IC 29-1-7.5
Chapter 7.5. Unsupervised Administration and Claims Against
Personal 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, the
following persons may at any time petition the court for authority to
have 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 a
petition for unsupervised administration to creditors of the decedent
as 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 by
P.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 of
administration have been issued, the clerk of the court shall serve by
mail notice of the petition on each of the decedent's heirs at law, if
the decedent died intestate, or the devisees and legatees under the
decedent's will. The mailing of notice under this subsection may not
be waived.
(b) The notice required under subsection (a) shall read
substantially 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 the
estate of ______________, who died on the ____ day of
__________, 20__, {leaving a will} {not leaving a will}. The estate
will 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 actions
concerning the estate without first consulting you.
(2) The personal representative may be serving without posting
a bond with the court. You have the right to petition the court
to set a bond for your protection. You also have the right to
petition the court to remove a corporate personal representative
not later than thirty (30) days after this notice if the ownership
or control of the corporate personal representative has changed
since the execution of the decedent's will.
(3) The personal representative will not obtain court approval
of any action, including the amount of attorney's or personal
representative's fees.
(4) Within two (2) months after the appointment of the personal
representative, the personal representative must prepare an
inventory of the estate's assets. You have the right to request
and receive a copy of this inventory from the personal
representative. However, if you do not participate in the residue
of the estate and receive only a specific bequest in money or
personal property that will be paid, you are entitled only to the
information concerning your specific bequest and not to the
assets of the estate as a whole.
(5) The personal representative is required to furnish you with
a copy of the closing statement that will be filed with the court,
and, if your interests are affected, with a full account in writing
of the administration of the estate.
(6) You must file an objection to the closing statement within
three (3) months after the closing statement is filed with the
court if you want the court to consider your objection.
(7) If an objection to the closing statement is not filed with the
court within three (3) months after the filing of the closing
statement, the estate is closed and the court does not have a duty
to audit or make an inquiry.
IF, AT ANY TIME BEFORE THE ESTATE IS CLOSED, YOU
HAVE REASON TO BELIEVE THAT THE ADMINISTRATION
OF THE ESTATE SHOULD BE SUPERVISED BY THE COURT,
YOU HAVE THE RIGHT TO PETITION THE COURT FOR
SUPERVISED ADMINISTRATION.
IF YOU DO NOT UNDERSTAND THIS NOTICE, YOU
SHOULD ASK YOUR ATTORNEY TO EXPLAIN IT TO YOU.
The personal representative's address is ____________, and
telephone number is ___________. The attorney for the personal
representative 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 administration
without 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 the
estate without court supervision;
(4) the heirs, or legatees and devisees, or the parent (as defined
in IC 29-3-1-11), or if none, the guardian (as defined in
IC 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), the
court may also grant a petition for administration without court
supervision if:
(1) the decedent in the will authorized the administration of the
estate to be unsupervised;
(2) the estate is solvent; and
(3) the personal representative is qualified to administer the
estate without court supervision.
(c) Once a petition for administration without court supervision
has been granted under subsection (a) or (b), a personal
representative's authority, under such order, shall not be subject to
any requirement of court approval or confirmation or be open to
collateral attack on account of any defect or irregularity in the
proceedings resulting in issuance of the order of no supervision, if
the court issuing the order had jurisdiction of the estate.
(d) The court may, on its own motion or the motion of an
interested person, revoke an order of unsupervised administration
and require an administration on terms and conditions which the
court specifies if the court finds that such a revocation is in the best
interests of the estate, creditors, taxing authorities, heirs, legatees, or
devisees. (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 personal
representative is not required to execute and file a bond relating to
the duties of the personal representative's office under this chapter
unless:
(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 by
an interested person, that a bond is necessary to protect
creditors, 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 ceases
to be an Indiana resident, the personal representative shall execute
and file a bond under IC 29-1-10-1. The amount of the bond may be
adjusted 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 personal
representative who administers an estate under this chapter may do
the following without order of the court:
(1) Retain assets owned by the decedent pending distribution or
liquidation including those in which the representative is
personally interested or which are otherwise improper for trust
investment.
(2) Receive assets from fiduciaries or other sources.
(3) Perform, compromise, or refuse performance of the
decedent's contracts that continue as obligations of the estate,
as the personal representative may determine under the
circumstances. In performing enforceable contracts by the
decedent to convey or lease land, the personal representative,
among other possible courses of action, may:
(A) execute and deliver a deed of conveyance for cash
payment of all sums remaining due or the purchaser's note
for the sum remaining due secured by a mortgage or deed of
trust on the land; or
(B) deliver a deed in escrow with directions that the
proceeds, when paid in accordance with the escrow
agreement, be paid to the successors of the decedent, as
designated in the escrow agreement.
(4) Satisfy written charitable pledges of the decedent
irrespective of whether the pledges constituted binding
obligations of the decedent or were properly presented as
claims, if in the judgment of the personal representative the
decedent would have wanted the pledges completed under the
circumstances.
(5) If funds are not needed to meet debts and expenses currently
payable and are not immediately distributable, deposit or invest
liquid assets of the estate, including moneys received from the
sale of other assets, in federally insured interest-bearing
accounts, readily marketable secured loan arrangements, or
other prudent investments which would be reasonable for use
by trustees generally.
(6) Acquire or dispose of an asset, including land in this or
another state, for cash or on credit, at public or private sale; and
manage, develop, improve, exchange, partition, change the
character of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations in
buildings or other structures, demolish any improvements, raze
existing or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make or
obtain the vacation of plats and adjust boundaries; or adjust
differences in valuation on exchange or partition by giving or
receiving considerations; or dedicate easements to public use
without consideration.
