2015 Indiana Code TITLE 6. TAXATION ARTICLE 4.1. DEATH TAXES CHAPTER 5. DETERMINATION OF INHERITANCE TAX
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IC 6-4.1-5
Chapter 5. Determination of Inheritance Tax
IC 6-4.1-5-0.5
Applicability
Sec. 0.5. This chapter does not apply to a property interest
transferred by a decedent whose death occurs after December 31,
2012.
As added by P.L.157-2012, SEC.8. Amended by P.L.205-2013,
SEC.104.
IC 6-4.1-5-1
Tax rates; transfers to Classes A, B, and C transferees
Sec. 1. (a) For purposes of this section, the net taxable value of
property interests transferred by a decedent to a particular transferee
equals the remainder of:
(1) the total fair market value of the property interests
transferred by the decedent to the transferee under a taxable
transfer or transfers; minus
(2) the total amount of exemptions and deductions provided
under sections 9.1 through 15 of IC 6-4.1-3 with respect to the
property interests so transferred.
(b) The inheritance tax imposed on a decedent's transfer of
property interests to a particular Class A transferee is prescribed in
the following table:
NET TAXABLE VALUE OF
PROPERTY INTERESTS
TRANSFERRED
INHERITANCE TAX
$25,000 or less
1% of net taxable value
over $25,000 but not
over $50,000
$250, plus 2% of net
taxable value over $25,000
over $50,000 but not
over $200,000
$750, plus 3% of net taxable
value over $50,000
over $200,000 but not
over $300,000
$5,250, plus 4% of net
taxable value over $200,000
over $300,000 but not
over $500,000
$9,250, plus 5% of net
taxable value over $300,000
over $500,000 but not
over $700,000
$19,250, plus 6% of net
taxable value over $500,000
over $700,000 but not
over $1,000,000
$31,250, plus 7% of net
taxable value over $700,000
over $1,000,000 but not
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over $1,500,000
$52,250, plus 8% of net
taxable value over $1,000,000
over $1,500,000
$92,250, plus 10% of net
taxable value over $1,500,000
(c) The inheritance tax imposed on a decedent's transfer of
property interests to a particular Class B transferee is prescribed in
the following table:
NET TAXABLE VALUE OF
PROPERTY INTERESTS
TRANSFERRED
INHERITANCE TAX
$100,000 or less
7% of net taxable value
over $100,000 but not
over $500,000
$7,000, plus 10% of net
taxable value over $100,000
over $500,000 but not
over $1,000,000
$47,000, plus 12% of net
taxable value over $500,000
over $1,000,000
$107,000, plus 15% of net
tax a b l e v alue o v er
$1,000,000
(d) The inheritance tax imposed on a decedent's transfer of
property interests to a particular Class C transferee is prescribed in
the following table:
NET TAXABLE VALUE OF
PROPERTY INTERESTS
TRANSFERRED
INHERITANCE TAX
$100,000 or less
10% of net taxable value
over $100,000 but not
over $1,000,000
$10,000, plus 15% of net
taxable value over $100,000
over $1,000,000
$145,000, plus 20% of net
taxable value over $1,000,000
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.7; Acts 1979, P.L.75, SEC.10; Acts 1980, P.L.57,
SEC.12; P.L.87-1983, SEC.5.
IC 6-4.1-5-1.1
Repealed
(As added by P.L.157-2012, SEC.9. Repealed by P.L.205-2013,
SEC.105.)
IC 6-4.1-5-1.5
Fair market value; appraisal date
Sec. 1.5. (a) For purposes of determining the fair market value of
each property interest transferred by a decedent, the appraisal date for
the property interest is the date used to value the property interest for
federal estate tax purposes. However, if no federal estate tax return
is filed for the decedent's estate, the appraisal date for each property
interest transferred by the decedent is the date of the decedent's death.
