Property Valuation for Probate - A Step by Step Guide

Probate can be best described as a set of procedures that are used in winding up of matters and the distribution of assets in an eventuality of the owner’s death. There are legal as well as financial processes involved in the probation of estate, which may include money, property or any other possessions of the deceased in question.  

 

                             Why is the valuation of property important?

Usually, the biggest asset for any person would be the collective property he/she owns. In case of death of the owner, accurate estate valuation becomes very important in order to ensure the proper property distribution amongst the beneficiaries. In the absence of a formal will, the procedure becomes absolutely essential.

Also, as part of the probate process, the Administrator or the Executor must complete the inheritance tax return subjected to the applicability. Valuation of the property is required in order to process the same. 

 

In case you require to get the property valuation for probate done, connect with Anthony Jones Properties. You can benefit through our field expertise and friendly approach during the most difficult and emotional times of your life.

                                                            How does it work?

When the process of property valuation is undertaken, the following aspects need to factor in:

1.      What are the development opportunities available or expected in the vicinity of the area where the property is located?

2.      Are there any sorts of major or minor repairs required? If yes,  then what would be the probable costs involved?

3.      How much amount do similar properties located in the vicinity of the subject estate have fetched recently from their sales?

Apart from this, the valuation must be done on the basis of the current open market value, i.e., the rates applicable at the time of the death of the owner.

                                            Mechanics of Inheritance Tax:

Valuation of the property would be required in order to determine the applicability of the inheritance tax. 

In the following scenarios, the inheritance tax will not be applicable:

1.      If the whole property is being passed onto the spouse of the deceased person, the applicability of inheritance tax nullifies.

2.      If the property is being transferred to the civil partner, again no tax applicable.

3.      If the property is to be given off to a charity or a community, no role of inheritance tax comes into the picture.

4.      Lastly, there is no inheritance tax to be paid if, during the probation, the final valuation stands at less than £325,000.

 Also, another important aspect to quote is that the inheritance tax threshold gets higher than £325,000 in case the deceased's spouse has already expired. Similarly, if the property is to be passed onto the immediate children, the threshold limit again gets increased.

 Accurate valuation becomes highly critical since the District Valuer is going to minutely review the probate form. In case of any ambiguity, he/she can ask you to furnish the supporting evidence on the basis of which the valuation has been done.  

 Hence, it is highly recommended to hire a Charted Surveyor in case of the applicability of the inheritance tax. They are well versed in the laid out procedure and follow the industry acknowledged Red book guidelines to ensure accuracy.

If you need the correct property valuation for probate and inheritance tax calculation, connect with us at Anthony Jones Properties without any further delay. With our unquestionable field expertise and thorough knowledge, we are best positioned to guide you well under the given circumstances. 

                                                     Probate Valuation Timeline:

 Generally speaking, the process of the complete estate valuation can take anywhere between 6 to 10 months. For the large and complicated estates, the timeline can get a bit stretched. 

There are as such no deadlines to get the estate valued immediately after the death of the owner. However, if the property is subjected to the inheritance tax, the supporting forms need to be sent across within 12 months to the HMRC. 

                                 Applicability of tax on the inherited property:

At the time of inheriting, no tax is to be paid. However, later on, you might have to pay the income tax if you earn any profit from the inherited property. Such profits may include the following:

1.      Tax on the rental income obtained from the property.

2.      Income tax on the dividends earned on the property shares.

3.      Tax on the capital gains accumulated by selling off the inherited property or its shares in the market. 

 You might also be subjected to pay the inheritance tax on the assets as per the procedure and the set guidelines.

 For in-depth detail and discussion about the property valuation for probate and applicability of the inheritance tax, get in touch with Anthony Jones Properties now.

More for Information Email Us At: info@anthonyjonesproperties.co.uk