Valuing property for probate
When valuing property for probate you need to take into account all of the person that’s passed away’s assets. This includes any property, land, money or valuables that they owned at the time of their death. Gifts given in the 7 years before they died will also need to be taken into account.
In order to provide an accurate value it is likely that you will need the help of a professional. It is usually best to get a chartered surveyor to help. They will be able to give you the closest figure to the truth. This figure will also take into account things like renovations needed and development potential of the property. It is important that you do not undervalue the property at this stage.
If you are suspected of doing so then this extra money is likely to be claimed back by HMRC. You could even face fines of up to 100% of the difference in value.
Probate value vs market value
So what is the difference between probate value vs market value and why is it important? Probate property value is the amount you expect that property to fetch if it were sold on the open market. This is the same as the market value of the property. If the house sells for less than probate value then you are able to claim back the difference in tax that was paid.
Equally, if your house sold for more than probate value then you will have to pay any difference in tax that is due. The original probate valuation given may be checked to make sure it was accurate.
When valuing property for probate, house contents should be included in the figure. This is especially true if they have a high individual value. This means that in your probate valuation jewellery, works of art, antique furniture and large collections should all be noted. Valuing personal possessions for probate can be time consuming and emotional. It is worth doing this carefully to make sure that you come to the most accurate figure possible.
How long does it take to complete probate?
The amount of time it will take before probate is complete will vary from estate to estate. The average takes around 6-9 months. It can often take even longer than this if the estate is very large and there are taxes due.
Where do I start when arranging probate?
Arranging probate and many of the responsibilities that come with being an executor can be very daunting. Probate forms have put together a useful collection of probate letter templates to help you get started. Using these will help to make sure the process is being carried out properly.
However, if you have any doubts then it is always best to use a professional. This will be someone who deals with these cases on a daily basis.
Property in Probate? Why you need specialist probate insurance
Properties that are going through probate are often left unoccupied for a long time. Specialist probate or empty property insurance will be needed for a property in this situation. This will provide peace of mind that any damage to the property can be paid for.
As well as the standard benefits, our specialist probate cover will offer;
- Cover designed specifically for properties going through probate
- Building & contents cover, regardless of whether property is occupied
- Sensitive and professional assistance at what can be a traumatic time
- No time-consuming telephone referrals
- Flexibility and understanding from our help centre when dealing with executor queries
- Pay only for the time you need & no cancellation fees!
- Arrange instant cover
- Average call centre answer time under 1 minute
Need a little help quoting?
We have insurance experts ready to help if you want to ask a question. Our average call answering is under 1 minute so give us a call on 0333 358 3359 or chat with us online via our livechat option (bottom right).