Valuing property for probate

Dilbert_Investor

My mum recently passed leaving everything to my dad in her will.

As the executor I wasn’t planning on obtaining probate as there is only the house and a savings account.  However, the bank say they need a grant of probate.

I understand that IHT won’t apply as the estate is being left to a spouse, but the probate form need me to value the estate.

My question is how accurate does the property valuation need to be in this case.  Can I just look at recent sales in the street and estimate or does it need to be done more formally?

Many thanks,

Linton

You can value the house in any way you want.  Apart from a finger in the air approach the easiest and cheapest way is to ask an Estate Agent for a valuation, it should be free.  In your particular circumstances it does not matter.  

If the valuation really matters, for example in ensuring beneficiaries get a fair share of an estate, then it would be prudent to use a RICS authorised surveyor.  In blatant cases of attempted tax evasion HMRC will dispute the valuation. 

getmore4less

How much is in the savings account,   most banks have fairly generous limits.

I the house is in joint names probate not needed for that.

Valuation:  if recent activity in the area a rightmove search with inc SSTC and a look at the sold data will give you a decent idea, can back that up with a couple of EA valuations..

if unique property then it get a bit harder

Keep_pedalling

As there are no IHT or CGT issues with an estate entirely cover by spousal exemption then an accurate valuation is not that important. This assumes your parents were married, if not then that is a whole new ball game.

Dilbert_Investor

Thanks everyone, yes they were married so no IHT issue.

I assume that the nil rate band and residential nil rate band allowances can also be transferred to my dad?

Brie

Sorry for your loss Dilbert.

A question for the experts....wouldn't the value of the house be irrelevant depending whether it was owned by both the parents?  I mean if they were joint tenants the house would automatically go to the spouse no matter what else was in the estate and wouldn't be included in the estate at all.  Or have I misunderstood this??

Keep_pedalling

Brie said:

Sorry for your loss Dilbert.

A question for the experts....wouldn't the value of the house be irrelevant depending whether it was owned by both the parents?  I mean if they were joint tenants the house would automatically go to the spouse no matter what else was in the estate and wouldn't be included in the estate at all.  Or have I misunderstood this??

Although in those circumstances the house automatically becomes the sole asset of the surviving owner 50% of the value does form part of the estate for IHT purposes so where probate is needed the value has to be declared even if it is subject to spousal exemption.

greyteam1959

I had to get 3 property valuations when my mum passed away & probate was needed.
Everything passed to my Dad.
But because mum held over £5000 in premium bonds probate was required.
If you ring round your local estate agents you will find those that will give you a written valuation free of charge that will be acceptable to HMRC.

Keep_pedalling

greyteam1959 said:

I had to get 3 property valuations when my mum passed away & probate was needed.
Everything passed to my Dad.
But because mum held over £5000 in premium bonds probate was required.
If you ring round your local estate agents you will find those that will give you a written valuation that will be acceptable to HMRC.

When you say “had to” who said you had to? 

Suffolksue

I had to get probate for my late husband ( premium bonds ) 
He was well under IHT 
I rang and asked the probate office ,after asking why I needed probate and sighing when I said premium bonds ,they said they were quite  happy with a Zoopla estimate and to remember that only 50% was to be included 

greyteam1959

Keep_pedalling said:

greyteam1959 said:

I had to get 3 property valuations when my mum passed away & probate was needed.
Everything passed to my Dad.
But because mum held over £5000 in premium bonds probate was required.
If you ring round your local estate agents you will find those that will give you a written valuation that will be acceptable to HMRC.

When you say “had to” who said you had to? 

The solicitor dealing with probate.