Free Probate Valuations

All assets which were held in the deceased's sole name will be frozen after death, until a grant of probate has been obtained. The word probate means proving, as it involves proving that the will in the executor's possession is the last will of the deceased. Probate is an order of the court officially granting the executor the power to administer the estate. If the deceased did not leave a will, then the court will appoint an administrator, usually the deceased's closest relative. Once a grant of probate (or grant of letters of administration) has been issued, the executor or administrator will be able to sell the deceased's property.

All of the assets and liabilities in the deceased’s estate will need to be valued as at the date of death in order to work out if the estate will be chargeable to inheritance tax, and if so, how much inheritance tax will need to be paid. This includes cash in bank accounts, investments, life policies, personal effect and property. The executors are unable to arrange the affairs of the deceased until probate has been granted.
Commonly valuations are needed for property and personal effects (known as chattels), particularly where the property is going to be sold, rather than passing to a surviving spouse.

Valuations for capital gains tax & inheritance tax purposes can be carried out by the executor/administrators who can provide their opinion of the value of the property. However, lay executors/administrators are usually not experienced enough to give an accurate figure. A qualified chartered surveyor can provide a formal valuation, providing they are accredited by the valuer registration scheme (vrs).
It is always advisable to appoint a qualified chartered surveyor to ensure that the property is not overvalued and unnecessary inheritance tax paid as a result. If the valuation is too low, the district valuer can question the figure which must be defended by the person that provided it. Hm revenue & customs are more likely to accept a properly drafted and supported valuation provided by a chartered surveyor. In addition, a chartered surveyor will be better equipped to negotiate the value with hm revenue & customs should they raise any queries.
It is important to note that the probate value will also become the base cost for calculating any capital gains tax (cgt) should the value of the property increase during the administration period.
Commonly lay executors/administrators do not seek professional advice and try to submit a low value for inheritance tax, to be later stung with capital gains tax, because the property has sold for more than the probate value declared to hm revenue & customs.)

If you are interested in selling the property, you should ideally appoint an agent before probate is granted. An agent will be able to advise on an appropriate marketing strategy for selling the property and any steps the executor/administrator can do in order to maximise the marketing potential. It is important that marketing advice and probate valuations are co-ordinated if possible)

You need an estimate of the estates value to find out if there is inheritance tax to pay. The estate will not have to pay tax as long as it either: all passes to the dead persons spouse or civil partner, a charity or a community amateur sports club has a value below the inheritance tax threshold of £325,000. If the person who died was widowed or is giving away their home to their children, the tax threshold can be higher.

Whether there is tax to pay will affect how you report the estates value, and the deadlines for reporting and paying any tax.

The administration of an estate can often be a straightforward process, but sometimes it can be more complex and is often time consuming. It can be difficult to predict how long the process will take. A grant of probate is usually issued within about three weeks from the date the probate registry receives the application papers. This is provided that all inheritance tax has been paid before the application is submitted. Paying the inheritance tax before the grant has been issued can cause problems, as the executor usually cannot access the deceased's assets to pay the tax. However, HM Revenue & Customs will usually agree that inheritance tax on the property can be paid in instalments, until the property is sold.

Obtaining the various valuations of the deceased's estate prior to submitting the application for probate can, however, take some time. It is therefore not uncommon for a grant of probate to take up to six months from the date of death and longer in more complex cases.

Valuations for capital gains tax & inheritance tax purposes can be carried out by the executor/administrators who can provide their opinion of the value of the property. However, lay executors/administrators are usually not experienced enough to give an accurate figure. A qualified chartered surveyor can provide a formal valuation, providing they are accredited by the Valuer Registration Scheme (VRS).

It is always advisable to appoint a qualified chartered surveyor to ensure that the property is not overvalued and unnecessary inheritance tax paid as a result. If the valuation is too low, the district valuer can question the figure which must be defended by the person that provided it. HM Revenue & Customs are more likely to accept a properly drafted and supported valuation provided by a chartered surveyor. In addition, a chartered surveyor will be better equipped to negotiate the value with HM Revenue & Customs should they raise any queries.

It is important to note that the probate value will also become the base cost for calculating any Capital Gains Tax (CGT) should the value of the property increase during the administration period.

Commonly lay executors/administrators do not seek professional advice and try to submit a low value for inheritance tax, to be later stung with Capital Gains Tax, because the property has sold for more than the probate value declared to HM Revenue & Customs.

You need an estimate of the estate's value to find out if there is inheritance tax to pay. The estate will not have to pay tax as long as it either: all passes to the dead person's spouse or civil partner, a charity or a community amateur sports club has a value below the inheritance tax threshold of £325,000. If the person who died was widowed or is giving away their home to their children, the tax threshold can be higher.

Whether there is tax to pay will affect how you report the estate's value, and the deadlines for reporting and paying any tax.