(9) Enter for any purpose into a lease as lessor or lessee, with
or without option to purchase or renew, for a term within or
extending beyond the period of administration.
(10) Enter into a lease or arrangement for exploration and
removal of minerals or other natural resources or enter into a
pooling or unitization agreement.
(11) Abandon property when, in the opinion of the personal
representatives, it is valueless, or is so encumbered, or is in
condition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general or
limited proxy.
(13) Pay calls, assessments, and other sums chargeable or
accruing against or on account of securities, unless barred by
the provisions relating to claims.
(14) Hold a security in the name of a nominee or in other form
without disclosure of the interest of the estate but the personal
representative is liable for any act of the nominee in connection
with the security so held.
(15) Hold, manage, safeguard, and control the estate's real and
personal property, insure the assets of the estate against
damage, loss, and liability, and insure the personal
representative personally against liability as to third persons.
(16) Borrow money with or without security to be repaid from
the estate assets or otherwise and advance money for the
protection of the estate.
(17) Effect a fair and reasonable compromise with any debtor
or obligor, or extend, renew, or in any manner modify the terms
of any obligation owing to the estate. If the personal
representative holds a mortgage, pledge, or other lien upon
property of another person, the personal representative may, in
lieu of foreclosure, accept a conveyance or transfer of
encumbered assets from the owner thereof in satisfaction of the
indebtedness secured by lien.
(18) Pay taxes, assessments, compensation of the personal
representative, and other expenses incident to the administration
of the estate.
(19) Hold an interest in a proprietorship, partnership, limited
liability company, business trust, corporation, or another
domestic 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 contributing
additional capital to or merging, consolidating, reorganizing,
recapitalizing, dissolving, or otherwise changing the form of the
business organization.
(22) Allocate items of income or expense to either estate
income or principal, as permitted or provided by IC 30-2-14.
(23) Employ persons, including attorneys, auditors, investment
advisors, or agents, even if they are associated with the personal
representative, to advise or assist the personal representative in
the performance of the personal representative's administrative
duties; act without independent investigation upon their
recommendations; 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 demand
made in favor of or against the estate for the protection of the
estate and of the personal representative in the performance of
the personal representative's duties:
(A) Release, assign, settle, compromise, or contest the claim
or demand.
(B) Participate in mediation or submit to arbitration to
resolve 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 the
estate or any interest therein for cash, credit, or for part cash
and part credit, and with or without security for unpaid
balances.
(26) Select a settlement option under any qualified or
nonqualified benefit or retirement plan, annuity, or life
insurance payable to the estate, and take appropriate action to
collect 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 with
respect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or a
potential violation of an environmental law affecting the
property, whether taken before or after the assertion of a
claim or the initiation of governmental enforcement by
federal, state, or local authorities.
(ii) Compromise claims against the estate that may be
asserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, or
remedial action to comply with the environmental law.
(28) Distribute assets of the estate upon such terms as the
personal representative may impose. To the extent practicable,
taking into account the decedent's probable intention, the power
to distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legal
disability or whom the personal representative reasonably
believes to be incapacitated by:
(i) paying the amount directly to the distributee or
applying the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for the
distributee;
(iii) paying the amount to a custodian under the Indiana
Uniform Transfers to Minors Act (IC 30-2-8.5) or a
custodial 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 under
subsection (b); and
(B) make distributions of estate income and principal in
kind, in cash, or partly in each, in shares of differing
composition.
(29) Perform any other act necessary or appropriate to
administer the estate.
(b) A personal representative who administers an estate under this
chapter may, without court order, establish a trust to make
distributions to a distributee who is under a legal disability or whom
the personal representative reasonably believes is incapacitated. In
establishing a trust under this subsection, a personal representative
may exercise:
(1) the authority given to custodians under the Indiana Uniform
Transfers to Minors Act (IC 30-2-8.5) to create a trust that
satisfies the requirements of Section 2503(c) of the Internal
Revenue Code and the regulations adopted under that Section;
or
(2) the authority given to an attorney in fact under
IC 30-5-5-15(a)(3) to establish a revocable trust for the benefit
of 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 appointment
of a personal representative under this chapter, the personal
representative 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 the
fair market value of each item of property of the decedent of which
the personal representative has possession or knowledge, including
a statement of all known liens and other charges on any item. The
property shall be classified in the inventory as follows:
(1) Real property, with plat or survey description, and if a
homestead, 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 that
the stock has no par value, and if preferred stock, the dividend
rate.
(5) Mortgages, bonds, notes, or other written evidences of debt
or of ownership described by the name of the debtor, recording
data, and other identification.
(6) Bank accounts, money, and insurance policies if payable to
the estate of the decedent or to the decedent's personal
representative.
(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), the
personal representative may employ a disinterested appraiser to
ascertain the fair market value as of the date of the decedent's death
of an asset that has a value that may be subject to reasonable doubt.
Different persons may be employed to appraise different kinds of
assets included in the estate. The names and addresses of any
appraiser shall be indicated on the inventory with the item or items
the appraiser appraised.
(d) The personal representative shall furnish a copy of the
inventory required under subsection (a), or a supplement or
amendment to the inventory, to a distributee who requests a copy.
(e) The personal representative may certify to the court that the
inventory required under subsection (a), a supplement, or an
amendment to the inventory has been prepared and is available.
However, the court may not require the personal representative to file
a copy of the inventory, a supplement, or an amendment to the
inventory 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 real
property by a personal representative to a devisee or heir under this
chapter.
