We appreciate how upsetting the death of a relative or close friend can be. Probate valuation is an area which surveyors endeavour to assist with in a bid to alleviate some of the stress associated with the work surrounding someone’s estate and the debts due to be paid.
Probate
Losing someone close to you is of course a challenging period in life. Surveyors play a role in assisting with probate valuation to alleviate some of the stress associated with managing an estate and settling obligations.
You would instruct a probate valuer for Inheritance Tax (IHT) as part of the process of distributing assets to beneficiaries. Probate valuation conducted according to Red Book standards is therefore mandatory and our panel of chartered surveyors carry out this valuation with impartiality.
A detailed valuation report is necessary for probate in transferring property to heirs and any notable differences between the sale price and valuation might draw the attention of HMRC requiring clarification or adjustment by the valuer. Therefore precision and adherence to regulations are crucial in probate valuations.
Frequently asked questions
Why do I need a probate valuation?
Following the loss of a family member, the estate, which includes finances and assets (such, as property and belongings) must be appraised to acquire a Grant of Representation. This grant allows you to legally handle the person’s estate. Therefore, the reasons for needing a probate valuation are as follows:
- Value: to determine the value of assets left by the deceased.
- Debts: the executor must determine if the estate has enough value to settle any debts.
- Inheritance Tax (IHT): to calculate the tax amount owed on the estate.
Probate valuations offer insight into the status and value of the estate. Our team of valuation surveyors regularly conduct probate valuations and guidance on properties in London areas outside M25 and across regions in the UK.
When does Inheritance Tax (IHT) apply?
Inheritance Tax (IHT) comes into play only if the estate surpasses £325,000 upon death. This specific limit is commonly known as the "nil rate band" or Inheritance Tax threshold. If the estate falls below this value then no Inheritance Tax needs to be paid. The nil rate band is fixed and may be adjusted by the Government annually.
Do gifts incur any taxes?
Gifts of any amount can be exchanged between spouses and civil partners throughout their lives without triggering Inheritance Tax. This exemption is known as the "spouse or civil partner exemption." Furthermore, an estate won't incur Inheritance Tax if everything is left to a spouse who's an UK resident.
When must I pay for Inheritance Tax?
Usually, the executor of the Will or the administrator of the estate must settle any Inheritance Tax owed within 6 months after the date of death and failing to do so could lead to interest charges on the sum.
Navigating through Inheritance Tax can be intricate and emotionally demanding for individuals coping with bereavement, so you should get insight from trusted experts like a chartered surveyor, accountant and probate lawyer, whom we can put you in touch with.