IC 6-4.1-8
Chapter 8. Inheritance Tax Lien and Limitations on the Transfer
of Decedent's Property
IC 6-4.1-8-1 Attachment and termination of lien; persons liable for inheritance
tax
Sec. 1. The inheritance tax imposed as a result of a decedent's
death is a lien on the property transferred by the decedent. Except as
otherwise provided in IC 6-4.1-6-6(b), the inheritance tax accrues
and the lien attaches at the time of the decedent's death. The lien
terminates when the inheritance tax is paid, when IC 6-4.1-4-0.5
provides for the termination of the lien, or ten (10) years after the
date of the decedent's death, whichever occurs first. In addition to the
lien, the transferee of the property and any personal representative or
trustee who has possession of or control over the property are
personally liable for the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001,
SEC.5; P.L.182-2009(ss), SEC.231.
IC 6-4.1-8-2 Transfers prohibited until tax paid; limited transfers
Sec. 2. (a) The personal representative of a decedent's estate or the
trustee of property transferred by the decedent may not transfer or
deliver property to a transferee unless the inheritance tax imposed
with respect to the transfer has been paid.
(b) If money is transferred by the decedent to a transferee for a
limited period of time, the personal representative or trustee shall
retain the total inheritance tax imposed on all the interests in the
money.
(c) If property other than money is transferred by the decedent to
a transferee for a limited period of time, the transferees of the
interests in the property shall pay to the personal representative or
trustee the inheritance tax imposed on the interests. The personal
representative or trustee shall apply to the appropriate probate court
for a determination of the amount which each transferee is required
to pay under this subsection. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-3 Sale of property to pay decedent's debts
Sec. 3. In order to pay the inheritance tax imposed as a result of
a decedent's death, the personal representative of the decedent's
estate or the trustee of property transferred by the decedent may sell
property transferred by the decedent. The personal representative or
trustee may sell the property in the same manner that he is authorized
to sell property to pay the decedent's debts. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-4 Personal property; consent to transfer
Sec. 4. (a) A person who has possession of or control over
personal property held jointly by a resident decedent and another
person may not transfer the property to the surviving joint tenant,
unless:
(1) the surviving joint tenant is the decedent's surviving spouse;
or
(2) the property is money held in a joint checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(b) Except as provided in subsection (c), a person who has
possession of or control over personal property held in a trust that is
subject to the Indiana inheritance or estate tax at the time of a
resident decedent's death may not transfer the property to a
beneficiary or any other person, unless the beneficiary or other
person is the decedent's surviving spouse, without the written consent
of the department of state revenue or the county assessor of the
county in which the resident decedent was domiciled at the time of
the decedent's death.
(c) A person who has possession of or control over personal
property held in trust may transfer the property without the written
consent of the department of state revenue or the county assessor of
the county in which the resident decedent was domiciled at the time
of the decedent's death under the following conditions:
(1) The transferee is domiciled in Indiana.
(2) The transferee completes a sworn affidavit on a form
prescribed by the department of state revenue that states:
(A) the transfer of the personal property is not subject to
Indiana inheritance or estate tax; and
(B) the reasons the transfer is not subject to tax.
(3) A copy of the affidavit required under subdivision (2) is
immediately filed with the department of state revenue.
(d) A person who has possession of or control over a resident
decedent's personal property (except proceeds payable under a life
insurance policy) may not transfer the property to any other person,
unless:
(1) the other person is the decedent's surviving spouse; or
(2) the property is money held in a checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(e) The department of state revenue or the appropriate county
assessor may consent to a transfer if the department or the county
assessor believes that the transfer will not jeopardize the collection
of inheritance tax.
(f) The department of state revenue shall send a copy of any
consent to transfer that it issues under this section to the county
assessor of the county in which the resident decedent was domiciled
at the time of the decedent's death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.8; Acts 1980, P.L.57, SEC.20; Acts 1981, P.L.91, SEC.1;
P.L.59-1996, SEC.1.
IC 6-4.1-8-4.5
Repealed
(Repealed by Acts 1982, P.L.57, SEC.1.)
IC 6-4.1-8-4.6 Checking account; notice of transfer of funds to person other than
surviving spouse
Sec. 4.6. A person who has possession of or control over money
held in a checking account in which a resident decedent had a legal
interest shall notify the department or the county assessor of the
county in which the resident decedent was domiciled at the time of
death, when money is transferred from the account to a person, other
than the resident decedent's surviving spouse. As added by P.L.26-1985, SEC.11.
