Falling house prices may mean that up to £90 million could be reclaimed by beneficiaries.
Recent data has shown that house prices have fallen by around 11 percent over the last four years, with many properties sold for far less than their original probate valuation.
Some people may simply accept the fact that the property left to them was sadly sold for less than anticipated – without looking at the bigger picture.
Inheritance Tax liability is calculated on the overall estimated value of an estate – which includes the probate valuation on properties. Should the property then be sold for less than anticipated, the beneficiaries may be able to claim back some of this money.
It is estimated that around 21,0000 estates could be affected by falling house prices since June 2008, with the average claim worth around £4,260 – a financial lifeline for many people.