Probate Valuation

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Probate Valuation

What is Probate?

Probate Valuation . Probate is the legal term for wrapping up the affairs of a deceased person and dispersing the assets of their estate according to the instructions in their Will if one exists or to the next of kin where the deceased dies intestate (no Will in place). In order to legally take control of a deceased person’s assets to disperse them, permission from the High Court is required and this permission is in the form of a Grant.

What is a Probate Valuation?

A probate valuation is a valuation required by the Probate Office as part of the process of proving the Will. The probate valuation is the value of the property used to work out whether inheritance tax may be owed and what amount might be due.

When is a Probate Valuation needed?

Where the deceased person owns a property then a probate valuation is required, regardless of whether the property is to be sold or not. The valuation will be the value of the property on the date the deceased passed away.

How is a Probate Valuation carried out?

One of our experienced Valuer’s will meet you at the property to assess it and provide you with a realistic market valuation.

What is the date of the Probate Valuation?

Irrespective of when the probate valuation occurs the valuer will give the property the value it had on the date the deceased passed away.

How can DNG Galvin help

Pre Sales Advice

On inspection our agent can provide advice on preparing the property for sale, obtaining a BER certificate and any works that should be carried out to increase the value of the property.

Property Check

By instructing us, we can arrange to have the property checked on a regular basis until the property is sold prior to going to the market.

Sales Advice and Negotiation

We will advise you, as the executor, of offers made by prospective purchasers. We will guide you on the strength of these offers and advise on the best course of action.

After Sales Advice

DNG Galvin will arrange access with bank valuers or surveyors and liaise directly with both solicitors, on your behalf, until the sale has been completed.

When do beneficiaries receive their inheritance?

The beneficiaries receive their inheritance once the Grant of Probate has issued, all assets liquidated and collected by the Executors, all liabilities (including inheritance tax) discharged. In straightforward cases, it takes between 9 months and 18 months to complete an estate and pay the monies to the beneficiaries.

Capital Acquisitions Tax (CAT)

CAT comprises inheritance tax. This tax is paid on inheritances received over a certain amount. The probate valuation is the value of the property used to work out whether inheritance tax may be owed and what amount might be due.

Capital Gains Tax (CGT)

CGT is the tax paid on the increase in price from the date of acquiring an asset to the sale of the same asset. If inherited property is sold and the price has increased from the probate valuation, the beneficiary will be liable to pay CGT on the difference.

Can a house be sold in Ireland before probate is granted?

Yes, a property can be listed for sale but closing will not be possible until Probate has been granted. Given the time that it takes to gain Grant of Probate is actually quite a similar timeframe to selling a property, it is recommended to run the two processes in parallel and not sequentially. In fact, being sale-agreed on a property whereby the Grant of Probate is delaying the conclusion of a transaction can, on occasions, help speed up the granting of probate.

Have you recently been named as an executor or beneficiary in a Will that will require the sale of a property and need expert advice?

Contact DNG Galvin here and we’ll be delighted to help. Alternatively feel free to call us on 023 8844958

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Majella Galvin

Monday, March 27, 2023 in Blog