(b) The conveyance subscribed by the personal representative
under this section is sufficient to distribute all title in the real
property to the devisee or heir if the conveyance 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 virtue
of the power given a personal representative under Indiana law,
hereby distributes to E.F. the following described real estate: (insert
description)." 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 property
by a personal representative under this chapter.
(b) The conveyance subscribed by the personal representative is
sufficient to convey all title in the real property to the grantee if the
conveyance 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 virtue
of the power given a personal representative under Indiana law, for
good and sufficient consideration conveys to E.F. the following
described 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 estate
administered under this chapter as promptly as possible.
(b) If a personal representative does not file a closing statement
under section 4 of this chapter within one (1) year after the
appointment of the personal representative, the personal
representative shall file a statement with the court indicating why the
estate 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 personal
representative
Sec. 4. (a) Unless prohibited by order of the court and except for
estates being administered in supervised administration proceedings,
a personal representative may close an estate by filing with the court
no earlier than three (3) months after the date of the first published
notice to creditors under IC 29-1-7-7(b), a verified statement stating
that 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 making
payment, settlement, or other disposition of all claims which
were presented, expenses of administration and estate,
inheritance, and other death taxes, except as specified in the
statement. If any claims remain undischarged, the statement
shall:
(A) state whether the personal representative has distributed
the estate, subject to possible liability, with the agreement of
the distributees; or
(B) detail other arrangements which have been made to
accommodate outstanding liabilities.
(4) Executed and recorded a personal representative's deed for
any real estate owned by the decedent.
(5) Distributed all the assets of the estate to the persons entitled
to receive the assets.
(6) Sent a copy of the statement to all distributees of the estate
and to all creditors or other claimants of whom the personal
representative has actual knowledge whose claims are neither
paid nor barred and has furnished a full account in writing of
the personal representative's administration to the distributees
whose interests are affected.
(7) Provided the court with the names and addresses of all
distributees, creditors, and claimants to whom the personal
representative has sent a copy of the statement under
subdivision (6).
(b) If no proceedings involving the personal representative are
pending in the court three (3) months after the closing statement is
filed, the appointment of the personal representative terminates and
the estate is closed by operation of law. (Formerly: Acts 1975, P.L.288, SEC.11.) As amended by
P.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 the
closing statement required under section 4 of this chapter is filed, an
objection to the closing statement has not been filed, the court does
not 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 subject
to section 7 of this chapter, an undischarged claim not barred may be
prosecuted in a proceeding against one (1) or more distributees. No
distributee is liable to claimants for amounts in excess of the value
of his distribution as of the time of distribution. As between
distributees, each shall bear the cost of satisfaction of unbarred
claims as if the claim had been satisfied in the course of
administration. Any distributee who fails to notify other distributees
of the demand made upon him by the claimant in sufficient time to
permit them to join in any proceeding in which the claim was
asserted against him loses his right of contribution against other
distributees. (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 as
provided in the closing statement, all claims against the personal
representative, including claims by a person under a disability, are
barred unless a proceeding to assert the same is commenced within
three (3) months after the filing of the closing statement. The rights
thus barred do not include rights to recover from a personal
representative for fraud, misrepresentation, or inadequate disclosure
related 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 distributee
who 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 successor
personal representative acting in their behalf, to recover property
improperly distributed or the value thereof from any distributee is
forever barred at the later of (a) three (3) years after the decedent's
death, 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 personal
representative
Sec. 8. If other property of the estate is discovered after the estate
has been settled and the personal representative discharged or three
(3) months after a closing statement has been filed, the court upon
petition of any interested person and upon notice as it directs may
appoint the same or a successor personal representative to administer
the subsequently discovered estate. If a new appointment is made,
unless the court orders otherwise, the provisions of this title apply as
appropriate; but no claim previously barred may be asserted in the
subsequent administration. (Formerly: Acts 1975, P.L.288, SEC.11.)
IC 29-1-7.5
Chapter 7.5. Unsupervised Administration and Claims Against
Personal 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, the
following persons may at any time petition the court for authority to
have 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 a
petition for unsupervised administration to creditors of the decedent
as 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 by
P.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 of
administration have been issued, the clerk of the court shall serve by
mail notice of the petition on each of the decedent's heirs at law, if
the decedent died intestate, or the devisees and legatees under the
decedent's will. The mailing of notice under this subsection may not
be waived.
(b) The notice required under subsection (a) shall read
substantially 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 the
estate of ______________, who died on the ____ day of
__________, 20__, {leaving a will} {not leaving a will}. The estate
will 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 actions
concerning the estate without first consulting you.
(2) The personal representative may be serving without posting
a bond with the court. You have the right to petition the court
to set a bond for your protection. You also have the right to
petition the court to remove a corporate personal representative
not later than thirty (30) days after this notice if the ownership
or control of the corporate personal representative has changed
since the execution of the decedent's will.
(3) The personal representative will not obtain court approval
of any action, including the amount of attorney's or personal
representative's fees.
(4) Within two (2) months after the appointment of the personal
representative, the personal representative must prepare an
inventory of the estate's assets. You have the right to request
and receive a copy of this inventory from the personal
representative. However, if you do not participate in the residue
of the estate and receive only a specific bequest in money or
personal property that will be paid, you are entitled only to the
information concerning your specific bequest and not to the
assets of the estate as a whole.
(5) The personal representative is required to furnish you with
a copy of the closing statement that will be filed with the court,
and, if your interests are affected, with a full account in writing
of the administration of the estate.
(6) You must file an objection to the closing statement within
three (3) months after the closing statement is filed with the
court if you want the court to consider your objection.
(7) If an objection to the closing statement is not filed with the
court within three (3) months after the filing of the closing
statement, the estate is closed and the court does not have a duty
to audit or make an inquiry.
