A Step-by-Step Approach to Valuing Shares for Probate

When managing an estate, one of the most important tasks is determining the value of any shares held by the deceased. The process may appear complex, but with the right approach, you can ensure accuracy, transparency, and compliance with legal requirements.

Why Share Valuation Matters

Valuing shares for probate is essential because it provides a clear picture of the estate’s financial worth. It helps calculate inheritance tax, distribute assets fairly among beneficiaries, and maintain proper records for legal purposes. Accurately assessing every shareholding ensures the estate is handled correctly and avoids future disputes.

Gather Essential Information

The first step is to collect all relevant documents. These may include share certificates, investment account statements, dividend records, and any correspondence related to shareholdings. Ensuring you have complete and up-to-date paperwork will simplify the valuation process and reduce the risk of errors.

Determine Share Types and Market Status

Not all shares are the same. Some may be publicly traded, while others may belong to private companies. Publicly traded shares can typically be valued using the market price on the date of death, whereas private shares may require a more detailed assessment involving financial reports and expert insights. Identifying the share type early on helps determine the most suitable valuation method.

Calculate the Market Value

For listed shares, the valuation often uses the mid-point between the highest and lowest market prices on the date of death. If shares are not actively traded, alternative methods—such as examining company performance, assets, and earnings—may be used. Accuracy is crucial, as this value feeds directly into the estate’s overall assessment.

Document and Report the Final Valuation

Once each shareholding is valued, the results must be clearly documented. These figures are then used in probate forms and tax submissions. Keeping detailed notes ensures transparency and helps support the valuation if questions arise during the probate process.

IWC helps in valuing shares for probate

IWC provides professional assistance for Valuing shares for probate during probate, ensuring accuracy and compliance at every step. With a clear understanding of market principles and probate requirements, their team simplifies the entire process. Whether the estate includes publicly traded shares or complex private holdings, IWC offers reliable guidance, thorough documentation, and expert support. Their service helps executors avoid common pitfalls and ensures the estate is managed efficiently and correctly.