Introduced Version
SENATE BILL No. 18
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 16-36-7-13; IC 23-18; IC 29-1; IC 30-4;
IC 30-5; IC 31-9-2-100.7; IC 31-15-7-4.5; IC 32-17-14; IC 32-21;
IC 36-2.
Synopsis: Various probate matters. Expands the definition of a health
care representative. Creates a procedure to transfer the interest of
certain single member, limited liability companies to a legatee or heir
of the member upon the member's death. Requires an affiant to send a
copy of certain affidavits concerning a small estate to the estate
recovery unit of the office of Medicaid policy and planning (unit).
Requires a fiduciary to send a copy of a verified statement concerning
the closing of a decedent's estate to the unit if the decedent was at least
55 years of age at the time of death and if a notice of estate
administration was not previously served upon the unit. Provides that
a claim against a decedent's estate by the unit is forever barred if the
unit fails to take certain actions within a specified period of time.
Provides that a personal representative or a trustee is not required to
distribute particular assets based upon the potential gain or loss that a
distributee would realize if the assets were sold. Provides that a
document creating a power of attorney that does not contain a notary
and preparation statement may be recorded with the county recorder if
the document meets certain criteria. Provides signature formats for an
attorney in fact to use when signing an instrument on behalf of a
principal. Provides recording requirements when including
cross-references to a previously recorded document. Defines a
"qualified real property order". Creates a new form of recordable
affidavit and creates a qualified real property order to provide missing
legal descriptions and tax parcel identification numbers for real
property that is transferred or divided. Provides a process for filing and
recording the affidavit and a qualified real property order. Requires the
(Continued next page)
Effective: July 1, 2024.
Brown L
January 8, 2024, read first time and referred to Committee on Judiciary.
2024 IN 18—LS 6017/DI 149 Digest Continued
endorsement of the county auditor to record a transfer on death deed
and instrument. Specifies who an owner may designate as a grantee in
a beneficiary designation instrument. Clarifies the form and scope of
a transfer on death instrument. Makes conforming and technical
changes. (The introduced version of this bill was prepared by the
probate code study commission.)
2024 IN 18—LS 6017/DI 1492024 IN 18—LS 6017/DI 149 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
SENATE BILL No. 18
A BILL FOR AN ACT to amend the Indiana Code concerning
probate.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 16-36-7-13, AS ADDED BY P.L.50-2021,
2 SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 13. As used in this chapter, "health care
4 representative" means a competent adult or other person designated
5 by a declarant in an advance directive to:
6 (1) make health care decisions; and
7 (2) receive health information;
8 regarding the declarant. The term includes a person who receives and
9 holds validly delegated authority from a designated health care
10 representative.
11 SECTION 2. IC 23-18-6-4, AS AMENDED BY P.L.156-2023,
12 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
13 JULY 1, 2024]: Sec. 4. (a) Unless otherwise provided in a written
14 operating agreement, a limited liability company existing under this
15 article on or before June 30, 1999, is governed by this section.
2024 IN 18—LS 6017/DI 149 2
1 (b) Except as otherwise provided in a written operating agreement,
2 if a limited liability company has at least two (2) members, an assignee
3 of an interest may become a member only if the other members
4 unanimously consent. If a limited liability company has only one (1)
5 member, an assignee of the entire interest may become a member:
6 (1) under the terms of an agreement between the assignor and the
7 assignee; or
8 (2) except as otherwise provided in a written operating agreement
9 by a specific reference to this subsection or as otherwise provided
10 in an agreement between the assignor and the assignee,
11 automatically upon the voluntary assignment by the sole member
12 of all the member's interest to a single assignee that the member
13 consented to at the time of the assignment and that was not
14 affected by foreclosure or other similar legal process.
15 The consent of a member may be evidenced in any manner specified
16 in writing in an operating agreement, but in the absence of a
17 specification, consent must be evidenced by a written instrument, dated
18 and signed by the member.
19 (c) If:
20 (1) a limited liability company has one (1) member;
21 (2) the member of the limited liability company dies;
22 (3) the deceased member's interest in the limited liability
23 company is not registered in beneficiary form under
24 IC 32-17-14; and
25 (4) the limited liability company does not have a written
26 operating agreement that controls or specifies the transfer or
27 other disposition of the deceased member's interest;
28 the deceased member's interest passes as described in subsection
29 (d).
30 (d) This subsection applies to the transfer of a deceased
31 member's interest under the circumstances described in subsection
32 (c). Unless otherwise provided in a written operating agreement or
33 a valid disclaimer under IC 32-17.5, the deceased member's
34 interest in a limited liability company passes automatically upon
35 death to:
36 (1) a legatee identified in the deceased member's will admitted
37 to probate under IC 29-1-7; or
38 (2) the deceased member's heirs under IC 29-1-2-1 if the
39 deceased member died intestate.
40 A transfer of an interest under this subsection is subject to
41 IC 29-1-7-23 and does not affect the enforceability of a timely filed
42 claim by a creditor against the estate of the deceased member. A
2024 IN 18—LS 6017/DI 149 3
1 legatee or an heir is automatically admitted as a member of the
2 limited liability company under this subsection.
3 (e) If a personal representative is appointed under IC 29-1-10
4 for the estate of a deceased member described in subsection (c), the
5 personal representative possesses and may exercise all rights and
6 powers of the deceased member's interest before the interest of the
7 deceased member is distributed to the deceased member's legatees
8 or heirs under this section.
9 (c) (f) An assignee who becomes a member:
10 (1) has, to the extent assigned, the rights and powers and is
11 subject to the restrictions and liabilities of a member under the
12 articles of organization, any operating agreement, and this article;
13 and
14 (2) is liable for any obligations of the member's assignor for
15 unpaid contributions under IC 23-18-5-1 or for any wrongful
16 distributions under IC 23-18-5-7.
17 However, the assignee is not obligated for liabilities of which the
18 assignee had no knowledge at the time the assignee became a member
19 and that could not be ascertained from a written operating agreement.
20 (d) (g) Whether or not an assignee of an interest becomes a member,
21 the assignor is not released from the assignor's liability to the limited
22 liability company for unpaid contributions under IC 23-18-5-1 or for
23 any wrongful distributions under IC 23-18-5-7 that are solely a result
24 of the assignment.
25 (e) (h) Unless otherwise provided in a written operating agreement,
26 a member who assigns the member's entire interest in the limited
27 liability company ceases to be a member or to have the power to
28 exercise any rights of a member when an assignee of the member's
29 interest becomes a member with respect to the assigned interest.
30 SECTION 3. IC 23-18-6-4.1, AS AMENDED BY P.L.156-2023,
31 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
32 JULY 1, 2024]: Sec. 4.1. (a) A limited liability company formed under
33 this article after June 30, 1999, is governed by this section.
