IC 6-4.1-3
Chapter 3. Inheritance Tax Exemptions and Deductions
IC 6-4.1-3-1 Exempt transfers
Sec. 1. Each transfer described in section 2055(a) of the Internal
Revenue Code is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.19, SEC.1.
IC 6-4.1-3-1.5 Transfer to cemetery association
Sec. 1.5. (a) As used in this section, "cemetery" and "cemetery
purposes" have the same meaning as the definitions of those terms
contained in IC 23-14-33.
(b) The transfer of property to a cemetery association is exempt
from the inheritance tax if the property is used for cemetery
purposes. As added by Acts 1980, P.L.57, SEC.1. Amended by P.L.52-1997,
SEC.2.
IC 6-4.1-3-2
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-3
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-4
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-5
Repealed
(Repealed by Acts 1980, P.L.57, SEC.29.)
IC 6-4.1-3-6 Life insurance proceeds
Sec. 6. The proceeds from life insurance on the life of a decedent
are exempt from the inheritance tax imposed as a result of his death
unless the proceeds become subject to distribution as part of his
estate and subject to claims against his estate. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-6.5 Annuity payments
Sec. 6.5. An annuity, or other payment, described in Section
2039(a) of the Internal Revenue Code is exempt from the inheritance
tax imposed as a result of a decedent's death to the same extent that
the annuity or other payment is excluded from the decedent's federal
gross estate under Section 2039 of the Internal Revenue Code. As added by Acts 1977(ss), P.L.6, SEC.2. Amended by Acts 1980,
P.L.57, SEC.2; P.L.87-1983, SEC.2; P.L.2-1987, SEC.24.
IC 6-4.1-3-7 Transfers of property by decedent to surviving spouse; qualifying
income interest for life; election
Sec. 7. (a) Each property interest which a decedent transfers to his
surviving spouse is exempt from the inheritance tax imposed as a
result of his death.
(b) For the purpose of subsection (a), "property interest which a
decedent transfers to his surviving spouse" includes a property
interest from which the surviving spouse is entitled for life to income
or payments and which otherwise qualifies for deduction from the
gross estate of the decedent under Section 2056(b)(5) or 2056(b)(6)
of the Internal Revenue Code.
(c) The personal representative of the decedent's estate or the
trustee or transferee of property transferred by the decedent may, for
the purpose of the exemption established by subsection (a), elect to
treat property passing from the decedent in which the surviving
spouse has a qualifying income interest for life as a property interest
which a decedent transfers to his surviving spouse. For purposes of
this section, "qualifying income interest for life" means a qualifying
income interest for life (as defined in Section 2056(b)(7) of the
Internal Revenue Code).
(d) The election referred to in subsection (c) shall be made in
writing and shall be attached to the inheritance tax return, if one is
required to be filed. The election, once made, is irrevocable. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.3; Acts 1982, P.L.55, SEC.2; P.L.2-1987, SEC.25.
IC 6-4.1-3-8
Repealed
(Repealed by Acts 1979, P.L.75, SEC.15.)
IC 6-4.1-3-8.5
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9
Repealed
(Repealed by Acts 1982, P.L.56, SEC.7.)
IC 6-4.1-3-9.1
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.) IC 6-4.1-3-9.2
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9.5
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-9.7
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-10 Portion of property interests transferred to Class A transferee
under taxable transfer
Sec. 10. The first one hundred thousand dollars ($100,000) of
property interests transferred to a Class A transferee under a taxable
transfer or transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.6; Acts 1980, P.L.57, SEC.5; Acts 1981, P.L.90, SEC.2;
P.L.87-1983, SEC.3; P.L.254-1997(ss), SEC.9.
IC 6-4.1-3-11 Portion of property interest transferred to Class B transferee
under taxable transfer
Sec. 11. The first five hundred dollars ($500) of property interests
transferred to a Class B transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12 Portion of property interest transferred to Class C transferee
under taxable transfer
Sec. 12. The first one hundred dollars ($100) of property interests
transferred to a Class C transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12.5
Repealed
(Repealed by P.L.252-2001, SEC.38.)
