Inheritance Tax

IMPORTANT INFORMATION: Due to the repeal of Indiana's inheritance tax for individuals dying after December 31, 2012, no inheritance tax has to be paid nor do inheritance forms have to be prepared or filed.

However, for individuals who died prior to January 1, 2013, the above law does not apply. You will need to follow the guidelines set forth below.

PLEASE NOTE: The following information is provided strictly for educational purposes and as a public service. The information does not constitute legal advice nor does it take the place of legal consultation to any person reviewing such information. No person in the Hancock County Assessor's office is an attorney or tax advisor and, therefore, cannot provide legal or tax advice. As such, you are strongly encouraged to seek both legal and tax counsel in the preparation of an Indiana Inheritance Tax Return for the decedent. The following information is taken from the Indiana Inheritance Tax General Instructions form (2001 revision) and the Advanced Inheritance Tax Training Course from the 2011 Indiana County Assessors' Conference.

Consent to Transfer Statute (Ind. Code 6-4.1-8-4) Information:

A Consent to Transfer (IH-14) signifies that a transfer by a resident decedent has or will be taking place that may result in Inheritance Tax liability:

  • IH-14 required on jointly held personal property except for joint checking accounts or when the joint owner is the surviving spouse
  • IH-14 required on personal property held in trust except when the surviving spouse is the only beneficiary or when the transfer is not subject to IH Tax (Form IH-TA required)
  • IH-14 required for personal property except proceeds from a true life insurance policy with a named beneficiary(ies), surviving spouse requesting transfer and money held in checking account (Form IH-19 required)
  • Signature(s) required or allowed on IH-14: ESTATES — Personal Representative or Attorney for Estate; TRUSTS — Trustee(s); and NON-PROBATE ASSETS — Joint Owners, Beneficiaries (POD, TOD)
  • A completed IH-14, prepared by the attorney or financial institution, is filed with the county assessor's office in which the decedent was a resident. The form should be submitted on light green paper and in triplicate.

Indiana Inheritance Tax Return Information

  • An Indiana Inheritance Tax Return (IH-6) must be filed, on behalf of all beneficiaries, if the exemptions do NOT exceed the gross estate. The amount of each beneficiary's exemption is determined by their relationship to the decedent. It only takes one beneficiary over his/her exemption to necessitate the filing of an IH-6 for a decedent.
  • An IH-6 must be filed by the personal representative. If no personal representative has been appointed by a probate court, one of the following must file: an heir, trustee, joint owner, or other transferee.
  • An IH-6 must be filed within 9 months after the date of death. A penalty may be assessed by the appropriate probate court for failure to file on time unless the court grants an extension due to an unavoidable delay in which the return cannot be filed within 9 months.
  • Once a completed IH-6 has been prepared, file the original and at least two copies with the county clerk's office in which the decedent was a resident at death or in which the decedent's estate is being administered. Then submit the original return and one copy to the county assessor's office. In Hancock County a final appraisal will then be conducted by the Hancock County Assessor's Office with a proposed order being transmitted to the court for consideration. The return and order will then be forwarded to the Inheritance Tax Division of the Indiana Department of Revenue for audit.
  • Indiana Inheritance Tax should be paid to the county treasurer's office which will issue a receipt of payment. If payment is made within 9 months of the decedent's death, a 5% discount will be issued on the inheritance tax due. Payment made more than 12 months after the date of death will bear interest at 10% per annum from the date of death until the date of payment.
  • ONLY ONE INHERITANCE TAX RETURN SHOULD BE FILED PER DECEDENT.

No Inheritance Tax Due Information
Options:

  1. File nothing (Ind. Code 6-4.1-4-0.5; "No inheritance tax return is required under this chapter unless the total fair market value of the property interests transferred by the decedent to a transferee under a taxable transfer or transfers exceeds the exemption provided to the transferee under Ind. Code 6-4.1-3-10 — 12") - *It only takes one transferee over his/her exemption to necessitate the filing of an Inheritance Tax Return for a decedent.
  2. File Indiana Inheritance Tax Return (IH-6) — see Indiana Inheritance Tax Return Information
  3. File Affidavit of No Inheritance Tax Due (IH-Exem) — This form is commonly filed with the assessor's office in the Indiana county in which the decedent was a resident.

Small Estate Affidavit Information

A Small Estate Affidavit may be prepared, usually by an attorney, for an estate with less than $50,000 of assets. This affidavit is prepared solely to satisfy the requirements of the financial/holding institution; therefore, this is an issue between the holding institution and the person trying to transfer securities or personal property. Small Estate Affidavit forms are NOT provided by the county assessor's office.

Indiana Inheritance Tax Exemptions and Rates

The amount of each beneficiary's exemption is determined by the relationship of that beneficiary to the decedent.

I. Class A Beneficiaries
Exemptions effective 07/01/97:
Child, stepchild, parent, grandparent, grandchild, and other lineal ancestor or descendant
……………………………………………………………………………..........................$ 100,000

Tax Rates:

0-25,000 1% of net taxable value
25,000-49,999 2% of net over $25,000 plus $250
50,000-199,999 3% of net over $50,000 plus $750
200,000-299,999 4% of net over $200,000 plus $5,250
300,000-499,999 5% of net over $300,000 plus $9,250
500,000-699,999 6% of net over $500,000 plus $19,250
700,000-999,999 7% of net over $700,000 plus $31,250
1,000,000-1,500,000 8% of net over $1,000,000 plus $52,250
1,500,000 10% of net over $1,500,000 plus $92,250

II. Class B Beneficiaries
Exemptions:
Brother, sister, niece, nephew, son-in-law, and daughter-in-law
……………………………………………………………………………..........................$ 500

Tax Rates:

0-99,999 7% of net taxable value
100,000-499,999 10% of net over $100,000 plus $7,000
500,000-1,000,000 12% of net over $500,000 plus $47,000
1,000,000 15% of net over $1,000,000 plus $107,000

III. Class C Beneficiaries
Exemptions:
Aunt, uncle, cousin, niece and nephew by marriage, corporations, and non-related
individuals………………………………………………………………………………….$ 100

Tax Rates:

0-99,999 10% of net taxable value
100,000-999,999 15% of net over $100,000 plus $10,000
1,000,000 20% of net over $1,000,000 plus $145,000

IV. Surviving Spouses and Charitable Organizations
100% Exempt

Indiana Inheritance Tax Links

Indiana Inheritance Tax Forms

IH-5 48834 Claim for Refund - Inheritance and Estate Taxes
IH-6INST   Instructions for Inheritance Tax General
IH-6 48835 Indiana Inheritance Tax Return Note: Local courts may require this form to be on green paper.
IH-7SF 18300 Report of Appraiser
IH-9 48854 Order Determining Inheritance Tax Due for Indiana Resident Note: Local courts may require this form to be on green paper.
IH-12 51492 Indiana Inheritance Tax Return for Non-Resident Decedent
IH-14 48839 Application For Consent To Transfer Securities Or Personal Property Of Any Description Owned By A Resident Decedent Note: Local courts may require this form to be on green paper.
IH-19 48837 Notice of Intended Transfer of Personal Property
IH-28 49312 Power of Attorney
IH-TA 48832 Affidavit of Transferee of Trust Property that No Indiana Inheritance or Estate Tax is Due on the Transfer
IH-EXEM 48831 Affidavit of No Inheritance Tax Due Note: Local courts may require this form to be on green paper.

 

 

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    Taxes are always due May 10th and November 10th, unless this date falls on a holiday or weekend, then the deadline will be the next business day.

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