Instructions For Form Ih-6 - Indiana Inheritance Tax (Page 5 of 7) in pdf

Page Seven — Schedule E — Transfers Other than

Transfer on Death or Payable on Death

List all property, real or personal, which is designated as

by Will or Intestate Law

“transfer on death” (TOD) or “payable on death” (POD) at

the fair market date of death value.

Any transfer of property interest from the decedent to a transferee

that is completed at death and is not transferred by Will or by

Joint Tenancies with Rights of Survivorship

intestate succession should be listed on this schedule:

All property, whether real or personal, in which the decedent

held an interest at the time of death as a joint tenant with

Trust

rights of survivorship must be entered on this schedule.

Assets the decedent transferred into a trust prior to death

Describe the joint property and list the names of the joint

may be subject to the Indiana inheritance tax. List every asset

tenants.

of the decedent’s trust on this schedule. Include all Indiana

property held in the trust, but not out-of-state real property.

Include the full fair market value of the jointly owned

These assets are to be valued at their fair market value on the

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

date of the decedent’s death or on the alternative valuation

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

date if properly elected on Form 706 and accepted by the IRS.

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

Include a copy of the instrument creating the trust with the

any documentation that might substantiate the use of the

return.

lesser value to the back of the return.

Power of Appointment

Page Eight — Schedule F — Deductions

List all property interests that are transferred at the decedent’s

death by the decedent’s exercise of any power of appointment

All lawful claims against the decedent’s estate and necessary

or by the decedent’s failure to exercise such power vested

costs of administering the estate may be deducted from the value

in him or her. Include a brief statement of the source of the

of property interests transferred by the decedent by Will, by

power, and include a copy of the instrument with the return

intestate law, or by trust. If the value of the deductions exceeds

the property interest transferred by Will, by intestate law, and by

Transfers in Contemplation of Death

trust, the remaining value may be deducted from property interests

List all transfers of real or personal property the decedent

transferred by other means providing these expenses are actually

made by deed, gift, or bargain sale in contemplation of death.

paid from those assets

Also list all transfers within one year prior to death. Indicate

the date of each transfer, the name of each transferee, the type

The following items may be deductible:

of property interest transferred, and the fair market value of

• Decedent’s funeral expenses.

the property interest transferred as of the date of transfer

• Reasonable attorney fees, personal representative fees, and

trustee fees for administration of property subject to Indiana

Transfers within the year preceding death are presumed to

inheritance tax.

have been made in contemplation of the death. However,

• Lawful debts the decedent died owing.

this presumption is rebuttable. To rebut the presumption,

• Amounts, not to exceed $1,000, paid for a memorial for

set forth all facts necessary for a proper determination of the

decedent

taxability of such

transfers.

Include supporting documents

• The amount of any allowance paid to decedent’s spouse or

with the return.

family pursuant to Ind. Code 29-1-4-1.

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

Transfers Intended to Take Effect in Possession or

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

Enjoyment at or after Death

property at the time of the decedent’s death.

List all property transferred by the decedent for less than

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

full consideration if the transferee did not receive full

Indiana inheritance tax if such taxes were due and owing at the

possession and enjoyment of such property until at or after

time of the decedent’s death.

the decedent’s death. This includes property the decedent

• Unpaid individual income taxes, both federal and state, on the

transferred subject to a retained life estate. You must value

decedent’s income to date of death.

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

• Inheritance, estate, or transfer taxes imposed by other states

decedent’s death. Example 1: John deeds his farm to Mary

with respect to property that is also subject to the Indiana

and Sam in 1970, retaining a life estate in the property. In

inheritance tax. This does not include any federal estate tax or

2012,

when John dies, the full fair market value of the farm

fiduciary income taxes.

is included in John’s estate for inheritance tax purposes.

• Any mortgage that is a lien against real property that is subject

Example 2: John opens a bank account designating Mary as

to Indiana inheritance tax.

the beneficiary of such bank account at his death.

Instructions For Form Ih-6 - Indiana Inheritance Tax Page 5

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