What Is The Procedure When You Die, With Regard To Ih Tax

[Bramleyboy]

My wife read an article recently about probate. A man died and his girlfriend had to do the probate. My wife is now worried about the costs! this woman said that it cost her £45k doing valuations etc. and she had to engage a firm of valuers who charged over £300 an hour and spent hours! Do tax inspectors come to your house to check up on your possessions? Please could someone explain or point me in the right direction?! I hope we do not have any imminent need for this information, just to put my wife's mind to rest. Thank you. Bram

[Buenchico]

I obtained probate on my father's estate. To get a value for his possessions I simply looked around it and (based upon having attended plenty of auctions myself), thought to myself "That display unit would fetch twenty quid, the table and chairs might get forty", and so on.

To get a value for his house I could have asked an estate agent to give me a figure (free of charge) but instead I simply looked in the windows of local estate agents to find what similar properties nearby were selling for.

Easy peasy, no costs at all involved and completely acceptable to the Probate Registry.

Tell Mrs B to stop worrying!

[Old_Geezer]

When my second parent died we split tasks between myself as executer and the solicitor who drew up the will. The solicitor seemed to be able to estimate the value of the estate from the descriptions. I can't recall the charge but nothing like that which you quote. I doubt having to find a solicitor when no will exists would cost what you describe even if my experience was years ago. I trust someone with more recent experience can put your mind at rest soon.

[Old_Geezer]

I see someone already has.

[ubasses]

One thing to think about is in the article the man had a girlfriend in your case you have a wife. Assets left to a wife pass free of inheritance tax, any assets held in joint names will automatically pass to the surviving partner, (as long as the house is owned as joint tenants and not as tenants in common). If the majority of your assets are in joints names it could make make probate unnecessary. If all your personal accounts are below £5000 they would be released on an indemnity.

[Buenchico]

PS:
It's worth remembering . . .

(a) Inheritance Tax isn't payable if the value of the deceased person's estate is less than £325,000 ;

(b) Anything which is left to the deceased person's spouse (or civil partner) doesn't count towards the value of their estate. (So if everything is left to the spouse there's never any Inheritance Tax to pay) ; and

(c) If everything is left to a spouse (or civil partner) that person will then be eligible for both people's Inheritance Tax relief when he/she dies, meaning that there will be no Inheritance Tax to be paid unless the value of their estate exceeds £650,000.

[MargoTester]

Ubasses - what happens if you are tenants in common please?

[Buenchico]

^^^ If two people are tenants in common then, when one of them dies, their share of the property must be disposed of in accordance with the terms of their will. (They don't have to leave it to the other tenant; they can leave it to their children, to the Communist Party or to Battersea Dogs' Home if they so wish).

If no will exists then the law relating to intestacy will apply.

[MargoTester]

Thank you very much Buenchico.

[Bramleyboy]

Thank you. Bram

[sandmaster]

I recently applied for Probate for my late mother's estate. The forms are not arduous and your best estimate of the market value for each property will suffice. For domestic properties this should be easily ascertained by reference to estate agents sites for similar properties in the same area. Inheritance tax may or may not be due. But if you value the property below market value to avoid inheritance tax you are risking a demand for capital gains tax when the property is sold.