You don’t necessarily have to rush your probate property valuation, unless there is inheritance tax to pay. Although the heirs will no doubt be calling on you, as executor regarding when they might expect their entitlement. This post is about valuing an estate of someone who died. We’ll provide loads of links to authority sources to enrich your reading experience.
3 Tasks for Successful Probate Property Valuation
A RICS property valuation for probate is a very important aspect of valuing an estate. However not everybody owns property, in fact many rent for their entire lives. So to paint the full picture, here’s the total scope of work when it comes to valuing the assets of an estate in your role as executor:
- Identify the deceased’s financial assets and obligations by reviewing their personal files, and then contacting banks, other lenders, and utilities etc.
- Arrange a RICS house valuation for probate if the deceased owned any land, or improvements on it.
- Speak to our specialist valuators if the deceased owned antiques, silverware, jewellery, stamps, or was a collector.
- Assess the value of all other assets, based on their current market value in an un-forced sale between willing parties.
- Report the estate’s net value (after allowing for debt) to His Majesty’s Revenue and Customs HMRC, being as accurate as possible to avoid misunderstandings.
Reasons Not to Delay House Probate Valuation
East Cambridgeshire District Council confirms it can take 6 to 9 months to value an estate. Or even longer if it is a large or complex one, perhaps involving trusts too. You don’t need to value an estate right away of course, although with deadlines like that it makes sense to get going as soon as convenient.
Find Value Concealed in Chattels © Avery Associates
Why not let Avery Associates do the heavy lifting for you? After all, you do need to get on with your normal life, and share quality time with your family too. We do RICS and other valuable chattel valuations as a regular part of our business. Why try to become an expert when you will probably never do this again …
Besides, His Majesty’s Revenue and Customs HMRC may also be watching from the sidelines if there is inheritance tax to pay. They consider the following arrangements fair, although that does not leave much time after the 6 to 9 months it takes to complete even a simple valuation.
- You have to submit the inheritance tax forms within 12 months of the death.
- Although they expect you to start paying the tax 6 months after the death.
Delay Probate Property Valuation But Still Pay Tax
That’s right! You can allow yourself a three month respite, but the HMRC clock keeps on ticking. They expect the executor to start paying any tax owed in the seventh month after the death. This builds further on the case to start a RICS property valuation as soon as you can.
The HMRC Rules Are Clear on the Subject
Six months after the death you have to start making payments on account, if there is any inheritance tax due, or it looks that way. You don’t have to know the exact amount, or pay in full. However, you will have to add interest if you do not pay in full by the due date.
Valuable Chattels Can Push You Over the Bar © Avery Associates
It can be wise to overpay slightly, if you are still figuring out how to value a house for probate. HMRC will refund any over-payments, plus interest, once you are through the tax loop, and have your probate permission. However, as you can imagine you have to follow a procedure because it’s their call:
- You’ll need to write a letter to HM Revenue and Customs, Inheritance Tax Team, BX9 1HT with ‘Repayment – further details’ at the top of the page.
- The same people who signed forms IHT400 and IHT100 must sign the letter, unless you’re applying without help of a solicitor or agent.
- In the latter case, sign the letter in your own name. Include the name, number and sort code of the bank account you want the refund to go to.
Getting Help with RICS House Valuation for Probate
East Cambridgeshire District Council confirms you can hire a professional … to help with some or all of the tasks involved with valuing an estate. Then it adds helpful tips on saving solicitor costs by doing it yourself, or outsourcing to topic experts and claiming your costs back.
We began this article by posing the question whether to rush your probate property valuation, or take a three-month break. We believe we presented the evidence it would far better to get the matter over sooner.
Why not let Avery Associates do the heavy lifting for you? After all, you do need to get on with your life, and share quality time with your family. We do RICS and other valuable chattel valuations as a regular part of our business. Why try to become an expert when we are already, and you will probably never do this again …
