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Accurate Valuation in NSW Probate: Why It Matters?

Valuing assets is one of the most critical—and stressful—jobs for an executor in NSW probate. Accurate valuation ensures: 

• Fair distribution of estate assets in NSW

• Correct tax treatment (including Capital Gains Tax in probate)

• Legal protection for the executor 

At first, Chloe felt overwhelmed by the responsibility, worrying she might make a costly mistake. She later shared that having someone guide her through the probate process in Sydney brought genuine relief and gave her the confidence to get it right. 

What Must Be Valued — and How? 

Assets that typically require valuation during probate in NSW include: 

• Real estate (family homes and investment properties in Sydney)
• Financial investments (shares, bonds, superannuation)
• Digital assets (such as cryptocurrency)
• Personal items (jewellery, watches, collectibles)
• Business interests
• Loans or gifts made to family and friends 

Best practice: Use independent, professional valuers—especially for property and crypto. The NSW Supreme Court, beneficiaries, and the ATO rely on these valuations. “DIY” estimates often trigger disputes. Executors should also understand what a Probate bond is, as it may be required to protect the estate if certain risks or disputes arise. 

Chloe discovered $180,000 in crypto among the assets—a world she didn’t understand. Tension with her siblings escalated. She later admitted that advice from someone experienced in digital asset valuation in probate was a major relief. 

Real-World Complications: Chloe’s Case Highlights

• Mixed-Use & Refinanced Investment Loans: Loans that have been refinanced or bundled create a complex paper trail:

  1. Deductible vs. non-deductible interest must be separated—essential for tax compliance in NSW estate administration

  2. Refinancing over time often blurs the lines, especially when combining home and investment borrowings 

Chloe’s father had refinanced multiple times. She felt anxious about missing deductions or triggering an issue with the ATO. After consulting a probate accountant in Sydney, she described the experience as “like coming up for air.” 

• Incomplete Records:

• 1. Missing receipts or statements can result in lost deductions or higher tax liabilities

  2. Professionals can reconstruct history—but there are limits 

Chloe spent hours sorting paperwork, afraid she’d overlook something crucial. An experienced team gave her peace of mind that everything was accounted for. 

• Undocumented Family Loans and the Notional Estate Trap in NSW:

• 1. Loans or gifts to family without paperwork can lead to probate disputes in Sydney

  2. The nature of the transfer—loan or gift—may be contested

  3. Under the Succession Act 2006 (NSW), courts may claw back assets given away within three years of death as part of the notional estate 

This is unique to NSW probate law. Chloe’s brother Peter had received $200,000 from their father, which became a point of legal contention—especially with Peter’s ex-partner arguing over inheritance rights. Because there was no paperwork, the court included the gift in the estate. 

• Blended Families & Verbal Promises:

• 1. Second marriages and children from different relationships raise the risk of family provision claims in NSW

  2. Promises like “Mum said this ring is mine” don’t hold up in court unless documented. If overseas property or accounts are involved, the situation can become even more complicated — many families aren’t prepared for how overseas assets are handled in probate. Chloe was inundated with calls from family members recalling different promises. Clear advice and mediation helped her find a path forward. 

Chloe was inundated with calls from family members recalling different promises. Clear advice and mediation helped her find a path forward. 

What Can Go Wrong—and How to Protect Yourself

Valuations in Sydney probate can be disputed by: 

• Siblings or beneficiaries

• Creditors

• The ATO (if values seem understated)

• Former partners using notional estate provisions in NSW 

Risk Reduction Checklist: 

• Use qualified, independent valuers for complex assets

• Keep clear records of valuations, decisions, and communications

• Consult a Sydney probate lawyer early if issues arise

• Document every step of the process

• Communicate openly with beneficiaries 

Chloe later said: 

“I underestimated how complicated probate could be. With the right team behind me, I felt supported and confident.” 

Practical Steps for Executors in NSW Probate

1. Create a full list of assets and debts (including digital, valuables, and family loans)

2. Engage professional valuers for each asset type

3. Gather all documentation (statements, contracts, receipts)

4. Consult with a Sydney estate lawyer and accountant early

5. Document all communications and decisions

6. Address family expectations transparently—consider mediation 

Chloe’s final words: 

“What started as anxiety became confidence. I knew nothing would be left to chance.” 

Lessons Learned

• Professional valuations in probate prevent disputes and save time

• Missing records are common—don’t try to DIY complex financials

• Verbal promises rarely stand—written instructions are essential

• Transparent communication helps prevent conflict

• The NSW Succession Act means gifts or loans made within 3 years of death may still count—always seek legal advice

• Executors who follow these steps reduce the risk of personal liability during probate