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(b) The finally determined federal estate tax value of a property
interest is presumed to be the fair market value of the property
interest for Indiana inheritance tax purposes, unless the federal estate
tax value is determined under Section 2032A of the Internal Revenue
Code. However, the presumption is rebuttable. A property interest
that is valued for federal estate tax purposes under Section 2032A of
the Internal Revenue Code shall be valued for Indiana inheritance tax
purposes at its fair market value on the appraisal date prescribed by
subsection (a).
As added by Acts 1980, P.L.57, SEC.13.
IC 6-4.1-5-2
Referral of return to tax appraiser; duties
Sec. 2. Within ten (10) days after an inheritance tax return for a
resident decedent is filed with the probate court, the court shall refer
the return to the county inheritance tax appraiser. The county
inheritance tax appraiser shall:
(1) investigate the facts concerning taxable transfers made by
the decedent before his death;
(2) review the return for mistakes and omissions; and
(3) appraise each property interest, transferred by the decedent
under a taxable transfer, at its fair market value as of the
appraisal date prescribed by IC 6-4.1-5-1.5.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.14.
IC 6-4.1-5-3
Notice of appraisal
Sec. 3. Before making the appraisal required under section 2(3) of
this chapter, the county inheritance tax appraiser shall give notice of
the date, time, and place of the appraisal, by mail, to any person
designated by the probate court and each interested person who filed
a request for notice and provided a mailing address to the county
assessor. The county inheritance tax appraiser shall appraise the
property interests at the time and place stated in the notice.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002,
SEC.1.
IC 6-4.1-5-4
Subpoena; witness fees
Sec. 4. In order to make the appraisal required under section 2(3)
of this chapter, the county inheritance tax appraiser may:
(1) issue subpoenas;
(2) compel the appearance of witnesses before him; and
(3) examine witnesses under oath.
Each witness examined with respect to the appraisal is entitled to
receive a fee in the same amount paid to a witness subpoenaed to
appear before a court of record. The county treasurer shall, from
county funds not otherwise appropriated, pay the witness fee which
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is provided for under this section and which is allowed by the probate
court under section 10 of this chapter.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-5
Refiling return following appraisal; appraiser's review
Sec. 5. After an inheritance tax return filed for a resident decedent
is examined by the county inheritance tax appraiser and the probate
court, the court shall order the person responsible for filing the return
to complete the return and refile it if the court finds that the return is
incomplete. When the return is refiled, the court shall refer the refiled
return to the county inheritance tax appraiser for review by him.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-6
Appraisal report; preparation; filing
Sec. 6. After completing the duties assigned to him under section
2 of this chapter, the county inheritance tax appraiser shall prepare an
appraisal report. The appraisal report shall:
(1) contain a list of the property interests described in section
2(3) of this chapter; and
(2) indicate the fair market value of the property interests.
The county inheritance tax appraiser shall file one (1) copy of the
report with the probate court, and he shall file another copy of the
report with the department of state revenue. The appraiser shall attach
the depositions of any witnesses examined with respect to the
appraisal and any other information which the court may require to
the appraisal report which he files with the court.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.15.
IC 6-4.1-5-7
Petition for order of no inheritance tax due
Sec. 7. If the personal representative of a resident decedent's estate
or the trustee or transferee of property transferred by the decedent
believes that no inheritance tax is imposed under this article as a
result of the decedent's death, he may file a verified petition with the
appropriate probate court requesting that the court enter an order
stating that no inheritance tax is due. The petitioner must include in
the petition a statement of the value of the property interests
transferred by the decedent.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-8
Hearing upon petition for order of no inheritance tax due;
rehearing
Sec. 8. If a petition is filed under section 7 of this chapter, the
probate court may hold a hearing on the petition. If the court elects
to hold a hearing, it shall give notice of the hearing in the same
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manner prescribed for giving the notice required under section 9 of
this chapter. After the probate court completes its examination of the
petition, the court may enter an order stating that no inheritance tax
is due as a result of the decedent's death. If the court enters such an
order, the petitioner is not required to file an inheritance tax return.