IC 6-4.1-3-13 Items deductible from value of property interests transferred by
resident decedent by will, intestate succession, or under trust
Sec. 13. (a) For purposes of this section, the term "property
subject to the inheritance tax" means property transferred by a
decedent under a taxable transfer.
(b) The following items, and no others, may be deducted from the
value of property interests transferred by a resident decedent under
his will, under the laws of intestate succession, or under a trust:
(1) the decedent's debts which are lawful claims against his
resident estate;
(2) taxes on the decedent's real property which is located in this
state and subject to the inheritance tax, if the real property taxes
were a lien at the time of the decedent's death;
(3) taxes on decedent's personal property which is located in
this state and subject to the inheritance tax, if the personal
property taxes are a personal obligation of the decedent or a lien
against the property and if the taxes were unpaid at the time of
the decedent's death;
(4) taxes imposed on the decedent's income to date of death, if
the taxes were unpaid at the time of his death;
(5) inheritance, estate, or transfer taxes, other than federal estate
taxes, imposed by other jurisdictions with respect to intangible
personal property which is subject to the inheritance tax;
(6) mortgages or special assessments which, at the time of
decedent's death, were a lien on any of decedent's real property
which is located in this state and subject to the inheritance tax;
(7) decedent's funeral expenses;
(8) amounts, not to exceed one thousand dollars ($1,000), paid
for a memorial for the decedent;
(9) expenses incurred in administering property subject to the
inheritance tax, including but not limited to reasonable attorney
fees, personal representative fees, and trustee fees;
(10) the amount of any allowance provided to the resident
decedent's children by IC 29-1-4-1; and
(11) The value of any property actually received by a resident
decedent's surviving spouse in satisfaction of the allowance
provided by IC 29-1-4-1, regardless of whether or not a claim
for that allowance has been filed under IC 29-1-14.
(c) The amounts which are deductible under subsection (b)(6) of
this section are deductible only from the value of the real property
encumbered by the mortgage or special assessment. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.1; Acts 1979, P.L.75, SEC.7; Acts 1980, P.L.57, SEC.6;
Acts 1981, P.L.89, SEC.2.
IC 6-4.1-3-14 Items deductible from value of property interests transferred by
resident decedent other than by will, intestate succession, or under
trust
Sec. 14. (a) Except as provided in subsection (b), the following
items, and no others, may be deducted from the value of property
interests which are transferred by a resident decedent but which are
not transferred by the decedent's will, under the laws of intestate
succession, or under a trust:
(1) Those taxes described in section 13(b)(5) of this chapter.
(2) Liens against the property interests that are transferred.
(3) The decedent's debts, funeral expenses, and estate
administration expenses, including reasonable attorney's fees
incurred in filing the inheritance tax return.
(b) In addition, any portion of the deduction provided by section
13(b)(10) of this chapter which is not needed to reduce to zero (0)
the value of the property referred to in section 13 of this chapter may
be deducted from the value of any other propety transferred by the
resident decedent to the decedent's children who are entitled to the
allowance provided by IC 29-1-4-1. If more than one (1) of the
decedent's children are entitled to the allowance, the deduction
provided by this subsection shall be divided equally among all the
decedent's children who are entitled to the allowance. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.2; Acts 1979, P.L.75, SEC.8; Acts 1980, P.L.57, SEC.7;
P.L.94-1989, SEC.1.
IC 6-4.1-3-15 Items deductible from value of property interests transferred by
non-resident decedent
Sec. 15. The following items, and no others, may be deducted
from the value of property interests transferred by a non-resident
decedent:
(1) taxes, other than federal estate taxes;
(2) those administration expenses described in section 13(b)(9)
of this chapter;
(3) liens against the property so transferred; and
(4) claims against the decedent's domiciliary estate which are
allowed by the court having jurisdiction over that estate and
which will not be paid from that estate because it is exhausted. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3
Chapter 3. Inheritance Tax Exemptions and Deductions
IC 6-4.1-3-1 Exempt transfers
Sec. 1. Each transfer described in section 2055(a) of the Internal
Revenue Code is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.19, SEC.1.
