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Comprehensive Guide on How To Get A House And Its Contents Valued For Probate
Often Executors are not aware of how to value a house or property valuation for probate. Obtaining a house content value while one is winding up an estate can be tricky. We have produced a comprehensive list of frequently asked questions and their answers when valuing an estate for inheritance tax purposes.
How to put a Probate Valuation on House Contents?
It is a primary duty of an Executor to value deceased’s entire estate based on its open market value. Estate valuation for probate includes deceased’s property, personal possessions, and their goods and chattels. The term chattels are possessions contained in the property that are not part of fabric of the building such as furniture whereas radiators are fixed to the wall. For purposes of inheritance tax calculation, the Executor must place open market value for all household content and personal possessions. The Executors declaration as part of winding up estate process will include an overall probate valuation figure.
Should I hire a Probate Valuation Professional?
Well that depends on your personal circumstances and whether or not you have a huge collection of content? The following pointers will help you decide:
- Is your probate estate likely to value above £325,000 inheritance tax threshold? The estate includes property, cars, bank savings, shares and all items of value. The estate valuation must be realistic market value for the items based on their current condition and demand.
- Do you have a huge collection of art, wines, antiques, collectible furniture, stamps, coins, medals, gold or silver bullions; lose diamonds, memorabilia, jewellery, watches or classic cars?
- How much time do you have on your hands? In other words, can you get a specialist auctioneer around and ask them to give you their itemised appraisal in writing? This won’t cost you a penny and it will be a professional valuation. Get two or more valuations as this will act in your favour should HMRC challenge your valuation.
We can recommend a professional probate valuation company and their fee starts at £450 plus VAT should it be needed. Please call our office on 0113 320 6700.
How to get a House Valuation for Probate?
How to get a house valuation for probate is a common question. According to Section 160 of Inheritance Act 1984, for the purposes of probate property’s valuation is determined by a willing seller to a willing buyer. Any peculiarities concerning the sale of property, such as a buyer desperate to move into that particular property and is prepared to pay a premium, must be ignored.
In other words, a probate property is only worth what someone is willing to pay for it. Often a probate property will require a degree of modernisation and updating and therefore, the valuation must be realistic based on the condition of property.
Once you have submitted a return, the District Valuer’s Office will consider the valuation given. If they consider that valuation is too low then the person who submitted the valuation will be asked to provide a justification. This situation usually arises when a property is sold for considerably more than the value given shortly after date of death.
Which forms do HMRC require when dealing with Probate Property Valuation and Valuation of personal possessions and chattels?
You will need to carefully complete the following forms:
- Schedule IHT 405 – Houses, land, buildings and interest in land.
- Schedule IHT 407 – For jewellery, vehicles, boats, aircraft, antiques, works of art, or collections
- Schedule IHT 408 – This is for household and personal goods donated to charity.
- Schedule IHT 404 – Jointly owned assets.
The forms are available online and can be downloaded from www.hmrc.gov.uk/inheritancetax/.
Do you offer a Probate House Clearance Service?
Yes. We are cash property buyers and we are specialist in buying probate properties. If we buy your property, we will clear it of all furniture, and personal belongings at our own cost. If you are thinking of selling an inherited property why not call our office now 0113 320 6700.
Do you make empty probate properties safe?
We have our own team of Electricians and Gas Safe Plumbers who can drain down central heating systems, water tanks and temporarily cut off water supply entirely to the property. We can shut down and isolate all electrical systems and secure the premises by fitting in anti-snap locks. We offer this as a free service should you decide to sell your probate property to us. This is ideal should the property remain empty for quite some time.
I am interested but I’d like to keep some items. Is that possible?
If there are items you’d like to keep, we suggest that you remove them prior to sell the property to us. If these are large items that require specialist transport to anywhere in UK or the world, we can ship them to you at our own cost.
I am an Executor outside UK. Can you help?
We are always pleased to assist with international enquiries. We have helped Executors to sell their probate properties from Middle East, Europe and Far East Asia. We are more than happy to call you back. Just make an enquiry via our website.