CHAPTER 7.5. UNSUPERVISED ADMINISTRATION AND CLAIMS AGAINST PERSONAL REPRESENTATIVES AND DISTRIBUTEES
IC 29-1-7.5
Chapter 7.5. Unsupervised Administration and Claims AgainstPersonal Representatives and Distributees
IC 29-1-7.5-1
Persons entitled to petition; notice to creditors
Sec. 1. (a) Upon the filing of a petition under IC 29-1-7-5, thefollowing persons may at any time petition the court for authority tohave a decedent's estate administered without court supervision:
(1) The decedent's heirs at law if the decedent dies intestate.
(2) The legatees and devisees under the decedent's will.
(3) The personal representative.
(b) The clerk of the court shall give notice of the filing of apetition for unsupervised administration to creditors of the decedentas provided in IC 29-1-7-7(c) and IC 29-1-7-7(d).
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended byP.L.154-1990, SEC.6.
IC 29-1-7.5-1.5
Notice to distributees
Sec. 1.5. (a) As soon as letters testamentary or letters ofadministration have been issued, the clerk of the court shall serve bymail notice of the petition on each of the decedent's heirs at law, ifthe decedent died intestate, or the devisees and legatees under thedecedent's will. The mailing of notice under this subsection may notbe waived.
(b) The notice required under subsection (a) shall readsubstantially as follows:
NOTICE OF UNSUPERVISED ADMINISTRATION TO BE
MAILED TO A DISTRIBUTEE
In the _________ Court of _________ County, Indiana.
Notice is hereby given that ____________, on the _____ day of________, 20__, was appointed as the personal representative of theestate of ______________, who died on the ____ day of__________, 20__, {leaving a will} {not leaving a will}. The estatewill be administered without court supervision.
As an heir, a devisee, or a legatee of the estate (a "distributee"),you are advised of the following information:
(1) The personal representative has the authority to take actionsconcerning the estate without first consulting you.
(2) The personal representative may be serving without postinga bond with the court. You have the right to petition the courtto set a bond for your protection. You also have the right topetition the court to remove a corporate personal representativenot later than thirty (30) days after this notice if the ownershipor control of the corporate personal representative has changedsince the execution of the decedent's will.
(3) The personal representative will not obtain court approvalof any action, including the amount of attorney's or personalrepresentative's fees. (4) Within two (2) months after the appointment of the personalrepresentative, the personal representative must prepare aninventory of the estate's assets. You have the right to requestand receive a copy of this inventory from the personalrepresentative. However, if you do not participate in the residueof the estate and receive only a specific bequest in money orpersonal property that will be paid, you are entitled only to theinformation concerning your specific bequest and not to theassets of the estate as a whole.
(5) The personal representative is required to furnish you witha copy of the closing statement that will be filed with the court,and, if your interests are affected, with a full account in writingof the administration of the estate.
(6) You must file an objection to the closing statement withinthree (3) months after the closing statement is filed with thecourt if you want the court to consider your objection.
(7) If an objection to the closing statement is not filed with thecourt within three (3) months after the filing of the closingstatement, the estate is closed and the court does not have a dutyto audit or make an inquiry.
IF, AT ANY TIME BEFORE THE ESTATE IS CLOSED, YOUHAVE REASON TO BELIEVE THAT THE ADMINISTRATIONOF THE ESTATE SHOULD BE SUPERVISED BY THE COURT,YOU HAVE THE RIGHT TO PETITION THE COURT FORSUPERVISED ADMINISTRATION.
IF YOU DO NOT UNDERSTAND THIS NOTICE, YOUSHOULD ASK YOUR ATTORNEY TO EXPLAIN IT TO YOU.
The personal representative's address is ____________, andtelephone number is ___________. The attorney for the personalrepresentative is _______________, whose address is_______________ and telephone number is _________.
Dated at _____________, Indiana, this _____ day of_______________, 20__.
CLERK OF THE _______________ COURT
As added by P.L.130-1992, SEC.1. Amended by P.L.2-2005, SEC.74;P.L.238-2005, SEC.12; P.L.143-2009, SEC.11.
IC 29-1-7.5-2
Conditions to grant of petition; collateral attack; revocation
Sec. 2. (a) The court may grant a petition for administrationwithout court supervision if:
(1) all the persons referred to in either section 1(a)(1) or 1(a)(2)of this chapter have joined in the petition;
(2) the estate is solvent;
(3) the personal representative is qualified to administer theestate without court supervision;
(4) the heirs, or legatees and devisees, or the parent (as definedin IC 29-3-1-11), or if none, the guardian (as defined inIC 29-3-1-6) of an heir, legatee, or devisee, as the case may be,freely consent to and understand the significance of
administration without court supervision; and
(5) the will does not request supervised administration.
