Jewellery valuations in probate – six expert tips to avoid costly mistakes

Valuing Jewellery for Probate

Valuing jewellery for probate is often more complex than executors initially anticipate. Unlike household contents, jewellery can represent significant value within an estate, yet many pieces are misvalued due to common misconceptions about their worth. For inheritance tax purposes, all jewellery must be assessed at its “open market value” – what it would realistically sell for, rather than its sentimental or insurance value. 

Mistakes in jewellery valuation can lead to serious consequences, from overpaying inheritance tax to potential HMRC investigations and penalties. Many executors either significantly overvalue items based on outdated insurance documents or undervalue pieces by missing important markers of worth. 

This guide aims to provide practical advice for executors handling probate, helping you navigate the sometimes confusing process of jewellery valuation while ensuring tax compliance and protecting the estate’s interests. 

Tip 1: Don’t Rely on Insurance Values for jewellery

Insurance valuations typically reflect replacement costs – what you’d pay to purchase a similar item new – rather than what the jewellery would actually sell for. For probate, HMRC requires “open market value”, which is the realistic amount a willing buyer would pay a willing seller. 

The disparity can be substantial: a diamond ring insured for £10,000 might only achieve £3,000-£5,000 at auction. Using insurance figures for probate could lead to overpaying inheritance tax by thousands of pounds, particularly for substantial collections. Conversely, understating values can trigger HMRC investigations and potential penalties if deliberate undervaluation is suspected. 

Tip 2: A Professional Valuer Can Save You Money 

Amateur valuations often rely on retail prices or emotional attachments, leading to significant overvaluation. Professional valuers, by contrast, assess jewellery based on current market conditions, considering factors like gemstone quality, craftsmanship, and buyer demand – all of which fluctuate over time. 

The real benefit lies in the professional’s ability to establish a lower, but defensible, valuation than most executors might expect. What family members consider “valuable” often has limited appeal in today’s market. Inherited diamond rings frequently command only a fraction of their original retail price, while period pieces that aren’t by notable designers may be valued primarily for their metal content. 

While professional valuations typically carry fees, this expense can yield substantial savings. For estates near or over the inheritance tax threshold, accurate – and often lower – jewellery valuation could reduce tax liability by thousands of pounds, while still providing the HMRC-compliant documentation that prevents challenges during probate. 

Tip 3: Don’t Dismiss Costume Jewellery 

Costume jewellery can hold surprising value, particularly pieces from celebrated designers like Chanel, Miriam Haskell, Trifari and Butler & Wilson. Vintage Schiaparelli brooches or early Dior necklaces regularly fetch hundreds or even thousands at auction. 

Look for quality construction, unusual designs, and clear maker’s marks. Well-preserved condition is crucial—original boxes and paperwork can significantly increase value. Heavy pieces with intricate detail and vibrant stones often indicate higher quality costume jewellery. 

Never dispose of collections without assessment; what appears to be a box of “junk jewellery” might contain overlooked treasures that could benefit the estate considerably. 

Tip 4: No Hallmark Doesn’t Mean No Value 

The absence of a hallmark doesn’t automatically render jewellery worthless. Many countries don’t follow the UK’s strict hallmarking traditions – pieces from Italy, the US, and parts of Asia often bear maker’s marks instead of conventional hallmarks. 

High-quality jewellery from designers like Cartier, Buccellati or Georg Jensen may only display a maker’s stamp. Similarly, antique jewellery made before modern hallmarking standards was implemented can be extremely valuable despite lacking formal marks. 

Professional valuers use acid testing, electronic metal analysers, microscopic examination and UV light to authenticate unmarked pieces – identifying valuable platinum Art Deco pieces or gold that could otherwise be mistaken for costume jewellery. 

Tip 5: Watch How Valuers Charge 

Valuation fees vary significantly across the industry. Some valuers charge per item (typically £10-£50 per piece), while others offer hourly rates (£250-500 per hour) or flat fees for entire collections. Per-item charges work well for small collections of high-value pieces, but can become expensive for larger estates with numerous items. 

For extensive collections, seek valuers who offer tiered pricing or capped fees. From just £25, Swift Values provides a professional assessment and advises whether more costly in person valuation is needed. This approach is an ideal starting point, allowing executors to identify which pieces warrant further investment in formal valuation. 

Before engaging any valuer, clarify their fee structure, whether they provide HMRC-compliant documentation, and if they can help determine which pieces might have significant value before committing to comprehensive services. 

Tip 6: You Can Sell Jewellery Before Probate Is Granted 

Executors can legally sell jewellery and other chattels before receiving a Grant of Probate. Unlike property or financial assets, personal possessions don’t typically require the Grant to transfer ownership, though administrators (when there’s no Will) should proceed more cautiously than executors. 

Pre-probate sales can be advantageous for raising funds to pay inheritance tax or funeral expenses. However, accurate valuation remains crucial – HMRC requires evidence of the item’s worth at date of death, not its sale price. 

Always document thoroughly: photograph items, obtain written valuations, and keep receipts of sale. This transparent record-keeping protects executors from potential challenges by beneficiaries and ensures HMRC compliance by clearly showing items were sold at fair market value. 

Overview of probate jewellery valuation

Accurate jewellery valuation remains one of the most misunderstood aspects of probate administration. By avoiding insurance values, seeking professional assessment, carefully examining all pieces (including costume jewellery and unmarked items), and understanding valuation costs, executors can ensure estates meet HMRC requirements while potentially saving significant sums in tax. 

The modest cost of professional valuation often represents excellent value when weighed against potential tax savings and the peace of mind that comes with HMRC-compliant documentation. For reliable valuations, consider members of the National Association of Jewellers, the Institute of Registered Valuers, or specialist probate valuation services like Swift Values. 

Mark Littler is a seasoned valuation expert who began his career as an auctioneer at Tennants Auctioneers before founding Mark Littler LTD in 2016. In 2024, he established Swift Values, a specialist probate valuation service helping solicitors and private executors manage estate administration efficiently through both in-person and online valuation services. He offers probate advice on how to value jewellery and other possessions.