AN ACT to amend the Indiana Code concerning probate.
of the deceased spouse.
and The fee shall, at the decedent's death, vest at once in such the
decedent's surviving child or children, or the descendants of such as
the decedent's child or children who may be dead. Such A second or
subsequent childless spouse described in this subsection shall,
however, receive the same share of the personal property of the
decedent as is provided in subsection (b) with respect to surviving
(d) The share of the net estate not distributable to the surviving spouse, or the entire net estate if there is no surviving spouse, shall descend and be distributed as follows:
(1) To the issue of the intestate, if they are all of the same degree of kinship to the intestate, they shall take equally, or if of unequal degree, then those of more remote degrees shall take by representation.
(2) If there is a surviving spouse but no surviving issue of the intestate, then to the surviving parents of the intestate.
(3) If there is no surviving spouse or issue of the intestate, then to the surviving parents, brothers, and sisters, and the issue of deceased brothers and sisters of the intestate. Each living parent of the intestate shall be treated as of the same degree as a brother or sister and shall be entitled to the same share as a brother or sister. However, the share of each parent shall be not less than one-fourth (1/4) of
such the decedent's net estate. Issue of
deceased brothers and sisters shall take by representation.
(4) If there is no surviving parent or brother or sister of the intestate, then to the issue of brothers and sisters. If
distributees described in this subdivision are all in the same
degree of kinship to the intestate, they shall take equally or, if of
unequal degree, then those of more remote degrees shall take by
(5) If there is no surviving issue or parent of the intestate or issue of a parent, then to the surviving grandparents of the intestate equally.
(6) If there is no surviving issue or parent or issue of a parent, or grandparent of the intestate, then the estate of the decedent shall be divided into that number of shares equal to the sum of:
(A) the number of brothers and sisters of the decedent's parents surviving the decedent; plus
(B) the number of deceased brothers and sisters of the decedent's parents leaving issue surviving both them and the decedent;
surviving spouse shall be deemed to take by descent, as a modified
share, the part of the net estate as does not come to the surviving
spouse by the terms of the will. Where by virtue of an election pursuant
to this chapter it is determined that the surviving spouse has renounced
the surviving spouse's rights in any devise, either in trust or otherwise,
the will shall be construed with respect to the property so devised to the
surviving spouse as if the surviving spouse had predeceased the
(6) Acquire or dispose of an asset, including land in this or another state, for cash or on credit, at public or private sale; and manage, develop, improve, exchange, partition, change the character of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations in buildings or other structures, demolish any improvements, raze existing or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make or obtain the vacation of plats and adjust boundaries; or adjust differences in valuation on exchange or partition by giving or receiving considerations; or dedicate easements to public use without consideration.
(9) Enter for any purpose into a lease as lessor or lessee, with or without option to purchase or renew, for a term within or extending beyond the period of administration.
(10) Enter into a lease or arrangement for exploration and removal of minerals or other natural resources or enter into a pooling or unitization agreement.
(11) Abandon property when, in the opinion of the personal representatives, it is valueless, or is so encumbered, or is in condition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general or limited proxy.
(13) Pay calls, assessments, and other sums chargeable or accruing against or on account of securities, unless barred by the provisions relating to claims.
(14) Hold a security in the name of a nominee or in other form without disclosure of the interest of the estate but the personal representative is liable for any act of the nominee in connection with the security so held.
(15) Hold, manage, safeguard, and control the estate's real and personal property, insure the assets of the estate against damage, loss, and liability, and
himself insure the personal
representative personally against liability as to third persons.
(16) Borrow money with or without security to be repaid from the estate assets or otherwise and advance money for the protection of the estate.
(17) Effect a fair and reasonable compromise with any debtor or obligor, or extend, renew, or in any manner modify the terms of any obligation owing to the estate. If the personal representative holds a mortgage, pledge, or other lien upon property of another
he the personal representative may, in lieu of
foreclosure, accept a conveyance or transfer of encumbered assets
from the owner thereof in satisfaction of the indebtedness secured
(18) Pay taxes, assessments, compensation of the personal representative, and other expenses incident to the administration of the estate.
