IC 6-4.1-6
    Chapter 6. Special Procedures for Appraising and Taxing CertainProperty Interests

IC 6-4.1-6-1
Mortality standards and actuarial tables; valuation of futureinterests
    Sec. 1. (a) For purposes of this article, county inheritance taxappraisers and the department of state revenue shall, if possible,appraise each future, contingent, defeasible, or life interest inproperty and each annuity by using the rules, methods, standards ofmortality, and actuarial tables used by the Internal Revenue Serviceon October 1, 1988, for federal estate tax purposes.
    (b) Except as otherwise provided in this chapter, the value of afuture interest in specific property equals the remainder of:
        (1) the total value of the property; minus
        (2) the value of all other interests in the property.
    (c) Unless otherwise provided by the transferor, the inheritancetax imposed on the transfer of each of the interests is payable fromthe property in which the interests exist.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.95-1989,SEC.1.

IC 6-4.1-6-2
Property interests that may be divested
    Sec. 2. County inheritance tax appraisers and the department ofstate revenue shall appraise a property interest which may bedivested because of an act or omission of the transferee as if therewere no possibility of divestment.
As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-3
Agreements with department for computing taxes
    Sec. 3. (a) The department of state revenue and a taxpayer mayenter into an agreement under which the department will compute theinheritance tax due with respect to a taxable transfer if:
        (1) it is impossible to compute the present value of the propertyinterest transferred; or
        (2) the tax imposed on the transfer cannot be computed becausea contingency makes it impossible to determine who will takethe property.
The personal representative of an estate or the trustee of a trust may,without court authorization, enter into such an agreement with thedepartment on behalf of the estate or trust.
    (b) When the department of state revenue enters into an agreementwith a taxpayer under this section, the tax computed by thedepartment is payable from the property interest transferred.
As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-4 Manner of property distribution; circumstances where courtdetermination required; finality
    Sec. 4. For purposes of determining the inheritance tax imposedon a decedent's transfer of specific property, the appropriate probatecourt shall, so far as possible, determine the manner in which theproperty will probably be distributed if:
        (1) a contingency makes it impossible to determine eachtransferee's exact interest in the property; and
        (2) the department of state revenue and the taxpayer fail, withina reasonable time, to enter into an agreement under section 3 ofthis chapter.
Unless the court's determination is appealed, it is final and bindingon all parties.
As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-5
Appraisal of limited, contingent, dependent, or determinableinterests
    Sec. 5. If a probate court files an application with the departmentof state revenue asking the department to appraise a property interestwhich is limited, contingent, dependent, or determinable upon a lifein being, including but not limited to a life or remainder interest, thedepartment shall, if possible, appraise the property interest. Thedepartment shall base its appraisal on the facts stated by the court inthe application, and the department shall certify its appraisal induplicate to the court. The department's certification is competentevidence that the appraisal is correct.
As added by Acts 1976, P.L.18, SEC.1.

IC 6-4.1-6-6
Contingent or defeasible future interests; appraisal
    Sec. 6. (a) If proceedings have not been instituted under thischapter to determine the inheritance tax imposed on the decedent'stransfer of a contingent or defeasible future interest in property or ifthe tax imposed on such a transfer is postponed under subsection (b)of this section, the county inheritance tax appraiser or the departmentof state revenue shall, notwithstanding the provisions of IC 6-4.1-5,appraise the property interest at its fair market value when thetransferee of the interest obtains the beneficial enjoyment orpossession of the property.
    (b) The inheritance tax imposed on the decedent's transfer of acontingent or defeasible interest in property accrues and is due whenthe transferee of the interest obtains the beneficial enjoyment orpossession of the property if the fair market value of the propertyinterest as of the appraisal date prescribed by IC 6-4.1-5-1.5 cannototherwise be ascertained under this chapter.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,P.L.57, SEC.18.