IC 32-17-13
    Chapter 13. Liability of Nonprobate Transferees for CreditorClaims and Statutory Allowances

IC 32-17-13-1
"Nonprobate transfer" defined
    Sec. 1. (a) As used in this chapter, "nonprobate transfer" means avalid transfer, effective at death, by a transferor:
        (1) whose last domicile was in Indiana; and
        (2) who immediately before death had the power, acting alone,to prevent transfer of the property by revocation or withdrawaland:
            (A) use the property for the benefit of the transferor; or
            (B) apply the property to discharge claims against thetransferor's probate estate.
The term does not include transfer of a survivorship interest in atenancy by the entireties real estate, transfer of a life insurance policyor annuity, or payment of the death proceeds of a life insurancepolicy or annuity.
    (b) With respect to a nonprobate transfer involving a multipleparty account, a nonprobate transfer occurs if the last domicile of thedepositor whose interest is transferred under IC 32-17-11 was inIndiana.
    (c) With respect to a motor vehicle or a watercraft, a nonprobatetransfer occurs if the transferee obtains a certificate of title in Indianafor:
        (1) the motor vehicle under IC 9-17-2-2(b); or
        (2) the watercraft as required by IC 9-31-2-16(a)(1)(C).
    (d) A transfer on death transfer completed under IC 32-17-14 isa nonprobate transfer.
As added by P.L.165-2002, SEC.11. Amended by P.L.143-2009,SEC.40; P.L.6-2010, SEC.22.

IC 32-17-13-2
Insufficiency of estate to pay claims and statutory allowances;liability of nonprobate transferee
    Sec. 2. (a) Except as otherwise provided by statute, a transfereeof a nonprobate transfer is subject to liability to a decedent's probateestate for:
        (1) allowed claims against the decedent's probate estate; and
        (2) statutory allowances to the decedent's spouse and children;
to the extent the decedent's probate estate is insufficient to satisfythose claims and allowances.
    (b) The liability of the nonprobate transferee may not exceed thevalue of nonprobate transfers received or controlled by thenonprobate transferee.
    (c) The liability of the nonprobate transferee does not include thenet contributions of the nonprobate transferee.
As added by P.L.165-2002, SEC.11.
IC 32-17-13-3
Priority of liability to probate estate
    Sec. 3. Nonprobate transferees are liable for the insufficiencydescribed in section 2 of this chapter in the following order:
        (1) As provided in the decedent's will or other governinginstrument.
        (2) To the extent of the value of the nonprobate transferreceived or controlled by the trustee of trusts that can beamended, modified, or revoked by the decedent during thedecedent's lifetime. If there is more than one (1) such trust, inproportion to the relative value of the trusts.
        (3) Other nonprobate transferees in proportion to the valuesreceived.
As added by P.L.165-2002, SEC.11.

IC 32-17-13-4
Beneficiary interests in trusts
    Sec. 4. Unless otherwise provided by the trust instrument, interestof beneficiaries in all trusts incurring liabilities under this chaptershall abate as necessary to satisfy the liability as if all of the trustinstruments were a single trust.
As added by P.L.165-2002, SEC.11. Amended by P.L.101-2008,SEC.11.

IC 32-17-13-5
Apportionment of liability by instrument
    Sec. 5. (a) A provision made in an instrument may direct theapportionment of the liability among the nonprobate transfereestaking under that or any other governing instrument.
    (b) If a provision in an instrument conflicts with a provision inanother instrument, the later provision prevails.
As added by P.L.165-2002, SEC.11.

IC 32-17-13-6
Enforcement proceedings; jurisdiction
    Sec. 6. Upon due notice to a nonprobate transferee, the liabilityimposed by this chapter is enforceable in proceedings in Indiana inthe county where:
        (1) the transfer occurred;
        (2) the transferee is located; or
        (3) the probate action is pending.
As added by P.L.165-2002, SEC.11.

IC 32-17-13-7
Commencement of proceedings; immunity of personalrepresentative
    Sec. 7. (a) A proceeding under this chapter may not becommenced unless the personal representative of the decedent'sestate has received a written demand for the proceeding from thesurviving spouse or a surviving child, to the extent that statutory

allowances are affected, or a creditor.
    (b) If the personal representative declines or fails to commence aproceeding within sixty (60) days after receiving the demand, aperson making the demand may commence the proceeding in thename of the decedent's estate at the expense of the person making thedemand and not of the estate.
    (c) A personal representative who declines in good faith tocommence a requested proceeding incurs no personal liability fordeclining.
As added by P.L.165-2002, SEC.11. Amended by P.L.6-2010,SEC.23.

IC 32-17-13-8
Deadline for commencement of proceedings
    Sec. 8. A proceeding under this chapter must be commenced notlater than nine (9) months after the person's death, but a proceedingon behalf of a creditor whose claim was timely filed may becommenced within:
        (1) sixty (60) days after final allowance of the claim; or
        (2) ninety (90) days after demand is made under section 7 ofthis chapter if the personal representative declines or fails tocommence a proceeding after receiving the demand.
As added by P.L.165-2002, SEC.11. Amended by P.L.6-2010,SEC.24.

IC 32-17-13-9
Release of obligor or trustee from liability for transfer of assets tononprobate transferee
    Sec. 9. Unless written notice asserting that a decedent's probateestate is insufficient to pay allowed claims and statutory allowanceshas been received from the decedent's personal representative, thefollowing rules apply:
        (1) Payment or delivery of assets by a financial institution,registrar, or another obligor to a nonprobate transferee under theterms of the governing instrument controlling the transferreleases the obligor from all claims for amounts paid or assetsdelivered.
        (2) A trustee receiving or controlling a nonprobate transfer isreleased from liability under this section on any assetsdistributed to the trust's beneficiaries. Each beneficiary, to theextent of the distribution received, becomes liable for theamount of the trustee's liability attributable to that assetimposed by sections 2 and 3 of this chapter.
As added by P.L.165-2002, SEC.11.