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What is a Probate Valuation (also known as IHT Valuations)?
A Probate Valuation is needed in order to calculate inheritance tax on a property, based on its market value.
This type of valuation is prepared to a criteria that the Inland Revenue and Valuation Office Agency will need to view, to determine (whether or) how much tax you will need to pay.
Valuing an estate for probate is one of the first things that needs doing if you are acting as the executor or personal representative in the case of someone dying.
However, a Grant of Probate will first be needed in order for the executor or personal representative to gain access to the assets within the estate for valuation purposes.
This valuation serves to inform the subsequent application paperwork for probate, and to demonstrate whether or not any Inheritance Tax is due.
To ensure your Probate Valuation is accurate, it is strongly advised you use a professional RICS registered valuer, such as us at Marwood Surveyors.
This source material has been based on information available at: HMRC Website
What is the difference between probate value and market value?
A Probate Valuation establishes the value of a property that is subject to inheritance tax at the date of death. This type of valuation reflects the open market value of the property, and this valuation can be subject to scrutiny from HMRC.
A Probate Valuation differs from a Market Valuation, which considers a wider range of factors beyond the open market value.
Simply put, properties subject to market value can achieve a higher sale figure if the features are particularly desirable, or if there is a high demand vs supply for such properties. This type of variable does not apply to properties that are subject to Probate Valuations.