Probate, estate value and selling house and contents

auditgal

Mum has recently died, everything was left to Dad in her will (house owned as joint tenants). Dad has applied for probate(9 weeks ago) as the value of some of Mum’s assets exceeded institutional limits. On the probate form, value of house and Mum’s sole assets listed but not value of  house contents. Dad wants to sell the house and the contents before probate is granted but is now concerned that the probate office might question the estate value as he is unsure about the £3 million limit. Does the £3 million limit apply even though Mum’s estate is exempt from inheritance tax as everything was left to Dad? Not sure whether to put the house on the market and clear the contents before probate is granted, in case the probate office need evidence of the value of contents. Concerned about any legal implications? Any advice would be welcome.

JGB1955

AIUI £500 is a generally acceptable valuation of house contents.

Grumpelstiltskin

Unless there is a couple of Picassos on the walls and it is fully furnished with genuine Chippendale furniture the value of the contents is going to be small.

You will find getting rid of secondhand furniture etc could end up costing you more than it's value.

theoretica

If he sells the house and contents and keeps records he will then have clear evidence of the value should there be any query.

RAS

There may be some value in the contents, we got £1200 at auction but had I known how little stuff would go for, I 'd have bought some for a song.

The more important thing is how was the house held? Can your father actually sell it before probate is granted?

Keep_pedalling

The probate value excludes any joint assets which will include the house and its contents. As he is now the sole owner of the house he is free to sell anytime he wants the probate office are not going to be interested.

auditgal

Thank you all for your advice. The house was owned as joint tenants and the will left everything to Dad. I understand probate is required to release Mum’s sole assets due to their value and not to sell the house. Is anyone able to advise regarding the £3 million limit?

Keep_pedalling

auditgal said:

Thank you all for your advice. The house was owned as joint tenants and the will left everything to Dad. I understand probate is required to release Mum’s sole assets due to their value and not to sell the house. Is anyone able to advise regarding the £3 million limit?

Are you saying her half of the house and any half of other joint assets plus her sole assets exceeded £3M or have you included 100% of those joint assets in that figure? 

auditgal

No, either way, they do not exceed 3 million but concerned that as house contents or personal possessions were not valued on the probate form, the probate office might query that and delay the grant of probate.

Keep_pedalling

auditgal said:

No, either way, they do not exceed 3 million but concerned that as house contents or personal possessions were not valued on the probate form, the probate office might query that and delay the grant of probate.

The probate forms don’t break down the items that make up the estate they just ask for the gross and net value of the estate for IHT and probate purposes. The former includes 50% of jointly owned items the later does not. 

They can’t tell from the form that you the house contents weren’t included so they won’t come back to your father on this.