IC 6-4.1-3-1.5 Transfer to cemetery association
Sec. 1.5. (a) As used in this section, "cemetery" and "cemetery
purposes" have the same meaning as the definitions of those terms
contained in IC 23-14-33.
(b) The transfer of property to a cemetery association is exempt
from the inheritance tax if the property is used for cemetery
purposes. As added by Acts 1980, P.L.57, SEC.1. Amended by P.L.52-1997,
SEC.2.
IC 6-4.1-3-2
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-3
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-4
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-5
Repealed
(Repealed by Acts 1980, P.L.57, SEC.29.)
IC 6-4.1-3-6 Life insurance proceeds
Sec. 6. The proceeds from life insurance on the life of a decedent
are exempt from the inheritance tax imposed as a result of his death
unless the proceeds become subject to distribution as part of his
estate and subject to claims against his estate. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-6.5 Annuity payments
Sec. 6.5. An annuity, or other payment, described in Section
2039(a) of the Internal Revenue Code is exempt from the inheritance
tax imposed as a result of a decedent's death to the same extent that
the annuity or other payment is excluded from the decedent's federal
gross estate under Section 2039 of the Internal Revenue Code. As added by Acts 1977(ss), P.L.6, SEC.2. Amended by Acts 1980,
P.L.57, SEC.2; P.L.87-1983, SEC.2; P.L.2-1987, SEC.24.
IC 6-4.1-3-7 Transfers of property by decedent to surviving spouse; qualifying
income interest for life; election
Sec. 7. (a) Each property interest which a decedent transfers to his
surviving spouse is exempt from the inheritance tax imposed as a
result of his death.
(b) For the purpose of subsection (a), "property interest which a
decedent transfers to his surviving spouse" includes a property
interest from which the surviving spouse is entitled for life to income
or payments and which otherwise qualifies for deduction from the
gross estate of the decedent under Section 2056(b)(5) or 2056(b)(6)
of the Internal Revenue Code.
(c) The personal representative of the decedent's estate or the
trustee or transferee of property transferred by the decedent may, for
the purpose of the exemption established by subsection (a), elect to
treat property passing from the decedent in which the surviving
spouse has a qualifying income interest for life as a property interest
which a decedent transfers to his surviving spouse. For purposes of
this section, "qualifying income interest for life" means a qualifying
income interest for life (as defined in Section 2056(b)(7) of the
Internal Revenue Code).
(d) The election referred to in subsection (c) shall be made in
writing and shall be attached to the inheritance tax return, if one is
required to be filed. The election, once made, is irrevocable. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.3; Acts 1982, P.L.55, SEC.2; P.L.2-1987, SEC.25.
IC 6-4.1-3-8
Repealed
(Repealed by Acts 1979, P.L.75, SEC.15.)
IC 6-4.1-3-8.5
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9
Repealed
(Repealed by Acts 1982, P.L.56, SEC.7.)
IC 6-4.1-3-9.1
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.) IC 6-4.1-3-9.2
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9.5
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-9.7
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-10 Portion of property interests transferred to Class A transferee
under taxable transfer
Sec. 10. The first one hundred thousand dollars ($100,000) of
property interests transferred to a Class A transferee under a taxable
transfer or transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.6; Acts 1980, P.L.57, SEC.5; Acts 1981, P.L.90, SEC.2;
P.L.87-1983, SEC.3; P.L.254-1997(ss), SEC.9.
IC 6-4.1-3-11 Portion of property interest transferred to Class B transferee
under taxable transfer
Sec. 11. The first five hundred dollars ($500) of property interests
transferred to a Class B transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12 Portion of property interest transferred to Class C transferee
under taxable transfer
Sec. 12. The first one hundred dollars ($100) of property interests
transferred to a Class C transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12.5
Repealed
(Repealed by P.L.252-2001, SEC.38.)
