Valuation of Family Home for IHT Purposes

[Claudius]

I am my two siblings own tbe family property with my mother. She is now terminally ill and I am trying to anticipate what will need to be done after the sad day comes.
She has no will and her only asset is her interest in tbe property plus a little cash.

In simple terms, do we need to get a valuation, if not for probate, then for IHT?

If so, I seem to remember once reading about a rule whereby if a deceased shared ownership of a property with adult descendants who still occupy tbe same, a 10% reduction in any value derived can be applied - for IHT purposes.Can I ask whether this is correct?

If so, what is this rule called and how and where do I invoke it for IHT purposes?

Thank you

Peter

[bd6759]

It is a simple valuation principle that a fraction of a property is not worth the same fraction of the value of the whole. Valuations are considered at market value: that is the amount that another person would pay for the part of the asset being valued. Given the lack of control, a minority interest is usually discounted by between 10-15 percentage points.

A formal valuation would only be needed if the total value of the estate exceeded, or was close to, the NRB.

[Claudius]

Many thanks for your kind reply. I fear my original outline was less than clear.
My mother has since passed away and her interest in the family property was 50%. The three offspring own the balance of 16.66% each.
Her share gross is easiy above the basic £325k.
There is no will. For IHT purposes, how to we invoke the lack of control regulation to discount by whatever amount? And, how to invoke tbe additional £125k allowance available 2018/19 for estates passing to immediate offspring?

Apologies for not making this more clear but perhaps the sad loss has added a clearer focus to this matter.

Thank you.

[bd6759]

There is no regulation as such. It is just accepted that a fraction of a whole asset is not worth the same fraction of the value.

You should commission a chartered surveyor who is familiar with such matters to give you a valuation.