34 (b) Except as otherwise provided in a written operating agreement,
35 if a limited liability company has at least two (2) members, an assignee
36 of an interest may become a member only if the other members
37 unanimously consent. If a limited liability company has only one (1)
38 member, an assignee of the entire interest may become a member:
39 (1) in accordance with the terms of an agreement between the
40 assignor and the assignee; or
41 (2) except as otherwise provided in a written operating agreement
42 by a specific reference to this subsection or as otherwise provided
2024 IN 18—LS 6017/DI 149 4
1 in an agreement between the assignor and the assignee,
2 automatically upon the voluntary assignment by the sole member
3 of all of the member's interest to a single assignee that the
4 member consented to at the time of the assignment and that was
5 not affected by foreclosure or other similar legal process.
6 The consent of a member may be evidenced in any manner specified
7 in writing in an operating agreement, but in the absence of a
8 specification, consent must be evidenced by a written instrument, dated
9 and signed by the member.
10 (c) If:
11 (1) a limited liability company has one (1) member;
12 (2) the member of the limited liability company dies;
13 (3) the deceased member's interest in the limited liability
14 company is not registered in beneficiary form under
15 IC 32-17-14; and
16 (4) the limited liability company does not have a written
17 operating agreement that controls or specifies the transfer or
18 other disposition of the deceased member's interest;
19 the deceased member's interest passes as described in subsection
20 (d).
21 (d) This subsection applies to the transfer of a deceased
22 member's interest under the circumstances described in subsection
23 (c). Unless otherwise provided in a written operating agreement or
24 a valid disclaimer under IC 32-17.5, the deceased member's
25 interest in a limited liability company passes automatically upon
26 death to:
27 (1) a legatee identified in the deceased member's will admitted
28 to probate under IC 29-1-7; or
29 (2) the deceased member's heirs under IC 29-1-2-1 if the
30 deceased member died intestate.
31 A transfer of an interest under this subsection is subject to
32 IC 29-1-7-23 and does not affect the enforceability of a timely filed
33 claim by a creditor against the estate of the deceased member. A
34 legatee or an heir is automatically admitted as a successor member
35 or a member of the limited liability company under this subsection.
36 (e) If a personal representative is appointed under IC 29-1-10
37 for the estate of a deceased member described in subsection (c), the
38 personal representative possesses and may exercise all rights and
39 powers of the deceased member's interest before the interest of the
40 deceased member is distributed to the deceased member's legatees
41 or heirs under this section.
42 (c) (f) An assignee who becomes a member:
2024 IN 18—LS 6017/DI 149 5
1 (1) has, to the extent assigned, the rights and powers and is
2 subject to the restrictions and liabilities of a member under the
3 articles of organization, any operating agreement, and this article;
4 and
5 (2) is liable for any obligations of the member's assignor for
6 unpaid contributions under IC 23-18-5-1 or for any wrongful
7 distributions under IC 23-18-5-7.
8 However, the assignee is not obligated for liabilities of which the
9 assignee had no knowledge at the time the assignee became a member
10 and that could not be ascertained from a written operating agreement.
11 (d) (g) Whether or not an assignee of an interest becomes a member,
12 the assignor is not released from the assignor's liability to the limited
13 liability company for unpaid contributions under IC 23-18-5-1 or for
14 any wrongful distributions under IC 23-18-5-7 that are solely a result
15 of the assignment.
16 (e) (h) Unless otherwise provided in a written operating agreement,
17 a member who assigns the member's entire interest in the limited
18 liability company ceases to be a member or to have the power to
19 exercise any rights of a member.
20 SECTION 4. IC 23-18-6-5 IS AMENDED TO READ AS
21 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) A person ceases
22 to be a member of a limited liability company upon the occurrence of
23 any of the following events:
24 (1) The person withdraws from the limited liability company as
25 provided in section 6 of this chapter.
26 (2) The person ceases to be a member as provided in section 4(e)
27 or 4.1(e) 4(h) or 4.1(h) of this chapter.
28 (3) The person is removed as a member:
29 (A) in accordance with the operating agreement; or
30 (B) unless otherwise provided in a written operating
31 agreement, by the affirmative vote, approval, or consent of a
32 majority in interest of the members after the member has
33 assigned the member's entire interest in the limited liability
34 company.
35 (4) Unless otherwise provided in a written operating agreement or
36 with the written consent of all other members, in the case of a
37 member who is an individual, the individual's death.
38 (5) Unless otherwise provided in a written operating agreement or
39 with the written consent of all other members, in the case of a
40 member who is acting as a member by virtue of being a trustee of
41 a trust, the termination of the trust, but not merely the substitution
42 of a new trustee.
2024 IN 18—LS 6017/DI 149 6
1 (6) Unless otherwise provided in a written operating agreement or
2 with the written consent of all other members, in the case of a
3 member that is a partnership, limited partnership, or another
4 limited liability company, the dissolution and commencement of
5 winding up of the partnership, limited partnership, or limited
6 liability company.
7 (7) Unless otherwise provided in a written operating agreement or
8 with the written consent of all other members, in the case of a
9 member that is a corporation, the dissolution of the corporation.
10 (8) Unless otherwise provided in a written operating agreement or
11 with the written consent of all other members, in the case of a
12 member that is an estate, the distribution by the fiduciary of the
13 estate's entire interest in the limited liability company.
14 (b) A written operating agreement may provide for other events that
15 result in a person ceasing to be a member of the limited liability
16 company, including insolvency, bankruptcy, and adjudicated
17 incompetency.
18 SECTION 5. IC 23-18-9-1 IS AMENDED TO READ AS
19 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Unless otherwise
20 provided in a written operating agreement, a limited liability company
21 existing under this article on or before June 30, 1999, is governed by
22 this section.
23 (b) A limited liability company is dissolved and its affairs must be
24 wound up on the first of the following to occur:
25 (1) At the time or on the occurrence of events specified in writing
26 in the articles of organization or operating agreement.
27 (2) Written consent of all the members.
28 (3) Except as provided in IC 23-18-6-4(c), upon the death of
29 the member of a limited liability company that had one (1)
30 member, an event of dissociation occurs with respect to a
31 member, unless the business of the limited liability company is
32 continued by the consent of all the remaining members not more
33 than ninety (90) days after the occurrence of the event or as
34 otherwise provided in writing in the articles of organization or
35 operating agreement.
36 (4) Entry of a decree of judicial dissolution under section 2 of this
37 chapter.
38 SECTION 6. IC 23-18-9-1.1, AS AMENDED BY P.L.40-2013,
39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 1.1. (a) A limited liability company formed under
41 this article after June 30, 1999, is governed by this section.
42 (b) A limited liability company is dissolved and the limited liability
2024 IN 18—LS 6017/DI 149 7
1 company's affairs must be wound up when the first of the following
2 occurs:
3 (1) At the time or on the occurrence of events specified in writing
4 in the articles of organization or operating agreement.
