How can executors determine the accurate valuation of estate properties for a deed of probate?

An accurate probate valuation is a defensible estimate of what the property could reasonably have achieved on the open market at the date of the deceased’s death. Executors should build the figure from reliable evidence, use it consistently in the probate and inheritance tax paperwork, and keep enough documentation to explain how it was reached if HMRC, beneficiaries or another executor later queries it.

Start by identifying the correct valuation date and property interest. The relevant date is normally the date of death, not the date the executor applies for the grant or eventually sells the property. The valuation should reflect the interest that forms part of the estate, such as a freehold house, a leasehold flat or the deceased’s share of a jointly owned home. The title register, lease, ownership records and will can help establish exactly what is being valued.

For jointly owned property, do not automatically assume that the estate owns the whole property. The legal and beneficial ownership arrangements should be checked, including whether the property was held as joint tenants or tenants in common. Where the deceased owned only a share, professional advice may be needed on how that share should be represented for tax and probate purposes.

Choose an appropriately qualified valuer. A local estate agent may provide a useful market appraisal, but a chartered surveyor or other property professional with relevant valuation experience may be more suitable where the property is unusual, high value, damaged, tenanted, partly commercial or affected by legal issues. The valuer should understand that the instruction is for a retrospective probate valuation rather than a current marketing appraisal.

Executors should tell the valuer about any information that could alter the assessment, including:

• the property’s ownership structure and title restrictions;
• the length and terms of a lease, where applicable;
• tenancies, licences or occupation rights;
• planning permissions, refusals, enforcement notices or proposed development;
• rights of way, restrictive covenants, access problems or boundary disputes;
• structural defects, contamination, subsidence, Japanese knotweed or other material defects;
• fixtures, outbuildings, land or development potential included in the title; and
• any evidence that the property was not freely available for sale at the valuation date.

Withholding an unfavourable fact can make a report unreliable. A valuer can usually make an appropriate adjustment when the issue is clearly disclosed and supported by documents.

Ask for a report that explains the reasoning. The written report should identify the property, state the valuation date, describe the interest valued, set out the assumptions made and explain the evidence used. It should also identify any matters that could not be verified. A bare figure on an email or an informal estimate may be difficult to defend if the value is challenged.

Executors should retain the report with photographs, title information, floor plans, correspondence, repair estimates and any documents supplied to the valuer. If several professionals give different figures, the executor should record why one was preferred rather than simply selecting the lowest or highest estimate. The date of each appraisal matters because market conditions can change after death.

Use the valuation consistently across the estate administration. The figure may be needed for the probate application, inheritance tax reporting, estate accounts and communications with beneficiaries. It should not be altered merely because a later sale achieves a different price. A subsequent sale can provide evidence that the original figure should be reviewed, but it does not automatically replace the valuation at the date of death.

Where the eventual sale price is materially higher or lower, the executor should ask the valuer or tax adviser whether an explanation or correction is required. Possible explanations include a change in market conditions, improvements carried out after death, an unusually motivated buyer, a restricted marketing process, defects discovered later or a sale below market value to a connected person.

Consider inheritance tax separately from the sale price. A property’s probate value is relevant to the estate’s tax reporting, but the correct treatment can depend on the wider estate, available reliefs, debts, ownership arrangements and the way the property is transferred or sold. Executors should not try to reduce the declared figure simply to lower a possible tax liability. If inheritance tax is payable, or if the property has complex ownership or development issues, advice from a solicitor, accountant or specialist tax adviser is appropriate.

HMRC may examine an estate’s valuation and can ask for supporting evidence. If the executor discovers that a submitted figure was materially inaccurate, they should obtain advice promptly about correcting the relevant return or notifying the appropriate authority. Keeping a clear audit trail demonstrates how the executor exercised reasonable care.

Deal carefully with difficult or unusual properties. A standard residential comparison may not be enough for a property with extensive land, mixed-use elements, agricultural restrictions, a short lease, structural damage, an unregistered title or significant development potential. In these cases, the report may need specialist input or more than one valuation approach. Executors should also check whether contents, garages, annexes, parking spaces and separate parcels of land are included in the same assessment or need to be valued separately.

Beneficiaries should be told how the figure was obtained, particularly where they have different interests in the estate. If they dispute it, provide the report and supporting evidence rather than changing the figure without professional justification. An independent second opinion can help resolve a genuine disagreement, while legal advice may be necessary if the dispute concerns ownership or the executor’s duties.

Before submitting probate or tax paperwork, an executor should check that the valuation date is correct, the legal interest has been identified, relevant defects and restrictions have been disclosed, the report is suitably detailed, and the same figure appears consistently wherever required. This process creates a defensible record and reduces the risk of delays, avoidable tax enquiries or disputes during the administration of the estate.