CHAPTER 13. COLLECTION AND MANAGEMENT OF ASSETS
IC 29-1-13
Chapter 13. Collection and Management of Assets
IC 29-1-13-1
Possession of property; duties of personal representative
Sec. 1. Every personal representative shall have a right to take,and shall take, possession of all the real and personal property of thedecedent. The personal representative:
(1) shall pay the taxes and collect the rents and earnings thereonuntil the estate is settled or until delivered by order of the courtto the distributees;
(2) shall keep in tenantable repair the buildings and fixturesunder the personal representative's control;
(3) may protect the buildings and fixtures under the personalrepresentative's control by insurance; and
(4) may maintain an action:
(A) for the possession of real property; or
(B) to determine the title to real property.
(Formerly: Acts 1953, c.112, s.1301; Acts 1973, P.L.287, SEC.7.) Asamended by Acts 1976, P.L.125, SEC.5; Acts 1979, P.L.268, SEC.4;P.L.95-2007, SEC.10.
IC 29-1-13-1.1
Electronically stored documents of deceased
Sec. 1.1. (a) As used in this section, "custodian" means any personwho electronically stores the documents or information of anotherperson.
(b) A custodian shall provide to the personal representative of theestate of a deceased person, who was domiciled in Indiana at the timeof the person's death, access to or copies of any documents orinformation of the deceased person stored electronically by thecustodian upon receipt by the custodian of:
(1) a written request for access or copies made by the personalrepresentative, accompanied by a copy of the death certificateand a certified copy of the personal representative's letterstestamentary; or
(2) an order of a court having probate jurisdiction of thedeceased person's estate.
(c) A custodian may not destroy or dispose of the electronicallystored documents or information of the deceased person for two (2)years after the custodian receives a request or order under subsection(b).
(d) Nothing in this section shall be construed to require acustodian to disclose any information:
(1) in violation of any applicable federal law; or
(2) to which the deceased person would not have been permittedaccess in the ordinary course of business by the custodian.
As added by P.L.12-2007, SEC.1.
IC 29-1-13-1.5 Access to safe deposit box; duties of financial institutions
Sec. 1.5. (a) Upon the death of an individual, a financialinstitution shall grant access in the following order of priority to asafe deposit box leased by the individual at the time of theindividual's death:
(1) A surviving joint lessee of the safe deposit box, upon thepresentation of proof of the individual's status as a joint lessee.
(2) The personal representative of the individual's estate, uponthe presentation of letters testamentary or letters ofadministration.
(3) The personal representative named in the individual's will,upon the presentation of an affidavit meeting the requirementsof subsection (c) if a probate estate has not been opened.
(4) The trustee of a trust created by the individual that wasrevocable during the individual's life, upon the presentation ofan affidavit meeting the requirements of subsection (c) if aprobate estate has not been opened.
(5) Any other individual, upon the presentation of a court orderdirecting access to the safe deposit box.
(b) A person granted access to a safe deposit box under subsection(a) may exercise the following rights:
(1) The right to open the safe deposit box.
(2) The right to remove the contents of the safe deposit box.
(3) The right to cancel the lease for the safe deposit box.
(c) An affidavit required by subsection (a)(3) or (a)(4) mustcontain the following information:
(1) The name of the individual leasing the safe deposit box andthe date of the individual's death.
(2) A statement as to whether the individual died testate orintestate.
(3) The name of the county in which the individual wasdomiciled at the time of the individual's death.
(4) A statement that no application or petition for theappointment of a personal representative has been granted or ispending in any jurisdiction.
(5) A statement under the penalty of perjury that the affiant isqualified under subsection (a)(3) or (a)(4) to obtain access tothe safe deposit box leased by the individual.
(d) Except as provided in subsection (h), a financial institutionthat is presented with a request for access to a safe deposit box by aperson described in subsection (a):
(1) shall grant access to the safe deposit box within three (3)business days of the presentation of the appropriatedocumentation required by subsection (a); and
(2) is liable to:
(A) the estate of the individual leasing the safe deposit box;or
(B) an individual entitled to access to the safe deposit boxunder subsection (a);
if it fails to grant access to the safe deposit box within three (3)
business days of the presentation of the appropriatedocumentation required by subsection (a).
