How Probate Works in Indiana

Legal Reading © Stephen M. Maple 2022

When death occurs

When a person dies owning assets in his or her name alone, a probate estate can be opened with the local court in the decedent's county of residence to distribute any assets (after the deceased's debts are paid).

Probate procedure

1. Last Will and Testament. If there is a Last Will and Testament, then the person named in the Will as the executor usually opens the probate estate by filing the Will with the court. The Will states who is to be the executor and who is to receive the estate assets.
2. No Last Will and Testament. If there is no Last Will and Testament, then any one of the heirs usually opens the probate estate with the local court. The probate code in Indiana states who are the heirs. For example, if a surviving parent dies, then the children of the deceased will share equally in the estate.

 

The person responsible for administering the estate is called the personal representative.

The probate estate is usually opened in the county where the deceased lived. If all the estate beneficiaries agree, the estate may be administered as unsupervised by the probate court after the estate is opened; however, if there is no agreement, then every act by the personal representative must be approved by the probate court. The following documents are typically filed with the court:

• Last Will and Testament (if it exists)
• Petition to Probate the estate with details of the date of death, personal representative information, heirs' addresses, assets and debts
• Personal Representative's Oath of office affirming willingness to serve
• Personal Representative's Instructions about his or her duties

Once the court signs the Probate Order, the personal representative will receive his or her authority to serve, which is the Letters Testamentary (Letters of Administration, if there is no Will).

Within two months, the personal representative will file an Inventory listing all the deceased's solely owned assets. Estate beneficiaries are not personally liable for the deceased's debts unless a beneficiary has personally guaranteed to pay the debt.

Closing the Estate

Once the estate debts have been paid, the beneficiaries receive the assets based on the provisions in the Will (or based on Indiana law, if there is no Will). All the beneficiaries are entitled to a statement showing the estate assets, debts, and distribution.

Taxes

The only taxes the estate pays typically are income taxes for income earned during the last year of the deceased's life and income earned during the estate administration. There is no Indiana inheritance tax and the federal estate tax exempts $12,060,000 in 2022.

All property inherited by an estate beneficiary is federal and Indiana income tax-free., with the possible exception or retirement accounts.