Probate Values- Household Goods

Discussion in 'UK Finance' started by ClippertyClop, Apr 28, 2004.

  1. I've been appointed an Executor in a relative's Will. The whole estate value
    amounts to well over the threshold for Inheritance Tax. I don't particularly
    wish to get involved with solicitors or valuers if possible, other than
    property/land valuation, where I'll rely on an expert.

    In IHT 200 is where amongst so many things, you have to put a value on
    "Household and Personal goods". The point is, within this section, is one
    expected to include
    such household sundries as clothing, carpets, cupboards, fittings, beds,
    cooking utensils, crockery etc in a valuation of household goods? If I could
    sell them easily, then I have my valuation for such items. However, many of
    these items one could only give away, or sell for a paltry sum, so it's
    hardly worth including them as valued items.

    What would/should an Executor do in practice where such sundry items remain
    unsold. Anyone with experience care to comment?

    CC
     
    ClippertyClop, Apr 28, 2004
    #1
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  2. ClippertyClop

    stuart noble Guest

    ClippertyClop wrote in message ...
    >I've been appointed an Executor in a relative's Will. The whole estate

    value
    >amounts to well over the threshold for Inheritance Tax. I don't

    particularly
    >wish to get involved with solicitors or valuers if possible, other than
    >property/land valuation, where I'll rely on an expert.
    >
    >In IHT 200 is where amongst so many things, you have to put a value on
    >"Household and Personal goods". The point is, within this section, is one
    >expected to include
    >such household sundries as clothing, carpets, cupboards, fittings, beds,
    >cooking utensils, crockery etc in a valuation of household goods? If I

    could
    >sell them easily, then I have my valuation for such items. However, many of
    >these items one could only give away, or sell for a paltry sum, so it's
    >hardly worth including them as valued items.
    >
    >What would/should an Executor do in practice where such sundry items remain
    >unsold. Anyone with experience care to comment?

    I got an antiques/house clearance bloke in and asked him to put everything
    in his quote, including the car, and zero value stuff like 3 piece suite
    with illegal foam etc. At least it saves you itemising the stuff yourself.
    Otherwise I think you can just group them under their prescribed headings.
    The value they're after is what you would get if you sold it responsibly
    today which, in most cases, amounts to bugger all (or less).
    I don't imagine The Revenue waste too much time on anything that doesn't
    have a paper trail. Anything decent probably won't have belonged to the
    deceased anyway, will it?
     
    stuart noble, Apr 28, 2004
    #2
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  3. ClippertyClop

    Terry Harper Guest

    "ClippertyClop" <> wrote in message
    news:c6p04u$ei185$-berlin.de...
    > I've been appointed an Executor in a relative's Will. The whole estate

    value
    > amounts to well over the threshold for Inheritance Tax. I don't

    particularly
    > wish to get involved with solicitors or valuers if possible, other than
    > property/land valuation, where I'll rely on an expert.
    >
    > In IHT 200 is where amongst so many things, you have to put a value on
    > "Household and Personal goods". The point is, within this section, is one
    > expected to include
    > such household sundries as clothing, carpets, cupboards, fittings, beds,
    > cooking utensils, crockery etc in a valuation of household goods? If I

    could
    > sell them easily, then I have my valuation for such items. However, many

    of
    > these items one could only give away, or sell for a paltry sum, so it's
    > hardly worth including them as valued items.
    >
    > What would/should an Executor do in practice where such sundry items

    remain
    > unsold. Anyone with experience care to comment?


    Are you having to clear a house? If so, what the house clearance people give
    you for what they take away. Valuable stuff can always be given to a
    charity, in which case it is exempt from IHT.
    --
    Terry Harper
    http://www.terry.harper.btinternet.co.uk/
     
    Terry Harper, Apr 28, 2004
    #3
  4. "Terry Harper" <> wrote in message
    news:c6p5lc$pp5$...
    > "ClippertyClop" <> wrote in message
    > news:c6p04u$ei185$-berlin.de...
    > > I've been appointed an Executor in a relative's Will. The whole estate

    > value
    > > amounts to well over the threshold for Inheritance Tax. I don't

    > particularly
    > > wish to get involved with solicitors or valuers if possible, other than
    > > property/land valuation, where I'll rely on an expert.
    > >
    > > In IHT 200 is where amongst so many things, you have to put a value on
    > > "Household and Personal goods". The point is, within this section, is

    one
    > > expected to include
    > > such household sundries as clothing, carpets, cupboards, fittings, beds,
    > > cooking utensils, crockery etc in a valuation of household goods? If I

    > could
    > > sell them easily, then I have my valuation for such items. However, many

    > of
    > > these items one could only give away, or sell for a paltry sum, so it's
    > > hardly worth including them as valued items.
    > >
    > > What would/should an Executor do in practice where such sundry items

    > remain
    > > unsold. Anyone with experience care to comment?