IF, AT ANY TIME BEFORE THE ESTATE IS CLOSED, YOU
HAVE REASON TO BELIEVE THAT THE ADMINISTRATION
OF THE ESTATE SHOULD BE SUPERVISED BY THE COURT,
YOU HAVE THE RIGHT TO PETITION THE COURT FOR
SUPERVISED ADMINISTRATION.
IF YOU DO NOT UNDERSTAND THIS NOTICE, YOU
SHOULD ASK YOUR ATTORNEY TO EXPLAIN IT TO YOU.
The personal representative's address is ____________, and
telephone number is ___________. The attorney for the personal
representative 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 administration
without 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 the
estate without court supervision;
(4) the heirs, or legatees and devisees, or the parent (as defined
in IC 29-3-1-11), or if none, the guardian (as defined in
IC 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), the
court may also grant a petition for administration without court
supervision if:
(1) the decedent in the will authorized the administration of the
estate to be unsupervised;
(2) the estate is solvent; and
(3) the personal representative is qualified to administer the
estate without court supervision.
(c) Once a petition for administration without court supervision
has been granted under subsection (a) or (b), a personal
representative's authority, under such order, shall not be subject to
any requirement of court approval or confirmation or be open to
collateral attack on account of any defect or irregularity in the
proceedings resulting in issuance of the order of no supervision, if
the court issuing the order had jurisdiction of the estate.
(d) The court may, on its own motion or the motion of an
interested person, revoke an order of unsupervised administration
and require an administration on terms and conditions which the
court specifies if the court finds that such a revocation is in the best
interests of the estate, creditors, taxing authorities, heirs, legatees, or
devisees. (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 personal
representative is not required to execute and file a bond relating to
the duties of the personal representative's office under this chapter
unless:
(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 by
an interested person, that a bond is necessary to protect
creditors, 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 ceases
to be an Indiana resident, the personal representative shall execute
and file a bond under IC 29-1-10-1. The amount of the bond may be
adjusted 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 personal
representative who administers an estate under this chapter may do
the following without order of the court:
(1) Retain assets owned by the decedent pending distribution or
liquidation including those in which the representative is
personally interested or which are otherwise improper for trust
investment.
(2) Receive assets from fiduciaries or other sources.
(3) Perform, compromise, or refuse performance of the
decedent's contracts that continue as obligations of the estate,
as the personal representative may determine under the
circumstances. In performing enforceable contracts by the
decedent to convey or lease land, the personal representative,
among other possible courses of action, may:
(A) execute and deliver a deed of conveyance for cash
payment of all sums remaining due or the purchaser's note
for the sum remaining due secured by a mortgage or deed of
trust on the land; or
(B) deliver a deed in escrow with directions that the
proceeds, when paid in accordance with the escrow
agreement, be paid to the successors of the decedent, as
designated in the escrow agreement.
(4) Satisfy written charitable pledges of the decedent
irrespective of whether the pledges constituted binding
obligations of the decedent or were properly presented as
claims, if in the judgment of the personal representative the
decedent would have wanted the pledges completed under the
circumstances.
(5) If funds are not needed to meet debts and expenses currently
payable and are not immediately distributable, deposit or invest
liquid assets of the estate, including moneys received from the
sale of other assets, in federally insured interest-bearing
accounts, readily marketable secured loan arrangements, or
other prudent investments which would be reasonable for use
by trustees generally.
(6) Acquire or dispose of an asset, including land in this or
another state, for cash or on credit, at public or private sale; and
manage, develop, improve, exchange, partition, change the
character of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations in
buildings or other structures, demolish any improvements, raze
existing or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make or
obtain the vacation of plats and adjust boundaries; or adjust
differences in valuation on exchange or partition by giving or
receiving considerations; or dedicate easements to public use
without consideration.
(9) Enter for any purpose into a lease as lessor or lessee, with
or without option to purchase or renew, for a term within or
extending beyond the period of administration.
(10) Enter into a lease or arrangement for exploration and
removal of minerals or other natural resources or enter into a
pooling or unitization agreement.
(11) Abandon property when, in the opinion of the personal
representatives, it is valueless, or is so encumbered, or is in
condition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general or
limited proxy.
(13) Pay calls, assessments, and other sums chargeable or
accruing against or on account of securities, unless barred by
the provisions relating to claims.
(14) Hold a security in the name of a nominee or in other form
without disclosure of the interest of the estate but the personal
representative is liable for any act of the nominee in connection
with the security so held.
(15) Hold, manage, safeguard, and control the estate's real and
personal property, insure the assets of the estate against
damage, loss, and liability, and insure the personal
representative personally against liability as to third persons.
(16) Borrow money with or without security to be repaid from
the estate assets or otherwise and advance money for the
protection of the estate.
(17) Effect a fair and reasonable compromise with any debtor
or obligor, or extend, renew, or in any manner modify the terms
of any obligation owing to the estate. If the personal
representative holds a mortgage, pledge, or other lien upon
property of another person, the personal representative may, in
lieu of foreclosure, accept a conveyance or transfer of
encumbered assets from the owner thereof in satisfaction of the
indebtedness secured by lien.
(18) Pay taxes, assessments, compensation of the personal
representative, and other expenses incident to the administration
of the estate.
(19) Hold an interest in a proprietorship, partnership, limited
liability company, business trust, corporation, or another
domestic 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 contributing
additional capital to or merging, consolidating, reorganizing,
recapitalizing, dissolving, or otherwise changing the form of the
business organization.
(22) Allocate items of income or expense to either estate
income or principal, as permitted or provided by IC 30-2-14.
