Legal Question in Wills and Trusts in Indiana

Re: Who determines the value of land or house in an estate?

The person designated as the personal representative in the will or the person appointed by the court as the personal representative will be in charge of valuing the property. If the entire family (that is the group of people inheriting) are in agreement as to values, then the tax authorities will usually accept these values.

Important exceptions occur with real estate, especially farm land. If the land will continue to be used as farm land, then the IRS will accept what is called the special use value (as determined by an appraiser under the IRS guidelines) for land to be used as farm land. If it is to be sold, generally the sales price determines the value. Sometimes you need an appraisal to determine what to sell it for.

Indiana will not necessarily accept the use valuation for farm land for inheritance tax purposes but would accept a value based on what farm land is sold for locally where it is intended to be farm land. Of course, if you sell for development, then that will be the value.

Generally vehicles are valued at blue book or based on an opinion by a local dealer.

POD accounts are part of the estate for federal estate tax purposes and state inheritance tax purposes, but not part of the probate estate (which is property owned solely by the deceased person and which is subject to the claims of her creditors). So, you could be taxed on the money from the POD CD because it is added to your 1/5 share of the probate estate.