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

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What you need to do

To find out if there’s Inheritance Tax to pay, you need to value the money, property and possessions (‘estate’) of the person who’s died.

You must do this before applying for probate (if you need it).

This guide is also available in Welsh (Cymraeg).

You need to complete 3 main tasks when you value the estate.

  1. Identify the deceased’s assets and debts such as savings, investments, mortgages and loans.

  2. Estimate the estate’s value. This will affect how you report the value, and the deadlines for reporting and paying any Inheritance Tax. Most estates are not taxed.

  3. Report the value of the estate - how you do this depends on whether you need to send full details of the estate and its value.

How long it takes

Valuing an estate can take several months, but it can take longer if it’s a big or complicated estate (for example if it involves trusts or there’s tax to pay).

Deadlines

There are only deadlines if the estate owes Inheritance Tax.

If it does, you’ll need to:

Getting help

You can hire a professional (for example a solicitor) to help with some or all of the tasks involved with valuing an estate.

Money Helper has guidance on when and how to hire a professional. Law Donut has advice on keeping solicitors’ fees down.

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

  1. Step 1 Register the death

    1. Register the death within 5 days

    Check what to do if:

    To stop or change benefits payments you can tell the Department for Work and Pensions (DWP) about the death straight away.

  2. Step 2 Arrange the funeral

    1. Arrange the funeral
    2. Find bereavement services from your local council
    3. Get help paying for a funeral
    4. Get help paying for a child's funeral
    5. Find bereavement help and support

  3. Step 3 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 banks, utility companies, and landlords or housing associations yourself.

  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 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

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

    To find out if there’s Inheritance Tax to pay, you need to estimate the value of the property, money and possessions (the ‘estate’) of the person who died.

    1. You are currently viewing: 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’s due

  8. Step 6 Apply for probate

    You might need to apply for probate before you can deal with the property, money and possessions (the ‘estate’) of the person who died.

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

  9. 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