Introduced Version
HOUSE BILL No. 1129
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-4.1; IC 29-1-7-3.1; IC 33-37-5-2;
IC 34-30-2-122.5.
Synopsis: Inheritance tax and will depository. Increases the
inheritance tax deduction for an amount paid for a memorial for a
decedent from $1,000 to $5,000. Allows a person to deposit a will with
the circuit court clerk of the county in which the testator resided when
the will was executed. Requires the circuit court clerk to collect a $25
fee for depositing the will, unless the circuit court clerk waives the fee.
Provides that an individual adopted as an adult is to be treated as the
natural child of the adopting parent for purposes of the inheritance tax
if the adoption was finalized before July 1, 2004. (Current law requires
an individual to be adopted before being emancipated to be treated as
the natural child of the adopting parent.) Specifies that a stepchild of
the transferor is a Class A beneficiary for purposes of the inheritance
tax, whether or not the stepchild is adopted by the transferor. Provides
that a lineal descendant of a stepchild of a transferor, whether or not the
stepchild is adopted by the transferor, is a Class A transferee for
purposes of the inheritance tax. (The introduced version of this bill was
prepared by the probate code study commission.)
Effective: July 1, 2004 (retroactive); July 1, 2005.
Foley, Bardon
January 6, 2005, read first time and referred to Committee on Judiciary.
Introduced
First Regular Session 114th General Assembly (2005)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1129
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-4.1-1-3; (05)IN1129.1.1. -->
SECTION 1. IC 6-4.1-1-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2004 (RETROACTIVE)]: Sec. 3.
(a) "Class A transferee" means a transferee who is
a:
(1)
a lineal ancestor of the transferor;
(2)
a lineal descendant of the transferor;
or
(3)
a stepchild of the transferor,
whether or not the stepchild is
adopted by the transferor; or
(4) lineal descendant of a stepchild of the transferor, whether
or not the stepchild is adopted by the transferor.
(b) "Class B transferee" means a transferee who is a:
(1) brother or sister of the transferor;
(2) descendant of a brother or sister of the transferor; or
(3) spouse, widow, or widower of a child of the transferor.
(c) "Class C transferee" means a transferee, except a surviving
spouse, who is neither a Class A nor a Class B transferee.
(d) For purposes of this section, a legally adopted child is to be
treated as if the child were the natural child of the child's adopting
parent if the adoption occurred before the individual was totally
emancipated. However, an individual adopted after being totally
emancipated shall be treated as the natural child of the adopting
parent if the adoption was finalized before July 1, 2004.
(e) For purposes of this section, if a relationship of loco parentis has
existed for at least ten (10) years and if the relationship began before
the child's fifteenth birthday, the child is to be considered the natural
child of the loco parentis parent.
(e) (f) As used in this section, "stepchild" means a child of the
transferor's surviving, deceased, or former spouse who is not a child of
the transferor.
SOURCE: IC 6-4.1-3-13; (05)IN1129.1.2. -->
SECTION 2. IC 6-4.1-3-13 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: 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
the decedent's will, under the laws of intestate succession, or under a
trust:
(1) the decedent's debts which are lawful claims against
his the
decedent's 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 the individual's 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)
the decedent's funeral expenses;
(8) amounts, not to exceed
one five thousand dollars
($1,000),
($5,000), 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.
SOURCE: IC 29-1-7-3.1; (05)IN1129.1.3. -->
SECTION 3. IC 29-1-7-3.1 IS ADDED TO THE INDIANA CODE
AS A
NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2005]:
Sec. 3.1. (a) This section applies whether it is:
(1) known; or
(2) unknown;
whether a testator is living.
(b) As used in this section, "depositor" refers to a person who
deposits a will with the circuit court clerk under this section.
(c) As used in this section, "will" refers to an original:
(1) will;
(2) codicil; or
(3) will and codicil.
(d) A person may deposit a will with the circuit court clerk of
the county in which the testator resided when the testator executed
the will. The circuit court clerk may assume, without inquiring into
the facts, that the depositor's representation is accurate as to the
county where the testator resided when the testator executed the
will. Except as provided in subsection (e), the circuit court clerk
shall collect a fee of twenty-five dollars ($25) for the deposit of the
will. The circuit court clerk shall deposit the fee in the clerk's
record perpetuation fund under IC 33-37-5-2.
(e) The circuit court clerk shall waive the fee under subsection
(d) if:
(1) a court with probate jurisdiction of the county where the
will is deposited certifies that the depositor deposits the will:
(A) as a participant; or
(B) for a participant;
in a program of the supreme court, including the Judges and
Lawyers Assistance Program established under Rule 31 of the
supreme court Rules for Admission to the Bar and the
Discipline of Attorneys; and
(2) the certification described in subdivision (1) accompanies
the will when the will is deposited.
(f) Upon receipt of a will under this section, the circuit court
clerk shall:
(1) provide the depositor with a receipt for the will;
(2) place the will in an envelope and seal the envelope securely
in the presence of the depositor;
(3) designate on the envelope the:
(A) date of deposit;
(B) name of the testator; and
(C) name and address of the depositor; and
(4) index the will alphabetically by the name of the testator.
An envelope and will deposited under this section is not a public
record under IC 5-14-3.
(g) During the testator's lifetime, the circuit court clerk shall:
(1) keep the envelope containing the will sealed; and
(2) deliver the envelope to:
(A) the testator; or
(B) a person authorized, in a writing signed by the testator,
to receive the envelope.
(h) If the circuit court clerk has custody of the will after the
death of the testator, the circuit court clerk may or shall deliver the
will to the court that has jurisdiction of the administration of the
decedent's estate as set forth in section 3 of this chapter.
(i) A circuit court clerk may destroy a will deposited under this
section if:
(1) the circuit court clerk has not received notice of the death
of the testator; and
(2) at least one hundred (100) years have passed since the date
the will was deposited.
(j) A depositor that complies with this section is immune from
civil liability for depositing the will.
SOURCE: IC 33-37-5-2; (05)IN1129.1.4. -->
SECTION 4. IC 33-37-5-2 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 2. (a) Each clerk shall
establish a clerk's record perpetuation fund. The clerk shall deposit all
the following in the fund:
(1) Revenue received by the clerk for transmitting documents by
facsimile machine to a person under IC 5-14-3.
(2) Document storage fees required under section 20 of this
chapter.
(3) The late payment fees imposed under section 22 of this
chapter that are authorized for deposit in the clerk's record
perpetuation fund under IC 33-37-7-1 or IC 33-37-7-2.
(4) The fees required under IC 29-1-7-3.1 for deposit of a will.
(b) The clerk may use any money in the fund for the following
purposes:
(1) The preservation of records.
(2) The improvement of record keeping systems and equipment.
SOURCE: IC 34-30-2-122.5; (05)IN1129.1.5. -->
SECTION 5. IC 34-30-2-122.5 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2005]: Sec. 122.5. IC 29-1-7-3.1 (Concerning
a person who deposits a will with a circuit court clerk).
SOURCE: ; (05)IN1129.1.6. -->
SECTION 6. [EFFECTIVE JULY 1, 2004 (RETROACTIVE)]
IC 6-4.1-1-3, as amended by this act, applies to the estate of an
individual who dies after June 30, 2004.
SOURCE: ; (05)IN1129.1.7. -->
SECTION 7. [EFFECTIVE JULY 1, 2005] IC 6-4.1-3-13, as
amended by this act, applies to the estate of a person who dies after
June 30, 2005.
SOURCE: ; (05)IN1129.1.8. -->
SECTION 8.
An emergency is declared for this act.