N e w p o w e r s given to HMRC to p e n a l i s e executors w h e r e incorrect or inaccurate valuations on the deceased’s property are submitted even where the error was an honest mistake.Where a challenge was brought, the resulting re-valuation raised the house’s estimated value on average by £24,600.
Advice should always be given to clients when they are choosing executors. There are many common hidden pitfalls and problems that most clients would be horrified to think that they are burdening their executors with.
Appointing a professional executor can release the family from this potential liability and allow the professional to take responsibility for ensuring that an accurate valuation is obtained and will be accepted by HMRC. If HMRC do deem the valuation to be inaccurate (despite taking all precautions) then the professional will have to meet the additional cost to HMRC themselves, not from the estate of the deceased.
This also raises the issue of Members offering professional executor services. Under the revised Code of Practice you will now have to prove that you are suitably qualified or experienced to carry out these services however you may still wish to consider the personal liability that the new powers enforce on executors and source your work through a trusted probate provider such as SWW Trust Corporation instead.
