Farra is a death administration assistant for UK families. Get step-by-step guidance for registering a death, applying for probate, notifying banks, and managing bereavement admin. From essential documents to practical checklists, Farra simplifies estate paperwork and funeral-related tasks so you can focus on what matters.
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We re-checked our most-read guides against GOV.UK and the other official sources in September 2026. This one was not among them, so nobody has confirmed its figures, deadlines or process steps since it was written. Treat it as a starting point and confirm anything that matters on GOV.UK before you act on it.
Value entire estate at date of death market value. Include property (3 estate agent valuations or RICS surveyor £150-£500), bank accounts (date of death balances), investments, personal belongings (£100-£1,500), vehicles, minus debts. If the estate is excepted (broadly under £325,000, or £500,000 with RNRB, with no complications) you report the figures within the probate application — there is no separate IHT form; you only complete a full IHT400 if the estate is not excepted. HMRC can challenge valuations up to 20 years—undervaluing = penalties up to 100% + interest. Executors personally liable.
When someone dies, their executor must calculate the total value of everything they owned (the "estate") as at the date of death. This valuation is used to:
If you haven't yet applied for probate, the estate valuation is the first critical step in the process.
HMRC has up to 20 years to challenge estate valuations. If they believe you've undervalued the estate:
All assets must be valued at their market value on the date the person died, not:
Market value means: The price the asset would reasonably fetch if sold on the open market at the date of death.
You must value everything the deceased owned:
| Asset Category | Examples | Valuation Method |
|---|---|---|
| Property | House, flat, land, property abroad | Estate agent valuations or RICS surveyor |
| Money | Bank accounts, savings, cash, Premium Bonds | Bank statements, date of death balance |
| Investments | Shares, ISAs, bonds, investment accounts | Platform valuations, share prices |
| Pensions | Defined contribution, final salary pensions | Provider statements |
| Vehicles | Cars, motorcycles, caravans | Glass's Guide, Parkers, Auto Trader |
| Personal Items | Jewelry, furniture, collectibles | Professional valuation or estimate |
| Debts | Mortgage, loans, credit cards, bills | Statements, redemption statements |
Property valuation is critical as it's usually the largest estate asset. HMRC pay particular attention to property values.
Option 1: Estate Agent Valuations (Free)
Option 2: RICS Surveyor Valuation (£150-500)
If property was jointly owned, the treatment depends on ownership type:
Joint Tenants (most married couples):
Tenants in Common:
Foreign property must be included in UK estate for IHT:
Important: Value property at GROSS value (full market value), then deduct mortgage as a debt separately.
Contact every bank and building society where the deceased held accounts:
Ask for:
Banks provide this free for probate purposes.
You must declare any cash found in the deceased's home. HMRC are aware that people keep cash at home. Be honest - estimates are acceptable if exact amount unknown.
Treatment depends on who funded the account:
Understanding how to value investments is essential for calculating Inheritance Tax. Learn more about Inheritance Tax thresholds and allowances to see how your valuation impacts the tax bill.
For shares listed on stock exchanges, use the "quarter-up" rule:
Find the closing prices on date of death
Take the lower of:
Easier option: Contact investment platforms (Hargreaves Lansdown, AJ Bell, etc.) and request probate valuation service (typically £50-150 fee).
Defined Contribution Pensions (pot of money):
Defined Benefit Pensions (final salary):
Written in trust: Paid directly to beneficiaries, NOT part of estate (no IHT)
NOT in trust: Payout is part of estate, include full payout amount in valuation
Furniture, appliances, clothing, kitchenware, etc.:
You can deduct legitimate debts owed by the deceased at death from the gross estate value:
For each debt, you need:
HMRC scrutinizes informal family loans. To claim as deductible debt, you need:
For deaths on or after 1 January 2022 there is no short-form IHT return. How you report depends on whether the estate is an "excepted estate":
| How to Report | When It Applies | Complexity |
|---|---|---|
| Excepted estate (report within the probate application — no separate IHT form) | Estate under £325,000 (or £500K with Residence Nil Rate Band) No foreign assets over £100K No large gifts in last 7 years UK domiciled | No IHT form — just the headline figures Faster processing |
| IHT400 (Full Estate) | Estate over £325,000 OR the estate is not excepted Complex estates | Complex (20+ pages) Multiple schedules Longer processing |
Additional £175,000 allowance (2026/27) if:
This means an estate can qualify as excepted — and report within the probate application rather than filing a full IHT400 — up to £500,000 (£325K + £175K RNRB).
If deceased had pre-deceased spouse/civil partner:
If IHT is due:
Keep all valuation records for at least 20 years (HMRC can query up to 20 years later):
Consider hiring a probate solicitor or accountant if (or read our guide on DIY probate vs hiring a solicitor):
Professional fees are deductible from the estate. Typical costs: £1,500-5,000 depending on complexity.
Quick Summary Checklist
- ✓ Value ALL assets at date of death market value
- ✓ Property: Get 3 estate agent valuations or RICS surveyor
- ✓ Bank accounts: Request date of death balance letters
- ✓ Investments: Platform valuations or quarter-up rule
- ✓ Personal belongings: Second-hand/resale value
- ✓ Vehicles: Use Auto Trader/Parkers private sale value
- ✓ Deduct legitimate debts with evidence
- ✓ Check if the estate is excepted (under £325K/£500K) — report in the application — or file IHT400 if not
- ✓ Submit to HMRC with all supporting documents
- ✓ Keep records for 20 years