IC 6-4.1-8-5 Life insurance proceeds; damages payable in a cause of action
maintained by a personal representative
Sec. 5. (a) Within ten (10) days after life insurance proceeds are
paid to a resident decedent's estate, the life insurance company shall
give notice of the payment to the department of state revenue.
(b) Not later than ten (10) days after damages payable under a
cause of action maintained by a personal representative under
IC 34-9-3-4 are paid to a resident decedent's estate, the person
making the payment shall give notice of the payment to the
department of state revenue.
(c) The department of state revenue shall send a copy of any
notice which it receives under subsection (a) or (b) to the county
assessor of the county in which the resident decedent was domiciled
at the time of the resident decedent's death. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.9; P.L.157-1992, SEC.1; P.L.6-1999, SEC.1;
P.L.143-2009, SEC.2.
IC 6-4.1-8-6
Repealed
(Repealed by P.L.6-1999, SEC.2.)
IC 6-4.1-8-7 Violations of IC 6-4.1-8-4 or IC 6-4.1-8-5; penalties
Sec. 7. If a person violates a provision of section 4 or 5 of this
chapter, he is liable for the taxes imposed under this article as a
result of the resident decedent's death and is subject to an additional
penalty not to exceed one thousand dollars ($1,000). The department
of state revenue shall initiate an action in the name of this state to
collect the taxes and the penalty which the person is liable for under
this section. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.22; P.L.87-1983, SEC.6.
IC 6-4.1-8-8
Repealed
(Repealed by P.L.6-1999, SEC.2.)
IC 6-4.1-8
Chapter 8. Inheritance Tax Lien and Limitations on the Transfer
of Decedent's Property
IC 6-4.1-8-1 Attachment and termination of lien; persons liable for inheritance
tax
Sec. 1. The inheritance tax imposed as a result of a decedent's
death is a lien on the property transferred by the decedent. Except as
otherwise provided in IC 6-4.1-6-6(b), the inheritance tax accrues
and the lien attaches at the time of the decedent's death. The lien
terminates when the inheritance tax is paid, when IC 6-4.1-4-0.5
provides for the termination of the lien, or ten (10) years after the
date of the decedent's death, whichever occurs first. In addition to the
lien, the transferee of the property and any personal representative or
trustee who has possession of or control over the property are
personally liable for the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001,
SEC.5; P.L.182-2009(ss), SEC.231.
IC 6-4.1-8-2 Transfers prohibited until tax paid; limited transfers
Sec. 2. (a) The personal representative of a decedent's estate or the
trustee of property transferred by the decedent may not transfer or
deliver property to a transferee unless the inheritance tax imposed
with respect to the transfer has been paid.
(b) If money is transferred by the decedent to a transferee for a
limited period of time, the personal representative or trustee shall
retain the total inheritance tax imposed on all the interests in the
money.
(c) If property other than money is transferred by the decedent to
a transferee for a limited period of time, the transferees of the
interests in the property shall pay to the personal representative or
trustee the inheritance tax imposed on the interests. The personal
representative or trustee shall apply to the appropriate probate court
for a determination of the amount which each transferee is required
to pay under this subsection. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-3 Sale of property to pay decedent's debts
Sec. 3. In order to pay the inheritance tax imposed as a result of
a decedent's death, the personal representative of the decedent's
estate or the trustee of property transferred by the decedent may sell
property transferred by the decedent. The personal representative or
trustee may sell the property in the same manner that he is authorized
to sell property to pay the decedent's debts. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-4 Personal property; consent to transfer
Sec. 4. (a) A person who has possession of or control over
personal property held jointly by a resident decedent and another
person may not transfer the property to the surviving joint tenant,
unless:
(1) the surviving joint tenant is the decedent's surviving spouse;
or
(2) the property is money held in a joint checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(b) Except as provided in subsection (c), a person who has
possession of or control over personal property held in a trust that is
subject to the Indiana inheritance or estate tax at the time of a
resident decedent's death may not transfer the property to a
beneficiary or any other person, unless the beneficiary or other
person is the decedent's surviving spouse, without the written consent
of the department of state revenue or the county assessor of the
county in which the resident decedent was domiciled at the time of
the decedent's death.
(c) A person who has possession of or control over personal
property held in trust may transfer the property without the written
consent of the department of state revenue or the county assessor of
the county in which the resident decedent was domiciled at the time
of the decedent's death under the following conditions:
(1) The transferee is domiciled in Indiana.
(2) The transferee completes a sworn affidavit on a form
prescribed by the department of state revenue that states:
(A) the transfer of the personal property is not subject to
Indiana inheritance or estate tax; and
(B) the reasons the transfer is not subject to tax.
