Different assets like possessions, property, and money, which belong to a deceased person at the time of their death, are included in valuing a deceased person’s estate. Likewise, certain assets that were delivered by them within the seven years prior to their death are also included. This valuation must accurately show the value of these assets on the open market at the time of death.
If you are a personal representative, the valuation of the decedent’s estate is the first thing you should do. Normally, you cannot take over as administrator of your estate until any inheritance tax owed is paid. However, you should also take into account that inheritance tax is payable if the value exceeds £312,000.
There are certain steps that involve the valuation of the inheritance of a deceased and the first step in this regard is to take the value of all those assets that belong to the deceased. You need to take the value of any such asset, that they have in combination with someone. It is necessary to evaluate any such assets of the deceased, which he/she held in a trust, and which could be beneficial to them. Similarly, you need to value some of those assets, which have been delivered by them over the past seven years.
After evaluating these assets, you must deduct everything the deceased person owed. You must deduct things like unpaid bills, outstanding loans and mortgages, as well as funeral expenses.
The value of a decedent’s estate is obtained after deducting their debts from the value of their assets. If you don’t know the exact value or amount of an item, such as a household bill or income tax refund, an estimated figure can be used for this purpose. However, it is better if you estimate this value based on the available information rather than guessing about it.
Some of the assets of a deceased person can be easily valued, for example, it is quite easy and simple to value stocks, shares and money in some bank accounts. However, in certain cases, you may need to seek the professional help of a licensed appraiser to appraise the property. If you are going to hire someone for this purpose, you should ask them about the open market value of the assets.
If there are some complications in estate matters, you can also seek the help of a lawyer. A lawyer can be very useful to evaluate the inheritance and pay the different taxes. A lawyer can give you the right guidance in this regard and can also help you a lot in saving a good amount on inheritance and inheritance taxes.
If you are going to appraise a deceased person’s estate, you should keep in mind that some assets can be easily appraised, while others are difficult to appraise, and hiring a lawyer can save you from many different problems.