(e) A financial institution that provides access to a safe depositbox under this section is discharged and released from liability andresponsibility for the assets held in the safe deposit box. Thefinancial institution is not required to:
(1) inquire into the truth of any statement in an affidavitpresented under this section; or
(2) participate in the disposition of the assets held in the safedeposit box.
(f) A plaintiff who prevails in an action:
(1) to compel a financial institution presented with a request foraccess to a safe deposit box in accordance with this section toaccept the authority of the person requesting access; or
(2) for damages arising from a financial institution's refusal togrant the requested access;
is entitled to recover the amounts specified in subsection (g).
(g) A prevailing plaintiff described in subsection (f) is entitled tothe following:
(1) Three (3) times the amount of the actual damages.
(2) Attorney's fees and court costs.
(3) Prejudgment interest on the actual damages calculated fromthe date that the appropriate documentation was presented tothe financial institution under subsection (a).
(h) If a financial institution requires the services of a locksmith orother contractor to gain access to a safe deposit box, the financialinstitution has five (5) additional business days to comply with therequirements of subsection (d).
As added by P.L.101-2008, SEC.6.
IC 29-1-13-2
Preserving estate; action to prevent loss
Sec. 2. No executor named in the will shall interfere with theestate entrusted to him further than to preserve the same until theissuing of letters; but, for that purpose, he may prosecute any suit toprevent the loss of any part thereof.
(Formerly: Acts 1953, c.112, s.1302.)
IC 29-1-13-3
Actions; trespass; waste; costs; examine party
Sec. 3. Every personal representative shall have full power tomaintain any suit in any court of competent jurisdiction, in his nameas such personal representative, for any demand of whatever naturedue the decedent or his estate or for the recovery of possession ofany property of the estate or for trespass or waste committed on theestate of the decedent in his lifetime, or while in the possession ofthe personal representative; but he shall not be liable, in hisindividual capacity, for any costs in such suit, and shall have power,at his option, to examine the opposite party under oath, touching suchdemand.(Formerly: Acts 1953, c.112, s.1303.)
IC 29-1-13-4
Fraudulent conveyances; recovery
Sec. 4. The real and personal property liable for the payment ofdebts of a decedent shall include all property transferred by him withintent to defraud his creditors or any of them, or transferred by anyother means which is in law void as against his creditors or any ofthem; and the right to recover such property, so far as necessary forthe payment of the debts of the decedent, shall be in the personalrepresentative, who shall take such steps as may be necessary torecover the same. Such property shall constitute general assets forthe payment of all creditors; but no property so transferred shall betaken from anyone who purchased it for a valuable consideration, ingood faith and without knowledge of the fraud.
(Formerly: Acts 1953, c.112, s.1304.)
IC 29-1-13-5
Compromise; debtor or obligor
Sec. 5. When it appears for the best interest of the estate, thepersonal representative may on order of the court effect a fair andreasonable compromise with any debtor or other obligor, or extend,renew or in any manner modify the terms of any obligation owing tothe estate. If the personal representative holds a mortgage, pledge orother lien upon property of another person, he may, in lieu offoreclosure, accept a conveyance or transfer of such encumberedassets from the owner thereof in satisfaction of the indebtednesssecured by such lien, if it appears for the best interest of the estateand if the court shall so order. In the absence of prior authorizationor subsequent approval of the court, no compromise shall bind theestate.
(Formerly: Acts 1953, c.112, s.1305.)
IC 29-1-13-6
Real estate interest as personal assets; proceeds from sale of realestate
Sec. 6. (a) Unless foreclosure shall have been completed andredemption period shall have expired prior to the death of a decedent,real property mortgages, the interest in the mortgaged premisesconveyed thereby, and the debt secured thereby, or any real propertyacquired by the personal representative in settlement of a debt orliability, or any real property sold by the decedent on writtencontract, the purchase price of which shall not have been paid in fullprior to the death of the decedent, shall be deemed personal assets inthe hands of his personal representative and be distributed andaccounted for as such, but any sale, mortgage, lease or exchange ofany of such real property made after the death of the decedent shallbe made pursuant to IC 29-1-15, unless otherwise provided in thewill of the decedent.
