Do I need a house valuation for probate? What you to know about deceased estates

Becoming the executor for a deceased estate can be daunting. While you’re dealing with your grief for the departed, you’re also taking responsibility for the will they left behind. Understanding some of the requirements and responsibilities involved when dealing with a deceased estate can help to ensure that everybody is well looked after, financially and emotionally.

What is probate? 

In Australia, probate is a legal process that confirms:

1. A person has passed away (the deceased)
2. The deceased left a valid Will
3. The executor(s) named in the Will have the authority to administer and finalise the deceased’s estate

After following this process, the executor will be issued a Grant of Probate from the Supreme Court of their state or territory. While the Will itself may grant an executor the authority to distribute the deceased’s property and assets, this Grant of Probate certifies the validity of the Will, simplifying the process of administering the deceased estate and helping to minimise the risk of disputes.

Depending on the Will and the assets in the deceased estate, a Grant of Probate may not always be required – sometimes certified copies of the death certificate and the will may be enough. For example, if the deceased and their partner held joint ownership of a property, the property title should automatically transfer to the other partner. However, probate is likely to be required when dealing with banks and the Australian Taxation Office (ATO) as part of a deceased estate, such as when the deceased left behind a property with a mortgage.

Why is a valuation required for probate?

You may already have an idea of how much the deceased’s home is worth, based on free online property reports or appraisals from real estate agents. Unfortunately, these may not be enough to accurately determine the value of the property for legal purposes, such as when dividing ownership between beneficiaries, or working out tax on the property.

A professional property valuer is registered with the state or territory government and endorsed by professional valuing industry bodies. This, combined with their training and experience, means that a valuer can be legally responsible for the accuracy of their valuation. This in turn allows the valuation to be used for legal purposes, such as allowing a property to secure a mortgage.

As applying for a Grant of Probate is a legal process, a formal valuation may be required to accurately ascertain the property’s value for the purpose of executing the will of the deceased. Even if a formal valuation isn’t a requirement for probate in your state or territory, it may still be worth considering to help settle any disputes, such as when different beneficiaries have different estimates of how much a house is really worth.

How do I apply for a valuation for probate?

Applying for a Grant of Probate will likely require the death certificate, the will, and information regarding the deceased’s assets and liabilities. This may include an accurate valuation of the deceased’s real estate.

Organising a valuation can be as simple as contacting a valuer and providing some basic information about the property and the situation. They can then provide a quote for their valuation services.

Because applying for a Grant of Probate is a legal process, you may want a legal professional, such as a solicitor or conveyancer, to be involved to help ensure that all the steps involved can be completed accurately and without surprises.

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