Determine the value of an inheritance by applying the appropriate instructions in
SI 00810.020, SI 00830.550, SI 00835.020B.6, SI 00835.310C & .310E, SI 01110.400, SI 01120.215 and SI 01140ff depending on what the inheritance is e.g. real property. Additional
consideration may then be given to property that is part of an unprobated estate.
State law allows the heir to sell the ownership interest, but prior to probate the
value of that interest may be effected. This is because until the real estate is released
from the custody of the law, it may be sold under order of the probate court to satisfy
the obligations of the estate. The value may depend on whether the estate has little
or no debt, is heavily indebted, or the indebtedness is unknown.
Prior to probate the heir has only an equitable ownership and if there are other heirs
it is an undivided fractional interest in the whole property. While an undivided interest
can be sold or disposed of without the permission of the other owners, this type of
ownership may impact the value.
To determine a value less than what would be established using the general procedures
in the references shown in the first paragraph of section B, there must be supporting
Examples of evidence that would support a reduced value:
Verification from the probate court that the estate has debts of a specific amount.
A knowledgeable source states that the value of the property is reduced to a specific
amount because the estate debts are unknown, or the ownership interest is undivided
and there are other heirs.
Once the probate is completed the value of the property would be established under
regular procedures in SI 00810ff and SI 01110ff.