How to value an estate for Inheritance Tax and report its value

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Identify assets and debts

Before you can value the deceased鈥檚 money, property and possessions (their estate), you鈥檒l need to identify the things they owned (their assets) and their debts.

Assets include things like bank accounts, savings and pensions, as well as property, household goods and personal items.

Debts include things like utility bills, mortgages and money owed on credit cards. They also include funeral expenses, such as the cost of a funeral director, a headstone or plaque and refreshments.

You鈥檒l then need to:

  • find out which organisations to contact (you can do this by searching through the deceased鈥檚 papers or asking friends, family and any solicitor or accountant they had)
  • write to these organisations asking for the value of the asset or debt when the person died (you鈥檒l need to include a copy of the death certificate)

Which organisations to contact

Organisations that hold a person鈥檚 assets often include:

  • their bank
  • their pension provider - ask if you should include any private pension when you value the estate
  • their employer - the person may be owed wages
  • any companies they held shares in - include the number of shares, company details and the share certificate number (if you have it)
  • National Savings and Investments (NS&I) for Premium Bonds - use the if you cannot find certificates
  • other organisations that hold assets like ISAs, shares, investments or assets in a trust
  • their landlord, if they had one - the person may have paid rent in advance

In your letter to the bank, also ask for:

  • any standing orders and direct debits to be stopped (or transferred if they were in a joint name)
  • a list of any share certificates or deeds they were holding for the person who died

If the person had a mortgage

Ask the mortgage lender if they require payments to continue while you鈥檙e applying for probate. If they do, you need to either:

  • pay these bills yourself - and reclaim them from the estate once you鈥檝e got probate
  • check if the person had a life assurance or mortgage protection policy that covers these payments
View a printable version of the whole guide

Part of What to do when someone dies: step by step

  1. Step 1 Register the death

    1. Register the death

    Check what to do if:

  2. Step 2 Tell government about the death

    The Tell Us Once service allows you to inform all the relevant government departments when someone dies.

    1. Use the Tell Us Once service to tell government
    2. If you cannot use Tell Us Once, tell government yourself

    You'll also need to tell organisations outside government, like employers and private pension providers, banks, and utility companies.

  3. Step 3 Arrange the funeral

    1. Arrange the funeral
    2. Get help paying for a funeral
    3. Get help paying for a child's funeral

  4. Step 4 Check if you can get bereavement benefits

    You might be eligible for financial help.

    Check if you can get:

  5. and Deal with your own benefits, pension and taxes

    Your tax, benefit claims and pension might change depending on your relationship with the person who died.

    1. Manage your tax, pensions and benefits if your partner has died
    2. Check how benefits are affected if a child dies

  6. and Find bereavement support and services

    Get help with managing grief and the things you need to do when someone dies.

    1. Find bereavement help and support
    2. Find bereavement services from your local council

  7. and Check if you need to apply to stay in the UK

    If your right to live in the UK depends on your relationship with someone who died you might need to apply for a new visa.

    Check the rules if:

    1. Contact UKVI to check the rules for other visas

  8. Step 5 Value the estate and check if you need to pay Inheritance Tax

    To find out if there鈥檚 Inheritance Tax to pay, you need to estimate the value of the property, money and possessions (the 鈥榚state鈥�) of the person who died.

    1. Estimate the value of the estate to find out if you need to pay Inheritance Tax
    1. Find out how to report the value of the estate
    1. Pay Inheritance Tax if it鈥檚 due

  9. Step 6 Apply for probate

    You might need to apply for probate before you can deal with the property, money and possessions (the 鈥榚state鈥�) of the person who died.

    1. Check if you need to apply for probate
    1. Apply for probate

  10. Step 7 Deal with the estate

    Pay any debts or taxes owed by the person who's died. You can then distribute the estate as set out in the will or the law.

    1. Deal with the estate
    1. Update property records