§ 29-1-17-10 — Distribution in kind; partition sale; election of distributee; annuity; good faith purchasers or lenders

Indiana § 29-1-17-10

• Jurisdiction: Indiana
• Art. 1: PROBATE CODE
• Ch. 17: Distribution and Discharge

Text

(a) When the estate is otherwise ready to be
distributed, it shall be distributed in kind to whatever extent it is
practicable, unless the terms of the will otherwise provide or unless a
partition sale is ordered. Except as provided in subsection (b) of this
section, any general legatee may elect to take the value of his legacy in
kind, and any distributee, who by the terms of the will is to receive land
or any other thing to be purchased by the personal representative, may,
if he notifies the personal representative before the thing is purchased,
elect to take the purchase price or property of the estate which the
personal representative would otherwise sell to obtain such purchase
price. Values for the purposes of such distributions in kind shall be
determined at a time not more than ten (10) days prior to the filing of
the petition for distribution, and if necessary to avoid substantial
inequities may be redetermined at any time prior to the order of
distribution.
(b) If the terms of the will direct the purchase of an annuity, the
person to whom the income thereof shall be directed to be paid shall
not have the right to elect to take the capital sum directed to be used for
such purchase in lieu of such annuity except to the extent that the will
expressly provides that an assignable annuity be purchased. Nothing
herein contained shall affect the rights of election by a surviving spouse
against a testamentary provision as provided in this article.
(c) If property distributed in kind or a security interest therein is
acquired in good faith for value by a purchaser from or lender to a
distributee who has received an instrument or deed of distribution or
release from the personal representative, or is so acquired in good faith
by a purchaser from or lender to a transferee of the distributee, the
purchaser or lender takes title free of any right of an interested person
in the estate and incurs no personal liability to the estate, or to any
interested person, whether or not the distribution was proper or
supported by court order or the authority of the personal representative
was terminated before execution of the instrument or deed. This
subsection protects a purchaser from or lender to a distributee who, as
personal representative, has executed a deed of distribution to himself,
and a purchaser from or lender to any other distributee or his
transferee. To be protected under this subsection, a purchaser or lender
need not inquire whether a personal representative acted properly in
making the distribution in kind, even if the personal representative and
the distributee are the same person, or whether the authority of the
personal representative had terminated before the distribution.
Formerly: Acts 1953, c.112, s.1710. As amended by Acts 1977,
P.L.297, SEC.4.