(b) As an alternative to the requirements of subsection (a), thecourt may also grant a petition for administration without courtsupervision if:
(1) the decedent in the will authorized the administration of theestate to be unsupervised;
(2) the estate is solvent; and
(3) the personal representative is qualified to administer theestate without court supervision.
(c) Once a petition for administration without court supervisionhas been granted under subsection (a) or (b), a personalrepresentative's authority, under such order, shall not be subject toany requirement of court approval or confirmation or be open tocollateral attack on account of any defect or irregularity in theproceedings resulting in issuance of the order of no supervision, ifthe court issuing the order had jurisdiction of the estate.
(d) The court may, on its own motion or the motion of aninterested person, revoke an order of unsupervised administrationand require an administration on terms and conditions which thecourt specifies if the court finds that such a revocation is in the bestinterests of the estate, creditors, taxing authorities, heirs, legatees, ordevisees.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended by Acts 1977,P.L.297, SEC.1; Acts 1978, P.L.132, SEC.3; Acts 1982, P.L.172,SEC.1; P.L.169-1988, SEC.3; P.L.264-1989, SEC.1; P.L.182-1999,SEC.3.
IC 29-1-7.5-2.5
Personal representative's bond
Sec. 2.5. (a) Except as provided in subsection (c), a personalrepresentative is not required to execute and file a bond relating tothe duties of the personal representative's office under this chapterunless:
(1) the will provides for the execution and filing of a bond; or
(2) the court finds, on the court's own motion or on motion byan interested person, that a bond is necessary to protectcreditors, heirs, devisees, and legatees.
(b) If a bond is required under subsection (a):
(1) the amount of the bond shall be determined by the court; and
(2) the bond shall be administered;
under IC 29-1-11.
(c) If a personal representative is not an Indiana resident or ceasesto be an Indiana resident, the personal representative shall executeand file a bond under IC 29-1-10-1. The amount of the bond may beadjusted at the court's discretion.
As added by P.L.130-1992, SEC.2.
IC 29-1-7.5-3
Powers of personal representative to act without order of court Sec. 3. (a) Subject to section 2(d) of this chapter, a personalrepresentative who administers an estate under this chapter may dothe following without order of the court:
(1) Retain assets owned by the decedent pending distribution orliquidation including those in which the representative ispersonally interested or which are otherwise improper for trustinvestment.
(2) Receive assets from fiduciaries or other sources.
(3) Perform, compromise, or refuse performance of thedecedent's contracts that continue as obligations of the estate,as the personal representative may determine under thecircumstances. In performing enforceable contracts by thedecedent to convey or lease land, the personal representative,among other possible courses of action, may:
(A) execute and deliver a deed of conveyance for cashpayment of all sums remaining due or the purchaser's notefor the sum remaining due secured by a mortgage or deed oftrust on the land; or
(B) deliver a deed in escrow with directions that theproceeds, when paid in accordance with the escrowagreement, be paid to the successors of the decedent, asdesignated in the escrow agreement.
(4) Satisfy written charitable pledges of the decedentirrespective of whether the pledges constituted bindingobligations of the decedent or were properly presented asclaims, if in the judgment of the personal representative thedecedent would have wanted the pledges completed under thecircumstances.
(5) If funds are not needed to meet debts and expenses currentlypayable and are not immediately distributable, deposit or investliquid assets of the estate, including moneys received from thesale of other assets, in federally insured interest-bearingaccounts, readily marketable secured loan arrangements, orother prudent investments which would be reasonable for useby trustees generally.
(6) Acquire or dispose of an asset, including land in this oranother state, for cash or on credit, at public or private sale; andmanage, develop, improve, exchange, partition, change thecharacter of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations inbuildings or other structures, demolish any improvements, razeexisting or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make orobtain the vacation of plats and adjust boundaries; or adjustdifferences in valuation on exchange or partition by giving orreceiving considerations; or dedicate easements to public usewithout consideration.
(9) Enter for any purpose into a lease as lessor or lessee, withor without option to purchase or renew, for a term within orextending beyond the period of administration. (10) Enter into a lease or arrangement for exploration andremoval of minerals or other natural resources or enter into apooling or unitization agreement.
