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Indiana's Streamlined Probate Process
Reported by Ron James
Indiana's statutory scheme for the administration of estates is one of the speediest in the U.S. Though the notice times required, to insure that both heirs and creditors have due process, are still tricky to calculate, the actual delay caused by this necessary evil is very short. Specifically, if the estate has arisen as a result of death after July 1, 2001, the required notices are:
- first publication of notice, to both creditors and heirs, as soon after the opening of the estate as possible
- notice to decedent's known creditors within one month of first published notice
- notified creditors must file their claim within three months from date of first publication
- creditors without notice during the three month period have two months from notice to file a claim
- all creditors, notified or not, are finally barred from collecting their claim if it is not filed within nine months of the date of death
- the personal representative must admit or deny the claims within three months and fifteen days from the date of first publication of notice
Other important features of Indiana's streamlined process include:
- Will contests must be filed within three months after the Will is admitted to probate
- notice of the filing of the final account does not need to be published
- neither notice nor hearing on the final account is necessary if all waive and consent
- IDR provides a form affidavit for execution to speed up transfers in "no tax due" estates
- it is presumed that no inheritance tax return is necessary in "no tax due" estates
- surviving spouse/orphaned children's allowance is $25,000
- with qualification, an attorney-in-fact may elect against a will for the surviving spouse
The probate code extends to the conduct of other trust or fiduciary relationships. Among others, these include guardians, trustees and attorneys-in-fact (persons who have the authority to act for another under a valid power of attorney. Related aspects of the Indiana Code include:
- $10,000 may be transferred to custodians for benefit of a minor without a guardianship
- guardianships that drop below $10,000 in asset value may be ended
- specific devisee, under a ward's Will, must pursue rights when the guardian sells the asset
- there is no limitation on the expenditure of trust funds on life insurance premiums
- there is no unintended exercise of powers of appointment by trusts
- trust's intended time of possession or enjoyment defines date of lapsing/survivorship
- liability for dishonoring a power of attorney includes 3X actual and attorney's fees
- actual notice of revocation or death will excuse dishonor of a power of attorney
- a written statement of either invalidity or deficiency avoids dishonor liability
E-mail me your concise and factual questions and I'll try to answer at my FAQ.
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