Often referred to by lawyers as a valuation of the Chattels of the deceased, this includes such assets as furniture, paintings, works of art, jewellery, and personal possessions.
The process of probate valuation is relatively straight forward. The purpose is to ascertain the total value of the assets held in the estate, so that your Solicitor can see if the estate is liable for Inheritance Tax. Where the value of the estate is well below the current IHT threshold (£325,000 in 2020/2021) placing a relatively optimistic valuation on the chattels would probably not create an IHT liability. Where IHT must be paid, however, a realistic and justifiable open market valuation must be ascertained.
If gifts have been made within 7 years of the donor’s death, those gifts will be included in the personal allowance of the estate. A valuation and the date of any gifts is also advisable, as there is a sliding scale of tax liability between 0-7 years. The current standard rate of inheritance tax is 40% (2020/21)
A person’s liability to IHT can be reduced by either taking certain actions or through owning certain types of assets which are exempt or partially exempt from IHT, for example gifts to spouse, gifts to charity, owning AIM portfolios, farming, Business Property Relief assets, pensions, life insurance policies in trust.
At Doerr Dallas Valuations our team of qualified specialists attend the property to conduct the appraisal. We charge purely on a time basis, a quotation will be discussed and agreed with you and together with our terms and conditions of business which are agreed beforehand.
Probate valuations should not be charged as a percentage of the value of the estate, which can inflate the fee unnecessarily.
Any items bequeathed in a Will should be valued separately and listed at the back of the Valuation report.
Our probate valuation department deals directly with solicitors, administrators and executors to ensure the estate valuation process is dealt with smoothly and professionally and that all high value chattels are correctly valued by our specialist team. In fact, all chattels will be accurately assessed, which prevents executors accidentally throwing items of value away and ensures that a distribution amongst family members is equitable. We are always happy to value assets/chattels even when there is no legal requirement to do so.
By having a professional valuation completed, HM Revenue and Customs (HMRC) can expedite Probate speedily.
We are happy to provide professional advice in relation to estate administration and other related areas such as Condition Exemption, Acceptance in Lieu, Rental Agreements and Valuations for Capital Gains Tax.
Our report will list the relevant chattels at market value and will include a final statement summary and inheritance tax valuation certificate. Photographs will be included of any high value items. The document will be professionally bound ready for presentation to HMRC together with a pdf copy.
Our team is also available to provide support and assistance, after probate has been granted, with any sales from the estate. We have an extensive network of contacts with the leading London and provincial firms of auctioneers and can place art and antiques and other items in the most appropriate market places for best net returns. For more details please speak to us.
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