Valuing Personal Possessions, Antiques, and Other Assets for Probate

Sorting through someone's personal belongings is often emotional. Alongside the memories, you also have the practical task of valuing these items for probate. This includes everything from furniture to fine art, jewellery, and even digital assets. Let's clarify how to approach this correctly and without undue stress.

Why Accurate Valuation is Necessary

Every asset owned by the deceased at the date of their death needs a value for the probate application and Inheritance Tax (IHT) calculations. HMRC requires a realistic open market value, meaning what an item might fetch if sold.

• General Rule: For most ordinary household goods, a reasonable estimate is often acceptable, especially if no IHT is due. HMRC provides some guidance thresholds; significant individual items or collections need closer attention.
• IHT Impact: If the total estate value is near or above the IHT threshold, accurate valuations for all assets, including personal possessions, become critical. Underestimating could lead to future problems with HMRC.

Valuing Everyday Household Items

For standard furniture, appliances, and general contents, you usually don't need a professional valuation unless items are particularly valuable (like designer furniture or high end electronics).

• Make a Sensible Estimate: Consider what the items might realistically sell for second hand, perhaps through online marketplaces or local sales. Be honest but practical; it’s the sale value, not the insurance or replacement value.
• Group Items: You can often group items, like ‘living room furniture’ or ‘kitchen contents’, with a total estimated value.

Tackling Antiques, Art, and Collectables

This is where more care is needed. If the deceased owned antiques, paintings, sculptures, stamp collections, valuable books, or similar items, a simple estimate might not suffice.

• When to Get Experts Involved: You definitely need professional advice if:
  • You suspect items have significant value.
  • The estate is likely to pay IHT.
  • Specific valuable items are mentioned in the Will (to ensure fair distribution).
• Who to Contact:
  • Auction Houses: Major houses like Sotheby’s, Christie’s, Bonhams, or reputable regional auctioneers offer valuation services. They have specialists across many categories.
  • Specialist Valuers: Look for members of associations like the Society of Fine Art Auctioneers and Valuers (SOFAA) or the Royal Institution of Chartered Surveyors (RICS) Arts & Antiques faculty.
• What They Consider: Valuers assess condition, rarity, maker or artist, provenance (history of ownership), and current market demand. That painting tucked away in the spare room? It’s worth getting it checked properly if you have any inkling it might be valuable.

Valuing Other Specific Assets

Beyond typical antiques, you might encounter:

• Jewellery and Gold: Get these appraised by a qualified jeweller or specialist valuer. They can assess gemstones, metal content, craftsmanship, and brand value. Remember to value based on resale potential, not insurance replacement cost.
• Memorabilia: Items like sports programmes, film posters, signed items, or historical documents can be surprisingly valuable but are often niche. Specialist dealers or auction houses focusing on memorabilia are your best bet.
• Cryptocurrencies (Bitcoin, Ethereum etc.): This is a modern challenge. You need the value of the cryptocurrency holdings on the date of death.
  • Find the Platform: Identify the exchange or digital wallet used (e.g., Coinbase, Binance, Kraken).
  • Get Records: Access transaction histories or statements showing holdings and their value on the relevant date.
  • Valuation: Use the exchange rate or price from that platform at the date of death. Keep clear records.
  • Seek Help if Needed: Accessing crypto wallets can be complex if you don't have passwords or keys. Specialist advice might be required.
• Cars and Vehicles: Use online valuation tools (like Parkers or AutoTrader), dealer estimates, or auction results for similar models and conditions to find the market value at the date of death.

Finding the Right Valuer

For professional help, use the RICS Find a Surveyor tool, search SOFAA members, or contact well known auction houses. Local antique dealers can sometimes offer initial guidance, but ensure any formal valuation for IHT is from a qualified source.

If In Doubt, Check It Out

It’s better to get a professional opinion than to guess and potentially undervalue the estate. Getting expert help for specific valuable items is a sensible step, not a sign you are struggling. It protects you as the executor and ensures fairness.

Wrapping Up

Valuing personal possessions requires a mix of common sense for everyday items and expert input for potentially valuable or unusual assets. Approach it methodically, keep good records, and don't hesitate to bring in specialists when needed.

You're handling a complex process, piece by piece. Taking the time to get valuations right now prevents complications later. We are here to support you as you move forward.