Understanding Probate Valuations

Understanding Probate Valuations

Probate is a legal process that happens after someone dies. It confirms the validity of their will and gives their executor the legal authority to administer the estate. Applying for the grant of probate requires a valuation of assets to calculate inheritance tax. When probate is granted, and any debts and taxes have been paid, the estate will be divided among the beneficiaries according to the terms of the will.

Where property is part of the estate, the executor will need a Probate Valuation Report before applying for probate. A Probate Valuation Report is a formal opinion of the value of the property, undertaken by a registered valuer for Revenue purposes. For probate purposes, the value of the property is its value on the date of death. Sherry FitzGerald has a team of registered valuers around the country who can undertake this service with kindness, efficiency, and clarity.

Harriet Grant, registered valuer with Sherry FitzGerald, explains the process.  ‘After someone dies, the executor meets with the estate solicitor who provides them with a list of information they need to apply for probate,’ she says. ‘Then, either the solicitor or the executor may come to Sherry FitzGerald and request a valuation of the property.’

The registered valuer will need access to the property but, unlike a regular valuation, there’s no need to spruce up the house. ‘We’ll need to measure, take details, and take photos, but these are for the purpose of the report only,’ Grant says. ‘The house doesn’t need to be prepared. We realise that having someone walking through the house at this sad time can feel intrusive. We can see beyond decorative details and untidiness and we approach the valuation with empathy. We aim to deliver a swift service and will normally issue the valuation report within three to five days of the inspection.’

A probate valuation may take place in a home where the partner or family of the deceased are still living, or in one that is being prepared for sale. It may also take place in a home that has not been lived in for some time. Although the circumstances vary, the basic process is the same. The property is valued as seen. The financial background, including any mortgage on the property, is not part of the valuation.

During the process of applying for probate, you may hear the terms ‘Red Book Valuation’ and ‘Blue Book Valuation.’ The terms refer to the mandatory rules and best practice guidance’s set out by the RICS and TEGOVA professional bodies, which registered valuers must adhere to. Both are acceptable.  In either case, Sherry FitzGerald valuation reports will be undertaken by a qualified registered valuer and prepared in the correct format.

A Market Appraisal Report is provided by a sales agent in the early stages when you are considering selling your property. It offers guidance on the market value, sales and marketing strategy, and advice on preparing the property for sale. However, it is important to note that a Market Appraisal Report does not meet the criteria for a Probate Valuation Report and cannot be used for probate purposes. A Probate Valuation Report is an official document, undertaken by a registered valuer and used to calculate inheritance tax.

‘All Sherry FitzGerald’s registered valuers have an understanding of the tax implications applicable to any beneficiaries, but we’re not tax advisors,’ Grant explains. ‘If you need information about taxation, we recommend you ask your solicitor or tax accountant.’

If you need a Probate Valuation Report, we’re here to help. Contact your local Sherry FitzGerald office today, or visit our website at sherryfitz.ie for a swift, efficient and empathetic service at this difficult time.