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Upon the death of a property owner, part of managing their estate is to have a full understanding of the value of any property or assets they owned.
What is a Probate Valuation?
A probate valuation is a formal assessment of the property value that is required after an owner’s death. Unlike a conventional property valuation, it will determine the property’s value at the date of death.
Why do I need a Probate Valuation?
Commonly it is required for the following scenarios;
Inheritance Tax:
The probate valuation will ensure that the correct amount inheritance tax paid to the HMRC. In normal scenarios tax is payable at 40% above the asset threshold of £325,000.00 (at the date of publishing this article).
It also provides an agreed value for any future Capital Gains Tax that may become payable if the asset it sold.
Estate Distribution:
If there are beneficiaries to the estate the probate valuation will ensure there is an agreed value in place.
This will aid in the distributing of the assets and avoids disagreement between the beneficiaries.
How is the Property Valued:
The probate valuation will be conducted with the same approach to a conventional valuation. The Valuer will assess the value of the property taking into account:
- The Location
- Property Condition
- Property Characteristics
- Property Tenure
- Size of the Property
- Date of Death (property value at the time of death)
- Market Conditions
Once the Valuer has completed both their property inspection, desktop analysis and research, they will formalise their findings and present the property value within their report or valuation.
This will then be provided to the beneficiaries to assist in their management of the estate.
If you require a Probate Valuation, please do not hesitate to get in touch with. We have a full price list for our Valuations available on our Valuation page.
