What documentation is required for estate valuation during probate?

The documentation required for estate valuation during probate is the evidence needed to establish what the deceased owned, the value of each asset at the date of death, who was entitled to deal with it, and which deductions are legally relevant. In addition to records for individual assets, the executor should assemble documents confirming the deceased’s identity, death, testamentary wishes, ownership arrangements and tax position.

Documents confirming authority to act

• The original will, including any codicils, should be retained because it identifies the executors and may contain instructions affecting particular assets.
• The death certificate confirms the valuation date. Probate valuations generally relate to the open-market value at the date of death, rather than the date an asset is later sold.
• Correspondence from the Probate Registry, a grant of probate or letters of administration may be needed to demonstrate the personal representative’s authority, depending on the stage reached.
• Identification and address evidence for the deceased and the executors can be required by solicitors, financial institutions, valuers and tax authorities.

Documents showing how assets were owned

Ownership structure can affect both the valuation and whether an asset forms part of the probate estate. Gather partnership agreements, company share records, trust deeds, declarations of trust, divorce or separation agreements, and documents relating to jointly owned property. For jointly held assets, records should show whether ownership was held as joint tenants or tenants in common, together with the deceased’s beneficial share where this is not clear from the legal title.

Where property was subject to a lease, tenancy, restrictive covenant, option, overage agreement, right of way or other legal arrangement, provide the relevant agreement and amendments. These documents may influence marketability and value. Planning permissions, building regulation certificates, guarantees for alterations, notices affecting the property and evidence of unresolved disputes may also be relevant to a property valuation.

Evidence supporting the date-of-death value

A valuer may need more than a current inspection. Provide information showing the property’s condition and circumstances at the valuation date, such as dated photographs, maintenance invoices, survey reports, contractor estimates, insurance claims, planning correspondence and records of significant damage. If the property was occupied, include the tenancy agreement, rent schedule, deposit information and any notices served. A vacant possession value and an investment value can differ, so the basis of occupation should be made clear.

For valuable personal possessions, useful supporting material includes purchase receipts, provenance, certificates of authenticity, specialist reports, previous insurance valuations and photographs. For vehicles, collect registration documents, service records, finance agreements and evidence of modifications. These records help distinguish an estate asset from an item owned by somebody else and support the condition attributed to it.

Tax and relief documentation

Keep copies of inheritance tax forms and calculations, together with documents supporting any relief or exemption claimed. Depending on the estate, this may include records of gifts made before death, transfers into trust, agricultural or business interests, charitable gifts, life assurance proceeds and assets passing outside the will. Lifetime gift records should include dates, recipients, amounts and any available evidence of the deceased’s intention and financial position.

Where a property or business interest may qualify for a relief, retain the ownership history, trading records, occupation details and professional advice used to support the claim. The valuation should remain consistent with the information supplied to HM Revenue & Customs. If the tax treatment is uncertain, an executor should obtain advice from a probate solicitor or tax adviser rather than assuming that an asset is exempt.

Records for liabilities and adjustments

Although liabilities are assessed separately from the gross value of assets, the supporting paperwork should be kept with the valuation file. This can include funeral invoices, care fees, court orders, guarantees, tax demands, utility balances and correspondence about disputed claims. A debt should not normally be deducted simply because it is alleged; the executor should establish that it existed at the date of death and determine whether it was payable from the estate.

Also record any costs that relate to preserving, clearing or selling an asset. These may be relevant to administration but are not automatically deductible from the date-of-death value for inheritance tax. Keeping the original invoices and a clear explanation of each expense prevents administration costs from being confused with liabilities owed by the deceased.

How to organise the valuation file

1. Create an asset register with a unique reference for each property, account, investment, possession and business interest.
2. For every entry, record the ownership evidence, valuation date, valuation basis, supporting documents and the professional who supplied the figure.
3. Keep separate schedules for jointly owned assets, assets held in trust, lifetime gifts and items passing directly to another person.
4. Save original documents securely and retain dated copies of electronic statements, online account records and email correspondence.
5. Reconcile the schedules against the deceased’s bank statements, tax returns and other financial records so that missing or duplicated assets can be investigated.

If a document cannot be found, note the steps taken to obtain it and retain replacement evidence, such as a provider’s written confirmation or an official copy. Do not estimate an asset without recording the basis for the estimate. Where ownership is disputed, documentation is incomplete or the valuation could materially affect inheritance tax, take independent legal or tax advice before finalising the probate account.