Valuing Shares and Investments for Probate

Dealing with finances after someone dies involves careful steps. Valuing shares and investments is one of them. It might sound complex, but getting the right figures is essential, especially for Inheritance Tax (IHT). Let’s cut through the jargon and get this sorted.

Why Correct Valuations Matter

Just like property, you need the precise market value of any shares and investments as of the date the person died. This figure goes into the probate application and is critical for calculating IHT. HMRC needs accuracy here; guessing isn’t an option and could cause delays or penalties.

Finding the Value of Listed Shares

These are shares traded on public stock exchanges, like the London Stock Exchange (LSE).

The Official Value Needed

You need the ‘quarter up’ price or the mid price between the highest and lowest selling prices on the date of death. If the market was closed that day (weekend or bank holiday), use the prices from the last trading day before they died.

How to Get This Value:

1. Ask the Stockbroker: If the deceased used a stockbroker, this is usually the simplest route. Contact them, explain you need a probate valuation, and they should provide a report detailing the date of death values for all holdings they managed. Easy does it.

2. Check Financial Websites: You can find historical share price data online. Reliable sources include:

   • The London Stock Exchange (LSE) website.
   • Major financial news websites (like Bloomberg, Reuters, Hargreaves Lansdown).

   Tip: Make sure you find the official closing mid price for the correct date. Keep a record of where you found the information.

Don't Forget Other Investments

It’s rarely just shares. Look out for:

• Unit Trusts and OEICs: These are managed funds. Contact the fund management company (e.g., the bank or investment platform like Fidelity, Aviva, St. James's Place) directly. They will provide the date of death valuation.
• Investment Bonds: Similar to funds, contact the bond provider for the surrender value at the date of death.
• ISAs (Stocks and Shares): The investments held within the ISA need valuing just like any other shares or funds. Contact the ISA provider.

Key Action: Get in touch with the relevant financial institution for each investment. They deal with probate valuations regularly and will tell you exactly what they need, usually just a copy of the death certificate.

Dealing with Overseas Investments

If the estate includes shares listed on foreign stock exchanges:

• Find the Value: You'll need the value from that specific stock exchange on the date of death.
• Convert to Sterling: Convert the value into pounds sterling (GBP) using the official HMRC exchange rate for the date of death. You can find these rates on the GOV.UK website.
• Complexity: Foreign investments can sometimes involve different tax rules or reporting requirements. If it feels confusing, getting specialist advice might be wise.

Wrapping Up

Valuing shares and investments takes careful attention, but it's perfectly manageable. Use brokers and fund managers where possible; they do the heavy lifting. For individual share lookups, stick to reliable financial sources. Getting these figures right keeps the probate process moving smoothly and keeps HMRC happy.

Another step sorted. You're navigating this process well. We're right here with you for whatever comes next.