IC 6-4.1-3-13 Items deductible from value of property interests transferred by
resident decedent by will, intestate succession, or under trust
Sec. 13. (a) For purposes of this section, the term "property
subject to the inheritance tax" means property transferred by a
decedent under a taxable transfer.
(b) The following items, and no others, may be deducted from the
value of property interests transferred by a resident decedent under
his will, under the laws of intestate succession, or under a trust:
(1) the decedent's debts which are lawful claims against his
resident estate;
(2) taxes on the decedent's real property which is located in this
state and subject to the inheritance tax, if the real property taxes
were a lien at the time of the decedent's death;
(3) taxes on decedent's personal property which is located in
this state and subject to the inheritance tax, if the personal
property taxes are a personal obligation of the decedent or a lien
against the property and if the taxes were unpaid at the time of
the decedent's death;
(4) taxes imposed on the decedent's income to date of death, if
the taxes were unpaid at the time of his death;
(5) inheritance, estate, or transfer taxes, other than federal estate
taxes, imposed by other jurisdictions with respect to intangible
personal property which is subject to the inheritance tax;
(6) mortgages or special assessments which, at the time of
decedent's death, were a lien on any of decedent's real property
which is located in this state and subject to the inheritance tax;
(7) decedent's funeral expenses;
(8) amounts, not to exceed one thousand dollars ($1,000), paid
for a memorial for the decedent;
(9) expenses incurred in administering property subject to the
inheritance tax, including but not limited to reasonable attorney
fees, personal representative fees, and trustee fees;
(10) the amount of any allowance provided to the resident
decedent's children by IC 29-1-4-1; and
(11) The value of any property actually received by a resident
decedent's surviving spouse in satisfaction of the allowance
provided by IC 29-1-4-1, regardless of whether or not a claim
for that allowance has been filed under IC 29-1-14.
(c) The amounts which are deductible under subsection (b)(6) of
this section are deductible only from the value of the real property
encumbered by the mortgage or special assessment. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.1; Acts 1979, P.L.75, SEC.7; Acts 1980, P.L.57, SEC.6;
Acts 1981, P.L.89, SEC.2.
IC 6-4.1-3-14 Items deductible from value of property interests transferred by
resident decedent other than by will, intestate succession, or under
trust
Sec. 14. (a) Except as provided in subsection (b), the following
items, and no others, may be deducted from the value of property
interests which are transferred by a resident decedent but which are
not transferred by the decedent's will, under the laws of intestate
succession, or under a trust:
(1) Those taxes described in section 13(b)(5) of this chapter.
(2) Liens against the property interests that are transferred.
(3) The decedent's debts, funeral expenses, and estate
administration expenses, including reasonable attorney's fees
incurred in filing the inheritance tax return.
(b) In addition, any portion of the deduction provided by section
13(b)(10) of this chapter which is not needed to reduce to zero (0)
the value of the property referred to in section 13 of this chapter may
be deducted from the value of any other propety transferred by the
resident decedent to the decedent's children who are entitled to the
allowance provided by IC 29-1-4-1. If more than one (1) of the
decedent's children are entitled to the allowance, the deduction
provided by this subsection shall be divided equally among all the
decedent's children who are entitled to the allowance. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.2; Acts 1979, P.L.75, SEC.8; Acts 1980, P.L.57, SEC.7;
P.L.94-1989, SEC.1.
IC 6-4.1-3-15 Items deductible from value of property interests transferred by
non-resident decedent
Sec. 15. The following items, and no others, may be deducted
from the value of property interests transferred by a non-resident
decedent:
(1) taxes, other than federal estate taxes;
(2) those administration expenses described in section 13(b)(9)
of this chapter;
(3) liens against the property so transferred; and
(4) claims against the decedent's domiciliary estate which are
allowed by the court having jurisdiction over that estate and
which will not be paid from that estate because it is exhausted. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3
Chapter 3. Inheritance Tax Exemptions and Deductions
IC 6-4.1-3-1 Exempt transfers
Sec. 1. Each transfer described in section 2055(a) of the Internal
Revenue Code is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.19, SEC.1.
