MADAM PRESIDENT:
The Senate Committee on Rules and Legislative Procedure, to which was referred Senate Bill No. 124,
has had the same under consideration and begs leave to report the same back to the Senate with the
recommendation that said bill be AMENDED as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning
trusts and fiduciaries.
Delete everything after the enacting clause and insert the
following:
SECTION 1. IC 6-1.1-12-17.9 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2007]: Sec. 17.9. A trust is entitled to a
deduction under section 9, 11, 13, 14, 16, or 17.4 of this chapter for
real property owned by the trust and occupied by an individual if
the county auditor determines that the individual:
(1) upon verification in the body of the deed or otherwise, has
a beneficial interest in the trust;
(2) otherwise qualifies for the deduction; and
(3) would be considered the owner of the real property under
IC 6-1.1-1-9(f).
SOURCE: IC 6-4.1-1-3; (07)LS6782.2. -->
SECTION 2. IC 6-4.1-1-3, AS AMENDED BY P.L.238-2005,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2007]: Sec. 3. (a) "Class A transferee" means a transferee who
is a:
(1) lineal ancestor of the transferor;
(2) lineal descendant of the transferor;
(3) 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.
personal property which is subject to the inheritance tax;
(6) mortgages or special assessments which, at the time of the
decedent's death, were a lien on any of the 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 29-1-8-3; (07)LS6782.6. -->
SECTION 6. IC 29-1-8-3 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 3. (a) If it appears that
the value of a decedent's gross probate estate, less liens and
encumbrances, does not exceed the sum of:
(1) twenty-five fifty thousand dollars ($25,000); ($50,000);
(2) the costs and expenses of administration; and
(3) reasonable funeral expenses;
the personal representative or a person acting on behalf of the
distributees, without giving notice to creditors, may immediately
disburse and distribute the estate to the persons entitled to it and file a
closing statement as provided in section 4 of this chapter.
(b) If an estate described in subsection (a) includes real property,
an affidavit may be recorded in the office of the recorder in the county
in which the real property is located. The affidavit must contain the
following:
(1) The legal description of the real property.
(2) The following statement: "It appears that the decedent's gross
probate estate, less liens and encumbrances, does not exceed the
sum of the following: twenty-five fifty thousand dollars
($25,000), ($50,000), the costs and expenses of administration,
and reasonable funeral expenses.".
(3) The name of each person entitled to at least a part interest in
the real property as a result of a decedent's death, the share to
which each person is entitled, and whether the share is a divided
or undivided interest.
(4) A statement which explains how each person's share has been
determined.
SOURCE: IC 29-1-8-4; (07)LS6782.7. -->
SECTION 7. IC 29-1-8-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2007]: Sec. 4. (a) Unless prohibited
by order of the court and except for estates being administered by
supervised personal representatives, a personal representative or a
person acting on behalf of the distributees may close an estate
administered under the summary procedures of section 3 of this chapter
by filing with the court, at any time after disbursement and distribution
of the estate, a verified statement stating that:
(1) to the best knowledge of the personal representative or person
acting on behalf of the distributees the value of the gross probate
estate, less liens and encumbrances, did not exceed the sum of:
(A) the allowance, if any, provided by IC 29-1-4-1;
(A) fifty thousand dollars ($50,000);
(B) the costs and expenses of administration; and
(C) reasonable funeral expenses;
(2) the personal representative or person acting on behalf of the
distributees has fully administered the estate by disbursing and
distributing it to the persons entitled to it; and
(3) the personal representative or person acting on behalf of the
distributees has sent a copy of the closing statement to all
distributees of the estate and to all creditors or other claimants of
whom he the personal representative or person acting on
behalf of the distributees is aware and has furnished a full
account in writing of his the administration to the distributees
whose interests are affected.
(b) If no actions, claims, objections, or proceedings involving the
personal representative or person acting on behalf of the distributees are
filed in the court within three (3) months after the closing statement is
filed, the appointment of the personal representative or the duties of the
person acting on behalf of the distributees terminate.
(c) A closing statement filed under this section has the same effect
as one (1) filed under IC 29-1-7.5-4.
(d) A copy of any affidavit recorded under section 3(b) of this
chapter must be attached to the closing statement filed under this
section.
SOURCE: IC 32-38; (07)LS6782.8. -->
SECTION 8. IC 32-38 IS ADDED TO THE INDIANA CODE AS
A NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2007]:
ARTICLE 38. TITLE INSURANCE AND TRANSFERS TO
CERTAIN TRUSTS
Chapter 1. Application
Sec. 1. This article applies to a policy or commitment issued
after June 30, 2007.
Chapter 2. Definitions
Sec. 1. The definitions in IC 27-7-3-2 apply throughout this
article.
Sec. 2. "Commitment" means a commitment for title
insurance.
Sec. 3. "Estate" has the meaning set forth in IC 29-1-1-3.
Sec. 4. "Named insured owner" means the person identified in
a policy or commitment as the insured owner or the proposed
insured owner of an interest in real property that is insured or
proposed to be insured under the policy or commitment.
Sec. 5. "Personal representative" has the meaning set forth in
IC 29-1-1-3.
Sec. 6. "Policy" means a title insurance policy.
Sec. 7. "Power of appointment" means a power of
appointment described in IC 32-17-6.
Sec. 8. "Trust" has the meaning set forth in IC 30-4-1-1.
Chapter 3. Transfers to Certain Trusts
Sec. 1. The trustee of a trust is considered to be the insured
owner under a policy or commitment that insures or proposes to
insure an interest in real property that is transferred to the trust if:
(1) the transferee of the interest in real property is the trustee
of the trust, the trust was established by the named insured
owner, and the transferor is the named insured owner;
(2) the named insured owner reserves the right to amend or
revoke the trust during the named insured owner's lifetime;
(3) the named insured owner is a natural person; and
(4) the transfer of the interest in real property is made by the
named insured owner personally or by:
(A) the named insured owner's attorney in fact;
(B) the named insured owner's guardian or other similar
person in a guardianship or protective proceeding in
which the named insured owner is an incapacitated or a
protected person; or
(C) the personal representative of the deceased named
insured owner's estate under the terms and conditions of
the named insured owner's last will and testament;
even if the named insured owner transfers the interest in real
property to the trustee described in this section after the effective
date of the policy or commitment.
SOURCE: ; (07)LS6782.9. -->
SECTION 9. [EFFECTIVE JULY 1, 2007] Actions taken before
July 1, 2007, that would have been valid under IC 6-1.1-12-17.9, as
added by this act, are legalized and validated.
SOURCE: ; (07)LS6782.10. -->
SECTION 10. [EFFECTIVE JULY 1, 2007] IC 6-4.1-3-11 and
IC 6-4.1-3-12, both as amended by this act, apply to the estate of an
individual who dies after June 30, 2007.
SOURCE: ; (07)LS6782.11. -->
SECTION 11. [EFFECTIVE JULY 1, 2007] IC 6-4.1-3-13, as
amended by this act, applies to the estate of an individual who dies
after June 30, 2007.
SOURCE: ; (07)LS6782.12. -->
SECTION 12. [EFFECTIVE JULY 1, 2007] IC 29-1-8-3 and
IC 29-1-8-4, both as amended by this act, apply to the estate of an
individual who dies after June 30, 2007.
(Reference is to SB 124 as introduced.)
and when so amended that said bill be reassigned to the Senate Committee on Tax and Fiscal Policy.