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Business valuation for probate

I need to value a business for a solicitor who is dealing with the estate of a deceased client of ours. The business was a partnership and was a small car dealer, with around 5 cars at a time, all second hand. It made a loss for as long as I can remember and no profits were taken by the partners.

Can anyone give me any ideas. Plus what sort of fee should I charge for this?

Thank you David

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Partnership

I believe that the figure you need is the capital account balance as at the date of death. The partnership will have ceased for tax purposes at that point anyway, unless they are succeeded by spouse, so draw up accounts in the usual manner to that date.

This is not a valuation of the business in the way a Ltd company share would be reflected, but a statement of his wealth in the partnership at that point.

The partnership deed should show how the capital account is to be paid out in the event of the death of a partner.

Marion

p.s. your fees would then be the usual level of fees for accounts preparation and the self assessment returns to date of  death  

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