Valuing Estate Assets for Inheritance: A Practical Preparation Guide

A professional valuation can provide an opinion of value for defined assets at a defined date to support documentation, settlement or decision-making. It does not establish ownership, identify beneficiaries, allocate entitlements or provide legal, tax or religious advice; those matters belong with the relevant authorities and advisers.

This article explains how to prepare the file. The commercial scope and enquiry route are on the inheritance valuation service page.

Begin with purpose and valuation date

Before collecting figures, establish why the report is needed, who will use it and the date to which value must relate. The requirement may be current value or a retrospective date defined by the relevant process. Retrospective valuation does not apply today's prices backwards: it considers evidence and conditions at the specified date, subject to what historical information is available.

Build one scope list before inspection

Create a controlled schedule for each asset: description, location, available record, access contact, and condition or use. Separate asset classes because their work requirements differ:

• Land, buildings, let property and development property.
• Machinery, equipment, production lines and operating assets.
• Items requiring physical inventory because the register is incomplete.
• Assets outside the requested valuer's competence, so they can be routed appropriately rather than mixed into the instruction.

Where the schedule is unreliable, asset inventory may precede real estate valuation or machinery and equipment valuation.

Gather records and disclose gaps

Assemble information that identifies and describes the assets: available property documents, plans and leases; equipment registers, serial numbers, invoices, specifications and maintenance history; previous reports and photographs. Provide evidence of the instructing party's capacity only to the extent required by the process, through an appropriate channel and without unnecessary personal information.

Do not conceal a material restriction, dispute or information gap, and do not ask the valuer to determine it as a legal issue. Disclose it so its effect on scope and assumptions can be considered, then seek appropriate advice on rights or documents.

Coordinate inspection while preserving context

Nominate a contact at each site and arrange permits, keys and safety requirements. Do not move identification plates or dismantle equipment solely for inspection unless an appropriate process has been agreed. Record general condition and asset identifiers, and note items that could not be accessed. For occupied property, coordinate access with due regard to privacy and contractual arrangements.

How should results be organised?

The scope should agree whether values are reported by individual asset or class, as well as currency, valuation date and assumptions. Figures prepared at different dates, on different bases or under different scopes should not be added together as though they were homogeneous. Changes to the asset list after commencement should be documented with their effect on timing and fees.

Common mistakes to avoid

• Starting before the in-scope asset list is controlled.
• Confusing physical inventory with proof of ownership or legal allocation.
• Relying on an old report without checking its date, purpose and asset condition.
• Sending conflicting register versions without identifying the controlled copy.
• Treating estate value as a guaranteed sale or forced-sale figure.
• Omitting idle assets that remain within scope.