(23) Employ persons, including attorneys, auditors, investment
advisors, or agents, even if they are associated with the personal
representative, to advise or assist the personal representative in
the performance of the personal representative's administrative
duties; act without independent investigation upon their
recommendations; 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 demand
made in favor of or against the estate for the protection of the
estate and of the personal representative in the performance of
the personal representative's duties:
(A) Release, assign, settle, compromise, or contest the claim
or demand.
(B) Participate in mediation or submit to arbitration to
resolve 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 the
estate or any interest therein for cash, credit, or for part cash
and part credit, and with or without security for unpaid
balances.
(26) Select a settlement option under any qualified or
nonqualified benefit or retirement plan, annuity, or life
insurance payable to the estate, and take appropriate action to
collect 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 with
respect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or a
potential violation of an environmental law affecting the
property, whether taken before or after the assertion of a
claim or the initiation of governmental enforcement by
federal, state, or local authorities.
(ii) Compromise claims against the estate that may be
asserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, or
remedial action to comply with the environmental law.
(28) Distribute assets of the estate upon such terms as the
personal representative may impose. To the extent practicable,
taking into account the decedent's probable intention, the power
to distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legal
disability or whom the personal representative reasonably
believes to be incapacitated by:
(i) paying the amount directly to the distributee or
applying the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for the
distributee;
(iii) paying the amount to a custodian under the Indiana
Uniform Transfers to Minors Act (IC 30-2-8.5) or a
custodial 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 under
subsection (b); and
(B) make distributions of estate income and principal in
kind, in cash, or partly in each, in shares of differing
composition.
(29) Perform any other act necessary or appropriate to
administer the estate.
(b) A personal representative who administers an estate under this
chapter may, without court order, establish a trust to make
distributions to a distributee who is under a legal disability or whom
the personal representative reasonably believes is incapacitated. In
establishing a trust under this subsection, a personal representative
may exercise:
(1) the authority given to custodians under the Indiana Uniform
Transfers to Minors Act (IC 30-2-8.5) to create a trust that
satisfies the requirements of Section 2503(c) of the Internal
Revenue Code and the regulations adopted under that Section;
or
(2) the authority given to an attorney in fact under
IC 30-5-5-15(a)(3) to establish a revocable trust for the benefit
of 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 appointment
of a personal representative under this chapter, the personal
representative 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 the
fair market value of each item of property of the decedent of which
the personal representative has possession or knowledge, including
a statement of all known liens and other charges on any item. The
property shall be classified in the inventory as follows:
(1) Real property, with plat or survey description, and if a
homestead, 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 that
the stock has no par value, and if preferred stock, the dividend
rate.
(5) Mortgages, bonds, notes, or other written evidences of debt
or of ownership described by the name of the debtor, recording
data, and other identification.
(6) Bank accounts, money, and insurance policies if payable to
the estate of the decedent or to the decedent's personal
representative.
(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), the
personal representative may employ a disinterested appraiser to
ascertain the fair market value as of the date of the decedent's death
of an asset that has a value that may be subject to reasonable doubt.
Different persons may be employed to appraise different kinds of
assets included in the estate. The names and addresses of any
appraiser shall be indicated on the inventory with the item or items
the appraiser appraised.
(d) The personal representative shall furnish a copy of the
inventory required under subsection (a), or a supplement or
amendment to the inventory, to a distributee who requests a copy.
(e) The personal representative may certify to the court that the
inventory required under subsection (a), a supplement, or an
amendment to the inventory has been prepared and is available.
However, the court may not require the personal representative to file
a copy of the inventory, a supplement, or an amendment to the
inventory 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 real
property by a personal representative to a devisee or heir under this
chapter.
(b) The conveyance subscribed by the personal representative
under this section is sufficient to distribute all title in the real
property to the devisee or heir if the conveyance 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 virtue
of the power given a personal representative under Indiana law,
hereby distributes to E.F. the following described real estate: (insert
description)." 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 property
by a personal representative under this chapter.
(b) The conveyance subscribed by the personal representative is
sufficient to convey all title in the real property to the grantee if the
conveyance 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 virtue
of the power given a personal representative under Indiana law, for
good and sufficient consideration conveys to E.F. the following
described 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 estate
administered under this chapter as promptly as possible.
(b) If a personal representative does not file a closing statement
under section 4 of this chapter within one (1) year after the
appointment of the personal representative, the personal
representative shall file a statement with the court indicating why the
estate 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 personal
representative
Sec. 4. (a) Unless prohibited by order of the court and except for
estates being administered in supervised administration proceedings,
a personal representative may close an estate by filing with the court
no earlier than three (3) months after the date of the first published
notice to creditors under IC 29-1-7-7(b), a verified statement stating
that 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 making
payment, settlement, or other disposition of all claims which
were presented, expenses of administration and estate,
inheritance, and other death taxes, except as specified in the
statement. If any claims remain undischarged, the statement
shall:
(A) state whether the personal representative has distributed
the estate, subject to possible liability, with the agreement of
the distributees; or
(B) detail other arrangements which have been made to
accommodate outstanding liabilities.
(4) Executed and recorded a personal representative's deed for
any real estate owned by the decedent.
(5) Distributed all the assets of the estate to the persons entitled
to receive the assets.
(6) Sent a copy of the statement to all distributees of the estate
and to all creditors or other claimants of whom the personal
representative has actual knowledge whose claims are neither
paid nor barred and has furnished a full account in writing of
the personal representative's administration to the distributees
whose interests are affected.
(7) Provided the court with the names and addresses of all
distributees, creditors, and claimants to whom the personal
representative has sent a copy of the statement under
subdivision (6).
