What is considered an asset of a deceased person?

When someone passes away, one of the first steps in managing their estate is working out what they owned. These items and accounts make up their assets, and they must be valued for probate and Inheritance Tax purposes. But what is considered an asset of a deceased person? It’s more than just property and savings. This guide explains the different types of assets that form part of someone’s estate, and what needs to be done with them. 

Cash, property, and investments 

Let’s start with the basics. The most common assets in a person’s estate include: 

• Cash: Money in bank and building society accounts, including savings, ISAs, and foreign currency.
• Property: This could be a house, flat, or land owned by the deceased, whether it’s their main home or an investment property.
• Investments: Shares, bonds, Premium Bonds, stocks and shares ISAs, or money in investment funds. 

Jointly held assets

Many people own things jointly, especially if they are married or live with a partner. This can include: 

• A joint bank account;
• A house owned in joint names.

What happens to these assets depends on how they were owned: 

• If they were held as joint tenants, the asset automatically passes to the surviving co-owner. It usually doesn’t form part of the estate.
• If they were held as tenants in common, the deceased person’s share does become part of the estate and must be dealt with through probate. 

Business interests 

If the deceased ran or owned a business, that interest may be an asset too. This can include: 

• A share in a limited company;
• Ownership of a sole trader business;
• Partnership interests;
• Income owed to the business or future profits.

Business assets can be complex to value and handle. Executors may need help from Accountants or Solicitors to understand what’s included and how to manage it. In some cases, Business Relief may reduce how much tax is owed on these assets. 

If the deceased had plans in place, such as a business Will or partnership agreement, this can also affect how these assets are passed on. 

Other types of assets 

While cash, property, and investments are the most obvious, don’t forget about: 

• Vehicles;
• Jewellery, art, or collectibles;
• Pensions (in some cases, depending on how they’re set up);
• Life insurance policies (especially if not written in Trust);
• Money owed to the deceased, such as loan repayments or refunds.

All of these may need to be valued and reported as part of the estate. 

In summary, what is considered an asset of a deceased person? 

An asset is anything the person owned or had a financial interest in when they passed away. This includes: 

• Cash, savings, and property;
• Jointly owned items (depending on how they were held);
• Investments and business interests;
• Valuable personal belongings or money owed to them.

Understanding what counts as an asset is a key part of the probate process. Getting accurate valuations helps ensure the estate is managed fairly and legally, and can avoid issues later on with tax or disputes.