    >
    > Are you having to clear a house? If so, what the house clearance people

    give
    > you for what they take away. Valuable stuff can always be given to a
    > charity, in which case it is exempt from IHT.


    Valuable stuff is only exempt if the deceased gave those items to charity,
    ie before she died. It's too late now.

    CC
     
    ClippertyClop, Apr 28, 2004
    #4
  5. ClippertyClop

    DP Guest

    Yes, you should include everything. When the total runs into hundreds of
    thousands, IR are not going to get involved with the small things, as long
    as you're sensible. If in doubt you should get a third party to value the
    items. For effects like you mention, you could get a "house contents"
    auctioneer (or someone who deals with this sort of stuff) to estimate the
    value, or you could just put in £500. If in doubt, contact IR and ask for
    help.

    If there are any items that beneficiaries particularly like, pass these on
    to them, agreeing and recording values. As for selling, you would probably
    get the best price for major items (TV, video, etc) by putting an advert in
    your local paper. Other items can be sold via an auctioneer with clothing
    going perhaps to a favourite charity shop. In practice many people want to
    avoid the distress of dragging out the selling process and get just one
    person to take everything away.

    If some items remain unsold, a charity shop should help out. For anything
    left, your local council will help to dispose of "bulky items" (like a
    broken fridge).

    It is a good idea to clear most items out of the house before putting it
    onto the market, although it is worth leaving carpets, curtains, a bed and
    table or two if it adds to the appearance of the property.

    > In IHT 200 is where amongst so many things, you have to put a value on
    > "Household and Personal goods". The point is, within this section, is one
    > expected to include
    > such household sundries as clothing, carpets, cupboards, fittings, beds,
    > cooking utensils, crockery etc in a valuation of household goods? If I

    could
    > sell them easily, then I have my valuation for such items. However, many

    of
    > these items one could only give away, or sell for a paltry sum, so it's
    > hardly worth including them as valued items.
    >
    > What would/should an Executor do in practice where such sundry items

    remain
    > unsold. Anyone with experience care to comment?

    ___
    www.butwhat.com
     
    DP, Apr 29, 2004
    #5
  6. ClippertyClop

    john boyle Guest

    In message <c6pbtf$et3jh$-berlin.de>, ClippertyClop
    <> writes
    >Valuable stuff is only exempt if the deceased gave those items to charity,
    >ie before she died. It's too late now.


    Not if a Deed of Variation can be arranged.
    --
    John Boyle
     
    john boyle, Apr 30, 2004
    #6
  7. ClippertyClop

    stuart noble Guest

    john boyle wrote in message ...
    >In message <c6pbtf$et3jh$-berlin.de>, ClippertyClop
    ><> writes
    >>Valuable stuff is only exempt if the deceased gave those items to charity,
    >>ie before she died. It's too late now.

    >
    >Not if a Deed of Variation can be arranged.

    Just been quoted £425+VAT to do that by a local solicitor, and that's
    "providing it's simple". Parasites!
     
    stuart noble, Apr 30, 2004
    #7
  8. ClippertyClop

    john boyle Guest

    In message <c6t2r6$fcrqu$-berlin.de>, stuart noble
    <stuart'> writes
    >
    >john boyle wrote in message ...
    >>In message <c6pbtf$et3jh$-berlin.de>, ClippertyClop
    >><> writes
    >>>Valuable stuff is only exempt if the deceased gave those items to charity,
    >>>ie before she died. It's too late now.

    >>
    >>Not if a Deed of Variation can be arranged.

    >Just been quoted £425+VAT to do that by a local solicitor, and that's
    >"providing it's simple". Parasites!


