For individuals dying after Dec. 31, 2012, no inheritance tax has to be paid.
The Inheritance tax was repealed. So, no inheritance tax returns (Form IH-6 for Indiana residents and Form IH-12 for nonresidents) have to be prepared or filed. No tax has to be paid. In addition, no Consents to Transfer (Form IH-14) personal property or Notice of Intended Transfer of Checking Account (Form IH-19) are required for those dying after Dec. 31, 2012.
What is Inheritance Tax?
Any inheritance of a deceased individual’s property, including real estate and personal property, may result in the imposition of inheritance tax. The amount of tax is determined by the value of those the items inherited and the transferee’s relationship to the deceased individual – Class A, B or C. If the amount transferred to any one person exceeds their exemption amount, inheritance tax is due and an inheritance tax return will need to be filed.
The Indiana Department of Revenue (DOR) works with individuals, tax professionals, assessors, attorneys, and financial institutions to understand what tax forms need to be prepared and filed and whether any inheritance tax is due.
Inheritance Tax Refunds
The 2013 legislature made changes in the filing of refunds for inheritance tax. Under the law, individuals will be required to file a refund claim on a Claim for Refund (Form IH-5) with DOR. This new requirement applies to any claim for refund whether the individual died in 2012 or before.
Individuals Dying Before Jan. 1, 2013
- In general, estates or beneficiaries of Indiana residents are required to file an inheritance tax return (Form IH-6) with DOR if the value of items transferred to any beneficiary is greater than the exemption allowed for that beneficiary.
- In general, estates or beneficiaries of deceased Indiana nonresidents are required to file an inheritance tax return (Form IH-12) with DOR (P.O. Box 71, Indianapolis, IN 46206-0071) if the value of the transfers is greater than the exemption allowed for that beneficiary, if the property transferred is Indiana real property and/or tangible personal property located in Indiana.
Exemptions are figured based on the relationship between the deceased individual and the beneficiary. Depending on the individuals date of death the exemption amounts vary.
Consents to transfer securities or personal property (Form IH-14), called by some financial institutions as a tax waiver form, (financial accounts - e.g. savings, CDs, IRA, annuities, investment accounts) and Notice of Intended Transfer of Checking Account (Form IH-19) are required for those dying before 1/1/2013.
Note that due to the complexities of inheritance tax, taxpayers may consult with attorneys or accountants who are familiar with Indiana's inheritance tax to determine what forms, if any, should be prepared or filed. For more information check our list of inheritance tax forms. You may also contact DOR via email or call 317-232-2154, Monday through Friday, 8 a.m. – 4:30 p.m., EST.
More information can be found in our Inheritance Tax FAQs.