Calculating value of joint assets

greenbee

I'm helping my mother to fill in IHT and probate forms at the moment, and we're trying to work out what to put in as the value of the joint assets.

Obviously there is half the value of the house, but I'm stuck as to how to work out the 'goods & chattels'. I've been through their insurance policy and taken off the value of jewellery insured, as that is all my mother's. There are also a couple of items with a value of over £500 (art/antiques) that belonged to one or other of them and I've accounted for those accordingly.

For pictures/antiques/curios the rest are all individually under £500 (as far as I'm aware), so I assume I include half of the total insurance value for these as I'd expect them to maintain their value.

For 'household goods' the insurance is for replacement value, but the valuation for probate should apparently be 'second hand value' and I'm really not sure how to work this out.

Any advice/suggestions as to how to arrive at a realistic number would be appreciated. My mother says it's not worth anything, but I'm pretty sure if the number is too low it'll lead to delays/investigation which won't do her any favours!

Brighty

The value for probate is not the new or even second hand replacement cost, nor insurance value, it's what you could expect to get if you sold it at fairly short notice. A few hundred pounds covers the contents of an average 3 bed house.
I assume this is your father? Were they married? If so, and everything is passing to your mother, then no IHT is due, so HMRC won't care too much what value you put. They only look closely at estates over or close to the IHT threshold

getmore4less

insurance values will be high as that is replacement value not open market value for selling.

if your mother is inheriting everything(on this goods and chattels list) then assuming they were married they get the spouse exemption so do not contribute to the taxable estate this means HMRC won't really care.

Anything that itemised in the will goe to someone else needs a more accurate value as this effects the transferable nil rate band.

greenbee

Thanks both. Everything is going to my mum - no bequests to anyone else, so hopefully it'll be straightforward. I've told my mother to spend everything before she dies. It'll be so much simpler