Probate Property Valuation Made Easy
Perhaps you find yourself in the position of having to value a house and its contents for probate?
Do you know where to begin? There is a lot to ascertain when it comes to probate valuation of property and house contents valuation. It can be complicated and risky if you are trying to do it on your own with no previous experience.
Property valuations must be done
Providing valuations of the deceased person’s estate to HMRC is part of the probate property valuation. This is where the experts from Avery Associates can help save you time and stress by providing property valuations from Royal Institute of Chartered Surveyors compliant with current legislation.
‘Red Book’ Property Valuations
At Avery Associates we ensure that property valuations are conducted by qualified RICS surveyors that have professional indemnity insurance which means their valuations can be counted on.
The RICS has what is known as the ‘Red Book’ which provides the rules and industry standard for valuations of assets which is regularly updated. Avery Associates conducts ‘Red Book’ property valuations.
When is probate valuation needed?
Probate valuations are mostly conducted to verify if inheritance tax is due to be paid on the deceased person’s estate. However, probate valuations are also conducted to prove to a court that the value of the estate is exempt from Inheritance Tax status.
Avoid the pitfalls of Property Valuation
There are big differences between asking for your property to have a market appraisal by a local estate agent as opposed to getting your property valued according to ‘Red Book’ standards.
Market appraisals are mostly conducted by real estate agents who advise you as to what they think the property’s value is. Market appraisals are not formal property valuations. This is something to be aware of if you need to get a property valued for probate and avoid the glare of HMRC.
Using an RICS valuer means you have the assurance that your property will be assessed using strict guidelines and that this assessment will adhere to strict industry standards and will satisfy HMRC. Ensure your property is valued by a reliable professional.
Market appraisals do not provide property valuation reports which, in the cases of property valuation for probate, need to be submitted to HMRC.
Probate property valuation report
Property valuation reports are produced by RICS qualified valuer’s and are reliable documents for legal requirements for probate and Inheritance Tax calculations.
Property valuation reports are extensive and include:
• The age of the property
• How the property has been constructed
• Any special features of the property
• The types of internal fittings and chattels
• Any major/minor repairs that have taken place
• A narrative/comments section
• A sales analysis of the property
Property valuation reports are reliable documents. If you are getting your property valued for probate, then you need to ensure you receive one.
Do you need a Goods and Chattels Valuation for Probate
If you have to value a property for probate then you will also need to value the contents or goods and chattels.
Property is usually the most valuable portion of a person’s estate although legally the estate also includes goods and chattels which can be extensive and include:
• Furniture, carpets, curtains, light hangings
• Audio visual equipment
• Electrical goods
• White goods
• Specialised equipment such as cameras, telescopes
• Art and antiques including paintings and ornaments
• Specialist collections e.g. stamps and memorabilia
• Musical instruments
• Clothing & shoes
• Personal effects: letters, writing, documents
• Gardening tools
• Motor vehicles
Professional valuations of assets
Obtaining professional valuations of property and goods and chattels is important when undergoing probate. It may be that the amount of the person’s estate is below the threshold for Inheritance Tax but sometimes a report of assets is needed to prove that it is so.
Avery Associates property and goods and chattel valuations comply with all the provisions of S160 of the Inheritance Tax Act of 1984. Contact Avery Associates for a free consultation today on : 0800 567 7769