(3) A copy of the affidavit required under subdivision (2) is
immediately filed with the department of state revenue.
(d) A person who has possession of or control over a resident
decedent's personal property (except proceeds payable under a life
insurance policy) may not transfer the property to any other person,
unless:
(1) the other person is the decedent's surviving spouse; or
(2) the property is money held in a checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(e) The department of state revenue or the appropriate county
assessor may consent to a transfer if the department or the county
assessor believes that the transfer will not jeopardize the collection
of inheritance tax.
(f) The department of state revenue shall send a copy of any
consent to transfer that it issues under this section to the county
assessor of the county in which the resident decedent was domiciled
at the time of the decedent's death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.8; Acts 1980, P.L.57, SEC.20; Acts 1981, P.L.91, SEC.1;
P.L.59-1996, SEC.1.
IC 6-4.1-8-4.5
Repealed
(Repealed by Acts 1982, P.L.57, SEC.1.)
IC 6-4.1-8-4.6 Checking account; notice of transfer of funds to person other than
surviving spouse
Sec. 4.6. A person who has possession of or control over money
held in a checking account in which a resident decedent had a legal
interest shall notify the department or the county assessor of the
county in which the resident decedent was domiciled at the time of
death, when money is transferred from the account to a person, other
than the resident decedent's surviving spouse. As added by P.L.26-1985, SEC.11.
IC 6-4.1-8-5 Life insurance proceeds; damages payable in a cause of action
maintained by a personal representative
Sec. 5. (a) Within ten (10) days after life insurance proceeds are
paid to a resident decedent's estate, the life insurance company shall
give notice of the payment to the department of state revenue.
(b) Not later than ten (10) days after damages payable under a
cause of action maintained by a personal representative under
IC 34-9-3-4 are paid to a resident decedent's estate, the person
making the payment shall give notice of the payment to the
department of state revenue.
(c) The department of state revenue shall send a copy of any
notice which it receives under subsection (a) or (b) to the county
assessor of the county in which the resident decedent was domiciled
at the time of the resident decedent's death. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.9; P.L.157-1992, SEC.1; P.L.6-1999, SEC.1;
P.L.143-2009, SEC.2.
IC 6-4.1-8-6
Repealed
(Repealed by P.L.6-1999, SEC.2.)
IC 6-4.1-8-7 Violations of IC 6-4.1-8-4 or IC 6-4.1-8-5; penalties
Sec. 7. If a person violates a provision of section 4 or 5 of this
chapter, he is liable for the taxes imposed under this article as a
result of the resident decedent's death and is subject to an additional
penalty not to exceed one thousand dollars ($1,000). The department
of state revenue shall initiate an action in the name of this state to
collect the taxes and the penalty which the person is liable for under
this section. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.22; P.L.87-1983, SEC.6.
IC 6-4.1-8-8
Repealed
(Repealed by P.L.6-1999, SEC.2.)
IC 6-4.1-8
Chapter 8. Inheritance Tax Lien and Limitations on the Transfer
of Decedent's Property
IC 6-4.1-8-1 Attachment and termination of lien; persons liable for inheritance
tax
Sec. 1. The inheritance tax imposed as a result of a decedent's
death is a lien on the property transferred by the decedent. Except as
otherwise provided in IC 6-4.1-6-6(b), the inheritance tax accrues
and the lien attaches at the time of the decedent's death. The lien
terminates when the inheritance tax is paid, when IC 6-4.1-4-0.5
provides for the termination of the lien, or ten (10) years after the
date of the decedent's death, whichever occurs first. In addition to the
lien, the transferee of the property and any personal representative or
trustee who has possession of or control over the property are
personally liable for the inheritance tax. As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.252-2001,
SEC.5; P.L.182-2009(ss), SEC.231.
IC 6-4.1-8-2 Transfers prohibited until tax paid; limited transfers
Sec. 2. (a) The personal representative of a decedent's estate or the
trustee of property transferred by the decedent may not transfer or
deliver property to a transferee unless the inheritance tax imposed
with respect to the transfer has been paid.
(b) If money is transferred by the decedent to a transferee for a
limited period of time, the personal representative or trustee shall
retain the total inheritance tax imposed on all the interests in the
money.
