How to determine Share Values for Probate

Knowing how to determine share values for probate is essential for ensuring a smooth process and minimising additional stress during an already difficult time.

When someone dies, their estate must be managed and assets distributed to inheritors. Valuing the deceased’s assets is crucial to determine inheritance tax owed, especially for those with diverse investments like shares owned by wealthy individuals, entrepreneurs, and business owners. Different assets require specific valuation methods, making the process complex.

For probate purposes, the process of valuing shares involves identifying all assets owned by the deceased, categorising them, and determining the quantity of shares held in each entity. This includes listed shares, unlisted shares, ISAs, bonds, and government securities.

Valuing shares in a private company involves reviewing financial documents, selecting a suitable valuation method, and considering the business’s financial standing and economic conditions. Various valuation approaches, such as market, income, and asset approaches, may be utilized with the assistance of a professional like a forensic accountant.

Valuing listed shares for probate involves determining the share values based on the closing price of each share on the date of the deceased’s passing. The “quarter-up price” method, recognised by HMRC, calculates the share value by adding a quarter of the difference between the lowest and highest range to the lowest range price. Dividends, if applicable, are also valued by multiplying the dividend amount by the number of shares owned by the deceased.

To value ISAs and Premium Bonds for probate, one can request a valuation from the relevant institution or investment management company based on the closing price on the date of death. The same process applies to PEPs and TESSAs. National Savings & Investments (NS&Is) and premium bonds are valued by the bank, and having relevant documents like certificates or passbooks can assist in locating the deceased’s accounts.

Government and municipal securities owned by the deceased should be considered for valuation during probate. The value of these assets is determined by the closing price on the date of death and may include savings bonds, war loans, victory bonds, treasury stocks, and stocks from counties, cities, or towns.

Getting accurate share values for probate can be challenging, so seeking specialist advice is crucial to avoid costly errors.

The Private Client team at Thursfields has extensive experience handling intricate and valuable estates, prioritising the protection of your interests. Our lawyers are also proficient in all aspects of personal finance planning, including wills, trusts, and strategies for succession planning and wealth protection.

To learn more about our services and how we can assist you, reach out to our team today on 0345 207 3728 or info@thursfields.co.uk. For further information visit Calculating Share Values for Probate | Thursfields Law Firm.