(11) Abandon property when, in the opinion of the personalrepresentatives, it is valueless, or is so encumbered, or is incondition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general orlimited proxy.
(13) Pay calls, assessments, and other sums chargeable oraccruing against or on account of securities, unless barred bythe provisions relating to claims.
(14) Hold a security in the name of a nominee or in other formwithout disclosure of the interest of the estate but the personalrepresentative is liable for any act of the nominee in connectionwith the security so held.
(15) Hold, manage, safeguard, and control the estate's real andpersonal property, insure the assets of the estate againstdamage, loss, and liability, and insure the personalrepresentative personally against liability as to third persons.
(16) Borrow money with or without security to be repaid fromthe estate assets or otherwise and advance money for theprotection of the estate.
(17) Effect a fair and reasonable compromise with any debtoror obligor, or extend, renew, or in any manner modify the termsof any obligation owing to the estate. If the personalrepresentative holds a mortgage, pledge, or other lien uponproperty of another person, the personal representative may, inlieu of foreclosure, accept a conveyance or transfer ofencumbered assets from the owner thereof in satisfaction of theindebtedness secured by lien.
(18) Pay taxes, assessments, compensation of the personalrepresentative, and other expenses incident to the administrationof the estate.
(19) Hold an interest in a proprietorship, partnership, limitedliability company, business trust, corporation, or anotherdomestic or foreign form of business or enterprise.
(20) Continue a business.
(21) Take any action that may be taken by shareholders,partners, members, or property owners, including contributingadditional capital to or merging, consolidating, reorganizing,recapitalizing, dissolving, or otherwise changing the form of thebusiness organization.
(22) Allocate items of income or expense to either estateincome or principal, as permitted or provided by IC 30-2-14.
(23) Employ persons, including attorneys, auditors, investmentadvisors, or agents, even if they are associated with the personalrepresentative, to advise or assist the personal representative inthe performance of the personal representative's administrativeduties; act without independent investigation upon theirrecommendations; and instead of acting personally, employ one
(1) or more agents to perform any act of administration,whether or not discretionary.
(24) Do any of the following concerning a claim or demandmade in favor of or against the estate for the protection of theestate and of the personal representative in the performance ofthe personal representative's duties:
(A) Release, assign, settle, compromise, or contest the claimor demand.
(B) Participate in mediation or submit to arbitration toresolve any dispute concerning the claim or demand.
(C) Extend the time for payment of the claim or demand.
(D) Abandon the claim or demand.
(25) Sell, mortgage, or lease any real or personal property of theestate or any interest therein for cash, credit, or for part cashand part credit, and with or without security for unpaidbalances.
(26) Select a settlement option under any qualified ornonqualified benefit or retirement plan, annuity, or lifeinsurance payable to the estate, and take appropriate action tocollect the proceeds.
(27) Inspect and investigate property held, directly or indirectly,by the personal representative for the purpose of:
(A) determining the application of environmental law withrespect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or apotential violation of an environmental law affecting theproperty, whether taken before or after the assertion of aclaim or the initiation of governmental enforcement byfederal, state, or local authorities.
(ii) Compromise claims against the estate that may beasserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, orremedial action to comply with the environmental law.
(28) Distribute assets of the estate upon such terms as thepersonal representative may impose. To the extent practicable,taking into account the decedent's probable intention, the powerto distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legaldisability or whom the personal representative reasonablybelieves to be incapacitated by:
(i) paying the amount directly to the distributee orapplying the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for thedistributee;
(iii) paying the amount to a custodian under the IndianaUniform Transfers to Minors Act (IC 30-2-8.5) or acustodial trustee under the Uniform Custodial Trust Act(IC 30-2-8.6); or
(iv) paying the amount to the trustee of a trust established
by the decedent or by the personal representative undersubsection (b); and
(B) make distributions of estate income and principal inkind, in cash, or partly in each, in shares of differingcomposition.
(29) Perform any other act necessary or appropriate toadminister the estate.