5 (2) Subject to IC 23-18-4-4(a)(4)(A), for a limited liability
6 company:
7 (A) formed under this article after June 30, 2013, the
8 unanimous consent of the members, unless a written operating
9 agreement provides that dissolution may be authorized by the
10 vote of members holding fewer than all the interests in the
11 limited liability company or holding fewer than all interests in
12 one (1) or more classes of members; or
13 (B) formed under this article after June 30, 1999, and before
14 July 1, 2013, if there is:
15 (i) one (1) class or group of members, written consent of
16 two-thirds (2/3) in interest of the members; or
17 (ii) more than one (1) class or group of members, written
18 consent of two-thirds (2/3) in interest of each class or group
19 of members.
20 (3) Entry of a decree of judicial dissolution under section 2 of this
21 chapter.
22 (c) Except as provided in IC 23-18-6-4.1(c), upon the death of
23 the member of a limited liability company that had one (1)
24 member, a limited liability company is dissolved and the limited
25 liability company's affairs must be wound up if there are no members.
26 However, this subsection does not apply if, under a provision in the
27 operating agreement, not more than ninety (90) days after the
28 occurrence of the event that caused the last remaining member to cease
29 to be a member, either:
30 (1) the personal representative of the last remaining member
31 agrees in writing:
32 (A) to continue the business of the limited liability company;
33 and
34 (B) to the admission of the personal representative or the
35 personal representative's nominee or designee to the limited
36 liability company as a member; or
37 (2) a member is admitted to the limited liability company in the
38 manner provided for in the operating agreement specifically for
39 the admission of a member to the limited liability company after
40 the last remaining member ceases to be a member;
41 effective as of the time of the event that caused the last remaining
42 member to cease to be a member.
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1 SECTION 7. IC 29-1-8-1, AS AMENDED BY P.L.151-2022,
2 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 1. (a) Forty-five (45) days after the death of a
4 decedent and upon being presented an affidavit that complies with
5 subsection (b), a person:
6 (1) indebted to the decedent; or
7 (2) having possession of personal property or an instrument
8 evidencing a debt, an obligation, a stock, or a chose in action
9 belonging to the decedent;
10 shall make payment of the indebtedness or deliver the personal
11 property or the instrument evidencing a debt, an obligation, a stock, or
12 a chose in action to a distributee claiming to be entitled to payment or
13 delivery of property of the decedent as alleged in the affidavit.
14 (b) The affidavit required by subsection (a) must be an affidavit
15 made by or on behalf of the distributee and must state the following:
16 (1) That the value of the gross probate estate, wherever located,
17 (less liens, encumbrances, and reasonable funeral expenses) does
18 not exceed:
19 (A) twenty-five thousand dollars ($25,000), for the estate of an
20 individual who dies before July 1, 2006;
21 (B) fifty thousand dollars ($50,000), for the estate of an
22 individual who dies after June 30, 2006, and before July 1,
23 2022; and
24 (C) one hundred thousand dollars ($100,000), for the estate of
25 an individual who dies after June 30, 2022.
26 (2) That forty-five (45) days have elapsed since the death of the
27 decedent.
28 (3) That no application or petition for the appointment of a
29 personal representative is pending or has been granted in any
30 jurisdiction.
31 (4) The name and address of each distributee that is entitled to a
32 share of the property and the part of the property to which each
33 distributee is entitled.
34 (5) That the affiant has notified each distributee identified in the
35 affidavit of the affiant's intention to present an affidavit under this
36 section.
37 (6) That the affiant is entitled to payment or delivery of the
38 property on behalf of each distributee identified in the affidavit.
39 (c) If a motor vehicle or watercraft (as defined in IC 9-13-2-198.5)
40 is part of the estate, nothing in this section shall prohibit a transfer of
41 the certificate of title to the motor vehicle if five (5) days have elapsed
42 since the death of the decedent and no appointment of a personal
2024 IN 18—LS 6017/DI 149 9
1 representative is contemplated. A transfer under this subsection shall
2 be made by the bureau of motor vehicles upon receipt of an affidavit
3 containing a statement of the conditions required by subsection (b)(1)
4 and (b)(6). The affidavit must be duly executed by the distributees of
5 the estate.
6 (d) The affiant:
7 (1) shall send a copy of each affidavit that is sent under this
8 section to the unit, if the decedent was at least fifty-five (55)
9 years of age at the time of death; and
10 (2) may send a copy of each affidavit that is sent under this
11 section to the unit, if the decedent was not at least fifty-five
12 (55) years of age at the time of death.
13 If the affiant does not send a copy of the affidavit to the unit, the
14 affidavit is still enforceable to pay or deliver the property
15 described in the affidavit to the distributee.
16 (d) (e) A transfer agent of a security shall change the registered
17 ownership on the books of a corporation from the decedent to a
18 distributee upon the presentation of an affidavit as provided in
19 subsection (a).
20 (e) (f) For the purposes of subsection (a), an insurance company
21 that, by reason of the death of the decedent, becomes obligated to pay
22 a death benefit to the estate of the decedent is considered a person
23 indebted to the decedent.
24 (f) (g) For purposes of subsection (a), property in a safe deposit box
25 rented by a decedent from a financial institution organized or
26 reorganized under the law of any state (as defined in IC 28-2-17-19) or
27 the United States is considered personal property belonging to the
28 decedent in the possession of the financial institution.
29 (g) (h) For purposes of subsection (a), a distributee has the same
30 rights as a personal representative under IC 32-39 to access a digital
31 asset (as defined in IC 32-39-1-10) of the decedent.
32 SECTION 8. IC 29-1-8-4, AS AMENDED BY P.L.162-2022,
33 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 4. (a) As used in this section, "fiduciary" means:
35 (1) the personal representative of an unsupervised estate; or
36 (2) a person appointed by a court under this title to act on behalf
37 of the decedent or the decedent's distributees.
38 (b) Unless prohibited by order of the court and except for estates
39 being administered by supervised personal representatives, a fiduciary
40 may close an estate administered under the summary procedures of
41 section 3 of this chapter by disbursing and distributing the estate assets
42 to the distributees and other persons entitled to those assets, and by
2024 IN 18—LS 6017/DI 149 10
1 filing with the court, at any time after disbursement and distribution of
2 the estate, a verified statement stating that:
3 (1) to the best knowledge of the fiduciary, the value of the gross
4 probate estate, less liens and encumbrances, did not exceed the
5 sum of:
6 (A) twenty-five thousand dollars ($25,000), for the estate of an
7 individual who dies before July 1, 2006, fifty thousand dollars
8 ($50,000), for the estate of an individual who dies after June
9 30, 2006, and before July 1, 2022, and one hundred thousand
10 dollars ($100,000), for the estate of an individual who dies
11 after June 30, 2022;
12 (B) the costs and expenses of administration; and
13 (C) reasonable funeral expenses;
14 (2) the fiduciary has fully administered the estate by disbursing
15 and distributing it to the persons entitled to it; and
16 (3) the fiduciary has sent a copy of the closing statement to all
17 distributees of the estate and to all known creditors or other
18 claimants of whom the fiduciary is aware and has furnished a full
19 accounting in writing of the administration to the distributees
20 whose interests are affected.
