Should Executors Value Chattels Themselves — or Could It Cost the Estate?
When applying for probate executors must report the value of the deceased’s personal possessions, known as chattels. These include furniture, jewellery, artworks and general household items. It can be tempting for executors to estimate the values themselves to save time or reduce costs.
However, inaccurate valuations can lead to costly mistakes. Executors may end up paying too much tax or facing questions from HMRC.
In this article, we explore the risks and explain why expert help is a wise choice.
The Temptation for Executors to Value Items Themselves
For many executors, valuing chattels seems straightforward. Often the items appear to have little value, such as a few pieces of furniture, some bric-a-brac, or an old watch or two.
In these cases, there’s a natural instinct to handle things informally and avoid paying for a professional valuation.
Online marketplaces make it easy to look up rough prices, and some estates come with existing insurance documents that list values.
While these sources can be helpful for context, they are rarely a reliable guide for probate purposes and can lead to serious over or under valuations.
The Risks of Getting It Wrong
One of the most common mistakes we see is overvaluing. Executors sometimes rely on insurance valuations, retail prices for new equivalents, or sentimental assumptions.
These can all give a misleading impression of what an item would actually fetch on the open market. For example, a dining table insured for £4,000 might sell for just £300 at auction.
Overstating the value of contents can lead to the estate paying more inheritance tax than is necessary. We often see this with furniture, jewellery and general contents, where the real-world market is far lower than a lay-person might expect.
On the other hand, undervaluing is a concern too. Executors may overlook or dismiss valuable items, especially when they are unfamiliar with certain categories like Asian art, musical instruments or antique jewellery. An item that looks unremarkable might be worth thousands.
If HMRC later identifies a discrepancy, it can delay probate, lead to penalties, or trigger an investigation, not to mention the potential arguments among the beneficiaries.
HMRC’s Position
HMRC is unambiguous about the importance of accurate valuations:
“Valuations are the biggest single area of risk, accounting for a large part of our compliance checks. It is important to properly ascertain the value of assets. For assets with a material value you are strongly advised to instruct a qualified independent valuer.”
– Inheritance Tax Toolkit, HMRC
Under Section 160 of the Inheritance Act 1984, the value for probate purposes must be:
“…the price which the property might reasonably be expected to fetch if sold in the open market at that time.”
This principle — known as open market value — is the legal standard. Not a best-case retail figure, not a sentimental estimate and not a discounted “job lot” figure either. Getting it wrong in either direction can open the door to costly problems down the line.
Conclusion
Valuing chattels for probate isn’t just a formality. It is a legal responsibility with real financial consequences.
While it may seem quicker or cheaper to estimate values yourself, the risks of getting it wrong often outweigh the savings.
A professional valuation ensures the estate is reported accurately, inheritance tax is calculated fairly, and the executor is protected.
At Swift Values, we provide straightforward, expert support to help you get it right from the start.
This article was submitted to be published by Swift Values as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
