Sharing family chattels under probate can be a traumatic business, given the stresses of the moment that can cause rifts. We have had similar experiences when separating couples ask us to value joint possessions. Our discreet support includes converting them to cash, when they cannot agree on who gets what.
The Problem Usually Begins With the Will
A well-conceived will simplifies sharing family chattels under probate considerably. The author achieves this by listing their chattels in groups, and defining how each heir benefits individually. Alternatively, they express their overall intentions in a letter of wishes, although this may pass the problem on to the executor.
Dividing Family Chattels. What is Value?
Value, like beauty is often in the eye of the beholder. Although our job at Avery Associates it to convert it to a common denominator, money. This factor enables heirs to share chattels equitably, and hopefully amicably. However, at the end of the day it is the task of the administrator-executor to implement the hopes of the deceased.
A Beloved Picture But What Is It Worth © Avery Associates
- Some chattels, or if you prefer portable personal possessions, have real value. In the sense they are useful to the owner, or some other person who desires to own them.
- Other possessions have future value as investments. However, for probate purposes their value is what they were worth at the time of death, according to an independent assessment.
- The third group to consider when sharing family chattels are those with intangible emotional value. Here we think of heirlooms, and even trinkets holding memories. Disputes may arise when family members compete over these.
- The fourth group of chattels are mundane, run-of-the-mill things. Stuff we use every day but take for granted. A local charity shop will value them, because they are low-value, popular things that are easy to sell.
Assessing the Value of Family Chattels
All assets and their values must be reported to the tax office, and any inheritance tax paid before an executor may proceed. The value declared must be what they would sell for in an open market under normal trading conditions. Some heirs may find the result difficult to accept. However, others may be pleasantly surprised to discover what some chattels are worth.
- In principle, any jewellery worth over £1,500, and any antiques, works of art or collections need to be listed separately.
- However, The Gazette recommends obtaining an overall valuation to give the executor confidence that the insurance is adequate.
English law defines ‘chattels’ as ‘any items of tangible and moveable property’. If you can touch it and move it – even with a crane it is a chattel. Exclusions include fixtures and fittings attached to a house, the building itself, and financial investments.
Is this Sentimental Value or Real © Avery Associates
All of these various things are however, part of the estate of the deceased, and must be declared on the submission to HM Revenue Services. Avery Associates can assist by listing chattels and valuing them. We do this for a living and we believe we do it well. We are also well-networked in the event you need a house cleared.
Snags to Avoid When Sharing Family Assets
It’s perfectly understandable when a bereaved family wants to hurry the process along. This may help them get through their grieving, and accept their beloved person is gone. However, they should not start sharing chattels between them before they have been valued, in case the estate is in the inheritance tax bracket, or they are not through probate.
But the biggest pitfall of all to avoid is having the heirs fall out, and disagree how to share the chattels not specifically mentioned in the will. A wise executor steers around these conflicts because they could considerably delay winding up the estate. At the end of the day though, the solution is in the hands of the person who writes the will.
The Best Way to Avoid Conflict is a Thoughtful Will
Nobody is exempt from ‘shuffling off the mortal coil’, although many of us pend the thought by not making a decent will. This is not a difficult task, if we think about it logically:
- List any property(s) you own, with an approximate market value(s)
- Make a list of any and all financial investments and total them.
- Walk around your home and list your more valuable chattels.
- Determine their approximate values (Avery Associates can help).
Strange Creatures May Hold Value © Avery Associates
You now have the makings of a thoughtful will. And you can think about sharing the family assets among the fortunate few, in whatever ratio you decide. These are your decisions you must make alone. Remember Avery Associates if you have problems determining values. We have a team of RICS valuers on standby to help.
Avery Associates Review
Dear Jeffrey, Following your recent valuations, one for the property and the other for personal belongings etc, at the property in Lower Road, London, I want to extend my thanks and gratitude for the way in which your company has responded in every way.
From the initial contact, the speedy action, the non-intrusive and courteous manner through to the final and speedily issued valuations, has made for me what was a very difficult time so much easier.
I cannot thank you enough, other than to say that I would have no hesitation in recommending your company as one to be trusted and most of all relied upon. With my kind regards. Edward Harvey
