Probate value

[janlee]

Probate value is £175,000 what does this mean pl? Thanks

[Pezza54]

The gross value for probate is the total value of all assets the deceased owned at the date of their death. This sum includes 50% of the value of property owned as joint tenants and 50% of the value of joint bank accounts (including any interest). Cars, watches, art collections etc that belonged to the deceased should also be included

The net probate value is the gross value less amount owed by the deceased at the time of death. Debts such as unpaid bills, loans, credit card balance, outstanding mortgages (50% if joint mortgage) should be deducted

[PallasAthena]

And there are rules for how you value personal effects and jewellery etc. For probate the value is what they could be sold for as second hand items. Which is usually significantly less the insurance value, which is the cost to replace them as new.

The significance of probate value is that it is the value that Inheritance Tax is based on.

[Pezza54]

IHT spousal exemption applies to assets jointly owned by married couples and those in civil partnerships