Can anyone recommend someone to value a right in an overage agreement for IHT purposes
The property is in East Yorkshire
Many thanks
Ian Hairsine Hairsines Will & Probate
Does anyone have a precedent clause they are willing to share to gift the benefit of an Overage Agreement in a Will please?
Many thanks
Kathy Melkerts
Kathy did anyone ever come up with anythng? I have a similar situation but I am unsure it is even possible.
Andrew
Kathy,
It seems to me that in essence it is a specific gift of a chose in action, the benefit of a contractual right. The key point would to accurately define the subject-matter no doubt by tracking the exact wording of the contract or perhaps just referring to the relevant clause. Might be an issue if the person entitled has to perform any obligations but the gift could be made conditional upon the legatee doing so. Might be an issue if the right is contractually non-assignable as it would likely still devolve on the PRs (with any obligation) but not be alienable in specie by the deceased in lifetime or by them, though the ultimate proceeds would surely form part of the estate. A gift of the realisation proceeds would seem feasible even in that case.
Ian,
An expert valuer would pride themselves on being able to value anything within his/her range of expertise wherever situated. The choice turns on the nature of the asset. Seems in your case a surveyor kind of person familiar with the type of development preferably in the area. A relevant professional body could surely assist. My clients tended to use one of the Big Factories who (say they can) do everything.
The basis of valuation is critical. The art of a tax valuation is predicting as closely as possible what HMRC will settle for at sensible cost in fees. Different from a commercial valuation where the seller/buyer wants to get it right (one value) and know, if different, what the other party might accept instead (possible second value). Valuing for tax is a stylised ritual dance with set traditional steps involving hypothetical willing sellers and buyers, possibly a special purchaser, the assumptions that an asset is saleable even though it isn’t but that the purchaser would inherit that problem, and that there may be a range of acceptable values. (The last does not apply to the VOA which is apparently able to value any property at its irrefutable only possible value plus or minus 0.001%).T S Eliot might have described the tax valuation process as “A periphrastic study in a worn-out poetical fashion, leaving one still with the intolerable wrestle with words and meanings”. Most enjoyable, if the client can afford it, and best handled by someone who has done it many times before and would get a 10 from Len if not from Craig.
Jack Harper
Many thanks Jack. I have drafted the Wills with the usual caveats. As I had no involvement with the overage agreements I have included them as specific gifts but advised the clients they should consult the drafter to ensure the gift can pass as envisaged.
Kathy
Thanks Jack
Wise words
Regards Ian