(19) sell or exercise stock subscription or conversion rights and
consent, directly or through a committee or other agent, to the
reorganization, consolidation, merger, dissolution, or liquidation
of a corporation or other business enterprise;
(19) Hold an interest in a proprietorship, partnership, limited liability company, business trust, corporation, or another domestic or foreign form of business or enterprise.
(20) Continue a business.
(21) Take any action that may be taken by shareholders, partners, members, or property owners, including contributing additional capital to or merging, consolidating, reorganizing, recapitalizing, dissolving, or otherwise changing the form of the business organization.
(20) (22) Allocate items of income or expense to either estate
income or principal, as permitted or provided by IC 30-2-14.
(21) (23) Employ persons, including attorneys, auditors,
investment advisors, or agents, even if they are associated with
the personal representative, to advise or assist the personal
representative in the performance of his the personal
representative's administrative duties; act without independent
investigation upon their recommendations; and instead of acting
personally, employ one (1) or more agents to perform any act of
administration, whether or not discretionary.
(22) (24) prosecute or defend claims or proceedings in any
jurisdiction Do any of the following concerning a claim or
demand made in favor of or against the estate for the
protection of the estate and of the personal representative in the
performance of his the personal representative's duties:
(A) Release, assign, settle, compromise, or contest the claim or demand.
(B) Participate in mediation or submit to arbitration to resolve any dispute concerning the claim or demand.
(C) Extend the time for payment of the claim or demand.
(D) Abandon the claim or demand.
(23) (25) Sell, mortgage, or lease any real or personal property of
the estate or any interest therein for cash, credit, or for part cash
and part credit, and with or without security for unpaid balances.
(24) continue any unincorporated business or venture in which the
decedent was engaged at the time of his death:
(i) in the same business form for a period of not more than five
(5) months from the date of appointment of a general personal
representative if continuation is a reasonable means of
preserving the value of the business including good will;
(ii) in the same business form for any additional period of time
that may be approved by order of the court in a formal
proceeding to which the persons interested in the estate are
(iii) throughout the period of administration if the business is
incorporated by the personal representative and if none of the
probable distributees of the business who are competent adults
object to its incorporations and retention in the estate;
(26) Select a settlement option under any qualified or nonqualified benefit or retirement plan, annuity, or life insurance payable to the estate, and take appropriate action to collect the proceeds.
(25) incorporate any business or venture in which the decedent
was engaged at the time of his death;
(26) satisfy and settle claims;
(27) Inspect and investigate property held, directly or indirectly, by the personal representative for the purpose of:
(A) determining the application of environmental law with respect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or a potential violation of an environmental law affecting the property, whether taken before or after the assertion of a claim or the initiation of governmental enforcement by federal, state, or local authorities.
(ii) Compromise claims against the estate that may be asserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, or remedial action to comply with the environmental law.
(27) (28) Distribute assets of the estate upon such terms as he the
personal representative may impose. and To the extent
practicable, taking into account the decedent's probable
intention, the power to distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legal
disability or whom the personal representative reasonably
believes to be incapacitated by:
(i) paying the amount directly to the distributee or applying the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for the distributee;
(iii) paying the amount to a custodian under the Indiana Uniform Transfers to Minors Act (IC 30-2-8.5) or a custodial trustee under the Uniform Custodial Trust Act (IC 30-2-8.6); or
(iv) paying the amount to the trustee of a trust established by the decedent or by the personal representative under subsection (b); and
(B) make distributions of estate income and principal in kind, in cash, or partly in each, in shares of differing composition.
(28) (29) Perform any other act necessary or appropriate to
administer the estate.
(b) A personal representative who administers an estate under this chapter may, without court order, establish a trust to make distributions to a distributee who is under a legal disability or whom the personal representative reasonably believes is incapacitated. In establishing a trust under this subsection, a personal representative may exercise:
(1) the authority given to custodians under the Indiana Uniform Transfers to Minors Act (IC 30-2-8.5) to create a trust that satisfies the requirements of Section 2503 of the Internal Revenue Code and the regulations adopted under that Section; or
(2) the authority given to an attorney in fact under IC 30-5-5-15(a)(3) to establish a revocable trust for the benefit of a principal.
an the instrument evidencing a debt, an obligation, a stock,
or a chose in action to a person claiming to be entitled to payment or
delivery of property of the decedent.