21 If the decedent was at least fifty-five (55) years of age at the time
22 of death and a notice of estate administration was not served upon
23 the unit under IC 29-1-7-7(d), the fiduciary shall send a copy of the
24 verified statement under this subsection to the unit by first class
25 mail.
26 (c) If no actions, claims, objections, or proceedings involving the
27 fiduciary are filed in the court within two (2) months after the closing
28 statement is filed, the closing statement filed under this section has the
29 same effect as one filed under IC 29-1-7.5-4, and the appointment of
30 the personal representative or the duties of the fiduciary, as applicable,
31 shall terminate.
32 (d) A copy of any affidavit recorded under section 3(c) of this
33 chapter must be attached to the closing statement filed under this
34 section.
35 SECTION 9. IC 29-1-14-1 IS AMENDED TO READ AS
36 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Except as
37 provided in IC 29-1-7-7, all claims against a decedent's estate, other
38 than expenses of administration and claims of the United States, the
39 state, or a subdivision of the state, whether due or to become due,
40 absolute or contingent, liquidated or unliquidated, founded on contract
41 or otherwise, shall be forever barred against the estate, the personal
42 representative, the heirs, devisees, and legatees of the decedent, unless
2024 IN 18—LS 6017/DI 149 11
1 filed with the court in which such estate is being administered within:
2 (1) three (3) months after the date of the first published notice to
3 creditors; or
4 (2) three (3) months after the court has revoked probate of a will,
5 in accordance with IC 29-1-7-21, if the claimant was named as a
6 beneficiary in that revoked will;
7 whichever is later.
8 (b) No claim shall be allowed which was barred by any statute of
9 limitations at the time of decedent's death.
10 (c) No claim shall be barred by the statute of limitations which was
11 not barred at the time of the decedent's death, if the claim shall be filed
12 within:
13 (1) three (3) months after the date of the first published notice to
14 creditors; or
15 (2) three (3) months after the court has revoked probate of a will,
16 in accordance with IC 29-1-7-21, if the claimant was named as a
17 beneficiary in that revoked will;
18 whichever is later.
19 (d) All claims barrable under subsection (a) shall be barred if not
20 filed within nine (9) months after the death of the decedent.
21 (e) Nothing in this section shall affect or prevent any action or
22 proceeding to enforce any mortgage, pledge, or other lien upon
23 property of the estate.
24 (f) Nothing in this section shall affect or prevent the enforcement of
25 a claim for injury to person or damage to property arising out of
26 negligence against the estate of a deceased tort feasor within the period
27 of the statute of limitations provided for the tort action. A tort claim
28 against the estate of the tort feasor may be opened or reopened and suit
29 filed against the special representative of the estate within the period
30 of the statute of limitations of the tort. Any recovery against the tort
31 feasor's estate shall not affect any interest in the assets of the estate
32 unless the suit was filed within the time allowed for filing claims
33 against the estate. The rules of pleading and procedure in such cases
34 shall be the same as apply in ordinary civil actions.
35 (g) A claim by the unit against a decedent's estate is forever
36 barred unless:
37 (1) the unit files a claim in the court in which the estate is
38 being administered not later than the earlier of:
39 (A) two (2) months after the unit receives a notice of estate
40 administration under IC 29-1-7-7(d); or
41 (B) two (2) months after the unit receives a verified
42 statement under IC 29-1-8-4(b); or
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1 (2) the unit:
2 (A) opens an estate for the decedent; and
3 (B) files a claim against the decedent in the estate;
4 not later than two (2) months after the unit receives an
5 affidavit under IC 29-1-8-1(d).
6 SECTION 10. IC 29-1-17-11, AS AMENDED BY P.L.41-2012,
7 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2024]: Sec. 11. (a) When two (2) or more distributees are
9 entitled to distribution of an undivided interest in any real or personal
10 property of the estate, distribution shall be made of undivided interests
11 in the property unless the personal representative or one (1) or more of
12 the distributees petition the court for partition not later than the hearing
13 on the petition for final distribution. If a petition is filed, the court, after
14 notice is given to all interested persons as the court directs, shall
15 proceed in accordance with IC 32-17-4-2.5. With respect to personal
16 property, the person who files for partition shall conduct a title search
17 with the bureau of motor vehicles (if the personal property is titled) or
18 a search for liens under the Uniform Commercial Code (if the personal
19 property is not titled). The person shall file a copy of the results of the
20 search with the court.
21 (b) If:
22 (1) a distribution of particular assets of a decedent is to be made
23 to two (2) or more distributees that are entitled to receive
24 fractional shares in the assets; and
25 (2) the decedent's personal representative may, under an
26 agreement among the distributees, chooses to distribute the
27 particular assets without distributing to each distributee a pro rata
28 share of each asset; However, the personal representative shall:
29 (1) the personal representative shall distribute to each distributee a
30 pro rata share of the total fair market value of all the particular assets
31 as of the date of distribution. and
32 (2) divide the assets in a manner that results in a fair and
33 equitable division among the distributees of any capital gain or
34 loss on the assets.
35 (c) The personal representative is not required to divide and
36 distribute particular assets under subsection (b) based upon the
37 potential gain or loss that the distributee would realize if the
38 distributed assets were sold.
39 SECTION 11. IC 30-4-1.5-12, AS ADDED BY P.L.40-2018,
40 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
41 JULY 1, 2024]: Sec. 12. Any interested person who petitions or
42 otherwise seeks to docket files a proceeding under this article
2024 IN 18—LS 6017/DI 149 13
1 regarding an electronic trust instrument under IC 30-4-6 may file with
2 the clerk of the court a complete converted copy of the electronic trust
3 instrument with the clerk of the court under IC 30-4-6.
4 SECTION 12. IC 30-4-3-3, AS AMENDED BY P.L.137-2016,
5 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
6 JULY 1, 2024]: Sec. 3. (a) Except as provided in the terms of the trust
7 and subject to subsection (c), a trustee has the power to perform
8 without court authorization, except as provided in sections 4(b) and
9 5(a) of this chapter, every act necessary or appropriate for the purposes
10 of the trust including, by way of illustration and not of limitation, the
11 following powers:
12 (1) The power to:
13 (A) deal with the trust estate;
14 (B) buy, sell, or exchange and convey or transfer all property
15 (real, personal, or mixed) for cash or on credit and at public or
16 private sale with or without notice; and
17 (C) invest and reinvest the trust estate.
18 (2) The power to receive additions to the assets of the trust.
