‘Probate’ is the term used to describe the legal process for managing a deceased person’s estate, which often includes their property.When someone passes away, you will usually need to get a probate valuation to ensure the correct inheritance tax is paid, or face problems with the HMRC later down the line. At this difficult and upsetting time, it can be confusing trying to understand what is required and why. But, when it comes to probate valuations, we’re here to help.
What are probate valuations and why do you need one?
Probate valuations of property give a true indication of what a property is worth. Market assessments (often carried out by Estate Agents) offer something very similar and may even give the same figure, but may not be accepted by the HMRC which can cause distressing issues. You need to arrange a probate valuation to ascertain if/how much inheritance tax is due to the government.
What is the difference between probate value and market value?
A Market assessment is an estimate of a property’s worth based on similar sales nearby. A probate value is determined in a way the HMRC will accept and use to calculate inheritance tax.
How much does an estate have to be worth to go to probate UK?
Usually, an estate must be worth £10,000+ in order to go to probate.
Who is responsible for the probate valuation of property?
The personal representatives of the deceased are responsible for arranging a probate valuation. It is often an upsetting and confusing time, but it is essential to get the probate figure correct in order to pay the right amount of tax.
Who can carry out house valuations for probate?
It’s important that the probate valuation is accepted by the HMRC, so a trusted, experienced professional is your best choice. Estate agents and surveyors can both provide an idea of a property’s value, although the former are unable to offer formal valuations.
When it comes to probate, a RICS valuation from a Registered Valuer will carry more weight, especially if the property is unusual, run down or prime for development. Ultimately, it’s a good idea to get a few market appraisals/valuations to make sure you are confident in the final figure.
This also backs up any claims if they are disputed down the line. Charters Estate Agents have local agents familiar with the current market and will be happy to give you a good idea of the property’s value. Meanwhile, our RICS Chartered Surveyors and Registered Valuers at Trinity Rose will provide probate valuations of property to our valued clients, which are recognised and accepted by the HMRC.
How is probate value calculated?
Probate value is calculated as an open Market Value at the date of death. It can be tricky to get the figure right, which is why it’s important to ask a trusted professional for help. A Chartered Surveyor from Trinity Rose will draw upon the RICs ‘Red Book’ manual and value property in accordance with the Inheritance Tax Act 1984.
How much does a probate valuation cost?
Some estate agents will carry out a market appraisal for free but you are likely to pay a fee for Chartered Surveyors’ valuations for probate. The exact fee will vary on a few factors including size of property. It’s definitely worth arriving at the right figure for probate and our team will be happy to help. Please get in touch for an estimate.
Can you sell a house before probate is granted?
Yes, you can sell a house before probate is granted, but the sale cannot complete until you receive the grant of probate.
What if the house sells for more or less than the probate valuation?
If the house sells for less than the probate value, you may be able to claim overpaid tax back. On the other hand, if it sells for more than you may be asked to pay additional tax. That is why it’s worth obtaining an accurate probate figure at the outset.
Get in touch
We understand that the circumstances around probate discussions can be difficult and upsetting. Our team of experienced professionals are here to offer friendly advice and help at every step. If you have any questions about house valuations for probate, please get in touch.