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Probate valuations – keep abreast of changing value

We recently posted a link to a newspaper article, whereby a reader had been left  a property and separate land considered suitable for development in a relative’s Will; the property and land together being given an initial probate valuation of £100,000.

However, the recipient has since discovered through independent valuations that the maximum value of the gift is actually £70,000.  The property is in such bad condition that it will require £20,000 of work before to restore, and certainly before it can be used as a rental property.  In the meantime, this well meaning gift has become somewhat of a devalued millstone.

Whilst it isn’t known precisely when the valuation was made, 30% is a massive drop in value, so we can only assume this valuation is now relatively outdated.  It raises the interesting question of how often your largest assets should be valued.

It may be then, that this individual could feel slightly cheated, particularly if the deceased was, whilst they were alive, under the impression that they were dividing their Estate equally, and another sibling was left the actual or realistic equivalent of £100,000.  Our individual, on the other hand, has to face the prospect of paying out another £20,000 to see any return.

To avoid this happening to you, ensure that you have your assets revalued at least every five years, and, in the case of an uncertain economic environment, every two years.

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