19 (3) The power to acquire an undivided interest in a trust asset in
20 which the trustee, in any trust capacity, holds an undivided
21 interest.
22 (4) The power to manage real property in every way, including:
23 (A) the adjusting of boundaries;
24 (B) erecting, altering, or demolishing buildings;
25 (C) dedicating of streets, alleys, or other public uses;
26 (D) subdividing;
27 (E) developing;
28 (F) obtaining vacation of plats;
29 (G) granting of easements and rights-of-way;
30 (H) partitioning;
31 (I) entering into party wall agreements; and
32 (J) obtaining title insurance for trust property.
33 (5) The power to:
34 (A) grant options concerning disposition of trust property,
35 including the sale of covered security options; and
36 (B) take options for acquisition of trust property, including the
37 purchase back of previously sold covered security options.
38 (6) The power to enter into a lease as lessor or lessee, with or
39 without option to renew.
40 (7) The power to enter into arrangements for exploration and
41 removal of minerals or other natural resources and enter into a
42 pooling or unitization agreement.
2024 IN 18—LS 6017/DI 149 14
1 (8) The power to continue the operation or management of any
2 business or other enterprise placed in trust.
3 (9) The power to:
4 (A) borrow money, to be repaid from trust property or
5 otherwise; and
6 (B) encumber, mortgage, pledge, or grant a security interest in
7 trust property in connection with the exercise of any power.
8 (10) The power to:
9 (A) advance money for the benefit of the trust estate and for all
10 expenses or losses sustained in the administration of the trust;
11 and
12 (B) collect any money advanced, without interest or with
13 interest, at no more than the lowest rate prevailing when
14 advanced.
15 (11) The power to prosecute or defend actions, claims, or
16 proceedings for the protection of:
17 (A) trust property; and
18 (B) the trustee in the performance of the trustee's duties.
19 (12) The power to:
20 (A) pay or contest any claim;
21 (B) settle a claim by or against the trust by compromise or
22 arbitration; and
23 (C) abandon or release, totally or partially, any claim
24 belonging to the trust.
25 (13) The power to insure the:
26 (A) trust estate against damage or loss; and
27 (B) trustee against liability with respect to third persons.
28 (14) The power to pay taxes, assessments, and other expenses
29 incurred in the:
30 (A) acquisition, retention, and maintenance of the trust
31 property; and
32 (B) administration of the trust.
33 (15) The power to:
34 (A) vote securities, in person or by a general or special proxy;
35 (B) hold the securities in the name of a nominee if the trustee
36 is a corporate trustee; and
37 (C) effect or approve, and deposit securities in connection
38 with, any change in the form of the corporation, including:
39 (i) dissolution;
40 (ii) liquidation;
41 (iii) reorganization;
42 (iv) acquisition; and
2024 IN 18—LS 6017/DI 149 15
1 (v) merger.
2 (16) The power to employ persons, including:
3 (A) attorneys;
4 (B) accountants;
5 (C) investment advisors; and
6 (D) agents;
7 to advise and assist the trustee in the performance of the trustee's
8 duties.
9 (17) The power to effect distribution of property in cash, in kind,
10 or partly in cash and partly in kind, in divided or undivided
11 interests.
12 (18) The power to execute and deliver all instruments necessary
13 or appropriate to accomplishing or facilitating the exercise of the
14 trustee's powers.
15 (19) With respect to an interest in a proprietorship, partnership,
16 limited liability company, business trust, corporation, or another
17 form of business or enterprise, the power to:
18 (A) continue the business or enterprise; and
19 (B) take any action that may be taken by shareholders,
20 members, or property owners, including:
21 (i) merging;
22 (ii) dissolving; or
23 (iii) changing the form of business organization or
24 contributing additional capital.
25 (20) With respect to possible liability for violation of
26 environmental law, the power to:
27 (A) inspect or investigate property:
28 (i) the trustee holds or has been asked to hold; or
29 (ii) owned or operated by an organization in which the
30 trustee holds an interest or has been asked to hold an
31 interest;
32 to determine the application of environmental law with respect
33 to the property;
34 (B) take action to prevent, abate, or remedy an actual or
35 potential violation of an environmental law affecting property
36 held directly or indirectly by the trustee before or after the
37 assertion of a claim or the initiation of governmental
38 enforcement;
39 (C) decline to accept property into the trust or disclaim any
40 power with respect to property that is or may be burdened with
41 liability for violation of environmental law;
42 (D) compromise claims against the trust that may be asserted
2024 IN 18—LS 6017/DI 149 16
1 for an alleged violation of environmental law; and
2 (E) pay the expense of any inspection, review, abatement, or
3 remedial action to comply with environmental law.
4 (21) The power to exercise elections with respect to federal, state,
5 and local taxes.
6 (22) The power to select a mode of payment under any employee
7 benefit plan or retirement plan, annuity, or life insurance payable
8 to the trustee and exercise rights under the plan, annuity, or
9 insurance, including the right to:
10 (A) indemnification:
11 (i) for expenses; and
12 (ii) against liabilities; and
13 (B) take appropriate action to collect the proceeds.
14 (23) The power to make loans out of trust property, including
15 loans to a beneficiary on terms and conditions the trustee
16 determines fair and reasonable under the circumstances. The
17 trustee has a lien on future distributions for repayment of the
18 loans.
19 (24) The power to pledge trust property to guarantee loans made
20 by others to the beneficiary on terms and conditions the trustee
21 considers to be fair and reasonable under the circumstances. The
22 trustee has a lien on future distributions for repayment of the
23 loans.
24 (25) The power to:
25 (A) appoint a trustee to act in another jurisdiction with respect
26 to trust property located in the other jurisdiction;
27 (B) confer on the appointed trustee all the appointing trustee's
28 powers and duties;
29 (C) require the appointed trustee to furnish security; and
30 (D) remove the appointed trustee.
31 (26) With regard to a beneficiary who is under a legal disability
32 or whom the trustee reasonably believes is incapacitated, the
33 power to pay an amount distributable to the beneficiary by:
34 (A) paying the amount directly to the beneficiary;
35 (B) applying the amount for the beneficiary's benefit;
36 (C) paying the amount to the beneficiary's guardian;
37 (D) paying the amount to the beneficiary's custodian under
38 IC 30-2-8.5 to create a custodianship or custodial trust;
39 (E) paying the amount to an adult relative or another person
40 having legal or physical care or custody of the beneficiary to
41 be expended on the beneficiary's behalf, if the trustee does not
42 know of a guardian, custodian, or custodial trustee; or
2024 IN 18—LS 6017/DI 149 17
1 (F) managing the amount as a separate fund on the
2 beneficiary's behalf, subject to the beneficiary's continuing
3 right to withdraw the distribution.
