Estate valuation mistake leads to large IHT bill
Newsletter issue – November 2026
Justine Fernandes ended up paying around £8k too much in inheritance tax after she and her brother significantly overestimated the value of their late mother's possessions when dealing with her estate.
They estimated that antique furniture, jewellery, clothes and other belongings were worth about £20k. Based on that estimate, they paid roughly £8k in inheritance tax. Concerned they might have undervalued the items, Justine later obtained a professional valuation while probate was still ongoing. The professional assessment found the possessions were actually worth only about £1.5k to £2.5k - far below the family's estimate. By the time the true value was known, the tax had already been paid, leaving Justine shocked at the size of the overvaluation.
This case highlights the risk of relying on informal estimates when valuing estate contents for inheritance tax purposes. Obtaining a professional valuation early in the probate process can help avoid costly mistakes. This is especially relevant for estates containing antiques, jewellery or other items whose market value may differ significantly from sentimental value.