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How To Value a Property For Probate?

What you need to know when valuing a property for inheritance tax and probate

If you are an executor or Administrator of an estate, and need help valuing a property for probate – we can help.

We have considerable experience in guiding estates through the often difficult process of managing a house throughout the probate process – we can help with valuing the property for you, through to the actual sale – whatever your needs let us help.

So what are the important points you need to know ?

As part of the probate process, the Executor or Administrator must complete an Inheritance Tax return, which varies depending upon the size of the estate and whether Inheritance Tax is payable. If no tax is payable the return will be the  this will be the IHT 205, whilst if the estate is subject to inheritance tax the form is the IHT 400. Both of these returns, specifically request the value of a Deceased’s property at the date of death. So what are the rules on valuing a house for probate?

The house must be valued on the ‘open market value‘ at the date of the deceased’s death, the Inland Revenue guidance notes stating that this represents.:-‘what the property might reasonably be expected to fetch if sold in the open market at that time’ – In arriving at the valuation it is important to take into account all factors in arriving at the valuation such as development opportunities, repairs required, or recent sales of similar properties etc.

So what is the best way to get a house valued for Inheritance Tax ? if the estate is taxable a detailed valuation from a Chartered Surveyor should be obtained. Obtaining estimates from a few estate agents is simply not acceptable.When valuing the property a Chartered Surveyor will do so by reference to the industry recognised Red Book Guidelines.

In all cases the District Valuer at the Inland Revenue will examine closely the valuation on the probate form and therefore it is very important that an accurate valuation is recorded so as to avoid the District Valuer requesting evidence in support.

If you need help ensuring a property is correctly valued for probate and inheritance tax contact us now. We help clients across the UK and provide expert advice on all aspects of probate house valuations.

• Do I need Probate to Sell the House?
• How is a Property Owned?
• Probate House Contents Valuation for Probate
• Valuing a House for Probate?

Let us find you a Probate House Valuation Specialist