(b) In all cases of a sale of real property by a personal
representative, upon order of the court the surplus of the proceeds ofsuch sale remaining on the final settlement of the account shall beconsidered as real property and disposed of among the persons andin the same proportions as the real property would have been if it hadnot been sold.
(Formerly: Acts 1953, c.112, s.1306.) As amended by Acts 1982,P.L.171, SEC.34.
IC 29-1-13-7
Mortgages; release and discharge
Sec. 7. When, in any case, a mortgage to the decedent isredeemed, or the debt secured thereby is or has been paid to thedecedent or to his personal representative, the latter shall release anddischarge the mortgage.
(Formerly: Acts 1953, c.112, s.1307.)
IC 29-1-13-8
Valueless property; abandonment
Sec. 8. When any property is valueless, or is so encumbered, or isin such condition that it is of no benefit to the estate, the court mayorder the personal representative to abandon it.
(Formerly: Acts 1953, c.112, s.1308.)
IC 29-1-13-9
Embezzlement; conversion
Sec. 9. If a person embezzles or converts to the person's own usethe personal property of a decedent before the appointment of apersonal representative, the person is liable to the estate for the valueof the property embezzled or converted.
(Formerly: Acts 1953, c.112, s.1309.) As amended by P.L.154-1990,SEC.8.
IC 29-1-13-10
Petitions; concealment; embezzlement; conversion; adverseinterest; attachment
Sec. 10. (a) Upon the filing of a petition by the personalrepresentative or any other person interested in the estate allegingthat any person has, or is suspected to have, concealed, embezzled,converted or disposed, of any real or personal property belonging tothe estate of a decedent, or has possession or knowledge of any suchproperty or of any instruments in writing relating to such property,the court having probate jurisdiction, upon such notice as it maydirect, may order such person to appear before it for disclosure, andmay finally adjudicate the rights of the parties before the court withrespect to such property. Insofar as concerns parties claiming aninterest adverse to the estate, such procedure for disclosure or todetermine title is an independent proceeding and not withIC 29-1-7-2.
(b) Any person so ordered to appear who fails or refuses toappear, or who refuses to answer concerning such property or to
deliver up any such property in which no interest adverse to theestate is claimed by him, may be attached and imprisoned in thediscretion of the court.
(Formerly: Acts 1953, c.112, s.1310.) As amended by Acts 1982,P.L.171, SEC.35.
IC 29-1-13-11
Business of decedent; continuing
Sec. 11. Upon a showing of advantage to the estate, the court mayauthorize the personal representative to continue any business of thedecedent for the benefit of the estate; but if the decedent died testateand his estate is solvent, the order of the court shall be subject to theprovisions of the will. The order may be with or without notice. Ifnotice is not given to all interested persons before the order is made,notice of the order shall be given within five (5) days after the order,and any such person not previously notified by publication orotherwise may show cause why the order should be revoked ormodified. The order may provide:
(a) For the conduct of the business solely by the personalrepresentative or jointly with one (1) or more of the decedents'surviving partners, or as a corporation to be formed by the personalrepresentative alone or acting with others;
(b) The extent of the liability of the estate, or any part thereof, orthe personal representative, for obligations incurred in thecontinuation of the business;
(c) As to whether liabilities incurred in the conduct of thebusiness are to be chargeable solely to the part of the estate set asidefor use in the business or to the estate as a whole; and
(d) As to the period of time for which the business may beconducted, and such other conditions, restrictions, regulations andrequirements as the court may order.
(Formerly: Acts 1953, c.112, s.1311.)
