Valuing Shares for Probate

Why You Should Obtain a Professional Valuation

When someone dies the appointed executor has a responsibility to administer the estate correctly according to the wishes in the will and the law. One of the executor’s duties is to assess the value of the estate in order to apply for probate. It is important the estate is valued correctly in order to understand what the inheritance tax liabilities are on the estate. Inheritance tax is paid at 40% on the amount of the estate that is over the inheritance tax allowance which is currently at £325,000 for a single individual. There are extra allowances under certain circumstance, for example, the nil rate band allowance, this can be shared between spouses giving a possible allowance of the combined nil rate bands equaling £650,000. As the Executor of the estate, they are held liable to ensure the correct amount is paid. It is often wise to bring in a professional to assist with valuing shares for probate as well as valuing a property for probate.

Valuing Shares for Probate

Valuing Shares for probate is done by using the value of the share at the date of death. If the shares were being managed by a stockbroker, fund manager or investment management company, the executor will need to inform them of the death and then can ask for a probate valuation/confirmation valuation as of the date of death.  The broker can give you an honest appraisal of the closing price on the shares, but if the person did not work with a broker you will have to do this yourself.

Valuing Shares for probate yourself can be a little more tricky. You will need to locate and gather information from family or the deceased records of any and all mention of stock or funds in the deceased’s name.  This is certainly not the easiest thing to do but it is a necessity for probate.  Once gathered, you can start valuing shares for probate.  You will need to track down what the price was at the time of closing bell on the day of death for each share and compile them. It can be hard, for someone not experienced with shares, to know where to go for this information or to know if they do find the values if they are the right ones to use for probate.

Obtaining a professional valuation can save time and maybe even a bit of headache, and the results will probably be more precise than if one must overcome a learning curve.

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