The term “probate valuation” isn’t familiar to many people, especially if they haven’t received an inheritance. However, understanding deceased estate valuation becomes crucial for executors.
In fact, a deceased estate valuation occurs when a deceased person’s will’s executor gains the legal right to represent them. This involves assessing all their assets. People also refer to this process as a ‘grant of representation.’ Furthermore, the will might have more than one representative, including both executors and administrators.
The appointed person (the executor) then takes charge of the deceased’s assets. They distribute these assets among family members, friends, or charities, following the deceased’s written wishes in the Will. However, before distribution, the executor must first pay off any debts and other financial obligations the deceased had.
What Assets Does Deceased Estate Valuation Involve?
The term “assets in a Will” is quite comprehensive. It can include property, money, cars, furniture, shares, and treasured personal belongings. In other words, it covers anything of value—monetary or sentimental—that belonged to the deceased. The deceased intended to pass these items on to a family member or friend. This assessment forms the core of deceased estate valuation.
Assessing Gifts for Estate Valuation
If the deceased gifted anyone money or valuable possessions shortly before their death, the executor must also evaluate and assess these. Gifts given throughout a lifetime are generally included in a person’s estate for valuation. You can find more details on gift exemptions on the UK government’s inheritance tax guidance.
However, some exceptions exist. These include, but are not limited to, gifts to a spouse or civil partner, gifts to an exempt organization, or gifts within an exemption limit. Small monetary gifts do not count. Gifts given for a wedding or civil partnership, and maintenance payments to children or other relatives, also do not count. Crucially, if the deceased gave the gift more than seven years before their death, the estate does not consider it part of their assets.
Property and Deceased Estate Valuation
If the deceased owned a property, it forms part of their assets. Executors can either transfer it into the beneficiaries’ names or, as often happens, sell it and add the proceeds to the total assets. This step is a significant part of any deceased estate valuation.
Beneficiaries might wish to sell the property themselves. This is understandable if they want to maximize the income. For instance, if the property market is stagnant, they might wait to sell later. They hope to receive a better price.
However, this strategy has downsides. Relatives will need to maintain the property themselves. This can be difficult if they live far away or even abroad. Even if they live locally, managing upkeep for both their own home and an inherited property can be onerous. They can, of course, pay a maintenance company to look after the property, but this can prove costly. Renting out the property can be lucrative, but it can also result in unnecessary complications unless they are already a buy-to-let landlord. Ultimately, many families decide the best course is to let the executor sell the property for them, simplifying the overall deceased estate valuation. For help with properties, see our guide on Securing Empty Property.
How Much Does Deceased Estate Valuation Cost?
The cost of probate depends on the estate’s value. For instance, if total assets are less than £5000, no upfront fee for probate applies.
However, a probate valuation company can apply other fees. These include costs for swearing the oath, bankruptcy searches, and obtaining statutory notices. They should clearly state these fees upfront. This ensures you know what to expect on the final bill. It is also acceptable to ask about the expected duration of the whole process. The more assets the deceased accumulated, for example, the longer the valuation will take. However, an experienced company should be able to provide a rough timescale.
If your chosen probate company also offers a house clearance service, the process will move much quicker. This allows them to simply ‘get on with the job’ rather than coordinating with other contractors’ timetables.
Get In Touch for Deceased Estate Valuation
Find out what we can offer you and your family during this difficult and often confusing time. Contact us today. Our services cover all aspects of estate administration.
