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IC 30-4-2.1-1
Construction
Sec. 1. In the absence of a contrary intent appearing in the trust,
a trust shall be construed in accordance with the rules in this chapter.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-2
Adopted children
Sec. 2. (a) Except as provided in subsection (b), in construing a
trust naming as beneficiary a person described by relationship to the
settlor or to another, a person adopted before:
(1) the person is twenty-one (21) years of age; and
(2) the death of the settlor;
shall be considered the child of the adopting parent or parents and
not the child of the natural or previous adopting parents.
(b) If a natural parent or previous adopting parent marries the
adopting parent before the settlor's death, the adopted person shall
also be considered the child of the natural or previous adopting
parent.
(c) A person adopted by the settlor after the person becomes
twenty-one (21) years of age shall be considered the child of the
settlor. However, no other person is entitled to establish the
relationship to the settlor through the child.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-3
No contest provision void
Sec. 3. A provision in a trust that provides, or has the effect of
providing, that a beneficiary forfeits a benefit from the trust if the
beneficiary contests the trust is void.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-4
Children born after trust's creation
Sec. 4. (a) Except as provided in subsection (b) and section 5 of
this chapter, when a settlor fails to provide in the settlor's trust for a
child who is:
(1) born or adopted after the making of the settlor's trust; and
(2) born before or after the settlor's death;
the child is entitled to receive a share in the trust assets. The child's
share of the trust assets shall be determined by ascertaining what the
child's intestate share would have been under IC 29-1-2-1 if the
settlor had died intestate. The child is entitled to receive a share of
the trust assets equivalent in value to the intestacy share determined
under IC 29-1-2-1.
(b) Subsection (a) does not apply to a child of the settlor if:
(1) it appears from the trust that the settlor intentionally failed
to provide in the settlor's trust for the child; or
(2) when the trust was executed:
(A) the settlor had at least one (1) child known to the settlor
to be living; and
(B) the settlor devised substantially all of the settlor's estate
to the settlor's surviving spouse.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-5
Mistaken belief that settlor's child deceased
Sec. 5. (a) Except as provided in subsection (b), if, at the time of
the making of the trust, the settlor:
(1) believes a child of the settlor to be dead; and
(2) fails to provide for the child in the settlor's trust;
the child is entitled to receive a share in the trust assets. The child's
share of the trust assets shall be determined by ascertaining what the
child's intestate share would have been under IC 29-1-2-1 if the
settlor had died intestate. The child is entitled to receive a share of
the trust assets equivalent in value to the intestacy share determined
under IC 29-1-2-1.
(b) Subsection (a) does not apply to a child of the settlor if it
appears from the trust or from other evidence that the settlor would
not have devised anything to the child had the settlor known that the
child was alive.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-6
Void, revoked, or lapsed devise
Sec. 6. If a devise of real or personal property, not included in the
residuary clause of the trust:
(1) is void;
(2) is revoked; or
(3) lapses;
the devise becomes a part of the residue and passes to the residuary
beneficiary.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-7
Beneficiary predeceases settlor
Sec. 7. (a) As used in this section, "descendant" includes the
following:
(1) A child adopted before the child is twenty-one (21) years of
age by:
(A) the settlor; or
(B) the settlor's descendants.
(2) A descendant of a child adopted as set forth in subdivision
(1).
(3) A child who is born of the mother out of wedlock in either
of the following circumstances:
(A) The mother is a descendant of the settlor.
IC 30-4-2.1-8
Kindred of the half blood
Sec. 8. Kindred of the half blood are entitled to receive the same
trust interest that they would have received if they had been of the
whole blood.
As added by P.L.4-2003, SEC.7.
IC 30-4-2.1-9
Applicability of adultery and abandonment forfeiture provisions
Sec. 9. A trust of a deceased spouse is subject to the following:
(1) IC 29-1-2-14.
(2) IC 29-1-2-15.
As added by P.L.238-2005, SEC.28.
IC 30-4-2.1-10
Reserved
IC 30-4-2.1-11
of the trust. The writing may be altered by the settlor after the writing
is prepared. The writing may have no significance apart from the
writing's effect on the dispositions made by the trust.
IC 30-4-2.1-12
Written statement or list disposing of tangible personal property
Sec. 11. (a) A written statement or list that:
(1) complies with this section; and
(2) is referred to in a settlor's trust that was revocable during the
settlor's lifetime;
may be used to dispose of items of tangible personal property, other
than property used in a trade or business, not otherwise specifically
disposed of by the trust.
(b) To be admissible under this section as evidence of the
intended disposition, the writing must be signed by the settlor and
must describe the items and the beneficiaries with reasonable
certainty. The writing may be prepared before or after the execution
(c) If more than one (1) otherwise effective writing exists, then,
to the extent of a conflict among the writings, the provisions of the
most recent writing revoke the inconsistent provisions of each earlier
writing.
As added by P.L.238-2005, SEC.29.
Order of abatement; other rules governing abatement
Sec. 12. (a) If a trust is terminated or partially terminated and the
available trust property is not sufficient to fully satisfy the interests
of all beneficiaries, the interests must be abated in the following
order:
(1) The interests that would be characterized as residuary
devises if the trust were a will.
(2) The interests that would be characterized as general devises
if the trust were a will.
(3) The interests that would be characterized as specific devises
if the trust were a will.
The amount abated for each beneficiary within each classification
described in subdivisions (1) through (3) must be proportional to the
amount of property that each beneficiary would have received if full
distribution of the trust property had been made in accordance with
the terms of the trust instrument.
(b) If:
(1) a trust instrument expresses an order of abatement that
differs from the order set forth in subsection (a); or
(2) the order of abatement stated in subsection (a) would impair
an express or implied purpose of the trust;
the interests of the beneficiaries must be abated in the manner
determined appropriate to give effect to the settlor's intent.
(c) If, under the terms of a trust that was revocable at the time of
the settlor's death, the subject of a preferred devise is sold or used to
pay debts, expenses, taxes, or other obligations incident to the
settlement of the settlor's affairs, abatement must be achieved by
adjustment in, or contribution from, other interests in the remaining
trust property.
(d) Where applicable, the abatement of beneficiary interests in a
trust is subject to IC 32-17-13-4.
As added by P.L.101-2008, SEC.8.
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