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

Probate property valuation must reflect the accurate open market value. This means the price it is likely to fetch on the open market, at the date of death, in accordance with section 160 of the Inheritance Act 1984. The valuation must take into account the condition of the property, necessary repairs that may decrease its value and any unique factors that may make it more attractive to potential buyers.

 

 

Technically no, it is possible to do the valuation yourself by checking the sale of similar properties in local estate agents and newspapers. The Land Registry publishes recent sales prices of houses in the vicinity. This is not recommended; using a qualified RICS Chartered Surveyor to carry out your valuation will ensure its accuracy.

 

In current market conditions it is common to over-value property and in doing so you`re increasing your inheritance tax liability unnecessarily. Besides, you`re valuation is a lot less likely to be queried by the district valuation officer at the Inland Revenue if you`ve used a RICS member.

 

You may wish to use a number of estate agents to value the property and take an average figure. It is possible to claim fees back from the estate later.

 

 

Property is treated differently in relation to probate and inheritance depending on the nature of ownership and the relationship of the co-owner to the deceased.

 

Joint Owners - or beneficial joint tenants own the property equally, so when the first owner dies it passes under the right of survivorship to the surviving owner. This means the house does not form part of the estate.

 

Tenants in Common - own an individual share in the property, when one of them dies this share is included in their estate. It passes either according to their will or the laws of intestacy.

 

Spouse or civil partner - If the deceased person owned a property or land with a spouse or civil partner, the value of the deceased person`s share should be included in your valuation.

 

Someone other than the deceased spouse or civil partner - If the property is jointly owned with someone who isn`t the deceased`s partner, you can reduce the probate property valuation by 10%. This decrease reflects the difficulty in selling a share of a house and the fact the other owner has the right to keep residing in the property.

 

 

Where land and buildings are owned in joint names, the deeds to the property will usually characterise the share of each owner. You can get a copy of the title register from the Land Registry. The names of all the joint owners will be given, if it is held as tenants in common that should be shown by the addition of a Form A restriction on the document.

 

 

IHT205 - Will include probate property valuation for excepted estates.

IHT404 - To include details of jointly owned UK houses, land and buildings.

If you require any help or assistance with probate and property, feel free to call or email IWC on 0800 612 6105.

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