4 (27) The power to:
5 (A) combine at least two (2) trusts into one (1) trust; or
6 (B) divide one (1) trust into at least two (2) trusts;
7 after notice to the qualified beneficiaries, if the result does not
8 impair the rights of any beneficiary or adversely affect
9 achievement of the purposes of the trust.
10 (b) Any act under subsection (a)(4), an option under subsection
11 (a)(5), a lease under subsection (a)(6), an arrangement under
12 subsection (a)(7), and an encumbrance, mortgage, pledge, or security
13 interest under subsection (a)(9) may be for a term either within or
14 extending beyond the term of the trust.
15 (c) In acquiring, investing, reinvesting, exchanging, retaining,
16 selling, and managing property for any trust, the trustee thereof shall
17 exercise the judgment and care required by IC 30-4-3.5. Within the
18 limitations of the foregoing standard, the trustee is authorized to
19 acquire and retain every kind of property, real, personal, or mixed, and
20 every kind of investment, including specifically, but without in any way
21 limiting the generality of the foregoing, bonds, debentures, and other
22 corporate obligations, stocks, preferred or common, and real estate
23 mortgages, which persons of prudence, discretion, and intelligence
24 acquire or retain for their own account, and within the limitations of the
25 foregoing standard, the trustee is authorized to retain property properly
26 acquired, without limitation as to time and without regard to its
27 suitability for original purchase. Within the limitations of the foregoing
28 standard, the trustee is authorized to sell covered security options and
29 to purchase back previously sold covered security options.
30 (d) If a distribution of particular trust assets is to be made to two (2)
31 or more beneficiaries entitled to receive fractional shares in those
32 assets, the trustee:
33 (1) may distribute the particular assets without distributing to
34 each beneficiary a pro rata share of each asset; However, the
35 trustee shall:
36 (1) (2) shall distribute to each beneficiary a pro rata share of the
37 total fair market value of all of the particular assets as of the date
38 of distribution; and
39 (2) cause the distribution to result in a fair and equitable division
40 among the beneficiaries of capital gain or loss on the assets.
41 (3) is not required to allocate and distribute particular assets
42 based upon the potential gain or loss that the beneficiaries
2024 IN 18—LS 6017/DI 149 18
1 would realize if the particular assets were sold.
2 (e) If the trust is terminated or partially terminated, the trustee may
3 send to the beneficiaries a proposal for distribution. If the proposal for
4 distribution informs the beneficiary that the beneficiary:
5 (1) has a right to object to the proposed distribution; and
6 (2) must object not later than thirty (30) days after the proposal
7 for distribution was sent;
8 the right of the beneficiary to object to the proposed distribution
9 terminates if the beneficiary fails to notify the trustee of an objection
10 within the time limit set forth in subdivision (2).
11 (f) When any real or personal property subject to a lien (as defined
12 by IC 29-1-17-9(a)) is specifically distributable, the distributee shall
13 take the property subject to the lien unless the terms of the trust provide
14 expressly or by necessary implication that the lien be otherwise paid.
15 If:
16 (1) an event occurs that makes the property distributable; and
17 (2) the holder of a lien on the property receives payment on a
18 claim based upon the obligation secured by the lien;
19 the property subject to the lien shall be charged with the reimbursement
20 to the trust of the amount of the payment for the benefit of the
21 beneficiaries entitled to the distribution, unless the terms of the trust
22 provide expressly or by necessary implication that the payment be
23 charged against the residue of the trust estate.
24 (g) For purposes of subsection (f), a general directive or authority
25 in the trust for payment of debts does not imply an intent that the
26 distribution of property subject to a lien be made free from the lien.
27 (h) IC 32-39-2-8, IC 32-39-2-9, and IC 32-39-2-10 apply to the right
28 of a trustee acting under a trust to access:
29 (1) the content of an electronic communication (as defined in
30 IC 32-39-1-6);
31 (2) a catalogue of electronic communications (as defined in
32 IC 32-39-1-5); or
33 (3) any other digital asset (as defined in IC 32-39-1-10).
34 SECTION 13. IC 30-4-3-6, AS AMENDED BY P.L.56-2020,
35 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
36 JULY 1, 2024]: Sec. 6. (a) The trustee has a duty to administer a trust
37 according to the terms of the trust.
38 (b) Unless the terms of the trust or the provisions of section 1.3 of
39 this chapter provide otherwise, the trustee also has a duty to do the
40 following:
41 (1) Administer the trust in a manner consistent with IC 30-4-3.5.
42 (2) Take possession of and maintain control over the trust
2024 IN 18—LS 6017/DI 149 19
1 property.
2 (3) Preserve the trust property.
3 (4) Make the trust property productive for both the income and
4 remainder beneficiary. As used in this subdivision, "productive"
5 includes the production of income or investment for potential
6 appreciation.
7 (5) Keep the trust property separate from the trustee's individual
8 property and separate from or clearly identifiable from property
9 subject to another trust.
10 (6) Maintain clear and accurate accounts with respect to the trust
11 estate.
12 (7) Except as provided in subsection (c), keep the following
13 beneficiaries reasonably informed about the administration of the
14 trust and of the material facts necessary for the beneficiaries to
15 protect their interests:
16 (A) A current income beneficiary.
17 (B) A beneficiary who will become an income beneficiary
18 upon the expiration of the term of the current income
19 beneficiary, if the trust has become irrevocable by:
20 (i) the terms of the trust instrument; or
21 (ii) the death of the settlor.
22 A trustee satisfies the requirements of this subdivision by
23 providing a beneficiary described in clause (A) or (B), upon the
24 beneficiary's written request, access to the trust's accounting and
25 financial records concerning the administration of trust property
26 and the administration of the trust.
27 (8) Upon:
28 (A) the trust becoming irrevocable:
29 (i) by the terms of the trust instrument; or
30 (ii) by the death of the settlor; and
31 (B) the written request of an income beneficiary or
32 remainderman;
33 promptly provide a copy of the complete trust instrument to the
34 income beneficiary or remainderman. This subdivision does not
35 prohibit the terms of the trust from requiring the trustee to
36 separately provide each beneficiary only the portions of the trust
37 instrument that describe or pertain to that beneficiary's interest in
38 the trust and the administrative provisions of the trust instrument
39 that pertain to all beneficiaries of the trust.
40 (9) Take whatever action is reasonable to realize on claims
41 constituting part of the trust property.
42 (10) Defend actions involving the trust estate.
2024 IN 18—LS 6017/DI 149 20
1 (11) Supervise any person to whom authority has been delegated.
2 (12) Determine the trust beneficiaries by acting on information:
3 (A) the trustee, by reasonable inquiry, considers reliable; and
4 (B) with respect to heirship, relationship, survivorship, or any
5 other issue relative to determining a trust beneficiary.
