75-3-906 - Distribution in kind -- Valuation -- Method.
75-3-906. Distribution in kind -- Valuation -- Method.
(1) Unless a contrary intention is indicated by the will, the distributable assets of adecedent's estate shall be distributed in kind to the extent possible through application of thefollowing provisions:
(a) A specific devisee is entitled to distribution of the thing devised to him, and a spouseor child who has selected particular assets of an estate as provided in Section 75-2-403 shallreceive the items selected.
(b) Any homestead or family allowance or devise payable in money may be satisfied byvalue in kind provided:
(i) the person entitled to the payment has not demanded payment in cash;
(ii) the property distributed in kind is valued at fair market value as of the date of itsdistribution; and
(iii) no residuary devisee has requested that the asset in question remain a part of theresidue of the estate.
(c) For the purpose of valuation under Subsection (1)(b) above, securities regularly tradedon recognized exchanges, if distributed in kind, are valued at the price for the last sale of likesecurities traded on the business day prior to distribution, or if there was no sale on that day, atthe median between amounts bid and offered at the close of that day. Assets consisting of sumsowed the decedent or the estate by solvent debtors as to which there is no known dispute ordefense are valued at the sum due with accrued interest or discounted to the date of distribution.For assets which do not have readily ascertainable values, a valuation as of a date not more than30 days prior to the date of distribution, if otherwise reasonable, controls. For purposes offacilitating distribution, the personal representative may ascertain the value of the assets as of thetime of the proposed distribution in any reasonable way, including the employment of qualifiedappraisers, even if the assets may have been previously appraised.
(d) The residuary estate shall be distributed in kind if there is no objection to the proposeddistribution and it is practicable to distribute undivided interests. In other cases, residuary propertymay be converted into cash for distribution.
(2) After the probable charges against the estate are known, the personal representativemay mail or deliver a proposal for distribution to all persons who have a right to object to theproposed distribution. The right of any distributee to object to the proposed distribution on thebasis of the kind or value of asset he is to receive, if not waived earlier in writing, terminates if hefails to object in writing received by the personal representative within 30 days after mailing ordelivery of the proposal.
Amended by Chapter 39, 1998 General Session