Valuing property in an estate: general principles
The ‘estate’ (IHTM04029) is defined in IHTA84/S5(1). In addition to the free estate it includes joint property (IHTM15011), settled property (IHTM16000) and gifts with reservation (GWR)(IHTM04071) in which the deceased had a beneficial interest in possession.
In general you should look to value the different items of property (IHTM04030) in an estate separately (IHTM09715). For example, in a straightforward case you would look to value shares, the deceased’s house and car separately. But this does not stop you from valuing items of property together (IHTM09712) if the items are worth more together than if sold separately. This applies even if the property is held at separate titles or is left out of account (IHTM09713) in determining the chargeable estate for tax purposes.
You may also have to take account of the related property (IHTM09731) provisions under which property owned by a spouse/civil partner (IHTM11032)or a charity may affect the valuation of property held in your deceased’s estate.