Inaccurate gross & value of estate

crazyoldmaurice

Just received grant of probate letters for a straightforward case (did it myself, dad dies intestate) but I've made a mistake with the valuation of the estate.

The gross and net value I put down for the property was 100,000 but its more between 110-130k (I estimated lower because its in such bad condition but have only now had it valuated)

My dad also had 36k in his bank account which I didn't know until after I had applied for probate.

on hold to HMRC but no one picking up so far.

Does anyone know if I'm able to get the figures amended or if there is a way of amending.

shiraz99

The estate is well below IHT territory so you have no issues there. You may have an issue regarding your CGT liability when you come to sell the house though. Are you the sole inheritor?

crazyoldmaurice

Yes sole inheritor and we already own part of a house on Shared Ownership. I read online that the property estimate didn't need to be super accurate as long as it wasn't close to iht threshold which it wasn't. It's just probably worth more like 130k than 100k which I was shocked with because it needs everything down to central heating.

shiraz99

crazyoldmaurice said:

Yes sole inheritor and we already own part of a house on Shared Ownership. I read online that the property estimate didn't need to be super accurate as long as it wasn't close to iht threshold which it wasn't. It's just probably worth more like 130k than 100k which I was shocked with because it needs everything down to central heating.

Where did you read that?

Is it really worth £130K or is that the value it might achieve if the work it requires is done. Obviously if you have to spend money to achieve the higher figure then this will go to offset any CGT liability.

PennyForThem_2

Did you get a probate valuation or a valuation for selling?  Probate valuations tend to be lower (more realistic).

https://www.pettyson.co.uk/about-us/our-blog/540-probate-house-valuation#:~:text=Estate agent's market appraisal for probate&text=Although estate agents are not,is called a market appraisal.

crazyoldmaurice

I only estimated  the value myself off of house prices on the street and what they sold for. There wasn't a property as dilapidated as my dad's so it was hard to judge but I read this;

"HMRC’s guidance states that you should obtain a professional valuation for any assets worth more than £1,500, unless the gross value of the estate is less than £250,000, or the entire estate is passing to a spouse or civil partner, in which case an estimated value can be used. In practice this will mean the services of an estate agent or a professional surveyor are usually required"

My dad's house is currently worth about 130k without renovating.

I spoke to probate who then said it should probably be OK but to call HMRC and talk to them and let them know. So I called HMRC who told me to talk to probate again to amend the figures. I called probate again who told me that I shouldn't worry and as I was only asked to estimate as it was under IHT threshold still and it often happens that the price changes so quickly at the moment. He just told me to keep an inventory.

I don't know; I feel like no one at probate/hmrc can give me a clear answer. My dad only died in April so maybe its because the application went through so quickly that the change in price is OK?

crazyoldmaurice

I read this on another website 

Estimate the property value yourself

If you have a rough idea of the house’s value and know it won’t take the estate over or close to the inheritance tax threshold, you could estimate the property’s value yourself. You can do this by:

• Searching for the property on Zoopla for an estimate

• Searching for similar properties in the local area to work out how much it could sell for

getmore4less

Yes sole inheritor and we already own part of a house on Shared Ownership

Can you clarify
Who owned the property.
Who lived in it
What are the plans for the property.

Probate valuation It's not that big an issue, HMRC tend not to bother unless there is tax to pay (too busy)

That leaves your potential CGT when it is sold.
If that is likely get some good valuations to back up when you need to submit.
You can get HMRC to have a look before you submit.

Note: if you were an owner you did not need LOA to deal with the property.

crazyoldmaurice

My dad owner his property outright with no mortgage

My dad lived in it alone, I lived with him for 7/8 years from when I was 13- 21, this was 15 years ago.

I plan to list it to sell it just as soon as I've cleared it within the next 4 weeks.

crazyoldmaurice

getmore4less said:

Yes sole inheritor and we already own part of a house on Shared Ownership

Can you clarify
Who owned the property.
Who lived in it
What are the plans for the property.

Probate valuation It's not that big an issue, HMRC tend not to bother unless there is tax to pay (too busy)

That leaves your potential CGT when it is sold.
If that is likely get some good valuations to back up when you need to submit.
You can get HMRC to have a look before you submit.

Note: if you were an owner you did not need LOA to deal with the property.

My dad owner his property outright with no mortgage

My dad lived in it alone, I lived with him for 7/8 years from when I was 13- 21, this was 15 years ago.

I plan to list it to sell it just as soon as I've cleared it within the next 4 weeks.