DEALING WITH PROBATE

We are finding now that more and more ordinary people are having to deal with probate following the death of a partner or relative.  This can be an extremely stressful and emotional process.

And the fact that now even modest estates are being caught by Inheritance Tax means that frequently the job of completing the many forms and collecting the information is being done by family members rather than by solicitors.

One of the forms we are most commonly asked to assist in preparation of is the Inland Revenue’s Inheritance Tax form D10.  This is the form on which the valuations of everyday household items, including televisions, furniture and even gardening tools, are requested.

We provide a valuation which is based on the open market value of the items, as second hand, and in their current condition, and in compliance with all current legislation regarding second hand items. It is important that the basis of the valuation is open market valuation, and not an insurance valuation, which in all instances will be much higher, as this reflects the costs of having to buy a replacement.

If items do not comply with the foam filled furniture regulations then they will have no value, as they cannot be sold second-hand. Likewise, the valuation of electrical items will need to reflect the fact that they need an electricians test before they can be sold, and in respect to items such as old clock radios, kettles, toasters etc, this test will frequently cost more than any open market value that the items may have.

The documentation we provide you with will be on headed paper, it will list and value the items individually, and provide details of any damage, or other mitigating factors which may affect the valuation. Where there are items with nil value, because they don’t comply with regulations etc, we will state this on the valuation.  We also state in an explanatory paragraph, at the top, the basis of the valuation.  All of this is designed to ensure that the information can be submitted to the Inland Revenue in a manner which is as suitable to them as possible.