Dealing with property in estates, trusts etc
When we decided to launch Executor Solutions we spent a lot of time speaking to solicitors trying to work out exactly what services they required from a service provider. One thing that kept coming up was the problem of valuing property. We decided to make this area one we should focus on so we could provide a solution to what was quite obviously a problem within the sector.
The two options at the time were:
- An estate agent’s valuation
- A Royal Institution of Chartered Surveyor’s Red Book valuation (RICs report)
The problem with an estate agent’s report is twofold, firstly the paperwork is often not sufficient when valuing for tax purposes. In addition, there is the question mark over how accurate the valuation is, with some agents hoping that by quoting a higher figure they will win the opportunity to sell the property, even if this figure may be deemed ‘optimistic’.
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A RICs report is an expensive alternative, but one that more often than not the solicitor can rely on. The main issue with this avenue is simply that when there are no funds on account the executor/ beneficiary will find themselves having to pay the fees out of their own pocket to the sum of hundreds, and sometimes thousands of pounds.
Now there is a third option to solicitors and their clients in the form of the Executor Solutions ‘Property Valuations Appraisal’.
Executors Solutions Property Valuations Appraisal
This report is HMRC compliant, covers Section 160 Inheritance Tax Act 1984 and Taxation of Chargeable Gains Act 1992. This comprehensive report is issued within 48hrs of the valuation taking place and one of our customer service team will happily contact the client to discuss the report, so everyone involved fully understands its content.
This report costs only £195.00 plus VAT, so is much more affordable for an estate. The best part however, is that Executor Solutions will refund this fee upon completion of the sale of the property should we be instructed to sell it.
In 2017 Executor Solutions was instructed to complete a valuation report on behalf of a reputable and well known global law firm based in London. Some weeks following I was made aware that there had been a dispute surrounding our report and therefore a RICs report had been ordered.
Both reports were submitted to Counsel who after assessing both documents decided that the Executor Solutions report was correct above the RICs report. The fee for the RICs report was in excess of £1,200, whereas our report was £195.00+VAT.
Solicitors have an incredible amount of responsibility on their shoulders when advising their clients, even more so when acting as the executor themselves. In an age when people will take their grievances further it is even more important to have peace of mind. Do get in touch if you would like our help.
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