• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
  • Services
    • Asset & Business Planning
    • Dental Practice Law
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid and Elder Law
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Veteran’s Benefits
  • Resources
    • DocuBank
    • Elder Law
      • Elder Law & Medicaid Definitions
      • Elder Law Reports
      • Elder Law Resources
        • Carmel, Indiana Elder Resources
        • Fishers Indiana Elder Law Resources
        • Greenfield, Indiana Elder Law Resources
        • Greenwood Elder Resources
        • Indianapolis Elder Law Resources
        • Lawrence Elder Law Resources
        • Plainfield Elder Resources
        • Zionsville Elder Law Resources
    • Estate Planning
      • Estate Planning Checkup
      • Estate and Gift Tax Figures
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Asset Protection Planning
        • Business Succession Planning
      • Elder Abuse
      • Elder Law
        • Medicaid
        • Medicaid Planning
        • Planning for Long-Term Care
      • Estate Planning
        • Avoiding Estate Taxes
        • Estate Planning for Parents
        • Frequently Asked Questions for Families Without an Estate Plan
        • LGBTQ Estate Planning
        • Women and the Need for Estate Planning
      • Financial Planning
      • Incapacity Planning
      • Legacy Wealth Planning
      • Pet Planning
      • Philanthropy in Your Estate Plan
      • Probate
      • Power of Attorney
      • Small Estate Administration
      • Trusts
        • Trust Administration
        • Trust Administration
        • Serving as Executor
      • Understanding Your Social Security Retirement Benefits
      • Wills
        • Contesting a Will
    • Newsletter
    • Pre Consultation Form
    • Probate and Trust Administration
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss Of A Loved One
      • Probate Resources
        • Carmel, Indiana Probate Resources
        • Greenfield Probate
        • Greenwood Probate
        • Indianapolis Probate
        • Plainfield Probate
        • Indiana Probate
        • Zionsville Probate
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Areas We Serve
    • Boone County
      • Lebanon
      • Zionsville
    • Hamilton County
      • Carmel
      • Fishers
    • Hancock County
      • Greenfield
    • Hendricks County
      • Brownsburg
      • Plainfield
    • Johnson County
      • Franklin, Indiana
      • Greenwood
    • Marion County
      • Central Indiana
      • Indianapolis
  • Blog
  • Contact Us

Frank & Kraft, Attorneys at Law

Indianapolis Estate Planning Attorneys

CONNECT WITH US TODAY(317) 684-1100

Attend a Free Workshop
Home » Essential Estate Planning Facts: An Overview of Indiana Inheritance Laws

Essential Estate Planning Facts: An Overview of Indiana Inheritance Laws

July 26, 2016Estate Planning in Indianapolis

Are you thinking about estate planning but find yourself worried that Indiana inheritance laws are just too complicated to understand? This overview of common inheritance concerns can help.

If you’ve finally reached the point in life where you’re starting to think about estate planning, there’s a good chance that you feel a little bit out of your depth. Proper estate planning often involves much more than just the creation of a simple will – especially when you want to ensure that you’ve taken steps to deal with future incapacity, plan for Medicaid eligibility, and leave behind a legacy for your loved ones. You may be worried about estate tax implications, asset transfers, and a whole host of complex issues that can make the process of creating an estate plan a truly daunting challenge. For residents in the state of Indiana, this overview of Indiana inheritance laws can help address some of the most common concerns.

The Probate Process

If you’ve ever had to deal with the processing of a will after a family member dies, then chances are that you are at least somewhat familiar with probate. As in other states, probate in Indiana is a court-supervised process by which estates get settled. The process is there to prevent any type of fraud and ensure that your estate goes to the right people. As a result, assets are essentially frozen so that the court can assess the validity of the will, acknowledge the estate’s executor, and then move forward to settle your affairs.

This process mandates that both creditors and beneficiaries be notified. Assets are catalogued and appraised, debts are settled – including taxes, and the court authorizes distribution of the assets in accordance with the directives in your will. Once all of that is accomplished and a final accounting is provided to the court, the judge officially closes the estate.

It is important to recognize that a will is not enough to keep your estate out of probate. That goal can only be accomplished by ensuring that your assets have a way of being automatically transferred to another owner when you die, using things like living trusts or certain account transfer options.

Creditor Rights

In Indiana, as in every other state, creditor rights supersede the rights of beneficiaries. As a result, debts must all be paid prior to asset distribution to beneficiaries. Basically, executors have three primary tasks that must be performed:

  • Take stock of all estate assets and their worth
  • Ensure that all estate debts are paid
  • Provide for the orderly distribution of assets to beneficiaries.

