Probate Valuation

There are few more distressing experiences for an individual than the death of a friend or family member. The process of obtaining probate and administering and distributing the deceased’s estate can often add to the worry and stress of the deceased’s relatives at the time they need it least.

The estate’s executors are responsible for ensuring that the correct value of the deceased’s estate is notified to HM Revenue & Customs for calculating any Inheritance Tax due. The courts will only grant probate, if HM Revenue & Customs are satisfied that all tax due, including inheritance tax, has been paid.

If the estate includes shares in a private limited company or an interest in a business calculating a value for these can be difficult. The executors have no “market” they can refer to for a valuation of the shares or business. The shares are not quoted, so how much are the shares worth? The answer is not simple and can only be determined by carrying out a detailed valuation exercise. 

The executors will be responsible for:

  • Calculating the open market value of the shares or business;
  • Determining the level of any Business Property Relief available; and
  • Calculating the Inheritance Tax liability on those assets.

If the executors get any of the items listed above wrong, it could lead to an HM Revenue & Customs enquiry or an underpayment of Inheritance Tax, both of which would mean a delay in obtaining the grant of probate and possibly incur penalties.

Even if no IHT is at stake, or full BPR is available, agreeing a valuation is still vital. This way the beneficiaries start off with the best CGT base cost possible; thus ensuring that they pay as little tax as possible if they sell the asset later on.

Our valuation team can provide the executors (either directly or through your chosen solicitor) with a fast, effective and reliable valuation of the deceased’s shares and/or business.

By utilising our service you can ensure that probate is granted as quickly as possible, allowing the estate to be distributed in accordance with the will as efficiently and stress free as possible.

Contact Steve Vickers on 0114 251 8850 or email him steve.vickers@hartshaw.co.uk to discuss this valuation service.

Commonly in such cases we will also provide advice on the taxation issues arising in these circumstances. For more information on our taxation services please visit our Taxation Services pages.

For more information about why everyone should have a Will and how to begin the process of drafting a Will go to our Will Writing page.