For executors who are not familiar with a house or property valuation for probate, or obtaining a probate house contents value while winding up an estate, we have compiled a list of frequently asked questions for those valuing an estate for inheritance tax purposes.
Probate Valuation Fees And Complimentary Advice
Our bespoke range of probate valuation services were created to safeguard executors from Inland Revenue challenge. Avery Associates are registered valuers and to date have never had a probate valuation report rejected by HMRC simply because all of our house contents and property valuation reports are prepared accurately by experienced and qualified chartered surveyors and valuers specialising in open market valuations for probate. So If you require a RICS probate property valuation quotation or a valuation of belongings, personal possessions, antique and modern furniture, jewelry, paintings, works of art, personal effects, a house, car or boat and any other related assets for the purposes of probate and you want to avoid Inland Revenue Investigation we will be pleased to provide our probate valuation fees along with free telephone assistance from a qualified surveyor. Call our probate specialist Jeffrey Avery on 0800 567 7769 and for urgent or emergency international enquiries he can be reached 24hrs on +44 7967 646499.
What Is A Probate Estate Valuation Of House Contents?
Probate House Valuation And House Contents Value For Inheritance Tax Purposes Is personal property subject to probate, yes it is and one of the primary duties of an executor or administrator of a will is to value the entire estate being an open market valuation or estate valuation for probate, ie: property valuation for probate and house contents valuation for probate, including the deceased’s property, personal belongings and possessions, (their home, for example), and their goods and chattels (the possessions contained in a property which are not part of the fabric of the building). The term probate evaluation is also used in these circumstances but has exactly the same meaning ie: open market valuation of household contents for the purposes of probate and IHT calculations.
As an example, the furniture would be a chattel, whereas, generally, the radiators which are fixed to the walls are not. As part of the winding up process, an executor will be required to provide an estimate of the total value of all the chattels, so that tax liabilities can be correctly assessed. These documents are known as probate valuations.
What About Valuing A House For Probate?
How to get a house valuation for probate – For the purposes of Probate the property’s value is based upon the open market value of the property in a sale by a willing seller to a willing buyer (section 160 Inheritance Act 1984). Any peculiarities of the property (for example the fact that there is a buyer desperate for a flat in that particular building and willing therefore to pay a premium) must be ignored.
Once the return has been submitted, the District Valuer at the Capital Taxes Office will consider the valuation given. If they believe that the value is too low the person who submitted the return will be asked to defend the value given. The solicitor acting will turn to the estate agent and ask them to justify their valuation directly to the District Valuer. This situation may arise, for example, if the property is sold for considerably more than the value given in the return just a short period after the date of death.
Our fully experienced RICS property surveyors will prepare an accurate valuation which will be supplied to you as a written probate report and fully compliant with HMRC Inheritance Tax law and eliminate the risk of the district valuer intervening. We currently provide around one thousand probate valuations annually and to date we have never had a rejection from IRS
Why Do I Need A Professional Probate Property Valuation And House Contents Valuation?
There are three reasons why obtaining a professional certified valuation of both property and chattels will help to smooth the process of obtaining probate.
First, the value of the house, and the goods and chattels contained therein form part of the total valuation of an estate for tax purposes, and certified professional valuations are much less likely to be queried by HMRC, which could mean fewer delays.
Second, probate valuations by someone without expert knowledge could result in over valuation, which could cause additional, unnecessary tax liabilities or undervaluation, resulting in a query being raised by the tax authorities and possible penalties, which could cause significant delays in the winding up of the estate.
Third, where individual items are bequeathed to specific beneficiaries, or there is family division, itemised probate valuations will simplify the process of calculating tax liabilities on these items.
What Form Does The Estate Probate Valuation Report Take?
We provide the documentation for probate valuations in the form of a declaration of value, and, where appropriate, a schedule of higher value items. The value of the goods and chattels is declared to be that which pertains at the date of death.
We will provide RICS property valuations professionally prepared and supplied as a fully written and signed probate valuation report.
We will provide RICS chattels or house contents valuations professionally prepared and supplied as a fully written probate valuation report.
Where required, we will convert all probate valuations into PDF format and send them to all interested parties, but in all cases, signed hard copies are always supplied.
We are able to provide the probate valuations in both forms within 48 hours of appraisal, unless additional research is required.
Which HMRC Forms Will I Need When Dealing With Property Valuation And Probate Valuation Of Household And Personal Belongings Or Chattels?
You will need to complete the following forms:
Schedule IHT 405 – Houses, land, buildings and interest in land.
Schedule IHT 407 – For jewellery, vehicles, boats, aircraft, antiques, works of art, or collections
Schedule IHT 408 – This is for household and personal goods donated to charity.
Schedule IHT 404 – Jointly owned assets.
The forms are available online and can be downloaded from www.hmrc.gov.uk/inheritancetax/. Attach the written probate valuation to these forms when submitting them to HMRC.
Read the following article by “Hacker Young” which explains why it is so important to obtain a professional probate valuation report HERE.
How Much Will It Cost?
Our probate valuation fee for a house contents valuation is £450 plus vat and £450.00 plus vat for a property valuation. Sometimes research is required into unusual, rare, or high value items, and we do not charge any extras for the additional research time.
Can You Assist Us To Realise The Monetary Value Of Antiques, Collectables, Or Other High Value Items Such As Vehicles?
We can arrange for items to be transported to one of our recommended auction houses, and can also advise you on the auction process, so as to ensure that the maximum value, in the best interests of the estate, is obtained. If desired, we can also purchase the entire contents, including vehicles, directly.
Can You Also Carry Out A Complete House Clearance Of Furniture And Effects From The Property?
Yes, If you need help getting a house cleared after probate we can completely empty the property of all furniture, effects and personal belongings including garages, gardens and outbuildings, remove any rubbish then leave it clean, tidy and ready for sale or transfer to a landlord.
What additional services do you offer to executors, solicitors and other professional organisations, which would assist in winding up an estate?
If requested, we can drain down central heating and water tanks to prevent pipe bursts, or de-commission the water services entirely. We can also isolate all electrical systems and secure the premises by changing the locks. To do this, we offer the services of a locksmith, CORGI gas engineer, plumber, and electrician. This is particularly important where the property is likely to be empty for a while.
What About Items I Wish To Keep?
Any items you have decided to retain and have purchased from the estate can be relocated from the deceased property, so we are always happy to transport any of those items to a location of your choice.
I’m Not In The UK At The Moment. Can You Help?
Yes, we are always pleased to assist with international enquiries and have all the necessary facilities available for individuals and companies requiring our services while abroad. We are more than happy to contact you by phone from our head office to anywhere in the world, and provide 24 hour support. Jeffrey Avery is available 24 hours to take urgent or emergency calls on +44 7967 646499.