More ways to value listed shares for probate: stock broker, eDOL and SEDOL

For an introduction to valuing shares for probate, and how to value shares for free using an online finance tool, see our guide “How to value listed shares for probate”.

For alternative methods, read on. 

How to value shares by appointing a stock broker

Personal representatives dealing with large, taxable estates, and/or large, varied shareholdings, may wish to appoint a stock broker. The broker will provide a formal, written probate valuation that can be submitted to HM Revenue & Customs or alongside an application for a grant of representation.

Handing over responsibility to an expert may bring a degree of peace of mind. A broker will also check share certificates that may no longer be valid, check for shareholdings that have “split” and so on.

The broker is likely to charge a fixed fee of around £35 – 80 (perhaps more for large numbers of shareholdings), or a percentage value of the shares.

Appointing a stock broker:

1. choose a stock broker, local or further afield;
2. contact the broker (a) to confirm that they are willing provide a probate valuation and (b) to request a quote;
3. write a letter. Confirm that you are requesting a probate (date of death) valuation. State the date of death and enclose copies of all share certificates. Alternatively, a broker may be able to provide valuations over the telephone;
4. the broker will send a written valuation report. Keep this safe. If the estate is taxable, it should be submitted to HM Revenue & Customs along with the IHT400.

How to value shares using the electronic Daily Official List

The electronic Daily Official List (“eDOL”) is a document available to purchase online. It contains a summary of all trading on the London Stock Exchange on a particular day. We find it quite difficult to interpret and prefer online finance tools or using a stock broker, but you might consider the eDOL a suitable half-way house.

1. go to http://www.interactivedataclients.com/content/view/37/150/
2. select the date of death (if the deceased died at a weekend, you can pick either Friday or Monday, or purchase reports for both days and compare the two)
3. purchase the report, which costs around £32.80 + VAT for one day’s trading
4. the report comes in PDF format which can be viewed using Adobe Reader (free software, probably already installed on your computer)
5. search for the relevant company(ies)
6. take the average of the two values under the “Quotation” column for the closing value
7. for a more precise valuation, the low and high figures are normally found under the “Business Done” column, though these figures can be hard to interpret.

How to value shares using the Stock Exchange Daily Official List

The Stock Exchange Daily Official List (“SEDOL”) is found in the Financial Times. If you can find the edition published on the date of death, you can use it to value the deceased’s shares. Back copies of the FT are available for free from some reference libraries.