Instructions For Form Ih-12 - Indiana Inheritance Tax (Page 4 of 6) in pdf

Trust

Page Six — Schedule D, Deductions and

Indiana real property and tangible personal property located

Recapitulation

in Indiana that the decedent transferred into a trust prior

to death may be subject to the Indiana inheritance tax. List

All necessary costs of administering the estate involving the

every real property parcel and tangible personal property

transfer of Indiana real property and tangible personal property

located in Indiana of the decedent’s trust on this schedule, but

located in Indiana may be deducted from the value of property

not out-of-state real property. These assets are to be valued

interests transferred by the decedent by Will, by intestate law, or

at their fair market values on the date of the decedent’s death

by trust.

or on the alternative valuation date if properly elected on

the Form 706 and accepted by the IRS. Include a copy of the

The following items, and no others, may be deductible:

instrument creating the trust with the return.

• Reasonable attorney fees, personal representative fees, and

Transfers in Contemplation of Death

trustee fees for administration of Indiana property subject to

List all transfers of Indiana real property or tangible personal

Indiana inheritance tax

property located in Indiana that the decedent made by deed,

• Taxes on the decedent’s real property that is subject to the

gift, or bargain sale in contemplation of death. Also list all

Indiana inheritance tax, if the taxes were a lien on the real

transfers made by the decedent within one year prior to

property at the time of the decedent’s death

death. Indicate the date of each transfer, the name of each

• Taxes on the decedent’s tangible personal property located in

transferee, the type of property interest transferred, and the

Indiana that is subject to the Indiana inheritance tax if such

fair market value of the property interest transferred as of the

taxes were due and owing at the time of the decedent’s death

date of transfer.

• Valid liens against Indiana real property and tangible personal

property located in Indiana that is subject to Indiana inheritance

Transfers within the year preceding death are presumed to

tax

have been made in contemplation of the death. However,

• Valid claims against the decedent’s domiciliary estate (estate is

this presumption is rebuttable. To rebut the presumption,

opened in the state where the decedent was living at the time of

set forth all facts necessary for a proper determination of the

death) that will not be paid by the domiciliary estate because it

taxability of such

transfers.

Include supporting documents

is exhausted

with the return. See 45 Ind. Admin. Code 4.1-2-6.

• Selling expenses when the property is actually sold during the

administration of the estate

Transfers Intended to Take Effect in Possession or

Enjoyment at or after Death

Nondeductible items include, but are not limited to,

List all Indiana real property and tangible personal property

the following:

located in Indiana transferred by the decedent for less

than full consideration if the transferee did not receive full

• Decedent’s funeral expenses

possession and enjoyment of such property until at or after

• Fiduciary income taxes

the decedent’s death. This includes property the decedent

• Funeral flowers

transferred subject to a retained life estate. You must value

• Federal estate tax

such property at full fair market value at the time of the

• Estimated selling expenses of unsold real estate

decedent’s death. Example: John deeds his farm to Mary and

• Expenses connected with property not subject to Indiana

Sam in 1970, retaining a life estate in the farm. In 2012, when

Inheritance tax

John dies, the full fair market value of the farm is included in

• Funeral dinners

John’s estate for inheritance tax purposes.

• Traveling expenses for beneficiaries, or others, to attend the

decedent’s funeral

Joint Tenancies with Rights of Survivorship

• Indiana inheritance tax incurred as a result of a decedent’s death

All Indiana real property or tangible personal property

located in Indiana in which the decedent held an interest at

In the recapitulation section, list the individual totals from

the time of death as a joint tenant with rights of survivorship

Schedules A, B, and C and total all of the taxable assets. List the

must be entered on this schedule. Describe the joint property

total deductions from Schedule D. Subtract the total deductions

and list the names of the surviving joint tenants.

from the total taxable assets, and enter the total taxable estate.

Include the full fair market value of the jointly owned

Pages Seven and Eight — Schedule E, Persons

property on Schedule C. If you believe that less than the full

Beneficially Interested in This Estate and

value of the entire property is includible for tax purposes, you

Inheritance Tax Computation

must establish your right to exclude part of the value. Attach

List all persons, including corporations and other organizations,

any documentation that substantiates the use of the lesser

receiving an interest from the decedent no matter how the transfer

value to the back of the return.

took place. Also list the current address of each transferee. If

the space provided is not adequate to list all transferees, attach

additional pages immediately after this page.

Instructions For Form Ih-12 - Indiana Inheritance Tax Page 4

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