Handling the death of a loved one, be it a spouse, parent, or anyone else is stressful and emotional enough. On top of this, you may have to handle the pragmatic side of things which is getting the deceased estate in order.
House Valuation
However, there is a likelihood that you will need a house valuation for a grant of probate. This is the open market value of the property for the grant of probate on the date of death for the deceased. This is what the government will need for the grant of probate. This is the responsibility of the representatives involved, usually the will’s executors.
Who can conduct the valuation?
The house valuation for probate can be conducted by either an estate agency or a surveyor. You can always call Keystones on 01708909100 or get in touch to obtain a probate valuation. We are always happy to help, and in 90% of probate cases, we do not charge and offer a free valuation for this service.
Most estate agents should be able to conduct a valuation of an estate, however, if the land is attached, there is a development opportunity or there is a complex element to the property, then I would advise a surveyor to be the better option.
I would also advise a surveyor’s valuation should there be complications with the will of the deceased or any unfortunate disagreements involved with the estate. Should it have to go to court, then an RICS Surveyors valuation will just save a lot of time and bother, however, it is the more expensive option.
Timeline of Probate
In many cases, probate is simple, especially if there is a will involved and the deceased had organised this, however, sometimes it is not that simple.
However, in such simple cases, it shouldn’t take more than 12 weeks once the probate is submitted, and many houses go onto the market before the probate is complete.
Inheritance Tax
Whilst we are not qualified to speak or write about the intricate details of taxation, we can point you in the right direction and tell you the current rules. However, I would advise a good, qualified accountant to help you deal with this side of the process.
Inheritance tax forms should be completed and returned to HMRC within 1 year of the date of death.
You need to begin paying tax by the end of the sixth month after the person died (payments can be made before a final valuation is reached)
It states on the government website that a professional valuation will be needed on anything considered worth over £500 should the deceased estate be valued at anything north of £325,000 gross. (at the time of writing this blog)
Even if it is below the threshold, you will still need to report the estates value.
See the government website for more information: How Inheritance Tax works: thresholds, rules and allowances: Overview – GOV.UK (www.gov.uk).
If you are giving your estate away to your children or grandchildren (including adopted or foster children) then that threshold may increase to £500,000
Again, please check the up-to-date government guidelines.
The current inheritance tax rate is 40% charged over and above the threshold you fit into.
Funds from the estate are used to pay inheritance tax.
If you have been ‘Gifted a property’ then there is a chance that you may not have to pay inheritance should the deceased party have lived 7 years prior. We have a blog on selling a gifted property.
Selling a Probate property for higher than the probate value
Be aware that should you have sold a property for higher than your registered probate value given to HMRC, you could be liable for Capital Gains Tax. This could easily happen when the market is on the lift and/or in a complicated drawn-out probate situation.
If you are clear and honest, HMRC is usually amicable.
As mentioned above, we have another blog regarding gifting a property, be sure to check this out.
But, if you have unfortunately had a probate situation, then please feel free to get in touch with our team at Keystones.
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