When someone dies, a property valuation may feel like one more thing to deal with, but it’s an important part of probate. Here’s a brief guide to what you need to know.

What is a probate property value?

It’s the property’s open market value on the date the person died: the price it could reasonably have sold for on the open market.

Who arranges the valuation?

The personal representatives, such as the executors or administrators, are responsible for valuing the estate.

Estate agents can provide free market appraisals, but these are informal and may reflect an asking price. Getting several appraisals and using their average can help support your estimate.

A qualified surveyor’s valuation may be more suitable for unusual, run-down or potentially developable properties, or where the estate is complex. It costs more, but may carry greater weight if the valuation is challenged.

When are valuations and tax due?

The process can take time. Inheritance Tax forms are generally due within a year, and tax payments should begin by the end of the sixth month after the death. Payments can be made before the final valuation is complete.

What about personal belongings?

Estimate items at their current value, taking their age and condition into account. Online listings and auction sites can help you compare similar items.

What if the property sells for a different amount?

If it sells for more than its probate value, HMRC may review the valuation, and Capital Gains Tax may apply if the sale price has increased. If it sells for less, you may be able to claim an Inheritance Tax refund, provided it is sold within four years of the death. Consider seeking professional advice before making a claim.

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