CHAPTER 2. IMPOSITION OF THE INHERITANCE TAX
IC 6-4.1-2
Chapter 2. Imposition of the Inheritance Tax
IC 6-4.1-2-1
Time of imposition; transfers subject to tax
Sec. 1. (a) An inheritance tax is imposed at the time of adecedent's death on certain property interest transfers made by him.The transfer of a property interest is subject to the tax if:
(1) the property transferred is described in:
(i) section 2 of this chapter if the property is transferred by aresident decedent; or
(ii) section 3 of this chapter if the property is transferred by anon-resident decedent;
(2) the transfer is described in section 4 of this chapter; and
(3) neither the transfer nor the property is exempt from theinheritance tax under IC 6-4.1-3.
(b) For purposes of this article, a transfer described in section 4of this chapter is considered a transfer made by the deceasedtransferor regardless of when the transferee acquires the propertyinterest.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-2-2
Property transfers of resident decedent
Sec. 2. (a) The inheritance tax applies to a property interesttransfer made by a resident decedent if the interest transferred is in:
(1) real property located in this state;
(2) tangible personal property which does not have an actualsitus outside this state; or
(3) intangible personal property regardless of where it islocated.
(b) The inheritance tax does not apply to a property interesttransfer made by a resident decedent if the interest transferred is in:
(1) real property located outside this state, regardless of whetherthe property is held in a trust or whether the trustee is requiredto distribute the property in-kind; or
(2) real property located in this state, if:
(A) the real property was transferred to an irrevocable trustduring the decedent's lifetime;
(B) the transfer to the trust was not made in contemplationof the transferor's death, as determined under IC 6-4.1-2-4;and
(C) the decedent does not have a retained interest in thetrust.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.78-1993,SEC.1.
IC 6-4.1-2-3
Property transfers of nonresident decedent
Sec. 3. The inheritance tax applies to a property interest transfer
made by a nonresident decedent if the interest transferred is in:
(1) real property located in this state, regardless of whether theproperty is held in a trust or whether the trustee is required todistribute the property in-kind, unless:
(A) the real property was transferred to an irrevocable trustduring the decedent's lifetime;
(B) the transfer to the trust was not made in contemplationof the transferor's death, as determined under IC 6-4.1-2-4;and
(C) the decedent does not have a retained interest in thetrust; or
(2) tangible personal property which has an actual situs in thisstate.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,P.L.75, SEC.2; P.L.78-1993, SEC.2.
IC 6-4.1-2-4
Transfers of interests in property; transfers in contemplation ofdeath; transfers for consideration
Sec. 4. (a) The inheritance tax applies to transfers of propertyinterests described in subsection (d) and to the following types ofproperty interest transfers:
(1) transfers which are made under a deceased transferor's willor under the laws of intestate succession, as a result of thetransferor's death;
(2) transfers which are made in contemplation of the transferor'sdeath;
(3) transfers which are made in such a manner that they areintended to take effect in possession or enjoyment at or after thetransferor's death;
(4) transfers which are made in payment of a claim against thetransferor's estate if:
(A) the claim results from a contract or antenuptialagreement made by the transferor; and
(B) payment of the amount claimed is due at or after thetransferor's death under the terms of the transferor's will orthe contract;
(5) those jointly held property transfers described in section 5of this chapter;
(6) those transfers which are made by a trust deed in the mannerdescribed in section 6 of this chapter; and
(7) those transfers which are made to an executor or trustee inthe manner described in section 7 of this chapter.
(b) A transfer is presumed to have been made in contemplation ofthe transferor's death if it is made within one (1) year before thetransferor's date of death. However, the presumption is rebuttable.
(c) If a transfer described in subsection (a)(1), (a)(2), (a)(3), or(a)(4) is made for valuable consideration, the value of the propertyso transferred equals the remainder of:
(1) the total value of the property transferred; minus (2) the equivalent in money value of the consideration receivedby the transferor.
For purposes of this subsection, the term "consideration" does notinclude love or affection.
(d) If at the time of death a surviving spouse has been entitled toincome from a property interest that was the subject of a previoustransfer exempt from inheritance tax under IC 6-4.1-3-7(b) orIC 6-4.1-3-7 (c), then the value of the property interest at the time ofdeath of the surviving spouse is subject to the inheritance tax as if itwere a transfer of property owned by the surviving spouse. The valueof a property interest subject to inheritance tax under this sectionincludes the value of each gift of any part of the property interestmade by the surviving spouse in contemplation of death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1982,P.L.55, SEC.1; P.L.58-1990, SEC.1.
IC 6-4.1-2-5
Joint ownership with rights of survivorship
Sec. 5. If property is held by two (2) or more individuals jointlywith rights of survivorship, the exercise of the rights of the survivingjoint owner or owners to the immediate ownership or possession andenjoyment of the property upon the death of one (1) of the jointowners is a transfer to which the inheritance tax applies. The valueof the property so transferred equals the remainder of (1) the totalvalue of the jointly held property, minus (2) the value of that portionof the jointly held property which the surviving joint owner orowners prove belonged to him or them.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1982,P.L.56, SEC.1.
IC 6-4.1-2-6
Transfers by deed of trust with powers reserved in transferor
Sec. 6. If a transferor transfers property by a deed of trust in sucha manner that he reserves to:
(1) himself any interest; or
(2) himself and others powers of revocation, alteration, oramendment which if exercised would cause the property torevert to the transferor;
then the inheritance tax imposed as a result of the transferor's deathapplies to the transfer. The value of the property so transferredequals the value of the property subject to the powers, and in respectto which the powers remain unexercised, at the time of thetransferor's death.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-2-7
Transfers to executor as trustee in lieu of fee
Sec. 7. If an individual transfers property to an executor or trusteein lieu of his fee, the inheritance tax applies to the transfer if thevalue of the property transferred exceeds the fee that would have
been due if the transfer had not been made. The value of the propertyso transferred equals the amount of the excess.
As added by Acts 1976, P.L.18, SEC.1.