(b) If no proceedings involving the personal representative are
pending in the court three (3) months after the closing statement is
filed, the appointment of the personal representative terminates and
the estate is closed by operation of law. (Formerly: Acts 1975, P.L.288, SEC.11.) As amended by
P.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 the
closing statement required under section 4 of this chapter is filed, an
objection to the closing statement has not been filed, the court does
not 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 subject
to section 7 of this chapter, an undischarged claim not barred may be
prosecuted in a proceeding against one (1) or more distributees. No
distributee is liable to claimants for amounts in excess of the value
of his distribution as of the time of distribution. As between
distributees, each shall bear the cost of satisfaction of unbarred
claims as if the claim had been satisfied in the course of
administration. Any distributee who fails to notify other distributees
of the demand made upon him by the claimant in sufficient time to
permit them to join in any proceeding in which the claim was
asserted against him loses his right of contribution against other
distributees. (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 as
provided in the closing statement, all claims against the personal
representative, including claims by a person under a disability, are
barred unless a proceeding to assert the same is commenced within
three (3) months after the filing of the closing statement. The rights
thus barred do not include rights to recover from a personal
representative for fraud, misrepresentation, or inadequate disclosure
related 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 distributee
who 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 successor
personal representative acting in their behalf, to recover property
improperly distributed or the value thereof from any distributee is
forever barred at the later of (a) three (3) years after the decedent's
death, 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 personal
representative
Sec. 8. If other property of the estate is discovered after the estate
has been settled and the personal representative discharged or three
(3) months after a closing statement has been filed, the court upon
petition of any interested person and upon notice as it directs may
appoint the same or a successor personal representative to administer
the subsequently discovered estate. If a new appointment is made,
unless the court orders otherwise, the provisions of this title apply as
appropriate; but no claim previously barred may be asserted in the
subsequent administration. (Formerly: Acts 1975, P.L.288, SEC.11.)
IC 29-1-7.5
Chapter 7.5. Unsupervised Administration and Claims Against
Personal 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, the
following persons may at any time petition the court for authority to
have 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 a
petition for unsupervised administration to creditors of the decedent
as 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 by
P.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 of
administration have been issued, the clerk of the court shall serve by
mail notice of the petition on each of the decedent's heirs at law, if
the decedent died intestate, or the devisees and legatees under the
decedent's will. The mailing of notice under this subsection may not
be waived.
(b) The notice required under subsection (a) shall read
substantially 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 the
estate of ______________, who died on the ____ day of
__________, 20__, {leaving a will} {not leaving a will}. The estate
will 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 actions
concerning the estate without first consulting you.
(2) The personal representative may be serving without posting
a bond with the court. You have the right to petition the court
to set a bond for your protection. You also have the right to
petition the court to remove a corporate personal representative
not later than thirty (30) days after this notice if the ownership
or control of the corporate personal representative has changed
since the execution of the decedent's will.
(3) The personal representative will not obtain court approval
of any action, including the amount of attorney's or personal
representative's fees.
(4) Within two (2) months after the appointment of the personal
representative, the personal representative must prepare an
inventory of the estate's assets. You have the right to request
and receive a copy of this inventory from the personal
representative. However, if you do not participate in the residue
of the estate and receive only a specific bequest in money or
personal property that will be paid, you are entitled only to the
information concerning your specific bequest and not to the
assets of the estate as a whole.
(5) The personal representative is required to furnish you with
a copy of the closing statement that will be filed with the court,
and, if your interests are affected, with a full account in writing
of the administration of the estate.
(6) You must file an objection to the closing statement within
three (3) months after the closing statement is filed with the
court if you want the court to consider your objection.
(7) If an objection to the closing statement is not filed with the
court within three (3) months after the filing of the closing
statement, the estate is closed and the court does not have a duty
to audit or make an inquiry.
IF, AT ANY TIME BEFORE THE ESTATE IS CLOSED, YOU
HAVE REASON TO BELIEVE THAT THE ADMINISTRATION
OF THE ESTATE SHOULD BE SUPERVISED BY THE COURT,
YOU HAVE THE RIGHT TO PETITION THE COURT FOR
SUPERVISED ADMINISTRATION.
IF YOU DO NOT UNDERSTAND THIS NOTICE, YOU
SHOULD ASK YOUR ATTORNEY TO EXPLAIN IT TO YOU.
The personal representative's address is ____________, and
telephone number is ___________. The attorney for the personal
representative 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 administration
without 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 the
estate without court supervision;
(4) the heirs, or legatees and devisees, or the parent (as defined
in IC 29-3-1-11), or if none, the guardian (as defined in
IC 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), the
court may also grant a petition for administration without court
supervision if:
(1) the decedent in the will authorized the administration of the
estate to be unsupervised;
(2) the estate is solvent; and
(3) the personal representative is qualified to administer the
estate without court supervision.
(c) Once a petition for administration without court supervision
has been granted under subsection (a) or (b), a personal
representative's authority, under such order, shall not be subject to
any requirement of court approval or confirmation or be open to
collateral attack on account of any defect or irregularity in the
proceedings resulting in issuance of the order of no supervision, if
the court issuing the order had jurisdiction of the estate.
(d) The court may, on its own motion or the motion of an
interested person, revoke an order of unsupervised administration
and require an administration on terms and conditions which the
court specifies if the court finds that such a revocation is in the best
interests of the estate, creditors, taxing authorities, heirs, legatees, or
devisees. (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 personal
representative is not required to execute and file a bond relating to
the duties of the personal representative's office under this chapter
unless:
(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 by
an interested person, that a bond is necessary to protect
creditors, 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 ceases
to be an Indiana resident, the personal representative shall execute
and file a bond under IC 29-1-10-1. The amount of the bond may be
adjusted 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 personal
representative who administers an estate under this chapter may do
the following without order of the court:
(1) Retain assets owned by the decedent pending distribution or
liquidation including those in which the representative is
personally interested or which are otherwise improper for trust
investment.
