Probate refers to the procedure of assigning a worth to a deceased person’s wealth in order to place a tax upon that value. The person in charge of making this assessment is the Executor. It is also for them to ensure the correct payment gets made. Usually a solicitor carries out this practice in cooperation with the Executor and take his/her fee from the Estate.
Why get a valuation for probate in London or Surrey? Simple – you need to be able to estimate the overall value of the estate including the main property, other properties, house contents, shareholdings, cash, stock, any other possessions et cetera. The valuation for probate will also tell you whether there is enough value in the estate to cover any liabilities left by the deceased and whether there will be anything left to distribute to the beneficiaries.
The assets of the person who has died, including land, money, investments, household goods (chattels) and other assets, collectively known as the ‘Estate’, need to be accounted for. The administration of the Estate is usually carried out by a solicitor acting for the executor(s) of the Estate. The valuations obtained on chattels, stocks, shares and property are totalled up and comprise most of the value of the Estate for Tax purposes. It is crucial to obtain these valuations by “experts” acceptable to HMRC.
The objective of ordering a probate valuation is to determine the total worth of the Estate. Engaging the services of a professional valuer will guarantee a precise evaluation of values utilised as a grounding for tax calculations. This will diminish the probability of disagreements with HMRC which could hold the grant of Probate in abeyance.
The threshold for Inheritance Tax is presently (2020) £325,000. It includes all the properties, house contents, money. By law, valuation must be based on up-to-date market values, so the figure put against any house contents, including high-value items, antiques and specialist collections, reflects the worth of each item on the day of the death. If the benefactor’s property was owned jointly, then the value of it should be divided by according to the number of people sharing the ownership to calculate the true value owned by the benefactor. If their home was co-owned as tenants in common, then the value is calculated based on the benefactor’s share in the property.
Usually the property part of the Estate is the most valuable single item by a long way.
Our panel of probate surveyors specialise in providing precise property asset valuations, for tax objectives, and have cooperated with HMRC frequently to ensure these valuables are agreed and any conflicts are resolved as speedily as conceivable and to resolve the liquidation of the Estate’s assets to the heirs.
The RICS Valuers promptly process instructions from Executors and solicitors and visit the properties usually within 1-2 weeks and often even sooner. Then following the inspection, completing the valuation report will usually take 3-4 days. The surveyor will quickly deliver to you as many detailed copies as you require, both for yourself and for tax purposes.
Accurate valuations are important because HMRC will conduct their own valuation as a comparison. They are interested in single items worth at least £500. For any other house contents they just require a single calculated figure. The main items they concentrate on are high-value contents like property, antique goods, professional paintings, watches, clocks and hobby collections.
HMRC will use the internet to further research using databases of previous similar works and then additional comparisons using artist or maker. If the valuation is not accepted because it is thought to be too low then do not argue with them; submit the evidence along with the valuation under investigation.
HMRC have lots of information on property sales as they receive copies of all sale documents. Many properties are sold without the details being in the public databases.
Probate is not granted until HMRC are satisfied as to the true values of the Estate’s assets and the assessment of tax liability is crystalised.
Receiving valuations for capital gains and inheritance tax allows you to:
Calculating the tax contributions and distributing of the deceased’s estate might not be all on your own because our panel of sympathetic RICS valuers can do the hard financial work for you. Hoping to find out more about getting a capital gains tax, inheritance tax or probate valuation in London or Surrey? Feel free to contact us.
