Estate valuation is the process of determining the fair market value of an individual’s assets at a specific point in time. It commonly includes real estate, investments, business interests, personal property, and financial accounts. Accurate estate valuation is essential for estate planning, probate proceedings, and tax reporting purposes.

Several methods are used in estate valuation, depending on the asset type. Real estate is typically assessed through market comparisons or professional appraisals, while businesses may be valued using income, asset-based, or market approaches. Financial assets are generally valued based on current market prices.

Legal and regulatory guidelines often influence how estate valuation is conducted, especially when calculating estate taxes or distributing assets among beneficiaries. Documentation and supporting evidence are important to ensure accuracy and transparency. By establishing clear asset values, estate valuation helps reduce disputes, supports compliance with legal requirements, and provides a structured foundation for managing an individual’s financial legacy.