Executors should be fully aware of their responsibilities and the importance of getting a professional and accurate RICS Probate Valuation, when assessing the value of the chattels and the property itself for inheritance tax calculations. Trying to cut corners or instructing unqualified valuers just because they are cheaper could be a grave mistake and, if questioned by inland revenue investigators could lead to a heavy penalty as well as a higher tax liability.
Over the last 2 years the IRS have questioned countless unprofessional or inaccurate probate values, which has amounted to over 70 million pounds in extra inheritance tax, and penalties, from estates where executors have been found negligent having provided inaccurate and poorly prepared valuation reports obtained from unqualified surveyors or valuers. It is the executors duty to ensure that the valuer instructed is qualified and it is very wise to instruct a RICS surveyor. Reports compiled by RICS surveyors and valuers are very rarely questioned by the IRS because of the level of expertise and experience the valuers have, unlike an estate agents valuation which can vary dramatically from one agent to another as we all know. Estate agents valuations are commonly questioned by the IRS and sometimes revalued for the inland revenue by the district valuer who usually values it a higher figure. Estate agents are qualified to sell houses , but not qualified to value them, so bear this in mind when obtaining the probate valuation of the property itself.
Recently more and more so called probate valuers are appearing on the Internet, the majority of which are unqualified and belong to no official body, and using these valuers could lead to problems with IRS officials and result in a lengthy drawn out probate process sometimes over a year before resolution.
Many house clearance companies are now offering probate valuation services, when they are not qualified to do so, this type of valuation could also lead to questions from the Inland Revenue. It is completely unethical and a conflict of interest for a company to value the chattels and at the same time try to purchase them from the estate.
Jeffrey Avery & Associates offer a full range of services including house clearance, and this service is provided to help monetise as much as possible, and in the best interest of the estate. Further to this we arrange to dispose of all residual contents from the property by recycling and re-using as much as possible. WE find this is approach makes things clear to the customer as well as being very efficient.
For more information or advice please call Jeffrey Avery directly on 0800 567 7769