Having to gain a valuation of a property for probate can be a daunting prospect; particularly at what can be an emotionally difficult time and when you may, as an executor of a Will or administrator of the estate, be facing other wide ranging challenges. For these reasons Your Move is providing answers to questions you may have.
Why do I need a probate valuation?
Probate allows someone who is either named as an executor in a Will or, where no Will exists, the closest living relative, to deal with a person’s estate when they die (i.e. any property, money and possessions they own). They then become responsible for providing information about the value of the estate that will determine if any inheritance tax is payable on it and, as part of this, may need to get a valuation of property that the deceased owned. There are exceptions to this as explained on the government sites for England & Wales here and for Scotland here.
How do you value a house for probate?
An estate agent can organise this for you, as they would for anyone who wants to know the value of a property they own and the likely price a buyer would pay for it in the current market. The valuation should be conducted as close as possible to the date the owner died to reflect the value of the estate at that time. It does not mean, however, that a property has to be sold at that time.
Is there a cost associated with a valuation for probate?
Not if using an estate agent. A written valuation from a reputable estate agent will be acceptable and, as above, estate agents are used to providing the likely price that a buyer would pay for a property in the current market as part of their normal valuation service.
How many valuations are needed for probate?
It’s usually only necessary to gain one valuation because, over time, the value of the property may increase and the correct amount of taxes payable will be calculated and paid at the time it is sold.
Gaining more than one valuation from estate agents can, however, help in gauging their approach to selling and may be useful if you need to choose one to do this for you; with some offering more advanced marketing techniques or alternative selling options that might help. At Your Move, for example, we are increasingly seeing properties that are part of a deceased estate being sold at auction because it can be quicker, provides security that the buyer will proceed and there is also no agency fee payable by the estate. Further details are available here.
Will I only pay tax on the value of the property at the time of the valuation?
You should gain specialist tax advice to understand what tax may be payable on a property. This may vary dependant on when the property is sold and also what happens to the property in the meantime. For example, if it is decided that an inherited property is rented out, rather than immediately sold, there may be capital gains tax payable on any profit made over this time. Again, it is important to gain relevant tax advice from a specialist tax advisor.
Overall the role of an executor or administrator of an estate can be extremely difficult; appreciating this at Your Move we’ve made the booking of a valuation simple – online via our website or by contacting our ‘in branch’ teams who are available across the UK. They will also be able to offer ongoing help and should be able to answer any related questions you may have.