A valuation for probate purposes is used to determine the total value of a deceased person’s estate.
Calculate Inheritance Tax (IHT): The valuation helps to determine whether the estate exceeds the tax-free threshold (in the UK, this is the nil-rate band), and how much inheritance tax may be payable.
Distribute Assets: It provides an accurate value of the estate, so assets can be fairly distributed among beneficiaries in accordance with the will or intestacy laws.
Legal Compliance: Probate valuations are required to obtain a grant of probate, which gives the executor the legal right to administer the estate. The implications of an inaccurate valuation or relying on an Estate Agents marketing report (not a valuation ) are serious. This could leave the Executers paying too much tax or being challenged by HMRC (district valuer ) for underpayment of tax which, if upheld could lead to financial penalties and further scrutiny of the estate.
Settlement of Debts: It ensures that any outstanding debts, such as mortgages or loans, are settled before distributing the remainder of the estate to beneficiaries.
Valuation typically covers assets like property, personal possessions, bank accounts, investments, and other valuable items.
Shire surveyors are very experienced within our region for the residential property element and understand both the process and idiosyncrasies of the local market and as are result are able to provide and accurate valuation from a Chartered surveyor in a format which provides protection for the Executers and comfort for the beneficiaries.
