The period following the death of a loved is certainly hard. During this time, issues like organizing the affairs of the deceased are not often at the forefront of the mind and that’s why some people opt for appointing an executor for their will.
However, it’s imperative that some matters are resolved as soon as possible for the affairs of the newly built estate to be settled and ensure that the beneficiaries get their financial provisions. One of the first steps to achieve this is probate valuation.
In essence, probate valuation is a simple process. Its purpose is to know the total value of the estate’s assets including things like land and home extension. There are several reasons why this is essential. First, if it wasn’t previously worked out, then the process will show if the Inheritance Tax will be payable or not and if so, how much. This is essential as it may have a substantial impact on the overall sums given to the beneficiaries.
Ideally, according to the probate law, executors are most likely to find that their administration powers are limited until a percentage of any Inheritance Tax has been paid. Therefore, it is imperative that probate valuation is conducted quickly to make sure that the rest of the process can continue.
Another probate valuation purpose that’s often overlooked is to ensure if any capital gains tax will be payable. If the executor has to sell part of the estate like summer house or garage, chances are some capital gains tax will arise. This kind of tax applies when assets’ value has increased.
A probation valuation has to put the value of any and all assets which the deceased individual held. Some are easy to identify, like houses. However, a moveable estate can be harder to locate and value and this includes assets like money and certain personal possessions.
Lastly, it’s imperative to keep in mind that joint ownership of property will affect the probate valuation. If the deceases held joint ownership to any kind of asset, their share of value has to be considered. The probate valuation process can be a sophisticated one and while you can do it on your own, most individuals choose to hire a professional house valuation for probate to make things easier. Having the process done by a probate valuation professional helps reduce the stress that comes with a dead family member. If you decide to use a professional, it is important to ensure that you do your homework to ascertain you get the best service possible.