28/04/2021 Professional Services & Valuations
For those engaged in the administration of an estate on the death of a loved one. We work with you and your legal representative in providing a valuation at open market value. Here, we explore the meaning behind a probate, how it works, and how our team at Roseberys can help give you peace of mind.
In the event of a death, there is often a legal requirement to have a valuation of any chattels belonging to the deceased. A probate valuation for the contents (often referred to as chattels) will include everything that might be found inside the home: from furniture and works of art, to jewellery, collectables, everything from the car in the garage and the wine in the cellar. The principal purpose of a written probate valuation is the calculation of inheritance tax, which will be applied to the assets that transfer from the deceased to beneficiaries. This calculation is a legal requirement, as stipulated in Section 160 of the Inheritance Tax Act 1984. Typically, this calculation is based on an open market valuation, that is what an item might be expected to sell for at auction on any given day. Our valuer will visit the property and list all items with a value in excess of £500. In addition, any items below this level but still of saleable value will be recorded. Probate values are simply based on open market levels.
Probate valuations are the essential part for any equal distribution. When relatives attempt to value the chattels independently from an expert, they run the risk of paying more inheritance tax than necessary by assuming objects are more valuable than their true current market value. An even more serious risk can be faced by unknowingly listing values below their true market worth. Here, if HMRC decides to inspect the account (something which is more likely if compiled by a relative) the consequences for material errors can be severe, even if unintentional. Rosebery’s highly experienced and knowledgeable valuation team is here to take the burden of this task from you, working on your behalf to complete this process swiftly with professionalism and sensitivity. Using a professional with no personal connection to the estate will often satisfy authorities that the submitted document contains no bias or omittance. This often results in the acceptance of the calculation and the granting of probate faster than if a relative of the deceased compiles this paperwork themselves.
The Valuation and Professional Services department is dedicated to providing UK based clients and their professional advisers assistance on valuations of personal chattels under Section 160 of the Inheritance Tax Act 1984. The reports are for both executors and solicitors who are acting on behalf of a deceased estate in compliance with the requirements of HM Revenue and Customs (HMRC). Our professional valuers use their expert knowledge and experience to ensure that the open market valuations are realistic and will not be rejected by the HMRC. In the event of executors or beneficiaries wish to arrange the sale of some or all of the chattels involved in an estate, then Rosebery’s provides a complete sales service. We will arrange collection of the pieces concerned, ensure their inclusion in the appropriate sales, advise on reserves where necessary and ensure a rapid settlement.
Contact our team who can guide you through the process of the type of valuation you require. Our fees are tailored depending on the type of service that you require and generally based on the length of time taken to conduct the valuation, please contact us and we would be happy to discuss your requirements with you with no obligation.
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