IWC are regulated by the Society of Will Writers and Estate Planning Practitioners

House contents valuation for probate is required for inheritance tax purposes before a grant of probate can be issued. You`ll need to value the deceased`s belongings no matter whether the estate is expected or not. When the estate is liable for inheritance tax, this will involve an itemised account and professional valuations of any items worth more than £500.

 

 

Household and personal goods or chattels are simply the personal belongings of the deceased. This includes items such as furniture, antiques, art, electronic equipment, jewellery, vehicles and collectibles. It does not include money, property, fixtures and fittings, investments or business assets. For inheritance tax purposes it includes any belongings that were gifted within the last 7 years.

 

 

House contents valuation for probate concern the open market value of goods and belongings only. This basically means a realistic price on the open market at the time of death. For example where an insurance valuation would be the cost to replace the item new, the OMV would be its value if it were to be sold at an auction or through a local newspaper.

 

 

It is not a requirement to obtain professional valuations for household or personal items; an estimate will suffice. However, you may be required to do so for individual items that are estimated to be worth in excess of £500. It is fairly straight-forward to value some items, for example, a second hand car can easily be valued based on publicly available information. On the other hand, other possessions, such as a rare gold broach or antique sideboard can be a lot more difficult.

 

When it comes to electrical items, audio-visual equipment etc. and furniture, people have a tendency to over-value, not realising how little they`d actually be worth on the open market. This is why using the services of a professional is preferable to avoid unnecessary tax liabilities. Also, HMRC are much less likely to query a professional valuation, preventing further delays in the process.

 

 

IHT408 - This is for household and personal goods donated to charity which are exempt.

 

 

Some companies specialise in house clearance for administrators and executors. These services can include athorough house contents valuation for probate, the sale or disposal of unwanted items, transportation, cleaning and repairs ready for re-sale. It is highly recommended to use a clearance company to ensure accurate valuations and less chance of queries by HMRC. You`ll receive a detailed valuation report for your inheritance tax return and can save yourself the time and stress of obtaining multiple valuations.

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