Valuations For IHT And Legacies

beabu

My aunt unexpectedly passed away recently. I'm one of the executors and in her will she's kindly left me a part share as a beneficiary. She has also mentioned I should receive me her piano, guitar, some clothes and some of her old LPs. One of the other executors (also a beneficiary like me) says the items must be valued for the estate and IHT. He seems to think they'll be worth lots of money. But I've contacted several places and almost all say the items are too low value and won't even give a valuation. One dodgy piano dealer and one auction house each emailed a low estimate for the piano based on photos only and on the proviso that it depends on the condition in real life. Will the emailed dealer valuation or the auction estimate be acceptable for a valuation for probate?

This other executor also says the value of the items has to be deducted from my share of the estate? Is this correct? I know they have to be valued for the estate IHT, but as the items are separately mentioned in the will, I thought they do not count towards the official share of the estate but are given in addition to it?

The_Unready

Is the entire estate likely to breach the inheritance tax threshold, which can be up to £1m in some cases? If not, I wouldn't worry about the accuracy of the valuations, as long as they're not too wide of the mark.

As for the other stuff - that's not true, the value of any specific assets you are bequeathed does not get deducted from any cash or other assets that you have been left. In short, the other executor is talking rubbish!

Keep_pedalling

Unless we are talking Steinway or equivalent, pianos are almost impossible to sell so have very little value. Generally you can put a nominal value on someone’s household chattels.

Flugelhorn

It depends on the wording of the will - did she say "I leave you my guitar, piano, LPs etc and the residue of the estate to be divided between you both?"  if so then you get 50% of the estate PLUS  the specific gifts 

beabu

The_Unready said:

Is the entire estate likely to breach the inheritance tax threshold, which can be up to £1m in some cases? If not, I wouldn't worry about the accuracy of the valuations, as long as they're not too wide of the mark.

As for the other stuff - that's not true, the value of any specific assets you are bequeathed does not get deducted from any cash or other assets that you have been left. In short, the other executor is talking rubbish!

No, it's only around £650k in total. Excluding the piano of course!

Thank you for confirming my suspicions about the other executor (long story).

beabu

Keep_pedalling said:

Unless we are talking Steinway or equivalent, pianos are almost impossible to sell so have very little value. Generally you can put a nominal value on someone’s household chattels.

Exactly. I think he's got hold of the receipt from when my aunt bought it years ago. I don't think he understands that even a high-end piano doesn't hold much value and one that's not a big name and has been well-loved is sometimes worth less than a valuation.

beabu

Flugelhorn said:

It depends on the wording of the will - did she say "I leave you my guitar, piano, LPs etc and the residue of the estate to be divided between you both?"  if so then you get 50% of the estate PLUS  the specific gifts 

The the beneficiaries and the proportional shares are mentioned first. Later in the will my aunt mentions specific items and who has an interest in them, like the piano, guitar, clothes and some LPs she's left me or the cousin getting most of her LPs, or the books we can all share in.

Grumpelstiltskin

Do you actually want the piano?
If not why not offer to give it to the other beneficiary and let them have the  problem of selling it

waveneygnome

And moving it........round my way it’s hard to find someone to relocate a piano......costs we’re £250+vat to move 3 miles.

my SIL works for an estate agents that specialises in Estate sales.......she says most of the time they leave the piano sold with the house.

beabu

Grumpelstiltskin said:

Do you actually want the piano?
If not why not offer to give it to the other beneficiary and let them have the  problem of selling it

I tried suggesting that, but he's not interested. He just insists those of us with additional legacies must reduce our shares by the value of any legacies we receive.

beabu

waveneygnome said:

And moving it........round my way it’s hard to find someone to relocate a piano......costs we’re £250+vat to move 3 miles.

my SIL works for an estate agents that specialises in Estate sales.......she says most of the time they leave the piano sold with the house.

Thank you, I hadn't even thought about that yet. Food for thought.