How to value shares for probate in Ireland

Shares held by a person who dies need to be valued at the date of death for the SA2 and inheritance tax calculations. The valuation method depends on whether they are listed on a stock exchange, unlisted in a private company, or held indirectly through a pension or investment fund. This page covers each type.

Before you start

Gather the deceased's most recent broker statements, dividend records, annual tax returns, and any physical share certificates. Dividends received in the last 12 months are often the easiest way to identify all holdings because the payment records name every company. If the deceased used a discretionary broker, one request to that broker will usually produce a full portfolio list.

Step-by-step

Step 1: Identify every shareholding the deceased held. Start with the last annual tax return, broker statements, dividend payment records, and any share certificates in the papers. Irish Revenue can also provide a list of dividend-paying holdings from the deceased's own tax record where the executor has the necessary access.

Step 2: For listed shares, use the quarter-up rule at the date of death. For shares listed on a stock exchange (London, Dublin, New York, and so on), the valuation is the lower of (a) the closing bid price plus one-quarter of the spread between bid and offer, or (b) the mid-market price, on the trading day closest to the date of death. If the death fell on a weekend or holiday, use the prior trading day's close. Most brokers and share registrars will produce this figure directly on a probate valuation request.

Step 3: Request a written probate valuation from the broker or registrar. Write to the broker (Davy, Goodbody, Cantor Fitzgerald, and so on) or the share registrar (Computershare for many Irish listed companies) enclosing a certified copy of the death certificate and asking for a probate valuation letter as at the date of death. Include the account number or holder identification. Processing typically takes 2 to 4 weeks.

Step 4: For unlisted private company shares, get a specialist valuation. Shares in a family company, a private business, or any company not listed on a recognised exchange cannot use the quarter-up rule. A chartered accountant or tax adviser experienced in business valuations produces a written report using net assets, earnings multiples, or dividend yield, often a weighted combination. Expect €800 to €3,000 in fees for a small private company valuation, and significantly more for larger or more complex businesses.

Step 5: File at date-of-death value on the SA2, at valuation date on the IT38. The SA2 records the date-of-death value per holding. Each beneficiary's IT38 uses the value at the valuation date, which is usually the date of the Grant of Probate. Where share prices have moved significantly between date of death and Grant, the IT38 figure may differ from the SA2 figure. Where prices fell, the lower figure reduces the CAT; where they rose, the higher figure increases it.

What to watch for

Joint shareholdings work like joint bank accounts: if the shares were held jointly with a surviving spouse or civil partner, they usually pass by survivorship and are not part of the taxable estate for probate. They still need to be disclosed on the SA2 separately.

Bonus shares and rights issues complicate the valuation if they fell between death and Grant. Ask the broker or registrar to explain corporate actions during that period. The IT38 valuation needs to reflect all such changes.

Finally, shares held in a pension or investment fund are not "shares" for probate purposes. The pension trustee or fund provider treats the death benefit under its own trust rules, and the value that reaches the beneficiary is whatever the trustee releases. That value, not the underlying share prices, is what the SA2 and IT38 record.

Related reading

• The SA2 form explained
• Releasing Computershare shares after a death
• IT38 return filing: step by step
• Paying CAT: options and deadlines