(2) Receive assets from fiduciaries or other sources.
(3) Perform, compromise, or refuse performance of the
decedent's contracts that continue as obligations of the estate,
as the personal representative may determine under the
circumstances. In performing enforceable contracts by the
decedent to convey or lease land, the personal representative,
among other possible courses of action, may:
(A) execute and deliver a deed of conveyance for cash
payment of all sums remaining due or the purchaser's note
for the sum remaining due secured by a mortgage or deed of
trust on the land; or
(B) deliver a deed in escrow with directions that the
proceeds, when paid in accordance with the escrow
agreement, be paid to the successors of the decedent, as
designated in the escrow agreement.
(4) Satisfy written charitable pledges of the decedent
irrespective of whether the pledges constituted binding
obligations of the decedent or were properly presented as
claims, if in the judgment of the personal representative the
decedent would have wanted the pledges completed under the
circumstances.
(5) If funds are not needed to meet debts and expenses currently
payable and are not immediately distributable, deposit or invest
liquid assets of the estate, including moneys received from the
sale of other assets, in federally insured interest-bearing
accounts, readily marketable secured loan arrangements, or
other prudent investments which would be reasonable for use
by trustees generally.
(6) Acquire or dispose of an asset, including land in this or
another state, for cash or on credit, at public or private sale; and
manage, develop, improve, exchange, partition, change the
character of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations in
buildings or other structures, demolish any improvements, raze
existing or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make or
obtain the vacation of plats and adjust boundaries; or adjust
differences in valuation on exchange or partition by giving or
receiving considerations; or dedicate easements to public use
without consideration.
(9) Enter for any purpose into a lease as lessor or lessee, with
or without option to purchase or renew, for a term within or
extending beyond the period of administration.
(10) Enter into a lease or arrangement for exploration and
removal of minerals or other natural resources or enter into a
pooling or unitization agreement.
(11) Abandon property when, in the opinion of the personal
representatives, it is valueless, or is so encumbered, or is in
condition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general or
limited proxy.
(13) Pay calls, assessments, and other sums chargeable or
accruing against or on account of securities, unless barred by
the provisions relating to claims.
(14) Hold a security in the name of a nominee or in other form
without disclosure of the interest of the estate but the personal
representative is liable for any act of the nominee in connection
with the security so held.
(15) Hold, manage, safeguard, and control the estate's real and
personal property, insure the assets of the estate against
damage, loss, and liability, and insure the personal
representative personally against liability as to third persons.
(16) Borrow money with or without security to be repaid from
the estate assets or otherwise and advance money for the
protection of the estate.
(17) Effect a fair and reasonable compromise with any debtor
or obligor, or extend, renew, or in any manner modify the terms
of any obligation owing to the estate. If the personal
representative holds a mortgage, pledge, or other lien upon
property of another person, the personal representative may, in
lieu of foreclosure, accept a conveyance or transfer of
encumbered assets from the owner thereof in satisfaction of the
indebtedness secured by lien.
(18) Pay taxes, assessments, compensation of the personal
representative, and other expenses incident to the administration
of the estate.
(19) Hold an interest in a proprietorship, partnership, limited
liability company, business trust, corporation, or another
domestic 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 contributing
additional capital to or merging, consolidating, reorganizing,
recapitalizing, dissolving, or otherwise changing the form of the
business organization.
(22) Allocate items of income or expense to either estate
income or principal, as permitted or provided by IC 30-2-14.
(23) Employ persons, including attorneys, auditors, investment
advisors, or agents, even if they are associated with the personal
representative, to advise or assist the personal representative in
the performance of the personal representative's administrative
duties; act without independent investigation upon their
recommendations; 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 demand
made in favor of or against the estate for the protection of the
estate and of the personal representative in the performance of
the personal representative's duties:
(A) Release, assign, settle, compromise, or contest the claim
or demand.
(B) Participate in mediation or submit to arbitration to
resolve 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 the
estate or any interest therein for cash, credit, or for part cash
and part credit, and with or without security for unpaid
balances.
(26) Select a settlement option under any qualified or
nonqualified benefit or retirement plan, annuity, or life
insurance payable to the estate, and take appropriate action to
collect 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 with
respect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or a
potential violation of an environmental law affecting the
property, whether taken before or after the assertion of a
claim or the initiation of governmental enforcement by
federal, state, or local authorities.
(ii) Compromise claims against the estate that may be
asserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, or
remedial action to comply with the environmental law.
(28) Distribute assets of the estate upon such terms as the
personal representative may impose. To the extent practicable,
taking into account the decedent's probable intention, the power
to distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legal
disability or whom the personal representative reasonably
believes to be incapacitated by:
(i) paying the amount directly to the distributee or
applying the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for the
distributee;
(iii) paying the amount to a custodian under the Indiana
Uniform Transfers to Minors Act (IC 30-2-8.5) or a
custodial 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 under
subsection (b); and
(B) make distributions of estate income and principal in
kind, in cash, or partly in each, in shares of differing
composition.
(29) Perform any other act necessary or appropriate to
administer the estate.