However, a person may petition the appropriate probate court under
IC 6-4.1-7 for a rehearing on the court's order or for a reappraisal of
the property interests transferred by the decedent.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-9
Hearing on tax appraiser's report; notice
Sec. 9. When the county inheritance tax appraiser files an
appraisal report with the probate court, the court shall give twenty
(20) days notice by mail of the date, time, and place of a hearing on
the report to each interested person who filed a request for notice and
provided a mailing address under section 3 of this chapter.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002,
SEC.2.
IC 6-4.1-5-10
Orders of inheritance tax and witness fees due; form
Sec. 10. (a) After the hearing required by section 9 of this chapter,
the probate court shall determine the fair market value of the property
interests transferred by the resident decedent and the amount of
inheritance tax due as a result of his death. The court shall then enter
an order stating the amount of inheritance tax due and the fees due
witnesses under section 4 of this chapter. If the court finds that no
inheritance tax is due, the court shall include a statement to that effect
in the order.
(b) The court shall prepare the order required by this section on
the form prescribed by the department of state revenue. The court
shall include in the order a description of all Indiana real property
owned by the resident decedent at the time of his death. The probate
court shall spread the order of record in the office of the clerk of the
circuit court. The clerk shall maintain the orders in a looseleaf ledger.
(c) The order described in this section is confidential.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.16; P.L.176-2003, SEC.1.
IC 6-4.1-5-11
Court determination of inheritance tax due; copies to interested
persons
Sec. 11. The court shall immediately mail a copy of its
determination of the fair market value of the property interests
transferred by a resident decedent and the inheritance tax due as a
result of the person's death to each interested person who filed a
request for notice and provided a mailing address under section 3 of
this chapter, the department of state revenue, and the county
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treasurer.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.165-2002,
SEC.3.
IC 6-4.1-5-12
Repealed
(Repealed by P.L.305-1987, SEC.38.)
IC 6-4.1-5-13
Appointment of temporary guardian
Sec. 13. A probate court shall appoint a temporary guardian to
represent an individual if, at any time during the proceedings to
determine the inheritance tax imposed as a result of a resident
decedent's death, the court finds that the individual:
(1) is under eighteen (18) years of age or incapacitated (as
defined in IC 29-3-1-7.5); and
(2) has an interest in the resident decedent's estate which is
adverse to an interest which another person has in the estate.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.33-1989,
SEC.5.
IC 6-4.1-5-14
Appraisal and determination of tax due on nonresident decedent's
estate; determination without court intervention
Sec. 14. The department of state revenue shall determine the
inheritance tax imposed as a result of a non-resident decedent's death.
The department may appraise the property transferred by the
decedent and determine the inheritance tax due without the
intervention of a court.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-15
Orders with respect to nonresident decedent's estate; filing fees
Sec. 15. (a) The department of state revenue shall, with respect to
a nonresident decedent's estate, enter an order which:
(1) states the fair market value of all property interests
transferred by the decedent under taxable transfers;
(2) describes all Indiana real property so transferred by the
decedent; and
(3) states the inheritance tax imposed as a result of the
decedent's death.
(b) The clerk of the circuit court of each county in which real
property described in the order is located shall spread a copy of the
order of record.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.17; P.L.171-1984, SEC.5; P.L.192-1986, SEC.5;
P.L.305-1987, SEC.8.
IC 6-4.1-5-16
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Notice of taxes due upon nonresident decedent's estate
Sec. 16. The department of state revenue shall, by mail, give
notice of the inheritance tax due as a result of a nonresident
decedent's death to the personal representative of the decedent's estate
or the trustee of property transferred by the decedent. However, if
there is no personal representative or trustee, the department shall
give the notice to each person liable for payment of the tax. Unless
an appeal is initiated under IC 6-4.1-7-5 within ninety (90) days after
the notice is given, the inheritance tax stated by the department in the
notice is final.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-5-17
Transfers by will; property not specifically bequeathed or devised
Sec. 17. When property is transferred by will and is not
specifically bequeathed or devised, the property is, for purposes of
this article, to be treated as if it were transferred proportionately to
and divided pro rata among all the general legatees and devisees
named in the transferor's will, including all transfers under a
residuary clause of the will.
As added by Acts 1976, P.L.18, SEC.1.
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