6 (c) The terms of a trust may expand, restrict, eliminate, or otherwise
7 vary the right of a beneficiary to be informed of the beneficiary's
8 interest in a trust for a period of time, including a period of time related
9 to:
10 (1) the age of the beneficiary;
11 (2) the lifetime of a settlor or the spouse of a settlor;
12 (3) a term of years or a period of time ending on a specific date;
13 or
14 (4) a specific event that is certain to occur.
15 (d) During any period of time that the trust instrument restricts or
16 eliminates the right of a beneficiary to be informed of the beneficiary's
17 interest in a trust, a designated representative for the beneficiary:
18 (1) shall represent that beneficiary and bind that beneficiary's
19 interests for purposes of any judiciary judicial proceeding or
20 nonjudicial matter involving the trust unless the court finds, after
21 a hearing upon notice, that a conflict of interest exists between the
22 beneficiary and the designated representative;
23 (2) has the authority to initiate or defend and participate in any
24 proceeding relating to the trust under this article or under IC 30-2
25 on behalf of the beneficiary; and
26 (3) shall not disclose to the beneficiary the information provided
27 by the trustee unless the court orders disclosure or the trustee
28 agrees to the disclosure.
29 An alleged conflict of interest between a beneficiary and the
30 beneficiary's designated representative may be asserted to the court by
31 the beneficiary whose right to be informed of the beneficiary's interest
32 in a trust is restricted or eliminated in the trust instrument or by any
33 other person authorized to represent and bind that beneficiary's interest
34 under IC 30-4-6-10.5.
35 (e) If:
36 (1) a beneficiary is an adult and has not been adjudicated to be an
37 incapacitated person;
38 (2) the trust instrument restricts or eliminates the right of the
39 beneficiary to be informed of the beneficiary's interest in a trust;
40 and
41 (3) the beneficiary discovers material information about the
42 beneficiary's interest in the trust from sources other than the
2024 IN 18—LS 6017/DI 149 21
1 trustee;
2 subsections (c) and (d) do not prohibit the beneficiary from demanding
3 or petitioning for an accounting or statement regarding the trust under
4 IC 30-4-5-12(c), from receiving a copy of all relevant portions of the
5 trust instrument, or from demanding and receiving, under subsection
6 (b)(7), other information about the trust and its administration that is
7 consistent with the content and scope of the information that the
8 beneficiary received from sources other than the trustee. The
9 beneficiary may also initiate and participate in any proceeding against
10 or with the trustee under this chapter.
11 SECTION 14. IC 30-4-7-7 IS AMENDED TO READ AS
12 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. After a compromise
13 is executed, an interested person may docket the trust and submit the
14 following documents to the court for the court's approval:
15 (1) The agreement executed under section 6 of this chapter.
16 (2) A copy of the trust instrument filed under IC 30-4-6.
17 (3) Any other relevant documents.
18 SECTION 15. IC 30-5-3-3 IS AMENDED TO READ AS
19 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Except as
20 provided in subsection (b), an attorney in fact may act under a power
21 of attorney, including executing an instrument on the principal's
22 behalf under IC 30-5-8-8, without recording the power of attorney
23 with the county recorder.
24 (b) An attorney in fact shall record the power of attorney authorizing
25 the execution of a document that must be recorded before presenting
26 the document for recording.
27 (c) A county recorder may not accept a document for recording if
28 the document:
29 (1) was executed; and
30 (2) is presented;
31 by an attorney in fact whose power of attorney is unrecorded.
32 (d) Except as provided in subsection (e), a document creating a
33 power of attorney must comply with recording requirements, including
34 notary and preparation statements, to be recorded under this section.
35 (e) An original document that created a power of attorney or a
36 copy of the document that created the power of attorney may be
37 recorded under this section if:
38 (1) the original document was executed by the principal in
39 accordance with IC 30-5-4-1(a)(4)(B) or IC 30-5-11-4(a)(2);
40 and
41 (2) a proof (as defined in IC 32-21-2-1.7) that:
42 (A) is signed by at least one (1) of the attesting witnesses;
2024 IN 18—LS 6017/DI 149 22
1 and
2 (B) complies with IC 33-42;
3 is attached to the original document or the copy.
4 (e) (f) A document that is presented by an attorney in fact for
5 recording must reference the book and page or instrument number
6 where the instrument creating the power of attorney is recorded before
7 the document may be presented by the attorney in fact.
8 SECTION 16. IC 30-5-8-8 IS ADDED TO THE INDIANA CODE
9 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
10 1, 2024]: Sec. 8. (a) This section applies to an instrument executed
11 under this article by an attorney in fact on a principal's behalf.
12 (b) As used in this section, "agent" has the same meaning as
13 "attorney in fact" as defined in IC 30-5-2-2.
14 (c) A principal's power of attorney may authorize an attorney
15 in fact to execute an instrument on the principal's behalf if a
16 statement appears:
17 (1) above;
18 (2) beside; or
19 (3) below;
20 the attorney in fact's signature.
21 (d) A statement under subsection (c) must:
22 (1) identify the principal; and
23 (2) indicate that the attorney in fact is acting as the principal's
24 agent under the power of attorney.
25 (e) Any of the following example signature formats comply with
26 this section and indicate that the attorney in fact is acting as the
27 principal's agent under the power of attorney:
28 (1) Attorney in fact's signature
29 (Principal's name) by (attorney in fact's name), agent
30 (2) Principal's signature signed by the attorney in fact
31 (Principal's name) by (attorney in fact's name), POA
32 (3) Attorney in fact's signature
33 (Principal's name) by (attorney in fact's name), AIF
34 (4) Principal's printed name
35 Attorney in fact's signature
36 By: (Attorney in fact's name), as attorney in fact
37 (5) Principal's printed name
38 Attorney in fact's signature
39 By: (Attorney in fact's name), agent
40 (6) Principal's printed name
41 Attorney in fact's signature
42 By: (Attorney in fact's name), POA
2024 IN 18—LS 6017/DI 149 23
1 (7) Principal's printed name
2 Attorney in fact's signature
3 By: (Attorney in fact's name), AIF
4 The examples listed in this subsection are not an exhaustive list.
5 (f) If an attorney in fact executes a deed or other instrument
6 that must be recorded in the office of a county recorder, the
7 instrument may incorporate by reference part or all of the
8 principal's power of attorney that was previously recorded under
9 IC 30-5-3-3.
10 SECTION 17. IC 31-9-2-100.7 IS ADDED TO THE INDIANA
11 CODE AS A NEW SECTION TO READ AS FOLLOWS
12 [EFFECTIVE JULY 1, 2024]: Sec. 100.7. "Qualified real property
13 order", for purposes of IC 31-15-7, means an order that includes
14 the following:
15 (1) The caption and cause number of the dissolution
16 proceeding.
17 (2) The name and mailing address of the petitioning party.
18 (3) The street address of the Indiana real property.
19 (4) The names of all parties who had a prior interest in the
20 Indiana real property.
21 (5) The legal description of the Indiana real property.
