[Direct answer]The core principle is to negotiate first and then evaluate. According to Article 1156 of the Civil Code of the People's Republic of China, the division of inheritance should be conducive to production and living needs and not impair the effectiveness of the inheritance; for the inheritance that is not suitable for division, it can be handled by methods such as discounting, appropriate compensation, or joint ownership. There are usually three ways to determine the price: the heirs determine the price by consensus; if no consensus can be reached, they apply to a professional evaluation agency to appraise the property, equity, etc.; or they refer to the market price of similar properties. The court generally uses the appraised value or the value recognized by both parties as the basis for calculating the discount or compensation.

I. Problem Background and Typical Scenarios

The inherited property cannot be divided equally between the heirs, and shares, vehicles, and antiques cannot be split either. Therefore, it has become a common solution for one person to acquire the property and pay the corresponding compensation to the others. However, when it comes to "how much is this house worth", disputes often arise: one party values it at the purchase price, another at the current market price, and some insist on using the expected demolition compensation price. The price difference of tens of thousands or even hundreds of thousands of yuan directly determines the amount of compensation. The valuation of the inheritance may seem like a technical issue, but it is actually the core interest of the inheritance dispute.

II. Key points of contention

First, which time point should be used to determine the valuation price. Second, how to initiate an appraisal if no agreement can be reached, and who should bear the appraisal costs. Third, which assets are suitable for discounted valuation and which are suitable for joint ownership. Fourth, the connection between the valuation price and debt repayment, and the reserved share.

III. Professional analysis by Henglue Lawyers

First, the order of choosing the valuation method: Preferentially, the heirs should negotiate. The price agreed upon in the negotiation is binding on all parties, and the court generally approves of it. If no agreement can be reached, the court may appoint an appraisal institution to determine the value, or refer to the market transaction price of similar properties or shares. For assets with publicly traded market prices, such as listed company shares, the valuation may be calculated based on the corresponding market price at the time. Second, grasping the timing of valuation: Generally, the value at the time of division serves as the reference. However, in special circumstances such as the expropriation of real estate or the disposal of assets, the value may need to be determined at corresponding junctures. Different valuation timings may result in significant price differences, so it is crucial to determine the fixed valuation time and basis accurately. Third, handling properties that are not suitable for division: Real estate may be awarded to one party for compensation, or declared as jointly owned; vehicles and equipment may be discounted; and share division should consider the preemptive rights of other shareholders and the corporate personality of the company, and necessary procedures should be followed first. When handling inheritance cases, Henglue often recommends first clarifying the scope and ownership of the estate, and then choosing the valuation method that best balances the interests of all parties. Fourth, linking valuation with other inheritance rules: Discounted compensation should be based on the net value after deducting the decedent's debts and taxes, and should also take into account the care for heirs with special living difficulties and lack of labor capacity, as well as the reserved share system. In Beijing court practice, for assets with unresolved disputes after negotiation, the court often appraises or evaluates the value through judicial appraisal or evaluation, with the evaluation fees typically prepaid by the claimant and ultimately shared according to the inheritance shares or the losing party's responsibility. Once the price is determined clearly, subsequent compensation payments and property transfer will have an enforceable basis.

IV. Practical suggestions and legal basis

The first step is to attempt to negotiate a price and document it in writing to reduce appraisal costs. The second step is, if negotiation fails, to apply to a qualified appraisal institution for a valuation and specify the reference date for the appraisal. The third step is to choose between depreciation, compensation, or joint ownership based on the type of property, and to pay attention to the preemptive rights of other shareholders when dividing equity. The fourth step is to deduct debts and taxes from the valuation and take into account the reserved shares and the needs of difficult-to-inherit heirs. The main legal basis: Articles 113, 143, 156, and 159 of the Civil Code of the People's Republic of China (effective January 1, 2021). Specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

The valuation of inheritance can be summarized in three points: first, negotiate; second, evaluate; and third, the evaluation reference date determines the price. For assets that are not easily divisible, proceed with discounts, compensation, or joint ownership. When valuing the inheritance, deduct debts and take into account the mandatory reserved share. For matters involving the division and valuation of inheritance, you can seek assistance through legal channels.\nInheritance of property and division of family assetsFor services involving a comprehensive solution, including property valuation, you can combine it with other services to meet your needs.Real estate transactions and construction projectsFor cases involving the division of equity, you can refer to the following document for reference:Business and contract disputes in enterprisesFor any questions or difficulties, please feel free to consult us.Special servicesTeam.

VI. Frequently Asked Questions

Q1: Who sets the price of the estate?

It shall be determined by the heirs through consultation in priority, and the price agreed upon through consultation shall generally be recognized by the court. If no agreement can be reached through consultation, the parties may apply to an appraisal institution for a valuation or determine the price by referring to the market price of similar properties.

Q2: What is the price of the house based on?

Generally, the valuation is based on the value at the time of division; where expropriation or disposition of the property is involved, the valuation may be determined according to the corresponding milestones. The price differences between different valuation dates can be quite significant, so this should be clarified before the valuation is conducted.

Q3: Who will pay the appraisal fee?

Generally, the party applying for the evaluation will advance the payment first, and the court will eventually share the cost according to the inheritance share or the losing party's situation, subject to the final ruling. If there are objections to the evaluation conclusion, the party may apply for a supplementary evaluation or a re-appraisal, but must provide sufficient reasons and corresponding evidence.

Q4: How is the equity value divided and priced?

It is necessary to evaluate the price and pay attention to the provisions of the Company Law regarding the preemptive rights of other shareholders to purchase shares; where the company's operations are involved, it can also be negotiated that other shareholders will acquire the shares and then pay the consideration to the heirs.

Q5: Should we deduct the debt when valuing the assets?

Yes. When dividing the inheritance, the taxes and debts that the decedent should pay according to law should be paid off. The valuation should be based on the net value after deducting the relevant debts and taxes, and take into account the system of mandatory reserved shares. If there are both creditor's rights and debts in the inheritance, the creditor's rights and debts should be cleared first, and then the net value should be distributed among the heirs.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials, to avoid missing the statutory time limit. →Legal services for inheritance·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in a timely manner.