Disclaimer — This article is for general educational purposes only and is not legal advice. Executor liability depends on the…
Disclaimer — The following material is for general educational purposes only and does not constitute legal, financial or tax advice. Valuation requirements and thresholds change. Executors in Queensland should seek personalised guidance from a qualified solicitor, licensed valuer or accountant before acting.
Why Accurate Valuations Matter
Failing to obtain reliable figures can:
- trigger capital-gains-tax (CGT) surprises when assets are later sold;
- short-change beneficiaries or create over-payments;
- expose the executor to personal liability for “under-value” transfers; and
- stall probate if the Supreme Court questions the Inventory of Assets and Liabilities.
A clear valuation plan preserves fairness, minimises disputes, and speeds up estate administration.
Core Principles under Queensland Law
- Market Value Standard – Use fair market value at the date of death, defined as the price a willing but not anxious buyer would pay a willing but not anxious seller in an arm’s-length transaction [1].
- Evidence over Estimates – The Probate Registry prefers written valuations or recent arms-length sale prices to guesswork.
- Different Rules for Different Assets – Real property, listed shares and collectables each have their own accepted valuation methods.
Asset-by-Asset Valuation Checklist
| Asset Class | Preferred Evidence | When to Obtain a Professional Valuation | Executor Tips |
|---|---|---|---|
| Real property (house, land) | Independent valuer report or recent arms-length contract | Any property > $500 000, rural land, unique prestige homes | Use a valuer certified by the Australian Property Institute; fees are deductible from the estate. |
| Shares & listed securities | ASX closing price on date of death | Illiquid small-cap stocks or foreign exchanges | Print brokerage statement showing date-of-death price. |
| Superannuation death benefit | Fund’s member balance statement | Defined-benefit or untaxed schemes | Record tax-free vs taxable components for beneficiaries. |
| Private company shares & units in family trust | Accountant’s valuation report using net asset or earnings multiple | All cases—Registry accepts accountant or qualified business valuer letter | Obtain company financials and latest BAS. |
| Motor vehicles, boats, caravans | RedBook or Glass’s Guide value print-out | Classic or collector vehicles | Note make, model, kilometres and condition in the inventory. |
| Jewellery & collectables | Retail jeweller or auction-house appraisal | Items > $5 000 or where beneficiaries dispute value | Photograph items and keep appraisal certificates. |
| Cryptocurrency & digital assets | Exchange closing price in AUD on date of death | Volatile or illiquid tokens | Secure private keys; print blockchain explorer screenshot as evidence. |
| Household contents | Insurer’s schedule or “garage-sale” estimate | Antiques, art, designer furniture | Use written valuation only for high-value pieces. |
Step-by-Step Valuation Process for Executors
Identify every asset
- Check title searches, bank statements, share registries, superannuation balances, digital wallets and insurers.
Select the valuation method
- Apply the table above; match asset type with evidence required.
Engage professionals early
- Certified property valuer, licensed jeweller, chartered accountant or digital-asset specialist as needed.
Document everything
- File valuation letters, screenshots and appraisal certificates with your estate records and keep duplicates for CGT calculations.
Update insurance
- Increase cover if high valuations expose under-insurance risks (art, collectables, classic cars).
Include values in the Form 105 inventory
- The figures you lodge become the baseline for probate; the Court may requisition proof.
Common Valuation Pitfalls and How to Avoid Them
| Pitfall | Consequence | Preventive Action |
|---|---|---|
| Using council rates notice as property value | Under- or over-valued by 10–40 % | Instruct an accredited valuer; cost ≈ $330–$550 and is estate-deductible. |
| Ignoring overseas assets | Incorrect CGT and probate inventory | Order foreign market valuations; convert to AUD using ATO rates. |
| Guessing vehicle worth from classifieds | Beneficiary disputes; unequal distribution | Attach RedBook/Glass’s print-out or licensed valuer letter. |
| Forgetting crypto wallets held on phones | Lost asset; executor breach of duty | Run exchange history and secure keys immediately. |
| Mixing “replacement” and “market” values | Inflated CGT cost base; higher insurance premiums | Always use market value unless insurance requires replacement value. |
Capital-Gains-Tax Snapshot for Executors
- The estate inherits the deceased’s cost base for post-CGT assets.
- If the asset was pre-CGT (acquired before 20 Sep 1985), the market value at date of death becomes the new cost base [2].
- These baseline figures are vital when beneficiaries later sell; inaccurate valuations create unexpected CGT bills.
FAQs
Can I rely on the bank’s “desktop valuation” for property?
For standard suburban homes this is often acceptable, but the Registry may still request an independent valuer’s report for high-value or rural properties.
Do I need separate valuations for joint-owned assets?
Yes—a valuation records total market value, then the executor notes the deceased’s percentage share.
What about rapidly falling markets?
Use the value on the date of death. Later price drops do not change probate values—though they may affect eventual CGT if the asset sells at a loss.
Who pays for valuation fees?
Reasonable valuation costs are estate expenses reimbursed to the executor after probate.
Key Take-Aways
- Accurate, well-documented valuations are essential evidence for probate and future tax.
- Match each asset type with the right valuation method; engage professionals for complex or high-value items.
- Keep every report, screenshot and receipt—good records protect the executor against challenges.
- Values set in the probate inventory become the CGT cost bases for beneficiaries—get them right.
Sources / Citations
- Australian Property Institute, Market Value Definition and Practice Standard (2024).
- Income Tax Assessment Act 1997 (Cth) s 128-15 — CGT market-value substitution rule at death.
- Queensland Supreme Court, Probate Registrar’s Guide (2025) — inventory and valuation requirements.