Our RICS Registered valuers make probate valuations simple.
We understand that property probate valuations can be a difficult time for families, which is why Centrick’s RICS accredited valuers are on-hand to provide a service that is accurate, reliable and compassionate. With 200 years of combined experience across our Valuation and Professional Services division, we’re a team of professionals you can truly rely on.
Probate is the legal process through which a deceased person’s estate is administered and distributed. It involves validating the deceased’s will, if one exists, and managing the estate’s assets according to the instructions in the will or the laws of intestacy if there is no will. This process ensures that all debts and taxes are paid before the estate is distributed to the beneficiaries.
A probate valuation is an appraisal of a deceased person’s estate, particularly their property, to determine its value for the purpose of probate. This valuation is crucial for calculating inheritance tax and for managing the estate according to legal requirements. At Centrick, our RICS-accredited valuers specialise in providing accurate and reliable probate property valuations to support the smooth administration of estates.
Accurately valuing property is essential for ensuring fairness and compliance with legal requirements during the probate process. Here’s a step-by-step guide to navigating probate property valuations:
The first step in probate property valuation is to identify all the properties owned by the deceased. This includes primary residences, holiday homes, rental properties, land, and any other real estate assets. A comprehensive list of properties is crucial for an accurate valuation and proper administration of the estate.
Once you have selected a professional valuer, schedule a date for the property inspection. The valuer will visit the property to evaluate its condition, size, location, and key features, as well as to review comparable sales in the area. This comprehensive assessment is vital for determining the property’s true market value.
After the inspection, the valuer will prepare a written report detailing their findings and the estimated market value of the property as of the date of death. This report is a critical document for the probate process and is often required by the executor of the estate and HM Revenue and Customs (HMRC).
If the estate is subject to Inheritance Tax, the property valuation report must be submitted to HMRC as part of the probate application. HMRC will use this information to assess any tax liabilities based on the property’s value.
Once probate is granted and any outstanding debts, taxes, and expenses have been settled, the remaining assets can be distributed to the beneficiaries according to the deceased’s Will. The accurate property valuation ensures that the distribution of assets is fair and complies with the legal requirements.
For probate purposes, it is essential to obtain a professional property valuation for any asset deemed to be worth more than £500, especially if the gross value of the deceased’s estate exceeds £250,000. For properties valued below this threshold, estimates may suffice. When it comes to making an accurate probate property valuation, estate agents and surveyors are typically the most suitable professionals. At Centrick, our team of RICS Registered Valuers is expertly qualified to provide precise and compliant valuations that meet all legal requirements. Our extensive experience ensures that we offer reliable assessments that help facilitate the smooth administration of estates.
HMRC could (and have done in the past) try to increase the Inheritance Tax owed should the house be sold for more than the probate value, usually when the sale is made soon after the Grant of Probate has been awarded.
This has been a bone of contention for many who have gone through the probate process and the guidance isn’t exactly clear cut. Although increases of this nature are challengeable by way of negotiations with the District Valuer, it can be both time-consuming and distressing at a point when you least need further aggravation.
Capital Gains can also become an issue if the administration process is prolonged and the final sale price is higher than the probate value. In short, if the property is sold for more than the initial valuation, you could be liable for Capital Gains Tax as well.
On the other hand, if the property sells for less than its probate valuation, you could be entitled to a refund in inheritance tax if you have overpaid. It’s important to keep accurate records of the sale price and consult with our experts to manage any potential tax implications effectively.
At Centrick, we bring nearly 200 years of combined experience across Valuation and Professional Property Services. Our team of RICS Registered Valuers is dedicated to delivering accurate and reliable ‘Red Book’ valuations for a diverse range of clients, including banks, financial institutions, developers, Housing Associations, charities, property owners, and private individuals. We provide hundreds of property valuation reports each year and have experienced remarkable growth of 150% over the last three years alone. Trust us to manage your probate property valuations with the expertise and professionalism that our extensive experience and expanding client base attest to.
Need to get started? Get in touch with Kat and the valuations team today.
Director, Head of Valuation
Valuation Director
