The purpose of the process of probate valuation is to ascertain the total value of the assets held in the estate including art work, furniture and all other items. This needs to be done for a number of reasons . You may try and perform the probation valuation yourself, but many decide to hire trusted and experienced professionals to be able to understand their property’s true value.
First of all probate valuation will show what the value of the property itself is and whether or not Inheritance Tax (IHT) will be applied on the estate and, if so, how much will be charged. This is very important as it will reveal the tax sums that beneficiaries have to plan.
The power of execution of law executors in case of inheritance is limited unless the percentage of any IHT owing has been paid. As such, it is important that probate valuation occurs quickly in order to ensure that the rest of the probate process can continue. The fastest way to get this process finalized is to hire professionals that will lead you through the process and can be trusted to present their professional judgement.
Capital Gains Tax (CGT)
Another very important purpose of a probate valuation is to ascertain whether or not any capital gains tax (CGT) will be payable if the assets are disposed of by the executor. If the executor needs to sell part of the property, it is likely that some of these taxes will arise. when If the assets have increased in value between the point of time when they were bought and the when they were sold, CGT is levied.
Moveable Assets and Real Estate
The main and maybe most important role of probate valuation is to ensure that the beneficiaries are aware of the value of the items and property that they will inherit.
This process must consider the value of all assets (property and items) to which the deceased held the legal rights to. Some assets are easy to identify and evaluate, such as houses and other real estate. The ‘moveable assets’, however, can be more difficult to locate and evaluate; this includes financial assets, money as well as personal possessions. Joint ownership of assets is also a difficult one for probate valuation. If the deceased individual was part of a joint ownership to any assets, their share of the overall value of the assets must be taken into consideration as this is also a part of the benefiters inheritance.
As you may see by now probate valuation can be a complex process and, of course it is possible to do it yourself but many people choose to employ a professional probate valuation firm. The usual charge for professional probate valuation is a percentage of the value of the assets.
Manor Clearance is a professional probate valuation firm offering their services in London and country wide. We will guide you through the process and provide a written probate valuation in accordance with the laws and the tax act.