Instructions For Form Ih-6 - Indiana Inheritance Tax (Page 2 of 7) in pdf

Who Must File

3. Power of Attorney

If the preparer is not a lawyer or a transferee of the decedent’s estate

The personal representative of the estate of an Indiana resident

and the personal representative wants the Department to disclose

must file the inheritance tax return (Form IH-6). If there is no

information to the preparer, a completed Form IH-28, power of

personal representative, one of the following must file: an heir, a

attorney, must be provided.

trustee, a joint owner, or another transferee. No filing is required if

the total fair market value of the property interests transferred by

4. Dollar Amounts

the decedent to each transferee under a taxable transfer(s) is less

Dollar amounts may be rounded to the nearest dollar.

than the exemption provided to each transferee. Only one return

should be filed per decedent.

5. Fair Market Value

All property transferred should be valued at the fair market value

When to Use This Form

on the date of the decedent’s death except when the alternative

Use this form only if the decedent was a resident of the State of

valuation is properly elected, used, and accepted for federal estate

Indiana at the time of death. For a non-resident decedent, use

tax purposes; then the alternative valuation should also be used

Form IH-12, available at contact the

for inheritance tax. The fair market value is the price to which

Department of Revenue, Inheritance Tax, Indiana Government

a willing buyer and a willing seller agree, neither being under

Center North, 100 North Senate Ave., Room N248, Mail Stop #102,

compulsion to buy or sell, and both being fully aware of all relevant

Indianapolis, Indiana, 46204; or call (317) 232-2154 for a copy of

facts surrounding the exchange. Attach a copy of all appraisals or

Form IH-12.

closing statements for such real estate to the return.

When to File This Form

6. Additional Pages

This form must be filed within 9 months of the date of death. If an

If there is not enough space available on any page, continue the list

appropriate probate court determines that, due to an unavoidable

on an additional page and attach it immediately after such page.

delay, the tax cannot be determined within 9 months, the court

may extend the period for filing. Without an extension, a penalty

Page-by-Page Instructions

may be assessed by that court for failure to file on time. However,

an extension will not stop the accrual of interest.

Page One — General Instructions

You must place the decedent’s Social Security number in box 3.

Where to File This Form

The Inheritance Tax Return must be filed in the probate court of

If the decedent died testate, attach a copy of the Will to the return.

the Indiana county in which the decedent was a resident at death

If the decedent died intestate, check the box in item 10.

or in the probate court in which the decedent’s estate is being

administered.

Even if no U.S. Estate Tax Return (Form 706) is required to be filed,

you must check the appropriate box at item 12. If a Form 706 is

Payment

filed with the Internal Revenue Service, you are also required to file

The resident inheritance tax is to be paid to the county treasurer

a copy with the Indiana Department of Revenue.

of the decedent’s county of residence. There is a 5% discount for

payments made within 9 months of the decedent’s date of death.

Page Two — Inheritance Tax Computation

Payments made more than one year after the date of death accrue

List all persons, including corporations and other organizations,

interest at 10% per year from the date of death until the date of

receiving an interest from the decedent no matter how the transfer

the payment. If an appropriate probate court determines that, due

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

to an unavoidable delay, the tax cannot be determined within 12

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

months, the court may reduce the interest rate to 6%.

additional pages immediately after this page.

Additional Requirements

For individuals dying after June 30, 2012, a transfer to a partnership,

1. QTIP Election

a limited partnership, a limited liability partnership, an association,

If you elect to treat property passing from the decedent as property

a corporation, a limited liability company, a trust, or a similar entity

transferred directly to the surviving spouse for Indiana inheritance

will be considered a transfer to each individual with a beneficial

tax purposes, the election must be made in writing and attached to

(whether discretionary or not) or ownership interest in the entity.

the original return. Electing on the U.S. Estate Tax Return (Form

Each individual is liable for a percentage of taxes imposed equal

706) is not an election on this return. See 45 Ind. Admin. Code

to that individual’s beneficial or ownership interest in that entity.

4.1-3-5(b) for an acceptable form for the Indiana QTIP election.

List the name and address of the entity and each beneficiary or

Once made, the QTIP election is irrevocable.

owner of the entity and their respective percentage of beneficial

or ownership interest in the entity. Please contact a professional

2. Supplemental Documents

who is familiar with inheritance tax matters or the Department’s

You must attach all supplemental documents used to substantiate

Inheritance Tax Division for clarification on the taxation of

the statements contained in the return to the back of the return

transfers to such entities.

when you file it. Examples include appraisals, trusts, affidavits,

disclaimers, elections, death certificates, and all other documents

In the next column list the relationship of the beneficiary to the

necessary to complete the audit of the return.

decedent. Include enough information to determine the class to

Instructions For Form Ih-6 - Indiana Inheritance Tax Page 2

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