Island Life Magazine Ltd February/March 2013 | Page 138

Legal issues with Terence Willey & Company

Significance of qualified
valuations during estate admin
When considering the valuation
of any deceased's assets during the
course of Estate Administration,
and prior to securing Probate or
Letters of Administration to the
Estate, it is essential that very careful
consideration is given to the valuation
placed both on property and personal
effects.
Over the years that I have been
involved in Estate Administration
I have encountered many instances
where such valuations have been
brought into question by H. M.
Revenue and Customs, who are
entitled to question any figures
disclosed in the Estate Accounts of a
deceased.
This can often mean the Revenue
appointing the Local District Valuer's
Office to attend a property to establish
valuations and question them, which
may ultimately involve revision of the
figures submitted to the Court for
Probate or Letters of Administration
and in the case of a taxable Estate
sometimes more tax payable.
Currently in respect of a husband
or wife tax is payable on the last
death over £650,000, providing the
individual’s allowance of £325,000 has
not been used and were married at the
time of the first death.
It is therefore highly significant
that the valuations of the assets of
respective Estates are clearly defined
and recorded both on the first and
second deaths. It is not uncommon
for clients to produce to me their
own estimations of property and
personal effect values. But it remains
extremely prudent to ensure that
a ‘qualified ‘Surveyor/Valuer is
138

www.visitislandlife.com

instructed to provide a written report
for the purposes of recording on
file, both in respect of the prevailing
Administration and for the future.
The other benefit of instructing a
qualified individual is that they are
supported by their own Professional
Indemnity in respect of such
valuations provided and can meet
with the District Valuer’s Office to
discuss and negotiate on your behalf
any variances being suggested in the
valuations submitted.
Although this quite naturally involves
further fees payable, this can prove
extremely beneficial at the end of the
day and often in reducing the amount
of tax payable following agreement
with H. M. Revenue and Customs.
We all tend to consider our personal
assets are more valuable than in reality
but when death occurs with a member
of a family it is most important
to secure accurate and recorded
valuations.

Invariably it is possible to negotiate
a combined fee with a Surveyor to
carry out valuations for both property
and personal effects providing the
personal effects are of a nominal value.
Otherwise for specialist contents
valuation and antiques etc they can
be referred to qualified Auctioneers
and we have been able to assist many
clients in guiding them in this process.

Terence Willey & Company,
Lawyers and Commissioners for
Oaths (incorporating Malcolm
Daniells & Company and The
Bembridge Law Practice)
Terence Willey 01983 875859
Mark Willey 01983 611888
www.terencewilley.co.uk