A probate valuation is a system that helps to sort the value of someone’s assets when they pass away.  With changes in the last few years to the inheritance tax threshold, it is more important than ever to get accurate goods valuations for everything in the estate.  But how do probate services work?

What is a probate valuation?

Probate is the name given for the legal process of dealing with someone’s assets after they die.  Normally this is carried out following the wishes of the deceased person by the executors of the will.  Something called a Grant of Representation lets the executor gain access to all the information that they need to gauge the value of the assets of the deceased, so this can include bank accounts, stocks and shares, property and items in the property.

A probate valuation takes into account all items of value then removes any outstanding debts.  This then shows how much inheritance tax the estate owes.  At the moment, assets of £325,000 or less aren’t required to pay inheritance tax but anything above this figure is subject to 40% tax.

Property valuation for probate

The value of property and possessions will have to be calculated for probate and this is done on the date of their owner’s death.  Values need to be realistic based on their selling prices on an open market at that point and the same will apply to any property owned as well.

The value of the actual property will consider things like development opportunities on the land, any repairs that might be needed on the property and what houses are selling for in the area.  Either estate agents or a chartered surveyor can help with this and their valuation is more likely to be accepted by HMRC if inheritance tax is an issue.

Valuation of the contents

The contents of the house can be a lot more complicated as it will doubtless involve a large number of possessions accumulated over a lifetime.  Some will have great sentimental value but little monetary value.  The key is to work with a company that can help you find out what the value of items is for the probate.

Companies offering house clearances are often a good place to turn for this help.  Houses clearance in Brighton or around the UK will normally involve sorting the house and its contents and also can include garden clearance if there is furniture or equipment in outbuildings.  The aim is to sort out what can be used, recycled or what needs to be disposed of.

Many companies offering this service also offer probate services.  This means they can value the contents of the property as they assess it and provide a report for the probate to help calculate the estate’s value.  Once the probate has been completed, the same companies can help with the house clearance.  Some even offer generous prices to buy items of value and work with local charities to see as much being put to use again as possible once you have finished with probate.