There are probate valuations, and helpful probate valuations. Especially when it comes to farms and land.

As professional valuers, Henry Adams receive instructions every day to undertake probate valuations and we’re conscious these are sad and challenging times. In the case of land (and especially complex farms) very careful thought is required and there is a difference between a probate valuation, and a helpful probate valuation.

Every component of the farm might have a different valuation approach, tax treatment and tax relief opportunity. For example:

In the case of agricultural land, some fields might be fairly typical and qualify for 100% ‘Agricultural Property Relief (APR)’. Whereas a fields adjoining a large house or town outskirts might be more valuable with limited relief available.

Woodland is complicated too. A forest used for commercial purposes might qualify for 100% ‘Business Property Relief (BPR)’, but APR might be applicable it’s grazed woodland.

A farmhouse might be ‘character appropriate’ and partially or wholly qualify for APR, but the treatment of cottages might vary according the occupant and whether they’re farm workers.

Finally, farm buildings used by the business might qualify for relief, but not those which are leased.

There are so many opportunities, reliefs and structures available, it is common for tax advisors to apply for multiple reliefs and/or put assets into trust. To assist them, they would much prepare a breakdown of values for each component of the farm, rather than to be presented with one figure for the whole combined.

In undertaking a Red Book Probate Valuation, always try to engage with the tax or legal advisor at the same time and see whether they have any specific requirements for the probate valuation.

It is always strongly recommended to plan tax affairs well in advance and not wait until probate. Henry Adams regularly undertake valuations to assist in tax and estate planning.