IC 29-1-13-12
Conveyance or lease after death of decedent
Sec. 12. (a) When any person legally bound to make a conveyanceor lease dies before making the same, the court, with or withoutnotice, may direct the personal representative to make theconveyance or lease to the person entitled thereto. A petition for thispurpose may be made by any person claiming to be entitled to suchconveyance or lease, or by the personal representative, or by anyother person interested in the estate or claiming an interest in the realproperty or contract, and shall show the description of the land andthe facts upon which such claim for conveyance or lease is based.Upon satisfactory proofs the court may order the personalrepresentative to execute and deliver an instrument of conveyance orlease to the person entitled thereto upon performance of the contract.A certified copy of the order may be recorded with the deed ofconveyance or lease in the office of the recorder of the county wherethe land lies, and shall be prima facie evidence of the due
appointment and qualification of the personal representative, thecorrectness of the proceedings and the authority of the personalrepresentative.
(b) If a personal representative has been given power by will tomake a conveyance or lease, he may, in lieu of the foregoingprocedure, and without order of the court, execute a conveyance orlease, pursuant to and in accordance with such power, to the personentitled thereto upon performance of the contract. A certified copyof the will and a certified copy of the personal representative's lettersmay be recorded with the deed of conveyance or lease in the officeof the recorder of the county where the land lies, and shall be primafacie evidence of the due appointment and qualification of thepersonal representative and his authority to execute the deed ofconveyance or lease.
(c) If the contract for a lease or conveyance requires the giving ofwarranties, the deed or lease to be given by the personalrepresentative shall contain the warranties required. Such warrantiesshall be binding on the estate as though made by the decedent butshall not bind the personal representative personally.
(Formerly: Acts 1953, c.112, s.1312.)
IC 29-1-13-13
Contracts; performance by personal representative
Sec. 13. If at the time of his death the decedent was obligated bythe terms of any contract to further performance thereunder, hispersonal representative may, if it appears feasible and in the bestinterests of the estate, proceed to carry out the terms of such contract.In the event that the performance of such contract shall necessitatethe expenditure of funds of the estate, or shall require the utilizationof assets other than property which is itself the subject matter of suchcontract, such personal representative shall request and receiveinstructions from the court regarding the performance thereof.
(Formerly: Acts 1953, c.112, s.1313.)
IC 29-1-13-14
Investment of funds
Sec. 14. Subject to his primary duty to preserve the estate forprompt distribution, and to the terms of the will, if any, the personalrepresentative may with the approval of the court whenever it isreasonable to do so, invest the funds of the estate and make thenproductive. Such investments shall be restricted to the kinds ofinvestments permitted to trustees by the laws of this state.
(Formerly: Acts 1953, c.112, s.1314.)
IC 29-1-13-15
Deposit of funds
Sec. 15. Whenever it is consistent with a proper administration ofthe estate, the personal representative may deposit, as a fiduciary, thefunds of the estate in a bank in this state as a general deposit, eitherin a checking account or in a savings account. If the personal
representative is a bank or trust company, it may make such depositin its own bank.
(Formerly: Acts 1953, c.112, s.1315.)
IC 29-1-13-16
Collection of indebtedness; secure possession of property; specialadministrator appointed
Sec. 16. Whenever any interested person files with the courthaving jurisdiction of an estate a petition showing that such personhas reason to believe and does believe that the personalrepresentative of the estate or any other person is indebted to theestate, or that any property is in the possession of the personalrepresentative of the estate or of any other person, and that diligenteffort is not being made to collect such indebtedness or to securepossession of such property for the estate, the court shall hold ahearing upon such petition and shall determine what action, if any,shall be taken. Should the court decide that there is sufficient meritin the petitioner's claim to warrant action, it shall direct the personalrepresentative to take such action as the court deems necessary;provided, however, where the person claimed to be indebted to theestate or having in his possession property belonging to the estate isthe personal representative or where the court is of the opinion thatthe personal representative would not or could not for any reasonprosecute such action with sufficient vigor, it shall appoint a specialadministrator to take such action as it shall direct.
(Formerly: Acts 1953, c.112, s.1316.)