How to value foreign assets for probate

For this reason, all foreign assets should be valued.

That includes:

1. Bank accounts, property and other assets;
2. Assets on the Isle of Man and the Channel Islands;
3. Assets held in the deceased’s own name; and
4. The share of any assets owned jointly.

Professional valuations

HM Revenue & Customs guidance states that professional valuations are not required if the gross estate (all assets, including foreign assets) is likely to be worth £250,000 or less. For larger estates, there is a greater onus on the personal representatives to obtain formal valuations.

If formal valuations are required, these should in most cases be obtained from local experts. It is the responsibility of the personal representatives to arrange valuations.

When entering values on the inheritance tax forms, these should be in pound sterling. Exchange rates can be found at the XE Currency Converter website.

IHT205

If the total value of overseas assets is more than £100,000, you cannot use the “Return of estate information” form (IHT205). Form IHT400 must be completed instead (for the entire estate, not just foreign assets).

The grant and the will

A grant of representation taken out in England and Wales will not necessarily enable the personal representatives to deal with foreign assets.

Likewise, a will made under the law of England and Wales will not necessarily cover foreign assets.

Typically, “immovable” property, such as a house, is covered only by a will made in that country and a grant taken out in that country. The laws of many countries will override any will made in the UK, regardless of whether it is expressed to cover foreign property.

By contrast, “movable” property, such as a bank account and personal belongings, is often covered by a UK will and a grant taken out in the UK.

If in doubt, we suggest seeking advice from a solicitor or other probate professional.