(b) The affidavit required by subsection (a) must be an affidavit made by or on behalf of the claimant
stating that: and must state the
(1) That the value of the gross probate estate, wherever located (less liens and encumbrances), does not exceed
thousand dollars ($25,000); ($50,000).
(2) That forty-five (45) days have elapsed since the death of the decedent.
(3) That no application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction.
(4) The name and address of each other person that is entitled to a share of the property and the part of the property to which each person is entitled.
(5) That the claimant has notified each person identified in the affidavit of the claimant's intention to present an affidavit under this section.
(4) (6) That the claimant is entitled to payment or delivery of the
property on behalf of each person identified in the affidavit.
(c) If a motor vehicle or watercraft (as defined in IC 9-13-2-198.5) is part of the estate, nothing in this section shall prohibit a transfer of the certificate of title to the motor vehicle if five (5) days have elapsed since the death of the decedent and no appointment of a personal representative is contemplated. A transfer under this subsection shall be made by the bureau of motor vehicles upon receipt of an affidavit containing a statement of the conditions required by subsection (b)(1) and
(b)(4). (b)(6). The affidavit must be duly executed by the
distributees of the estate.
(d) A transfer agent of a security shall change the registered ownership on the books of a corporation from the decedent to a claimant upon the presentation of an affidavit as provided in subsection (a).
(e) For the purposes of subsection (a), an insurance company that, by reason of the death of the decedent, becomes obligated to pay a death benefit to the estate of the decedent is considered a person indebted to the decedent.
(f) For purposes of subsection (a), property in a safe deposit box rented by a decedent from a financial institution organized or reorganized under the law of any state (as defined in IC 28-2-17-19) or
the United States is considered personal property belonging to the
decedent in the possession of the financial institution.
family allowances; and death taxes and related penalties that
are apportioned to the
estate or terminating income interest by
the will, the terms of the trust or applicable law.
A fiduciary shall distribute to a beneficiary who receives a
pecuniary amount outright the interest or any other amount
provided by the will, the terms of the trust, or applicable law from
net income determined under subdivision (2) or from principal to
the extent that net income is insufficient. If a beneficiary is to
receive a pecuniary amount outright from a trust after an income
interest ends and no interest or other amount is provided for by
the terms of the trust or applicable law, the fiduciary shall
distribute the interest or other amount to which the beneficiary
would be entitled under applicable law if the pecuniary amount
were required to be paid under a will.
(4) A fiduciary shall distribute the net income remaining after distributions required by subdivision (3) in the manner described in section 19 of this chapter to all
other residuary beneficiaries,
including a beneficiary who receives a pecuniary amount in trust,
even if the beneficiary holds an unqualified power to withdraw
assets from the trust or other presently exercisable general power
of appointment over the trust.
(5) A fiduciary may not reduce principal or income receipts from property described in subdivision (1) because of a payment described in section 38 or 39 of this chapter to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by:
(A) including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts:
(i) accrued or became due before, on, or after the date of an individual's death; or
(ii) an income interest's terminating event; and
(B) making a reasonable provision for amounts that the fiduciary believes the
estate or terminating income interest
may become obligated to pay after the property is distributed.
with under one (1) of the following circumstances:
(1) The trustee receives court authorization to exercise the power with notice to interested persons as the court may direct.
(2) The trustee gives notice of the proposed action in accordance with IC 30-2-14-16 and:
(A) the trustee receives the written authorization of all interested persons to the proposed action within the period specified in the notice of the proposed action; or
(B) a beneficiary objects to the proposed action within the period specified in the notice of the proposed action, but the trustee receives court authorization to exercise the power.
(3) The exercise of the power is specifically authorized by the terms of the trust.
the purposes of subsection (a) of this section, the interest of
an affiliate of the trustee will be deemed to be the interest of the