A probate valuation is an integral part of the legal process when somebody passes away. In this blog post, we will explain the intricacies of probate valuation in more detail. Not only that, but we’ll explain why a probate valuation is essential, and who can help you in this situation.
Probate Valuation Explained
When somebody passes away, their assets need to be dealt with. This process is known as probate. In the deceased person’s will, they will name people as the executors – which means that these individuals are responsible for carrying out all the wishes and demands outlined in the will.
An executor can get something called a Grant of Representation, which lets them look at all the vital information that helps them understand the true value of all the assets left behind by the deceased individual. This can include the following:
- Money in bank accounts
- Vehicles owned by the deceased
- Stocks & shares
- Any other investments
With a probate valuation, you will add up the value of all of these different items. Then, any debts owed by the deceased will be subtracted, and this presents a final figure. In essence, this figure is the total value of the deceased’s assets. The next part of a probate valuation is figuring out how much inheritance tax is owed on these assets.
As this blog post is being written, HMRC currently has a £325,000 threshold for assets. In effect, any assets that equal this or less are classified as being in the nil rate band for inheritance tax. This means that no tax needs to be paid up to this amount. If the assets are worth more than this, then a 40% tax is applied above the £325,000 threshold.
For example, a probate valuation shows that the assets are worth £500,000 in total. The first £325,000 of this is taxed at the nil rate, then the following £175,000 is taxed at 40%.
So, a probate valuation is important because it tells you how much inheritance tax must be paid – along with showing the real value of all the deceased’s assets.
How Do You Get A Probate Valuation?
You can’t conduct a probate valuation on your own, so the best course of action is to hire a qualified solicitor. At Boningtons, we’re qualified to carry out a probate valuation for anyone that needs it. Our service is designed around your needs; we can offer probate valuation for just one item, or for the entire estate.
By using a team of expert valuers, we can provide you with the most accurate valuation of all the assets in question. This gives you an accurate view of how much inheritance tax needs to be paid, and we give you all the information required to make a decision when figuring out what to do with the estate.
A probate valuation is vital following the death of an individual. If you’re looking for top-class and reliable valuations, then please feel free to contact us today. We will discuss your situation and provide you with a high-quality service that gives you advice on what to do after the probate valuation report is complete.