How to value a bank account: sending a letter

Bank and building society accounts, like other assets, should be valued.

For estates thought to be worth less than £250,000 gross (before taking off debts and inheritance tax exemptions/reliefs), HM Revenue & Customs guidance states that accurate valuations are not required. For all other estates, particularly taxable estates, the onus is on the personal representatives to obtain accurate valuations.

However, even for small estates, writing to a bank can be particularly helpful.

Why write to a bank?

1. You can send a certified copy death certificate, which the bank will almost certainly require;
2. You can ask for an accurate balance at the date of death (this is the valuation for probate and inheritance tax purposes);
3. You can ask about certain things for income tax purposes; and
4. You can enquire about other accounts.

Alternatively, you may be able to do all this by visiting a local branch.

What to include in a letter

1. Refer to all the deceased’s known account numbers, and ask if the bank is aware of any more;
2. Ask for the date of death balance for all accounts (remember to state the date of death);
3. You may wish to ask for interest received (gross and/or net) and tax deducted for all accounts from 6 April. This is for income tax purposes; it is not required to get the grant of representation or for inheritance tax. If an accountant is dealing with the deceased’s income tax position, you do not have to ask these questions. If you are dealing with income tax, you should include the data on form R27 (potential repayment to the estate);
4. Ask if the bank needs to see a grant of representation;
5. Enclose a certified copy death certificate and ask for its return.

Keep the reply safe.

Specimen letters to banks

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