Step 3 - Valuing the estate

The Assets

To value the estate correctly and establish whether a Grant of Probate is needed, you are required to ascertain what Assets the deceased owned. You will need to make contact with each company, bank, building society and financial institution to gain date of death balances.

 

 

The Debts

As with the Assets, any Debts the deceased had, need to be identified. Debts include credit cards, loans, Mortgages etc. All creditors will need to be informed and accurate date of death balances obtained.

Using MyDigiExecutor will help you to keep track of the Assets and Debts, and with over 50 letter templates, it will also help you contact each institution.

 
 

Tracing Assets

An Asset can be separated by its owner for a number of reasons, for example a change of an address. It is your responsibility to search for any dormant accounts to ensure they are settled. For more information, click here.

Gifts made by the person who died

Gifts include;

  1. Any gift made within the 7 years prior to the date of death

  2. Any gift made where the person who died retained a benefit, for example a gift of their home and then continued to live there.

 

It is important that an accurate record is kept relating to these gifts since they will need to be disclosed to the HMRC, and depending on the value and types of gifts, may affect the Inheritance Tax position of the estate.

 
 

Is the estate taxable?

Do the assets of the deceased including property and cash assets total more than £325,000? If yes, was the deceased widowed? Has the deceased recently given any taxable gifts? These are some of the questions which affect if Nil Rate Band applies and how much Inheritance Tax (IHT) is payable.

Other taxes will need to be considered as well, such as Capital Gains and Income Tax, all of which are the responsibility of the Executors / Administrators. You will need to complete IHT forms and pay any IHT due.

Administrative Tasks

  • Return the Driving Licence (both the photo card and paper, where applicable) to DVLA, Swansea, SA99 1AB

  • Return the Passport to the Passport Office enclosing this form to Customer Contact Centre, Her Majesty’s Passport Office, PO Box 767, Southport, PR8 9PW.

  • Return any library membership cards to the local library

  • Return any bus passes, disabled badges or parking permits

  • Cancel any club memberships​

 

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