House value for probate 2 June 2022 at 8:29AM in Deaths, funerals & probate 4 replies 433 views

rothai

Hi, this is my first post here, thank you for taking the time to read it.
Can a house value for probate be taken as the time the owner went into a care home?
The situation - one of the 2 children wishes to have the house and is in the process of doing it up as if already the owner.
This will probably push the value to above the IHT threshold.
I have been told by this person that the value for probate will be taken as the date its owner went into care.
I have searched fruitlessly for such a piece of legal information, including contacting the HMRC probate helpline.
Does this concept exist?
If yes, how are the IHT forms completed and what evidence is needed?

DOI - I am the likely other beneficiary of the estate and may be the executor of the will when the time comes.
I fear I will have all of the IHT bill and none of my inheritance. 
I have seen one will, and am unsure if a valid recent one exists.

Thank you for your help.

NorthYorkie

The probate value of the house will be its open market value at the date of the owner's death, which seems not yet to have happened. Therefore the improvements being done now will increase that value. However it could be said that the cost of those improvements is a debt due from the estate to the other beneficiary?

Although you are named as an Executor, you do not need to act as such and can 'reserve your power'. It sounds as as if this could be messy - perhaps it would be better to let someone else have all the hassle. Try and get your parent to appoint a solicitor as executor.

Keep_pedalling

If he/she wants the house they should but it from her at full market rate now or wait until a more appropriate time.
it is the value of the property at the time of death not when she went into care which could be years apart, they have no right to be doing anything to the house at this stage even if they have POA.

In any case I would have thought if she was close to IHT territory her care costs would by far outweigh the increased value to the house through tarting the house up, so their should be little risk of IHT being an issue.

thegreenone

If you cannot find another, more recent will, can you talk to the person in the care home to see if another Will has been written.  If they are capable, of course. 

Was the first Will drawn up by a solicitor?  If so, perhaps ask if another was drawn up later.

Definitely date of death for valuation and what is written in the Will needs to be regarded by both beneficiaries. The house may need to be sold to pay care costs down the line and this may remove IHT if the value at the end is less.  The other beneficiary cannot just take the house over.

Uxb1

...and to add if the estate is near to the IHT band the valuation will have to be done properly by a RICS qualified person.
They do the valuation as of the date of death and write a detailed report for which the estate has to pay.
Most larger estate agents will have a RICS qual' person on the staff.

This is all quite different from some Estate agents wild guess as to what they might be able to sell it for someway down the line if the right buyer comes along.