If you are the owner of multiple assets, especially of substantial financial worth, then they must be valued to ensure the protection and planning of your estate.

It’s an important responsibility in the probate process to understand the value of your estate in case anything bad happens.

Understand your net worth

Your net worth draws on the amount of which your assets exceed your liabilities. This provides an insight into your financial situation and gives an overview of what you own and what you owe.

Your assets are anything of value that you can sell for cash. These include retirement funds, investments, and property. Your liabilities represent your debts, loans, and mortgages. The difference between both your assets and liabilities is your net worth.

Insurance policies

Asset valuation is required for insurance policies, such as watch insurance, to gain an accurate understanding of the current market value. This is to ensure the correct cover is provided by the insurance company for the contents you require.

Your assets should be valued every three to five years, and you must have up-to-date insurance valuations for these, too. Replacement costs can vary greatly, so it’s important to ensure all information surrounding your assets is up to date.

Estate planning

Ensuring your assets are properly valued can allow for a smooth and orderly transition and distribution of the estate to your family members.

Valuing the estate is crucial when making a probate application. It also determines whether inheritance tax needs to be paid, as this is dependent on the value of the estate.

Plus, your assets need to be valued so Capital Gains Tax can be calculated. This is to identify whether any assets have increased in value following your death.

Deciding to sell

You might be wanting a valuation of your property to understand its monetary value. This information can be beneficial when selling your property, taking out insurance or re-mortgaging.

Ensuring your property is on the market for the right price is imperative. Trying to sell your house for more than it’s worth could potentially leave you without any interested buyers. Similarly, undervaluing your home could leave you out of pocket.

As property prices are changing all the time, it’s important to get an up-to-date valuation every couple of years and especially before you put your house on the market.

Additionally, if you are looking to sell your property, it could be worth having a clear out of your belongings and deciding what you can sell for some extra cash.

If you have antiques lying around, you may want to seek a professional valuation to get an estimate of your items’ worth.