Increase in value of estate after probate granted

c1arke

Hi, I am hoping someone can help.

My mother passed away last year and probate was applied for.  We had the property valued in March last year and used this figure for probate which was applied for in November. We have just put the property on the market and the value that the estate agent has given us has increased by about £40,000.  (Now valued at £400,000 and not £360,00 which was the value used when working out the estate value).

The will stated that the estate be divided equally between myself my siblings with a small gift of money to grandchildren. As this was quite straightforward myself and one of my siblings (as executors) applied for probate ourself.  We have also used my fathers unused IHT allowance as he passed away in 2006 and left everything to my mother.

I am very worried that the estate value has now increased.  

Do I need to make an amendment to probate and how do I go about doing this?

I did a Inheritance Checker on the GOV.UK website and it is saying that we do not need to pay inheritance tax on the new amounts but just very concerned about the increase in the value of the estate. 

p00hsticks

There'll potentially be CGT to be paid by the estate on the uplift in value between that declared at probate and the eventual selling price. 

c1arke

Thanks ofp00hsticks said:

There'll potentially be CGT to be paid by the estate on the uplift in value between that declared at probate and the eventual selling price. 

Thanks for your respone. 

That was one of the reasons for asking if I should amend probate.  So even if probate is amended to reflect the difference in the value of the house, if this is something that we can do, iwe would still have to pay CGT on the uplift?

Rodders53

This is all dependent on what the house sells for --- not the same as what an Estate Agent seeking a Client values the property at when marketing it...  But...

Value of house for Probate and IHT purposes is the value at date of death. 

So here we are well over a year later (18 months?) selling... and CGT will need to be paid by the Estate (as part of the Conveyancing and Completion process probably).