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1. What is Probate Court?

Probate is the court procedure by which a decedent's property is administered. Whether a person dies with or without a will, any assets in the decedent's name alone are probate assets and must go through the probate process. The probate process requires a person to present the decedent's will to the court. After the court determines that the decedent's will is valid, the court appoints a named personal representative to administer the assets of the estate. The personal representative is responsible for collecting the decedent's assets to his/her heirs.

If the decedent dies without a will, the court will appoint a personal representative. The decedent's assets will be distributed 1st to his/her spouse, children or grandchildren, then the assets will be distributed to his/her parents, brothers, sisters and any nieces and nephews who are children of his/her deceased brothers and sisters.

2. Must I go through the probate process?

Indiana law allows an estate with less than $50,000 of assets to bypass the probate process. A person may prepare a Small Estate Affidavit which states the following:
- 45 days have elapsed since the decedent's death
- The value of the gross probate estate does not exceed $50,000
- No application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction
- The claimant is entitled to payment or delivery of the property

The claimant may present this notarized affidavit to any institution or person holding property of the decedent, and that institution or person shall deliver the property to the claimant.

3. Must I complete a tax return?

Indiana law requires each estate to file 1 Indiana Inheritance Tax Return, Form IH-6, on behalf of all of the beneficiaries, if the exemptions due not exceed the gross estate.

Form IH-6 is due 1 year from the date of the death of the decedent and filed with the probate court of the county in which the decedent resided. Form IH-6 may be obtained from the county Assessor's Office in which the decedent resided. For Hamilton County, those forms are available online.

4. When must I pay the tax?

The inheritance tax is due 18 months from the date of death. If the payment is made within 9 months from the decedent's death, the county treasurer shall grant a 5% discount on the tax due. After 12 months, interest is charged at 10% per annum on any delinquent portion of tax due from the date of death to the date of payment. The court may reduce the rate of interest from 10% to 6% if the estate shows unavoidable delay. The court, however, may not waive the entire interest.

5. What is Indiana Estate Tax?

The Indiana Estate tax is a tax imposed upon a recipient or nonresident decedent's estate. The tax is the difference between the Indiana portion of the federal state death tax credit allowed on the Federal Estate Tax return (Form 706), and the amount of inheritance tax actually paid.