Instructions For Form Ih-12 - Indiana Inheritance Tax Page 5
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6For individuals dying after June 30, 2012, a transfer to a partnership,
IH-28, power of attorney, must be provided with Form
a limited partnership, a limited liability partnership, an association,
IH-12.
a corporation, a limited liability company, a trust, or a similar entity
Dollar Amounts
will be considered a transfer to each individual with a beneficial
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(whether discretionary or not) or ownership interest in the entity.
Dollar amounts may be rounded to the nearest dollar.
Each individual is liable for a percentage of taxes imposed equal
Fair Market Value
to that individual’s beneficial or ownership interest in that entity.
5.
List the name and address of the entity and each beneficiary or
All property transferred should be valued at the fair market
owner of the entity and their respective percentage of beneficial
value on the date of the decedent’s death, except when the
or ownership interest in the entity. Please contact a professional
alternative valuation is properly elected, used, and accepted
who is familiar with inheritance tax matters or the Department’s
for federal estate tax purposes; then the alternative valuation
Inheritance Tax Division for clarification on the taxation of
should also be used for inheritance tax. The fair market
transfers to such entities.
value is the price to which a willing buyer and a willing
seller agree, neither being under compulsion to buy or sell,
List the relationship of the transferee to the decedent. Include
and both being fully aware of all relevant facts surrounding
enough information to determine the class to which the beneficiary
the exchange. Attach copies of all appraisals or closing
belongs. For example: Lisa Smith, niece, daughter of decedent’s
statements for such real estate to the return.
brother. Also list the entire birth date of each transferee. Failure
to completely describe the relationship or to list the birth dates can
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Additional Pages
significantly slow the audit of the return.
If there is not enough space available on any page, continue
the list on an additional page and attach it immediately after
When stating the value of property transferred to each transferee
such page.
is to receive, list the total value of the property interests transferred
to each transferee. The amount of each transferee’s exemption is
determined by the relationship of that transferee to the decedent.
Under the exemption columns, enter the appropriate exemption
amount based on the class of each transferee of the decedent’s
interests in real and tangible property.
Enter in the final column the amount of inheritance tax due for each
transferee. Compute the amount of tax due for each transferee by
multiplying that transferee’s net taxable interest (i.e., the total value
of interest minus the applicable exemption) by the appropriate tax
rate.
Additional Requirements
QTIP Election
1.
If you elect to treat property passing from the decedent as
property transferred directly to the surviving spouse for
Indiana inheritance tax purposes, the election must be made
in writing and attached to the original return. Electing on
the U.S. Estate Tax Return (Form 706) is not an election for
Indiana on this return. See 45 Ind. Admin. Code 4.1-3-5(b)
for an acceptable form for the Indiana QTIP election. Once
made, the QTIP election is irrevocable.
Supplemental Documents
2.
When filing the return, attach to the back of it all
supplemental documents used to substantiate the statements
contained in the return. Examples include appraisals, trusts,
affidavits, disclaimers, elections, death certificates, and all
other documents necessary to complete the audit of the
return.
3.
Power of Attorney
If the preparer is not a lawyer or transferee of the decedent’s
estate and the personal representative wants the Department
to disclose information to the preparer, a completed Form
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