(c) If property other than money is transferred by the decedent to
a transferee for a limited period of time, the transferees of the
interests in the property shall pay to the personal representative or
trustee the inheritance tax imposed on the interests. The personal
representative or trustee shall apply to the appropriate probate court
for a determination of the amount which each transferee is required
to pay under this subsection. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-3 Sale of property to pay decedent's debts
Sec. 3. In order to pay the inheritance tax imposed as a result of
a decedent's death, the personal representative of the decedent's
estate or the trustee of property transferred by the decedent may sell
property transferred by the decedent. The personal representative or
trustee may sell the property in the same manner that he is authorized
to sell property to pay the decedent's debts. As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-8-4 Personal property; consent to transfer
Sec. 4. (a) A person who has possession of or control over
personal property held jointly by a resident decedent and another
person may not transfer the property to the surviving joint tenant,
unless:
(1) the surviving joint tenant is the decedent's surviving spouse;
or
(2) the property is money held in a joint checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(b) Except as provided in subsection (c), a person who has
possession of or control over personal property held in a trust that is
subject to the Indiana inheritance or estate tax at the time of a
resident decedent's death may not transfer the property to a
beneficiary or any other person, unless the beneficiary or other
person is the decedent's surviving spouse, without the written consent
of the department of state revenue or the county assessor of the
county in which the resident decedent was domiciled at the time of
the decedent's death.
(c) A person who has possession of or control over personal
property held in trust may transfer the property without the written
consent of the department of state revenue or the county assessor of
the county in which the resident decedent was domiciled at the time
of the decedent's death under the following conditions:
(1) The transferee is domiciled in Indiana.
(2) The transferee completes a sworn affidavit on a form
prescribed by the department of state revenue that states:
(A) the transfer of the personal property is not subject to
Indiana inheritance or estate tax; and
(B) the reasons the transfer is not subject to tax.
(3) A copy of the affidavit required under subdivision (2) is
immediately filed with the department of state revenue.
(d) A person who has possession of or control over a resident
decedent's personal property (except proceeds payable under a life
insurance policy) may not transfer the property to any other person,
unless:
(1) the other person is the decedent's surviving spouse; or
(2) the property is money held in a checking account;
without the written consent of the department of state revenue or the
county assessor of the county in which the resident decedent was
domiciled at the time of the decedent's death.
(e) The department of state revenue or the appropriate county
assessor may consent to a transfer if the department or the county
assessor believes that the transfer will not jeopardize the collection
of inheritance tax.
(f) The department of state revenue shall send a copy of any
consent to transfer that it issues under this section to the county
assessor of the county in which the resident decedent was domiciled
at the time of the decedent's death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.8; Acts 1980, P.L.57, SEC.20; Acts 1981, P.L.91, SEC.1;
P.L.59-1996, SEC.1.
IC 6-4.1-8-4.5
Repealed
(Repealed by Acts 1982, P.L.57, SEC.1.)
IC 6-4.1-8-4.6 Checking account; notice of transfer of funds to person other than
surviving spouse
Sec. 4.6. A person who has possession of or control over money
held in a checking account in which a resident decedent had a legal
interest shall notify the department or the county assessor of the
county in which the resident decedent was domiciled at the time of
death, when money is transferred from the account to a person, other
than the resident decedent's surviving spouse. As added by P.L.26-1985, SEC.11.
IC 6-4.1-8-5 Life insurance proceeds; damages payable in a cause of action
maintained by a personal representative
Sec. 5. (a) Within ten (10) days after life insurance proceeds are
paid to a resident decedent's estate, the life insurance company shall
give notice of the payment to the department of state revenue.
(b) Not later than ten (10) days after damages payable under a
cause of action maintained by a personal representative under
IC 34-9-3-4 are paid to a resident decedent's estate, the person
making the payment shall give notice of the payment to the
department of state revenue.
(c) The department of state revenue shall send a copy of any
notice which it receives under subsection (a) or (b) to the county
assessor of the county in which the resident decedent was domiciled
at the time of the resident decedent's death. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1977(ss),
P.L.6, SEC.9; P.L.157-1992, SEC.1; P.L.6-1999, SEC.1;
P.L.143-2009, SEC.2.
IC 6-4.1-8-6
Repealed
(Repealed by P.L.6-1999, SEC.2.)
IC 6-4.1-8-7 Violations of IC 6-4.1-8-4 or IC 6-4.1-8-5; penalties
Sec. 7. If a person violates a provision of section 4 or 5 of this
chapter, he is liable for the taxes imposed under this article as a
result of the resident decedent's death and is subject to an additional
penalty not to exceed one thousand dollars ($1,000). The department
of state revenue shall initiate an action in the name of this state to
collect the taxes and the penalty which the person is liable for under
this section. As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1980,
P.L.57, SEC.22; P.L.87-1983, SEC.6.
IC 6-4.1-8-8
Repealed
(Repealed by P.L.6-1999, SEC.2.)
