How Forensic Accounting Is Used to Value Assets in Wills and Trusts
May 13, 2026
Accurate asset valuation is critical when creating or administering a will or trust. While there are several methods that can help you do so, forensic accounting is a specialized form of accounting that can accurately assess the value of your finances and assets, uncover hidden resources, and promote transparency.
Whether you’re creating an estate plan or need to manage an existing trust, forensic accounting can help you protect your interests and the legacy you wish to leave behind.
At Iwanyshyn & Associates, located in Allison Park and Conway, Pennsylvania, our attorneys have years of experience handling estate matters and can walk you through how forensic accounting works and why you should consider using it for asset valuation in your will or trust. Contact us today to schedule a consultation.
What Is Forensic Accounting?
Forensic accounting is a specialized area of accounting that involves financial investigation, analysis, and the interpretation of complicated financial data. While typically seen in litigation or fraud detection, forensic accounting is equally valuable in estate planning and administration to identify irregularities, hidden assets, or errors in financial records.
When applied specifically to wills and trusts, forensic accountants can evaluate the entire financial picture of an estate. This includes identifying all assets, assessing their value, and revealing anything that might have been overlooked, misreported, or intentionally obscured. Forensic accountants can help promote an equitable distribution of wealth in accordance with the terms of your will or trust by providing clarity on the value and scope of the assets included.
The Importance of Asset Valuation in Wills and Trusts
In Pennsylvania, accurate asset valuation is a central aspect of administering wills and trusts. Without a clear understanding of the estate’s value, it can be difficult to properly distribute assets, calculate taxes, or make sure named beneficiaries receive their rightful inheritance.
Pennsylvania law requires estate executors to file an inventory of the decedent’s property and provide fair market values for these assets. This is not only a legal obligation; it's an opportunity to make sure every item in the estate is properly accounted for. Forensic accountants can help your estate meet these requirements, especially if your estate involves complex or nontraditional assets, such as investment properties, business interests, or digital assets.
How Does Forensic Accounting Work in Estate Contexts?
For wills and trusts, financial accounting involves conducting a detailed review of all your financial documents related to the estate. This includes bank statements, tax records, deeds, appraisals, business records, and investment portfolios. Once this review is complete, a financial accountant will typically take the following steps to evaluate your will or trust.
Identifying Assets
Sometimes, you may fail to disclose all your assets, whether intentionally or unintentionally. Forensic accountants can help locate hidden or forgotten assets, such as offshore accounts, underreported income, forgotten investments, or even cryptocurrency holdings. The goal is to make sure that all your assets are accurately included in the estate valuation, as required by Pennsylvania probate laws.
Valuing Non-Traditional or Complex Assets
While valuing cash or readily marketable securities is relatively straightforward, valuing items like real estate, business shares, or heirlooms is more complicated. Forensic accountants will work with appraisers and other experts to determine the fair market value of these assets. For instance, if the deceased owned a small business, a forensic accountant would assess its current and projected profitability to determine its worth.
Tracking Financial Irregularities
If there are suspicions of financial mismanagement, fraud, or undue influence in the handling of your assets, forensic accountants can investigate and provide expert testimony. This could be critical if disputes arise among your beneficiaries, as courts rely on transparent financial records to reach a decision.
Calculating Estate Tax and Other Financial Obligations
Pennsylvania imposes an inheritance tax on estates, which is typically paid by the beneficiaries. Forensic accountants can assist in calculating this tax by accurately determining the estate's total value and identifying deductions that could reduce the beneficiaries' tax burden. The goal is to comply with Pennsylvania’s tax laws while maximizing the estate's financial benefits.
Promoting Fair Distribution
Transparency in asset valuation is paramount to reassure beneficiaries that the will or trust is being administered fairly and in accordance with the decedent’s wishes. Forensic accounting helps to maintain clear communication throughout the distribution process, thereby reducing the risk of disputes among heirs.
When Should You Consider Forensic Accounting?
While standard accounting services may suffice for smaller, straightforward estates, forensic accounting is often necessary for estates with more complicated assets or holdings, such as:
Estates with high-value or diverse holdings, including businesses, investments, real estate, or intellectual property.
Circumstances where beneficiaries suspect hidden or undervalued assets.
Concerns about fraud, undue influence, or theft of estate property.
Trusts with detailed terms that require precise tracking of income and assets.
Situations in which someone intends to challenge a will or trust.
By involving a forensic accountant during estate planning or posthumous asset management, you can potentially avoid these challenges and promote a fair and transparent administration of the deceased's estate. If you need guidance on administering a will or trust, contact our Pennsylvania will and estate attorneys to determine whether forensic accounting can help.
Contact Our Experienced Estate Planning Attorneys in Pennsylvania Today
At Iwanyshyn & Associates, our attorneys are experienced in handling estate matters. We provide transparent estate guidance and can liaise with forensic accountants to support establishing or administering your estate. Our goal is to protect your interests and minimize the likelihood of disputes or unnecessary delays in asset distribution.
Whether you’re establishing a will, managing a trust, or addressing estate disputes, our attorneys can help you determine whether forensic accounting is right for your situation. With offices in Allison Park and Conway, Pennsylvania, we serve clients throughout Butler County, Pittsburgh, Wexford, Beaver, Gibsonia, Allegheny County, Beaver County, Washington County, Fayette County, Westmoreland County, and Armstrong County. Contact us today to schedule a consultation.