If you are applying for probate, you need to make sure that you include all assets when you value the estate.
But if the person who died owned a business, the valuation process can be complicated.
The first step is to identify the business structure, as this will impact how the assets are treated.
Sole traders
If the deceased operated as a sole trader, the business assets will be treated as personal assets and included within the estate.
Partnerships
With a partnership, there should be a partnership agreement with details of each partner’s share of the business, as well as what should happen if a partner dies.
The partnership assets will need to be valued to work out what to include in the estate along with the deceased partner’s capital and current account.
Limited companies
Shares in a limited company which the deceased held will be included in the estate, regardless of whether they are shares in a private or public limited company.
Valuing the shares in a private limited company can often be complex, we can assist with this if required.
How can an accountant help?
At Rotherham Taylor, we are licensed to provide probate services to guide you through this process.
Once all the assets have been valued, you will need to calculate whether Inheritance Tax is due, before you can obtain a grant of probate and liquidate the estate.
As accountants, we can make sure that you meet your tax obligations, so you don’t have to worry.
