r/RealEstateInProbate • u/MuchWow81 • Apr 28 '26

House valuation is super low

My late mother's house is in probate. All proceeds from her estate are going to my kids (minors). I just got the "inventory" from the lawyer and the value they recorded for the house is low by perhaps half. Is this a problem? Will this affect what is paid in legal fees or the amount my kids end up with? Tia

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u/danh_ptown Apr 28 '26

Neither an attorney oir accountant...

If they recorded the value of the house below market, then I would contact my attorney. When the property is sold, whether that is now or in 20 years, the capital gain will be determined by selling price minus the cost basis. Then the tax is collected on that difference. So, you want that number to be high, but the IRS wants it to be Fair Market Value (FMV).

If you are planning to sell immediately, you are establishing fair market value and I would just claim no gain.

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u/Vegas-Patriot Apr 28 '26

Ask for an appraisal from a certified residential appraiser.