(b) A personal representative who administers an estate under thischapter may, without court order, establish a trust to makedistributions to a distributee who is under a legal disability or whomthe personal representative reasonably believes is incapacitated. Inestablishing a trust under this subsection, a personal representativemay exercise:
(1) the authority given to custodians under the Indiana UniformTransfers to Minors Act (IC 30-2-8.5) to create a trust thatsatisfies the requirements of Section 2503(c) of the InternalRevenue Code and the regulations adopted under that Section;or
(2) the authority given to an attorney in fact underIC 30-5-5-15(a)(3) to establish a revocable trust for the benefitof a principal.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended by Acts 1976,P.L.125, SEC.3; Acts 1981, P.L.260, SEC.1; P.L.182-1999, SEC.4;P.L.84-2002, SEC.1; P.L.61-2006, SEC.3; P.L.95-2007, SEC.6.
IC 29-1-7.5-3.2
Inventories
Sec. 3.2. (a) Not more than two (2) months after the appointmentof a personal representative under this chapter, the personalrepresentative shall prepare a verified inventory of the estate's assets.The inventory may consist of at least one (1) written instrument.
(b) The inventory required under subsection (a) must indicate thefair market value of each item of property of the decedent of whichthe personal representative has possession or knowledge, includinga statement of all known liens and other charges on any item. Theproperty shall be classified in the inventory as follows:
(1) Real property, with plat or survey description, and if ahomestead, designated as a homestead.
(2) Furniture and household goods.
(3) Emblements and annual crops raised by labor.
(4) Corporate stocks, including the class, the par value or thatthe stock has no par value, and if preferred stock, the dividendrate.
(5) Mortgages, bonds, notes, or other written evidences of debtor of ownership described by the name of the debtor, recordingdata, and other identification.
(6) Bank accounts, money, and insurance policies if payable tothe estate of the decedent or to the decedent's personalrepresentative.
(7) All other personal property accurately identified, including
the decedent's proportionate share in any partnership. However,no inventory of the partnership property is required.
(c) In preparing the inventory required under subsection (a), thepersonal representative may employ a disinterested appraiser toascertain the fair market value as of the date of the decedent's deathof an asset that has a value that may be subject to reasonable doubt.Different persons may be employed to appraise different kinds ofassets included in the estate. The names and addresses of anyappraiser shall be indicated on the inventory with the item or itemsthe appraiser appraised.
(d) The personal representative shall furnish a copy of theinventory required under subsection (a), or a supplement oramendment to the inventory, to a distributee who requests a copy.
(e) The personal representative may certify to the court that theinventory required under subsection (a), a supplement, or anamendment to the inventory has been prepared and is available.However, the court may not require the personal representative to filea copy of the inventory, a supplement, or an amendment to theinventory with the court.
As added by P.L.130-1992, SEC.3. Amended by P.L.182-1999,SEC.5.
IC 29-1-7.5-3.4
Distribution of real property
Sec. 3.4. (a) This section applies to the distribution of realproperty by a personal representative to a devisee or heir under thischapter.
(b) The conveyance subscribed by the personal representativeunder this section is sufficient to distribute all title in the realproperty to the devisee or heir if the conveyance includessubstantially the following language:
"A.B. is the personal representative of the estate of C.D.,deceased. This estate is pending as Cause Number ___________ in__________ County, Indiana. The personal representative, by virtueof the power given a personal representative under Indiana law,hereby distributes to E.F. the following described real estate: (insertdescription)."
As added by P.L.130-1992, SEC.4.
IC 29-1-7.5-3.6
Conveyance of real property
Sec. 3.6. (a) This section applies to a conveyance of real propertyby a personal representative under this chapter.
(b) The conveyance subscribed by the personal representative issufficient to convey all title in the real property to the grantee if theconveyance includes substantially the following language:
"A.B. is the personal representative of the estate of C.D.,deceased. This estate is pending as Cause Number ___________ in__________ County, Indiana. The personal representative, by virtueof the power given a personal representative under Indiana law, for
good and sufficient consideration conveys to E.F. the followingdescribed real estate: (insert description)."
As added by P.L.130-1992, SEC.5.
IC 29-1-7.5-3.8
Prompt closing of estates
Sec. 3.8. (a) A personal representative shall close an estateadministered under this chapter as promptly as possible.
(b) If a personal representative does not file a closing statementunder section 4 of this chapter within one (1) year after theappointment of the personal representative, the personalrepresentative shall file a statement with the court indicating why theestate has not been closed.
As added by P.L.130-1992, SEC.6. Amended by P.L.118-1997,SEC.15.
