CHAPTER 2. IMPOSITION OF THE INHERITANCE TAX
IC 6-4.1-2
Chapter 2. Imposition of the Inheritance Tax
IC 6-4.1-2-1
Time of imposition; transfers subject to tax
Sec. 1. (a) An inheritance tax is imposed at the time of a
decedent's death on certain property interest transfers made by him.
The transfer of a property interest is subject to the tax if:
(1) the property transferred is described in:
(i) section 2 of this chapter if the property is transferred by a
resident decedent; or
(ii) section 3 of this chapter if the property is transferred by a
non-resident decedent;
(2) the transfer is described in section 4 of this chapter; and
(3) neither the transfer nor the property is exempt from the
inheritance tax under IC 6-4.1-3.
(b) For purposes of this article, a transfer described in section 4
of this chapter is considered a transfer made by the deceased
transferor regardless of when the transferee acquires the property
interest.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-2-2
Property transfers of resident decedent
Sec. 2. (a) The inheritance tax applies to a property interest
transfer made by a resident decedent if the interest transferred is in:
(1) real property located in this state;
(2) tangible personal property which does not have an actual
situs outside this state; or
(3) intangible personal property regardless of where it is
located.
(b) The inheritance tax does not apply to a property interest
transfer made by a resident decedent if the interest transferred is in:
(1) real property located outside this state, regardless of whether
the property is held in a trust or whether the trustee is required
to distribute the property in-kind; or
(2) real property located in this state, if:
(A) the real property was transferred to an irrevocable trust
during the decedent's lifetime;
(B) the transfer to the trust was not made in contemplation
of the transferor's death, as determined under IC 6-4.1-2-4;
and
(C) the decedent does not have a retained interest in the
trust.
As added by Acts 1976, P.L.18, SEC.1. Amended by P.L.78-1993,
SEC.1.
IC 6-4.1-2-3
Property transfers of nonresident decedent
Sec. 3. The inheritance tax applies to a property interest transfer
made by a nonresident decedent if the interest transferred is in:
(1) real property located in this state, regardless of whether the
property is held in a trust or whether the trustee is required to
distribute the property in-kind, unless:
(A) the real property was transferred to an irrevocable trust
during the decedent's lifetime;
(B) the transfer to the trust was not made in contemplation
of the transferor's death, as determined under IC 6-4.1-2-4;
and
(C) the decedent does not have a retained interest in the
trust; or
(2) tangible personal property which has an actual situs in this
state.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.2; P.L.78-1993, SEC.2.
IC 6-4.1-2-4
Transfers of interests in property; transfers in contemplation of
death; transfers for consideration
Sec. 4. (a) The inheritance tax applies to transfers of property
interests described in subsection (d) and to the following types of
property interest transfers:
(1) transfers which are made under a deceased transferor's will
or under the laws of intestate succession, as a result of the
transferor's death;
(2) transfers which are made in contemplation of the transferor's
death;
(3) transfers which are made in such a manner that they are
intended to take effect in possession or enjoyment at or after the
transferor's death;
(4) transfers which are made in payment of a claim against the
transferor's estate if:
(A) the claim results from a contract or antenuptial
agreement made by the transferor; and
(B) payment of the amount claimed is due at or after the
transferor's death under the terms of the transferor's will or
the contract;
(5) those jointly held property transfers described in section 5
of this chapter;
(6) those transfers which are made by a trust deed in the manner
described in section 6 of this chapter; and
(7) those transfers which are made to an executor or trustee in
the manner described in section 7 of this chapter.
(b) A transfer is presumed to have been made in contemplation of
the transferor's death if it is made within one (1) year before the
transferor's date of death. However, the presumption is rebuttable.
(c) If a transfer described in subsection (a)(1), (a)(2), (a)(3), or
(a)(4) is made for valuable consideration, the value of the property
so transferred equals the remainder of:
(1) the total value of the property transferred; minus
(2) the equivalent in money value of the consideration received
by the transferor.
For purposes of this subsection, the term "consideration" does not
include love or affection.
(d) If at the time of death a surviving spouse has been entitled to
income from a property interest that was the subject of a previous
transfer exempt from inheritance tax under IC 6-4.1-3-7(b) or
IC 6-4.1-3-7 (c), then the value of the property interest at the time of
death of the surviving spouse is subject to the inheritance tax as if it
were a transfer of property owned by the surviving spouse. The value
of a property interest subject to inheritance tax under this section
includes the value of each gift of any part of the property interest
made by the surviving spouse in contemplation of death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1982,
P.L.55, SEC.1; P.L.58-1990, SEC.1.
IC 6-4.1-2-5
Joint ownership with rights of survivorship
Sec. 5. If property is held by two (2) or more individuals jointly
with rights of survivorship, the exercise of the rights of the surviving
joint owner or owners to the immediate ownership or possession and
enjoyment of the property upon the death of one (1) of the joint
owners is a transfer to which the inheritance tax applies. The value
of the property so transferred equals the remainder of (1) the total
value of the jointly held property, minus (2) the value of that portion
of the jointly held property which the surviving joint owner or
owners prove belonged to him or them.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1982,
P.L.56, SEC.1.
IC 6-4.1-2-6
Transfers by deed of trust with powers reserved in transferor
Sec. 6. If a transferor transfers property by a deed of trust in such
a manner that he reserves to:
(1) himself any interest; or
(2) himself and others powers of revocation, alteration, or
amendment which if exercised would cause the property to
revert to the transferor;
then the inheritance tax imposed as a result of the transferor's death
applies to the transfer. The value of the property so transferred
equals the value of the property subject to the powers, and in respect
to which the powers remain unexercised, at the time of the
transferor's death.
As added by Acts 1976, P.L.18, SEC.1.
IC 6-4.1-2-7
Transfers to executor as trustee in lieu of fee
Sec. 7. If an individual transfers property to an executor or trustee
in lieu of his fee, the inheritance tax applies to the transfer if the
value of the property transferred exceeds the fee that would have
been due if the transfer had not been made. The value of the property
so transferred equals the amount of the excess.
As added by Acts 1976, P.L.18, SEC.1.