IC 6-4.1-3-1.5 Transfer to cemetery association
Sec. 1.5. (a) As used in this section, "cemetery" and "cemetery
purposes" have the same meaning as the definitions of those terms
contained in IC 23-14-33.
(b) The transfer of property to a cemetery association is exempt
from the inheritance tax if the property is used for cemetery
purposes. As added by Acts 1980, P.L.57, SEC.1. Amended by P.L.52-1997,
SEC.2.
IC 6-4.1-3-2
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-3
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-4
Repealed
(Repealed by Acts 1976, P.L.19, SEC.3.)
IC 6-4.1-3-5
Repealed
(Repealed by Acts 1980, P.L.57, SEC.29.)
IC 6-4.1-3-6 Life insurance proceeds
Sec. 6. The proceeds from life insurance on the life of a decedent
are exempt from the inheritance tax imposed as a result of his death
unless the proceeds become subject to distribution as part of his
estate and subject to claims against his estate. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-6.5 Annuity payments
Sec. 6.5. An annuity, or other payment, described in Section
2039(a) of the Internal Revenue Code is exempt from the inheritance
tax imposed as a result of a decedent's death to the same extent that
the annuity or other payment is excluded from the decedent's federal
gross estate under Section 2039 of the Internal Revenue Code. As added by Acts 1977(ss), P.L.6, SEC.2. Amended by Acts 1980,
P.L.57, SEC.2; P.L.87-1983, SEC.2; P.L.2-1987, SEC.24.
IC 6-4.1-3-7 Transfers of property by decedent to surviving spouse; qualifying
income interest for life; election
Sec. 7. (a) Each property interest which a decedent transfers to his
surviving spouse is exempt from the inheritance tax imposed as a
result of his death.
(b) For the purpose of subsection (a), "property interest which a
decedent transfers to his surviving spouse" includes a property
interest from which the surviving spouse is entitled for life to income
or payments and which otherwise qualifies for deduction from the
gross estate of the decedent under Section 2056(b)(5) or 2056(b)(6)
of the Internal Revenue Code.
(c) The personal representative of the decedent's estate or the
trustee or transferee of property transferred by the decedent may, for
the purpose of the exemption established by subsection (a), elect to
treat property passing from the decedent in which the surviving
spouse has a qualifying income interest for life as a property interest
which a decedent transfers to his surviving spouse. For purposes of
this section, "qualifying income interest for life" means a qualifying
income interest for life (as defined in Section 2056(b)(7) of the
Internal Revenue Code).
(d) The election referred to in subsection (c) shall be made in
writing and shall be attached to the inheritance tax return, if one is
required to be filed. The election, once made, is irrevocable. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.3; Acts 1982, P.L.55, SEC.2; P.L.2-1987, SEC.25.
IC 6-4.1-3-8
Repealed
(Repealed by Acts 1979, P.L.75, SEC.15.)
IC 6-4.1-3-8.5
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9
Repealed
(Repealed by Acts 1982, P.L.56, SEC.7.)
IC 6-4.1-3-9.1
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.) IC 6-4.1-3-9.2
Repealed
(Repealed by Acts 1982, P.L.56, SEC.6.)
IC 6-4.1-3-9.5
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-9.7
Repealed
(Repealed by P.L.254-1997(ss), SEC.37.)
IC 6-4.1-3-10 Portion of property interests transferred to Class A transferee
under taxable transfer
Sec. 10. The first one hundred thousand dollars ($100,000) of
property interests transferred to a Class A transferee under a taxable
transfer or transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.6; Acts 1980, P.L.57, SEC.5; Acts 1981, P.L.90, SEC.2;
P.L.87-1983, SEC.3; P.L.254-1997(ss), SEC.9.
IC 6-4.1-3-11 Portion of property interest transferred to Class B transferee
under taxable transfer
Sec. 11. The first five hundred dollars ($500) of property interests
transferred to a Class B transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12 Portion of property interest transferred to Class C transferee
under taxable transfer
Sec. 12. The first one hundred dollars ($100) of property interests
transferred to a Class C transferee under a taxable transfer or
transfers is exempt from the inheritance tax. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-3-12.5
Repealed
(Repealed by P.L.252-2001, SEC.38.)