Those three things must all be done in that order, to protect not only the creditors but the beneficiaries as well. After all, no beneficiary wants to receive an inheritance only to find that a creditor is pursuing those assets because he didn’t get paid! To prevent that, the executor has a responsibility to make reasonable attempts to notify creditors so that they can pursue any legitimate claim.

Small Estates

In the state of Indiana, your estate can be settled using just an Affidavit whenever the total gross value of the estate is below $50,000. There is also a 45-day waiting period from the time the decedent passes away. In determining the value of the estate, certain assets are excluded. These include any assets with joint tenancy, accounts that are payable on death, property that transfers on death, and life insurance policies with named beneficiaries.

Passing on Wealth to Minor Children

Another question that is often raised focuses on the best way to pass wealth to minor children. Like many other jurisdictions, Indiana does not allow minors to inherit any property directly. As a result, if you want to leave property to your minor children, you need to do it in a way that involves an adult managing it until the child reaches the age of eighteen. Trusts can help to simplify this process, since there will be a Trustee to manage the child’s inheritance. There are other options as well, and you should discuss them with an estate planning attorney to determine which is right for you.

Inheriting Life Insurance

In most instances, determining who gets the benefits from a decedent’s life insurance policy has nothing to do with things like trusts or wills. That’s because life insurance policies are designed so that the policyholder names beneficiaries. In Indiana, life insurance payouts go to named beneficiaries on the policy. There are exceptions, of course – such as might occur in instances where the policyholder named his estate as the beneficiary.

Joint Tenancy Property

In Indiana, any property that is considered to be held in what is known as “join tenancy” automatically goes to the surviving tenant under the rules of survivorship. This type of joint ownership is commonly seen with property owned by married couples, but can also be used by parents and their children or even partners who have no relation to one another.

Tax Concerns

Taxes owed by the estate have to be paid after the decedent’s passing, of course. In fact, there are several tax returns that have to be filed, including a state income tax return and any of three federal returns. Possible capital gains tax issues and exposure to federal estate tax liability will also need to be addressed. Indiana has no estate or inheritance tax.

Dying Without a Will

If you fail to provide a will, then Indiana’s intestacy laws determine where your assets go. Those laws prioritize heirs beginning with your closest family members such as a spouse and children, and then broaden to include everyone from parents and grandparents to cousins, nephews, nieces, and so on. It is important to understand this so that you can take affirmative action to plan your estate in a way that reflects your wishes.

Get the Help You Need

At Frank & Kraft Attorneys at Law, our legal team can help you to develop the estate plan you need to give you and your loved ones the peace of mind you deserve. We can handle even the most complex estate planning concerns and assist you in your efforts to secure your legacy and provide for your family when you’re gone. Contact us online today or call us at (317) 684-1100 to learn more about how we can help you prepare for the future.

  • Author
  • Recent Posts
Paul A. Kraft, Estate Planning Attorney
Paul A. Kraft, Estate Planning Attorney
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.

Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
Paul A. Kraft, Estate Planning Attorney
Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
  • Updated Federal Gift and Estate Tax Figures for 2023 - January 26, 2023
  • Why Estate Planning Is Important for Multi-National Couples - January 24, 2023
  • When Do I Need to Update a Trust Agreement? - January 19, 2023

Other Articles You May Find Useful

intestacy
What Are The Rules of Intestacy?
inheritance planning attorney
Why it’s Important to Consider Your Heirs When Making an Inheritance Plan
It’s never too late to get started with your estate planning, but not just any plan will do. For the best results, you need to rely on an Indianapolis estate planning law firm.
Can an Indianapolis Estate Planning Law Firm Work for Your Planning Needs?
Have you thought about how taxes, inheritance laws, and other factors might impact your ability to keep your wealth in the family when you die? These tips can help to ensure that your loved ones get the inheritance you want them to have.
Estate Planning Tips for Indianapolis Residents to Keep Wealth in the Family
Frank & Kraft, Attorneys at Law
Learn How an Estate Planning Attorney Can Help You Avoid Common Mistakes
Estate Planning: Put the Procrastination Behind You in 2016

Primary Sidebar

Frank & Kraft, Attorneys at Law

Download our free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

Blog Subscription

Where We Are

Frank & Kraft Attorneys at Law
135 N. Pennsylvania Street Suite 1100
Indianapolis, IN 46204-2485
Phone: (317) 684-1100
Fax: (317) 684-6111

See Larger MapGet directions

Office Hours

Monday8:00 AM - 5:00 PM
Tuesday8:00 AM - 5:00 PM
Wednesday8:00 AM - 5:00 PM
Thursday8:00 AM - 5:00 PM
Friday8:00 AM - 5:00 PM

Map

frankkraft_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
footer-logo

Frank & Kraft Attorneys at Law
Attorney Advertisement

© 2023 American Academy of Estate Planning Attorneys, Inc.

© 2023 · American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Sitemap | Contact Us