doesn’t matter whether you choose Friday or Monday.

Ex-dividend figures

A share marked as “xd” or “ex-dividend” means that a dividend has been issued but not paid, and its value has been subtracted from the value of the share. For probate, shares marked “xd” do not provide an accurate probate valuation; the value of the dividend must be added to this figure. By default, online tools such as Google Finance do not adjust historical data for dividends and do not mark share prices as "xd". This is helpful for probate valuations, so if you have used one of these tools you can safely ignore this paragraph. (Note however that Yahoo Finance provides an additional “Adjusted Close” figure which does take account of dividends – do not use this figure.) 

Unit trusts, investment trusts and open-ended investment companies

Unit trusts and so on tend to be arranged by an “investment manager”. The easiest way to obtain a date-of-death valuation is to contact the investment manager, who will be able to provide a probate valuation, often free of charge.

Using a stock broker and other methods

Personal representatives dealing with a large, taxable estate or large, varied shareholdings may wish to use a stock broker. For this and other ways to value shares, see our guide “More ways to value listed shares for probate: stock broker, eDOL and SEDOL”.

Shares in unlisted (private) companies

Most shareholders have shares in listed companies. For shares in unlisted (private) companies, see our guide “How to value shares in unlisted (private) companies for probate”.