LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6157 NOTE PREPARED: Jan 18, 2022
BILL NUMBER: SB 67 BILL AMENDED:
SUBJECT: Small Estates.
FIRST AUTHOR: Sen. Lanane BILL STATUS: 2
nd
Reading - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: The bill increases the value of estates that may be distributed via affidavit from
$50,000 to $100,000. It also increases the threshold for summary procedures for unsupervised estates from
$50,000 to $100,000.
Effective Date: July 1, 2022.
Explanation of State Expenditures:
Explanation of State Revenues: Court Fees - The bill is estimated to result in a revenue loss of $91,770
to the state General Fund, $15,960 to the state User Fee Fund, and $32,718 to the general fund of local units
of government from exempting persons filing a closing statement from paying the court costs fees.
Medicaid Estate Recovery Unit: The bill’s provisions could impact the Medicaid Estate Recovery Unit if
notice is not required for an estate distributed via personal affidavit. The Unit recovered a total of $931,000
in FY 2017 and $866,000 in FY 2018 from probate estates with recoveries valued at $50,000 to $100,000.
Additional Information - Based on inheritance tax data between 1997 and 2011, 8.8% of the estates had a
gross value between $50,000 and $100,000. The inheritance tax was repealed for deaths occurring after
December 31, 2012, so information for estates after 2012 is not available.
OFMA used 798 estates – about 8.8% of the CY 2016 to CY 2020 average of the unsupervised estates filed
(9,072) – and multiplied it by the applicable fee amounts to estimate the revenue loss from increasing the
threshold of small estates from $50,000 to $100,000. The revenue loss is estimated to be $91,770 for the state
SB 67 1 General Fund and $15,960 for the state User Fee Fund.
In probate cases, local units receive $41 from court fees. The revenue loss is estimated to be $32,718 to the
general funds of local units.
The following table shows the fees that are deposited into either the state General Fund, the state User Fee
Fund, or the general fund of local units when a person files a closing statement for a small estate claim.
Fee Code Cite Amount
State
General
Fund
70%
State User
Fee Fund/
Dedicated
Funds
Local
General
Fund
30%
Probate Costs Fee* IC 33-37-4-7(a) $120 $84 $36
Document Storage Fee IC 33-37-5-20 $5 $5
Automated Record Keeping FeeIC 33-37-5-21 $20 $20
Public Defense Admin. Fee IC 33-37-5-21.2 $5 $5
Judicial Insurance Adj. Fee IC 33-37-5-25 $1 $1
Judicial Salaries Fee IC 33-37-5-26 $20 $20
Court Admin. Fee IC 33-37-5-27 $5 $5
Total Fees: $177 $115 $20 $41
* The state General Fund receives 70% of the probate costs fee. The local
general funds receive 30% of the fee.
Currently, when a small estate claim affidavit is used, it is presented to whoever is holding the assets of the
deceased and is not filed with the clerk of the probate court. If the court accepts only closing statements, then
no filing fee is required.
Under IC 29-1-7.5-4, a personal representative administering an unsupervised estate must provide notice of
administration regarding any decedent who was at least 55 years of age at the time of death to the Indiana
Medicaid Estate Recovery Unit as a creditor. The Unit may recoup amounts paid by Medicaid on behalf of
a qualified individual after the individual dies.
Explanation of Local Expenditures: If fewer probate cases are filed, the bill could reduce the
administrative workload of the probate court.
Explanation of Local Revenues: (See Explanation of State Revenues).
State Agencies Affected: FSSA, Office of Medicaid Policy and Planning.
Local Agencies Affected: Probate courts; Local units.
Information Sources: Department of Revenue; Family and Social Services Administration; Indiana Judicial
Services Report (2019), Indiana Supreme Court,
SB 67 2 https://www.in.gov/courts/iocs/files/rpts-ijs-2019-judicial-review.pdf; Indiana Trial Court Fee Manual
(2021), Indiana Supreme Court,
https://www.in.gov/courts/iocs/files/courtmgmt-pubs-trial-court-fee-manual.pdf; Indiana Trial Court
Statistics by County (2016 - 2020), Indiana Supreme Court, https://publicaccess.courts.in.gov/ICOR/.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
SB 67 3