Assessor Inheritance Tax

Inheritance Tax  


The Indiana Legislature repealed Indiana’s inheritance tax for persons dying after December 31, 2012. For those taxpayers, Consents to Transfer (Form IH-14) or Notices of Intended Transfer of Checking Account (Form IH-19) are no longer required because of this repeal. For questions regarding deaths prior to December 31, 2012, please view the Inheritance Tax FAQ.

Please see the Indiana Department of Revenue’s letter regarding the elimination of the Inheritance Tax. Access Inheritance Tax forms from the Indiana State Department of Revenue.

 

 

What is Probate Court?  Probate is the court procedure by which a decedent’s property is administered. Whether a person dies with or without a will, any assets in the decedent’s name alone are probate assets and must go through the probate process. The probate process requires a person to present the decedent’s will to the court. After the court determines that the decedent’s will is valid, the court appoints a named personal representative to administer the assets of the estate. The personal representative is responsible for collecting the decedent’s assets to his/her heirs.

If the decedent dies without a will, the court will appoint a personal representative.The decedent’s assets will be distributed 1st to his/her spouse, children or grandchildren, then the assets will be distributed to his/her parents, brothers, sisters and any nieces and nephews who are children of his/her deceased brothers and sisters.

 

Must I go through the probate process?  Indiana law allows an estate with less than $50,000 of assets to bypass the probate process. A person may prepare a Small Estate Affidavit which states the following:
– 45 days have elapsed since the decedent’s death
– The value of the gross probate estate does not exceed $50,000
– No application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction
– The claimant is entitled to payment or delivery of the property

The claimant may present this notarized affidavit to any institution or person holding property of the decedent, and that institution or person shall deliver the property to the claimant.

 

Must I complete a tax return?  Indiana law requires each estate to file 1 Indiana Inheritance Tax Return, Form IH-6, on behalf of all of the beneficiaries, if the exemptions due not exceed the gross estate.

Form IH-6 is due 1 year from the date of the death of the decedent and filed with the probate court of the county in which the decedent resided. Form IH-6 may be obtained from the county Assessor’s Office in which the decedent resided.

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