How to Value an Estate

If you’re the executor of a will, you’ll need to calculate the value of the deceased’s estate to perform your duties. With this in mind, Prestige Tax and Trust Services has decided to explain how to value an estate.

Applying for Probate

If you’re the executor of a will, you need to apply for probate to secure the legal right to administer the estate (property, assets, possessions etc.) of someone who’s passed away. This process involves applying for a grant of representation, and to do this you’ll need determine whether the estate owes inheritance tax. The government demands that estates worth more than £325,000 pay inheritance tax.


If you want to learn how to work out inheritance tax, you need to find out how to value the estate of the deceased first. You must value the estate within a year of the deceased’s passing, as you have one year from the date of their death to complete inheritance tax forms. You’ll have to start paying inheritance tax on the estate six months after the deceased has passed away, whether you’ve completed the inheritance forms or not.

Valuing the estate

There are several steps involved in valuing the estate of someone’s who’s passed away. You need to assess the gross value of the estate, determine inheritance tax and fill out the appropriate inheritance tax forms to calculate the net value of the estate.

  • Assess the estate: The first thing you need to do is determine the worth of each of the assets that compose the estate of the deceased. You should employ the services of a professional valuer for any assets worth over £500. Add these figures together to assess the gross value of the estate.
  • Determine inheritance tax: Secondly, you need to subtract the value of any debts the deceased owed, or gifts they gave away before they died, from the gross value of the estate. Use this figure to determine whether estate owes any inheritance tax.
  • Fill out forms: Finally you should find the right inheritance tax form and fill it out. At this point you should use the form to deduct anything that’s exempt from inheritance tax. This will provide you with the net value of the estate, once inheritance tax has been removed.
  • Prestige Tax and Trust Services

    There are a range of factors involved in valuing an estate, and this can make it a complex task for an executor with limited legal knowledge. This is why you should let Prestige Tax and Trust Services lend a helping hand; our team have the expertise you need to value the estate of someone who’s passed away.

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