If you’re the executor of a will, you’ll need to calculate the value of the deceased’s estate to perform your duties. With this in mind, Prestige Tax and Trust Services has decided to explain how to value an estate.
Applying for Probate
If you’re the executor of a will, you need to apply for probate to secure the legal right to administer the estate (property, assets, possessions etc.) of someone who’s passed away. This process involves applying for a grant of representation, and to do this you’ll need determine whether the estate owes inheritance tax. The government demands that estates worth more than £325,000 pay inheritance tax.
If you want to learn how to work out inheritance tax, you need to find out how to value the estate of the deceased first. You must value the estate within a year of the deceased’s passing, as you have one year from the date of their death to complete inheritance tax forms. You’ll have to start paying inheritance tax on the estate six months after the deceased has passed away, whether you’ve completed the inheritance forms or not.
Valuing the estate
There are several steps involved in valuing the estate of someone’s who’s passed away. You need to assess the gross value of the estate, determine inheritance tax and fill out the appropriate inheritance tax forms to calculate the net value of the estate.
Prestige Tax and Trust Services
There are a range of factors involved in valuing an estate, and this can make it a complex task for an executor with limited legal knowledge. This is why you should let Prestige Tax and Trust Services lend a helping hand; our team have the expertise you need to value the estate of someone who’s passed away.