    Oh, its a simple job then is it?
    --
    John Boyle
     
    john boyle, Apr 30, 2004
    #8
  9. ClippertyClop

    derek Guest

    On Wed, 28 Apr 2004 20:54:04 +0000 (UTC), "Terry Harper"
    <> wrote:

    >> Anyone with experience care to comment?

    >
    >Are you having to clear a house? If so, what the house clearance people give
    >you for what they take away. Valuable stuff can always be given to a
    >charity, in which case it is exempt from IHT.



    IME Those house clearance people are largely fiction. There are pages
    of them in the yellow pages, but when you phone them up they don't
    come, or they come and say they'll take one or two items out of a
    houseful, in our case a drop leaf hall table with turned wooden legs.
    They refuse even modern bedroom furniture on;y 3-4 years old, so
    1950's utility stuff stands no chance. Soft furniture may have the
    wrong kind of foam, and gas appliances are another No-No.

    So the OP should remember there'll be a cost associated with disposing
    of all the tat.

    DG
     
    derek, May 2, 2004
    #9
  10. ClippertyClop

    tim Guest

    "derek" <> wrote in message
    news:...
    > On Wed, 28 Apr 2004 20:54:04 +0000 (UTC), "Terry Harper"
    > <> wrote:
    >
    > >> Anyone with experience care to comment?

    > >
    > >Are you having to clear a house? If so, what the house clearance people

    give
    > >you for what they take away. Valuable stuff can always be given to a
    > >charity, in which case it is exempt from IHT.

    >
    >
    > IME Those house clearance people are largely fiction.


    If you've decided that the items are of zero value then your
    local authoriuty should be able to put you in touch with a
    charity that will take most stuff away for re-use.

    We got rid of all my dad's rubbish furniture this way.

    tim


    There are pages
    > of them in the yellow pages, but when you phone them up they don't
    > come, or they come and say they'll take one or two items out of a
    > houseful, in our case a drop leaf hall table with turned wooden legs.
    > They refuse even modern bedroom furniture on;y 3-4 years old, so
    > 1950's utility stuff stands no chance. Soft furniture may have the
    > wrong kind of foam, and gas appliances are another No-No.
    >
    > So the OP should remember there'll be a cost associated with disposing
    > of all the tat.
    >
    > DG
     
    tim, May 2, 2004
    #10
  11. derek wrote:

    > IME Those house clearance people are largely fiction. There are pages
    > of them in the yellow pages, but when you phone them up they don't
    > come, or they come and say they'll take one or two items out of a
    > houseful, in our case a drop leaf hall table with turned wooden legs.
    > They refuse even modern bedroom furniture on;y 3-4 years old, so
    > 1950's utility stuff stands no chance. Soft furniture may have the
    > wrong kind of foam, and gas appliances are another No-No.
    >
    > So the OP should remember there'll be a cost associated with disposing
    > of all the tat.


    There you go, then. If half the stuff is worth something, in the sense
    that someone is prepared to come for it, cart it away themselves, and
    give you money for it, but the other half isn't, and you'd have to pay
    them (or someone else) to take it away, and the cost of the 2nd half
    matches (or exceeds) the payout of the first, then for probate purposes
    the value of the contents as a whole will be zero (or negative).
     
    Ronald Raygun, May 2, 2004
    #11
  12. "ClippertyClop" <> wrote in message
    news:c6p04u$ei185$-berlin.de...
    > I've been appointed an Executor in a relative's Will. The whole estate

    value
    > amounts to well over the threshold for Inheritance Tax. I don't

    particularly
    > wish to get involved with solicitors or valuers if possible, other than
    > property/land valuation, where I'll rely on an expert.
    >
    > In IHT 200 is where amongst so many things, you have to put a value on
    > "Household and Personal goods". The point is, within this section, is one
    > expected to include
    > such household sundries as clothing, carpets, cupboards, fittings, beds,
    > cooking utensils, crockery etc in a valuation of household goods? If I

    could
    > sell them easily, then I have my valuation for such items. However, many

    of
    > these items one could only give away, or sell for a paltry sum, so it's
    > hardly worth including them as valued items.
    >
    > What would/should an Executor do in practice where such sundry items

    remain
    > unsold. Anyone with experience care to comment?
    >
    > CC

    Thanks for all replies/suggestions.

    CC
     
    ClippertyClop, May 5, 2004
    #12
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