IC 6-4.1-3-13 Items deductible from value of property interests transferred by
resident decedent by will, intestate succession, or under trust
Sec. 13. (a) For purposes of this section, the term "property
subject to the inheritance tax" means property transferred by a
decedent under a taxable transfer.
(b) The following items, and no others, may be deducted from the
value of property interests transferred by a resident decedent under
his will, under the laws of intestate succession, or under a trust:
(1) the decedent's debts which are lawful claims against his
resident estate;
(2) taxes on the decedent's real property which is located in this
state and subject to the inheritance tax, if the real property taxes
were a lien at the time of the decedent's death;
(3) taxes on decedent's personal property which is located in
this state and subject to the inheritance tax, if the personal
property taxes are a personal obligation of the decedent or a lien
against the property and if the taxes were unpaid at the time of
the decedent's death;
(4) taxes imposed on the decedent's income to date of death, if
the taxes were unpaid at the time of his death;
(5) inheritance, estate, or transfer taxes, other than federal estate
taxes, imposed by other jurisdictions with respect to intangible
personal property which is subject to the inheritance tax;
(6) mortgages or special assessments which, at the time of
decedent's death, were a lien on any of decedent's real property
which is located in this state and subject to the inheritance tax;
(7) decedent's funeral expenses;
(8) amounts, not to exceed one thousand dollars ($1,000), paid
for a memorial for the decedent;
(9) expenses incurred in administering property subject to the
inheritance tax, including but not limited to reasonable attorney
fees, personal representative fees, and trustee fees;
(10) the amount of any allowance provided to the resident
decedent's children by IC 29-1-4-1; and
(11) The value of any property actually received by a resident
decedent's surviving spouse in satisfaction of the allowance
provided by IC 29-1-4-1, regardless of whether or not a claim
for that allowance has been filed under IC 29-1-14.
(c) The amounts which are deductible under subsection (b)(6) of
this section are deductible only from the value of the real property
encumbered by the mortgage or special assessment. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.1; Acts 1979, P.L.75, SEC.7; Acts 1980, P.L.57, SEC.6;
Acts 1981, P.L.89, SEC.2.
IC 6-4.1-3-14 Items deductible from value of property interests transferred by
resident decedent other than by will, intestate succession, or under
trust
Sec. 14. (a) Except as provided in subsection (b), the following
items, and no others, may be deducted from the value of property
interests which are transferred by a resident decedent but which are
not transferred by the decedent's will, under the laws of intestate
succession, or under a trust:
(1) Those taxes described in section 13(b)(5) of this chapter.
(2) Liens against the property interests that are transferred.
(3) The decedent's debts, funeral expenses, and estate
administration expenses, including reasonable attorney's fees
incurred in filing the inheritance tax return.
(b) In addition, any portion of the deduction provided by section
13(b)(10) of this chapter which is not needed to reduce to zero (0)
the value of the property referred to in section 13 of this chapter may
be deducted from the value of any other propety transferred by the
resident decedent to the decedent's children who are entitled to the
allowance provided by IC 29-1-4-1. If more than one (1) of the
decedent's children are entitled to the allowance, the deduction
provided by this subsection shall be divided equally among all the
decedent's children who are entitled to the allowance. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1976,
P.L.20, SEC.2; Acts 1979, P.L.75, SEC.8; Acts 1980, P.L.57, SEC.7;
P.L.94-1989, SEC.1.
IC 6-4.1-3-15 Items deductible from value of property interests transferred by
non-resident decedent
Sec. 15. The following items, and no others, may be deducted
from the value of property interests transferred by a non-resident
decedent:
(1) taxes, other than federal estate taxes;
(2) those administration expenses described in section 13(b)(9)
of this chapter;
(3) liens against the property so transferred; and
(4) claims against the decedent's domiciliary estate which are
allowed by the court having jurisdiction over that estate and
which will not be paid from that estate because it is exhausted. As added by Acts 1976, P.L.18, SEC.1.