IC 29-1-7.5-4
Closing estate; procedures; termination of appointment of personalrepresentative
Sec. 4. (a) Unless prohibited by order of the court and except forestates being administered in supervised administration proceedings,a personal representative may close an estate by filing with the courtno earlier than three (3) months after the date of the first publishednotice to creditors under IC 29-1-7-7(b), a verified statement statingthat the personal representative, or a prior personal representative,has done the following:
(1) Published notice to creditors as provided in IC 29-1-7-7(b),and that the first publication occurred more than three (3)months prior to the date of the statement.
(2) Provided notice to creditors as required under IC 29-1-7-7(c)and IC 29-1-7-7(d).
(3) Fully administered the estate of the decedent by makingpayment, settlement, or other disposition of all claims whichwere presented, expenses of administration and estate,inheritance, and other death taxes, except as specified in thestatement. If any claims remain undischarged, the statementshall:
(A) state whether the personal representative has distributedthe estate, subject to possible liability, with the agreement ofthe distributees; or
(B) detail other arrangements which have been made toaccommodate outstanding liabilities.
(4) Executed and recorded a personal representative's deed forany real estate owned by the decedent.
(5) Distributed all the assets of the estate to the persons entitledto receive the assets.
(6) Sent a copy of the statement to all distributees of the estateand to all creditors or other claimants of whom the personalrepresentative has actual knowledge whose claims are neitherpaid nor barred and has furnished a full account in writing of
the personal representative's administration to the distributeeswhose interests are affected.
(7) Provided the court with the names and addresses of alldistributees, creditors, and claimants to whom the personalrepresentative has sent a copy of the statement undersubdivision (6).
(b) If no proceedings involving the personal representative arepending in the court three (3) months after the closing statement isfiled, the appointment of the personal representative terminates andthe estate is closed by operation of law.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended byP.L.154-1990, SEC.7; P.L.130-1992, SEC.7; P.L.252-2001, SEC.15.
IC 29-1-7.5-4.5
Uncontested closing statements; audits and inquiries
Sec. 4.5. If, after three (3) months following the date that theclosing statement required under section 4 of this chapter is filed, anobjection to the closing statement has not been filed, the court doesnot have a duty to audit or make an inquiry.
As added by P.L.130-1992, SEC.8.
IC 29-1-7.5-5
Undischarged claims; actions against distributees; contribution
Sec. 5. After assets of an estate have been distributed, and subjectto section 7 of this chapter, an undischarged claim not barred may beprosecuted in a proceeding against one (1) or more distributees. Nodistributee is liable to claimants for amounts in excess of the valueof his distribution as of the time of distribution. As betweendistributees, each shall bear the cost of satisfaction of unbarredclaims as if the claim had been satisfied in the course ofadministration. Any distributee who fails to notify other distributeesof the demand made upon him by the claimant in sufficient time topermit them to join in any proceeding in which the claim wasasserted against him loses his right of contribution against otherdistributees.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended by P.L.1-1993,SEC.213.
IC 29-1-7.5-6
Claims against personal representatives; limitation
Sec. 6. Unless previously barred by adjudication and except asprovided in the closing statement, all claims against the personalrepresentative, including claims by a person under a disability, arebarred unless a proceeding to assert the same is commenced withinthree (3) months after the filing of the closing statement. The rightsthus barred do not include rights to recover from a personalrepresentative for fraud, misrepresentation, or inadequate disclosurerelated to the settlement of the decedent's estate.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended by Acts 1978,P.L.132, SEC.4.
IC 29-1-7.5-7
Claims against distributees; limitation
Sec. 7. Unless otherwise barred, the claim of any claimant,including a claimant under a disability, to recover from a distributeewho is liable to pay the claim, and the right of any heir or devisee,including an heir or devisee under a disability, or of a successorpersonal representative acting in their behalf, to recover propertyimproperly distributed or the value thereof from any distributee isforever barred at the later of (a) three (3) years after the decedent'sdeath, or (b) one (1) year after the closing statement is filed.
(Formerly: Acts 1975, P.L.288, SEC.11.) As amended by Acts 1978,P.L.132, SEC.5.
IC 29-1-7.5-8
Subsequently discovered estate; appointment of personalrepresentative
Sec. 8. If other property of the estate is discovered after the estatehas been settled and the personal representative discharged or three(3) months after a closing statement has been filed, the court uponpetition of any interested person and upon notice as it directs mayappoint the same or a successor personal representative to administerthe subsequently discovered estate. If a new appointment is made,unless the court orders otherwise, the provisions of this title apply asappropriate; but no claim previously barred may be asserted in thesubsequent administration.
(Formerly: Acts 1975, P.L.288, SEC.11.)