(b) A personal representative who administers an estate under this
chapter may, without court order, establish a trust to make
distributions to a distributee who is under a legal disability or whom
the personal representative reasonably believes is incapacitated. In
establishing a trust under this subsection, a personal representative
may exercise:
(1) the authority given to custodians under the Indiana Uniform
Transfers to Minors Act (IC 30-2-8.5) to create a trust that
satisfies the requirements of Section 2503(c) of the Internal
Revenue Code and the regulations adopted under that Section;
or
(2) the authority given to an attorney in fact under
IC 30-5-5-15(a)(3) to establish a revocable trust for the benefit
of 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 appointment
of a personal representative under this chapter, the personal
representative 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 the
fair market value of each item of property of the decedent of which
the personal representative has possession or knowledge, including
a statement of all known liens and other charges on any item. The
property shall be classified in the inventory as follows:
(1) Real property, with plat or survey description, and if a
homestead, 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 that
the stock has no par value, and if preferred stock, the dividend
rate.
(5) Mortgages, bonds, notes, or other written evidences of debt
or of ownership described by the name of the debtor, recording
data, and other identification.
(6) Bank accounts, money, and insurance policies if payable to
the estate of the decedent or to the decedent's personal
representative.
(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), the
personal representative may employ a disinterested appraiser to
ascertain the fair market value as of the date of the decedent's death
of an asset that has a value that may be subject to reasonable doubt.
Different persons may be employed to appraise different kinds of
assets included in the estate. The names and addresses of any
appraiser shall be indicated on the inventory with the item or items
the appraiser appraised.
(d) The personal representative shall furnish a copy of the
inventory required under subsection (a), or a supplement or
amendment to the inventory, to a distributee who requests a copy.
(e) The personal representative may certify to the court that the
inventory required under subsection (a), a supplement, or an
amendment to the inventory has been prepared and is available.
However, the court may not require the personal representative to file
a copy of the inventory, a supplement, or an amendment to the
inventory 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 real
property by a personal representative to a devisee or heir under this
chapter.
(b) The conveyance subscribed by the personal representative
under this section is sufficient to distribute all title in the real
property to the devisee or heir if the conveyance 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 virtue
of the power given a personal representative under Indiana law,
hereby distributes to E.F. the following described real estate: (insert
description)." 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 property
by a personal representative under this chapter.
(b) The conveyance subscribed by the personal representative is
sufficient to convey all title in the real property to the grantee if the
conveyance 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 virtue
of the power given a personal representative under Indiana law, for
good and sufficient consideration conveys to E.F. the following
described 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 estate
administered under this chapter as promptly as possible.
(b) If a personal representative does not file a closing statement
under section 4 of this chapter within one (1) year after the
appointment of the personal representative, the personal
representative shall file a statement with the court indicating why the
estate 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 personal
representative
Sec. 4. (a) Unless prohibited by order of the court and except for
estates being administered in supervised administration proceedings,
a personal representative may close an estate by filing with the court
no earlier than three (3) months after the date of the first published
notice to creditors under IC 29-1-7-7(b), a verified statement stating
that 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 making
payment, settlement, or other disposition of all claims which
were presented, expenses of administration and estate,
inheritance, and other death taxes, except as specified in the
statement. If any claims remain undischarged, the statement
shall:
(A) state whether the personal representative has distributed
the estate, subject to possible liability, with the agreement of
the distributees; or
(B) detail other arrangements which have been made to
accommodate outstanding liabilities.
(4) Executed and recorded a personal representative's deed for
any real estate owned by the decedent.
(5) Distributed all the assets of the estate to the persons entitled
to receive the assets.
(6) Sent a copy of the statement to all distributees of the estate
and to all creditors or other claimants of whom the personal
representative has actual knowledge whose claims are neither
paid nor barred and has furnished a full account in writing of
the personal representative's administration to the distributees
whose interests are affected.
(7) Provided the court with the names and addresses of all
distributees, creditors, and claimants to whom the personal
representative has sent a copy of the statement under
subdivision (6).
(b) If no proceedings involving the personal representative are
pending in the court three (3) months after the closing statement is
filed, the appointment of the personal representative terminates and
the estate is closed by operation of law. (Formerly: Acts 1975, P.L.288, SEC.11.) As amended by
P.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 the
closing statement required under section 4 of this chapter is filed, an
objection to the closing statement has not been filed, the court does
not 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 subject
to section 7 of this chapter, an undischarged claim not barred may be
prosecuted in a proceeding against one (1) or more distributees. No
distributee is liable to claimants for amounts in excess of the value
of his distribution as of the time of distribution. As between
distributees, each shall bear the cost of satisfaction of unbarred
claims as if the claim had been satisfied in the course of
administration. Any distributee who fails to notify other distributees
of the demand made upon him by the claimant in sufficient time to
permit them to join in any proceeding in which the claim was
asserted against him loses his right of contribution against other
distributees. (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 as
provided in the closing statement, all claims against the personal
representative, including claims by a person under a disability, are
barred unless a proceeding to assert the same is commenced within
three (3) months after the filing of the closing statement. The rights
thus barred do not include rights to recover from a personal
representative for fraud, misrepresentation, or inadequate disclosure
related 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 distributee
who 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 successor
personal representative acting in their behalf, to recover property
improperly distributed or the value thereof from any distributee is
forever barred at the later of (a) three (3) years after the decedent's
death, 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 personal
representative
Sec. 8. If other property of the estate is discovered after the estate
has been settled and the personal representative discharged or three
(3) months after a closing statement has been filed, the court upon
petition of any interested person and upon notice as it directs may
appoint the same or a successor personal representative to administer
the subsequently discovered estate. If a new appointment is made,
unless the court orders otherwise, the provisions of this title apply as
appropriate; but no claim previously barred may be asserted in the
subsequent administration. (Formerly: Acts 1975, P.L.288, SEC.11.)