How do you value a house and its contents for probate?

Thinking about what will happen to your assets after you die is something many people prefer to avoid. Yet without a valid Will, your estate will be divided according to strict intestacy laws — not your wishes.

Writing a Will is the first step toward peace of mind, but even with a Will in place, your loved ones will still need to manage a detailed legal and administrative process after your death. Much of this revolves around probate — the process of managing, valuing, and distributing your estate.

What is probate?

Probate is the process of dealing with the estate of someone who has died. It involves paying debts, valuing assets, and distributing what remains according to the Will (or intestacy laws if there isn’t one).

A key part of probate is valuing the estate, as this determines whether Inheritance Tax (IHT) is payable and which forms need to be submitted to HMRC.

Valuing property during probate

The value of any property within an estate determines whether IHT applies and whether executors must complete an IHT205 (simpler) or IHT400 (more detailed) form.

Accurate valuations are essential because they affect not only IHT but also Capital Gains Tax (CGT) if the property is later sold for more than its declared probate value.

Property should always be valued at its open market value — what it would reasonably sell for at the date of death — not an insurance or replacement cost.

Informal valuations

For standard residential properties where IHT is unlikely to apply, you may obtain three informal valuations from local estate agents and use the average figure. This is often low-cost or free of charge.

Formal “Red Book” valuations

If IHT is likely, a formal valuation carried out by a chartered surveyor is recommended. This is known as a Red Book valuation.

It provides a defensible, detailed report that HMRC will accept and ensures any reliefs — such as Business Property Relief or Agricultural Property Relief — are properly considered.

Professional valuers may also take into account:

• Development potential or “hope value”

• Covenants, easements, or leases that affect the property’s value

• Rental terms or lease lengths, if applicable

Valuing contents and personal effects

The deceased’s personal possessions — from cars and jewellery to furniture, art, and collectibles — must also be valued.

• Items under £1,500 can usually be estimated and grouped together, supported by a brief photographic record.

• Items over £1,500 should be professionally valued and listed individually on the IHT400 form.

• Bulk valuations can be used for lower-value items you prefer not to estimate yourself.

Values must reflect the open market price, not replacement or insurance cost.

Why professional advice helps

While it’s possible for executors to complete probate valuations themselves, mistakes can be costly and delay the process. Professional advice ensures the estate is accurately valued, tax liabilities are correctly assessed, and the process runs smoothly.

If you need support with probate, estate administration, or Inheritance Tax planning, our Wills, Probate and Trusts Team can help.

Please fill out the contact form on this page, email info@ansons.law, or call 01543 267981, and a member of the team will get back to you.

Disclaimer: The contents of this article are for general information only and do not constitute legal advice. The law and HMRC guidance may have changed since publication. Always seek professional advice before taking action.