Indiana Code - Probate - Title 29, Section 29-1-17-10

Distribution in kind; partition sale; election of distributee; annuity;
good faith purchasers or lenders

Sec. 10. (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.

Last modified: May 27, 2006