Instructions For Form Ih-6 - Indiana Inheritance Tax Page 3
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7Class A
which the beneficiary belongs. For example: Lisa Smith, niece,
daughter of decedent’s brother. Also list the entire birth date of
each beneficiary. Failure to completely describe the relationship or
Net Taxable Value Of
Inheritance Tax
to list the birth date can significantly slow the audit of the return.
Property Interests
Transferred
When stating the value of interest each beneficiary is to receive
$25,000 or less
1% of net taxable value
(column 3), list the total value of the property interests transferred
Over $25,000 but not over
$250, plus 2% of net taxable
to each beneficiary.
$50,000
value over $25,000
The amount of each beneficiary’s exemption (column 4) is
Over $50,000 but not over
$750, plus 3% of net taxable
determined by the relationship of that beneficiary to the decedent.
$200,000
value over $50,000
Over $200,000 but not over
$5,250, plus 4% of net taxable
For dates of death after July 1, 1997, but before January 1, 2012, the
$300,000
value over $200,000
following exemptions apply:
Over $300,000 but not over
$9,250, plus 5% of net taxable
1.
Surviving spouse and charitable organizations are 100%
$500,000
value over $300,000
exempt.
Class A
Over $500,000 but not over
$19,250, plus 6% of net taxable
2.
$700,000
value over $500,000
Parents, children, grandparents, grandchildren, and other
lineal ancestors and lineal descendants and persons legally
Over $700,000 but not over
$31,250, plus 7% of net taxable
adopted before emancipation ...................................$100,000
$1,000,000
value over $700,000
*for deaths after June 30, 2004, stepchildren are Class A
Over $1,000,000 but not over
$52,250 plus 8% of net taxable
*for adoptions completed before July 1, 2004, adopted
$1,500,000
value over $1,000,000
persons adopted after emancipation are Class A
Over $1,500,000
$92,250 plus 10% of net
3.
Class B
taxable value over $1,500,000
Brothers, sisters, lineal descendants of brothers or sisters,
daughters-in-law, and sons-in-law ...........................$500
Class B
Class C
4.
Anyone not listed above including, but not limited to aunts,
uncles, cousins, friends, nieces, and nephews by marriage
Net Taxable Value Of
Inheritance Tax
.......................................................................................$100
Property Interests
Transferred
For dates of death after December 31, 2011, the following
$100,000 or less
7% of net taxable value
exemptions apply:
Over $100,000 but not over
$7,000, plus 10% of net taxable
$500,000
value over $100,000
1.
Surviving spouse and charitable organizations are 100%
exempt.
Over $500,000 but not over
$47,000, plus 12% of net
Class A
2.
$1,000,000
taxable value over $500,000
Parents, children, stepchildren, spouse, widow, or widower
Over $1,000,000
$107,000, plus 15% of net
of a child or stepchild (sons-in-law or daughters-in-law),
taxable value over $1,000,000
grandparents, grandchildren, and other lineal ancestors
and lineal descendants and children adopted prior to
Class C
emancipation .............................................................. $250,000
Class B
3.
Net Taxable Value Of
Inheritance Tax
Brothers, sisters, and lineal descendants of brothers or sisters
Property Interests
(blood nieces and nephews) ..................................... $500
Transferred
4.
Class C
$100,000 or less
10% of net taxable value
Anyone not listed above including, but not limited to aunts,
uncles, cousins, friends, nieces, and nephews by marriage
Over $100,000 but not over
$10,000, plus 15% of net
..................................................................................... $100
$1,000,000
taxable value over $100,000
Over $1,000,000
$145,000, plus 20% of net
Enter in the final column the amount of inheritance tax due
taxable value over $1,000,000
for each beneficiary. Compute the amount of tax due for each
beneficiary by multiplying that beneficiary’s net taxable interest
Credit
(i.e., the total value of interest minus the applicable exemption) by
There will be a gradual 9-year phase-out of Indiana’s inheritance
the appropriate tax rate. The inheritance tax rates are
tax starting in 2013 and ending in 2022 via an increasing tax credit.
The credit is tied to individuals dying during a particular calendar
year, and the credit increases in 10% increments each year starting
in 2013.
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