Determining the value of an individual's inheritance prior to the settlement of the
estate may be difficult since the estate may need to liquidate the asset and/or use
a portion of the heir's interest to cover the estate's expenses and obligations, which
must be paid prior to distribution of the decedent's estate to the decedent's heirs.
If the estate has little or no debt, the heir's interest may be easily determinable
at the individual's date of death. But if the estate is heavily indebted or the amount
of indebtedness is unknown, it may be impossible to determine the value of the heir's
interest until the date the estate is closed. A contested will or a dispute over heirship
may also make it difficult to value the heir's interest until the dispute is settled
or the estate is closed.
Per SI 01120.215A.1. an inheritance cannot be considered a resource until the month following the month
in which it meets the definition of income.
For questions relating to the valuation of an inheritance, or where the heir alleges
disclaiming or renouncing all or any portion of the inheritance, submit for a legal
opinion pursuant to the procedures outlined in GN 01010.815.