Estate Inventory Checklist for Wales — How to Value an Estate After Death

Before an executor in Wales can apply for probate, they must produce an accurate picture of everything the deceased owned and owed — valued at the exact date of death. This estate inventory is not just paperwork: it determines whether inheritance tax is owed, forms the basis of the IHT400 or the excepted estate declaration, and becomes the foundation for the probate application itself.

Getting the inventory wrong — missing assets, undervaluing property, or forgetting recent gifts — can delay probate, attract HMRC scrutiny, or expose the executor to personal liability.

Why the Inventory Matters

HMRC uses the estate inventory to assess whether inheritance tax is due. The probate application includes three specific estate values that come directly from this inventory:

• Gross estate value — total value of everything owned, before deductions
• Net estate value — gross value minus debts and liabilities
• Net qualifying estate value — the net value relevant to the inheritance tax threshold assessment

If any of these figures are significantly wrong, HMRC can open an investigation, require amended returns, and impose interest and penalties.

What to Include in the Inventory

Property

List every property the deceased owned, whether solely or jointly. For each:

• Full address and Land Registry title number (if registered)
• Whether held as joint tenants or tenants in common
• Market value on the exact date of death — typically obtain a formal RICS valuation or a written estimate from a local Welsh estate agent
• Outstanding mortgage balance (this is a liability, not an asset)

For jointly held property (joint tenants), the deceased's share is typically half the market value — but it does not form part of the probate estate (it passes by survivorship). It may still need to be reported for IHT purposes.

Bank and Building Society Accounts

For every account (sole and joint):

• Bank or building society name and branch
• Account number
• Balance on the date of death (written balance statement from the bank)
• Whether sole or joint

Request a date-of-death balance statement from each institution in writing. Verbal confirmations are insufficient for HMRC purposes.

Investments and Shares

• Listed shares: value using the HMRC "quarter-up" rule (lower of the two prices in the Stock Exchange Daily Official List, plus one quarter of the difference between the lower and higher price)
• Unit trusts and OEICs: use the bid price on the date of death
• ISAs: the value on the date of death
• National Savings (Premium Bonds, savings certificates): obtain valuations from NS&I directly

Pensions

State pension arrears owed for the period from the last payment to the date of death are an estate asset. Contact the DWP to calculate this amount.

Private and workplace pensions typically do not form part of the estate if the deceased had nominated a beneficiary — the pension fund pays out to the nominated person outside the estate. However, if there is no nomination, some schemes pay into the estate. Contact each pension provider to determine the exact position.

Life Insurance

Life insurance policies written in trust do not form part of the estate — they pay out directly to the named trustees or beneficiaries. Policies not written in trust pay into the estate and are a probate asset. Contact each insurer to establish the payout destination and value.

Personal Possessions and Valuables

All tangible possessions must be included: furniture, jewellery, vehicles, art, antiques, collectibles. For standard household items, a reasonable estimate is acceptable. For any item potentially worth over £500 (jewellery, watches, art), obtain a formal professional valuation from an accredited appraiser.

Business Interests

If the deceased owned shares in a private company, a partnership interest, or a sole trader business, these require specialist valuation. The business's assets minus liabilities, plus any goodwill, form the basis of the valuation. Business Property Relief may significantly reduce the IHT value — a specialist tax adviser is worth engaging for business interests.

Gifts Made in the Last 7 Years

Any gifts exceeding the annual exemption (£3,000) made by the deceased within the seven years before death must be listed. These "Potentially Exempt Transfers" are added back into the estate for IHT calculation. You may need to review bank statements for the last seven years to identify significant transfers.

What to Deduct as Liabilities

• Outstanding mortgage balance (on date of death)
• Credit card and loan balances (on date of death)
• Utility arrears
• Care home fees owed
• Income tax and National Insurance owed (HMRC will calculate)
• Funeral expenses (you can estimate based on the funeral director's invoice)
• Executor's reasonable expenses

Do not include joint debts where the surviving party is primarily liable, or debts that are secured on assets that pass by survivorship.

Assets That Bypass Probate (Still Report for IHT)

Some assets pass outside the estate and do not require probate, but still count toward the IHT threshold:

Note the critical distinction: joint tenancy property passes without probate, but HMRC may still want to know its value if the overall estate is large.

Valuing the Property — Getting It Right

The probate value of a property is its open market value on the date of death — the price it would reasonably achieve if sold on the open market. Overstating it increases IHT unnecessarily; understating it can attract HMRC scrutiny and penalties.

For most Welsh residential properties, a written valuation from a RICS-qualified surveyor or a formal letter from a local estate agent providing a market value estimate is accepted by HMRC. Keep this documentation carefully — HMRC may ask for supporting evidence if the value is queried.

For farms and agricultural land, a specialist rural surveyor familiar with Welsh agricultural property is essential.

Building the Inventory Document

A simple spreadsheet works well. Columns:

Build a separate section for gifts in the last 7 years.

The Wales Estate Settlement Guide includes a ready-to-use estate inventory template structured specifically for UK/Welsh estates, with separate sections for each asset category, the IHT summary calculation, and a checklist of documentation to obtain from each institution.

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