22 (6) A tax parcel identification number for the Indiana real
23 property.
24 (7) The instrument number of the recorded document that
25 gives the parties title to the Indiana real property.
26 (8) A copy of the order or decree that approved or ordered
27 the division, transfer, or sale of the Indiana real property.
28 SECTION 18. IC 31-15-7-4.5 IS ADDED TO THE INDIANA
29 CODE AS A NEW SECTION TO READ AS FOLLOWS
30 [EFFECTIVE JULY 1, 2024]: Sec. 4.5. (a) If a court order or decree
31 entered under this chapter:
32 (1) approves or orders:
33 (A) the division or transfer of Indiana real property
34 between spouses; or
35 (B) the sale of Indiana real property by either or both
36 spouses;
37 (2) refers to the Indiana real property described in
38 subdivision (1) by specifying the physical address or location;
39 and
40 (3) does not contain:
41 (A) the legal description of the Indiana real property; and
42 (B) the tax parcel identification number of the Indiana real
2024 IN 18—LS 6017/DI 149 24
1 property;
2 both spouses may sign and record an affidavit under subsection (b)
3 or either spouse may petition the court to request a qualified real
4 property order under subsection (d) to more specifically identify
5 the real property described in this subsection.
6 (b) If the material facts regarding the Indiana real property are
7 agreed upon by the parties to the proceeding in subsection (a) or by
8 the personal representative or successor in interest to the parties
9 to the proceeding in subsection (a), all parties may sign and record
10 an affidavit under IC 36-2-11-19 that includes the following
11 information:
12 (1) A copy of the order or decree that approved or ordered
13 the division, transfer, or sale of the Indiana real property.
14 (2) The legal description of the Indiana real property.
15 (3) The tax parcel identification number of the Indiana real
16 property.
17 (c) If a party to the proceeding in subsection (a) is deceased, the
18 personal representative of the deceased party's estate or, if there
19 is no personal representative appointed, any successor in interest
20 may sign the affidavit under subsection (b).
21 (d) If the parties cannot agree upon the material facts regarding
22 the Indiana real property, either party may file a verified petition
23 and a qualified real property order.
24 (e) A party who files a verified petition and a qualified real
25 property order under subsection (d) must provide service as
26 required by the Indiana Rules of Trial Procedure.
27 (f) Objections to the proposed qualified real property order may
28 be filed not later than twenty (20) days after the date of service.
29 (g) If a party:
30 (1) does not file objections during the period described in
31 subsection (f), the court shall enter the qualified real property
32 order without further proceedings; or
33 (2) does file timely objections, the court shall hold a hearing.
34 (h) Following a hearing held under subsection (g):
35 (1) the parties may sign an agreed entry;
36 (2) the court may enter the qualified real property order with
37 or without modifications; or
38 (3) the court may dismiss the petition.
39 (i) A qualified real property order entered under this section is
40 not an unlawful modification of the court's previous decree, order,
41 or judgment for purposes of section 9.1 of this chapter.
42 (j) An affidavit signed and recorded under subsection (b) or a
2024 IN 18—LS 6017/DI 149 25
1 qualified real property order issued under subsection (h) is
2 effective as of the date of the court's order or decree under
3 subsection (a).
4 (k) The remedies and procedures under this section are in
5 addition to the remedies provided under Rule 70(A) of the Indiana
6 Rules of Trial Procedure.
7 SECTION 19. IC 32-17-14-11, AS AMENDED BY P.L.36-2011,
8 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
9 JULY 1, 2024]: Sec. 11. (a) A transfer on death deed transfers the
10 interest provided to the beneficiary if the transfer on death deed is:
11 (1) executed by the owner or owner's legal representative; and
12 (2) recorded with the recorder of deeds in the county in which the
13 real property is situated before the death of the owner.
14 (b) A transfer on death deed is void if it is not recorded with the
15 recorder of deeds in the county in which the real property is situated
16 before the death of the owner.
17 (c) A transfer on death deed is not required to be supported by
18 consideration or delivered to the grantee beneficiary.
19 (d) A transfer on death deed may be used to transfer an interest in
20 real property to either a revocable or an irrevocable trust.
21 (e) If the owner records a transfer on death deed, the effect of the
22 recording the transfer on death deed is determined as follows:
23 (1) If the owner's interest in the real property is as a tenant by the
24 entirety, the conveyance is inoperable and void unless the other
25 spouse joins in the conveyance.
26 (2) If the owner's interest in the real property is as a joint tenant
27 with rights of survivorship, the conveyance severs the joint
28 tenancy and the cotenancy becomes a tenancy in common.
29 (3) If the owner's interest in the real property is as a joint tenant
30 with rights of survivorship and the property is subject to a
31 beneficiary designation, a conveyance of any joint owner's interest
32 has no effect on the original beneficiary designation for the
33 nonsevering joint tenant.
34 (4) If the owner's interest is as a tenant in common, the owner's
35 interest passes to the beneficiary as a transfer on death transfer.
36 (5) If the owner's interest is a life estate determined by the owner's
37 life, the conveyance is inoperable and void.
38 (6) If the owner's interest is any other interest, the interest passes
39 in accordance with this chapter and the terms and conditions of
40 the conveyance establishing the interest. If a conflict exists
41 between the conveyance establishing the interest and this chapter,
42 the terms and conditions of the conveyance establishing the
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1 interest prevail.
2 (f) A beneficiary designation in a transfer on death deed may be
3 worded in substance as "(insert owner's name) conveys and warrants
4 (or quitclaims) to (insert owner's name), TOD to (insert beneficiary's
5 name)". This example is not intended to be exhaustive.
6 (g) A transfer on death deed using the phrase "pay on death to" or
7 the abbreviation "POD" may not be construed to require the liquidation
8 of the real property being transferred.
9 (h) This section does not preclude other methods of conveying real
10 property that are permitted by law and have the effect of postponing
11 enjoyment of an interest in real property until after the death of the
12 owner. This section applies only to transfer on death deeds and does
13 not invalidate any deed that is otherwise effective by law to convey title
14 to the interest and estates provided in the deed.
15 (i) The endorsement of the county auditor under IC 36-2-11-14 and
16 IC 36-2-9-18 is not necessary to record a transfer on death deed under
17 this section.
18 SECTION 20. IC 32-17-14-13, AS ADDED BY P.L.143-2009,
19 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2024]: Sec. 13. (a) A transferor An owner of property, with
21 or without consideration, may execute a written instrument directly
22 transferring the property to one (1) or more individuals as a transferee
23 grantee to hold as owner in beneficiary form. Any grantee may be an
24 individual different from or in addition to the owner who executes
25 the instrument.
26 (b) A transferee grantee under an instrument described in
27 subsection (a) is considered the owner of the property for all purposes
28 and has all the rights to the property provided by law to the owner of
29 the property, including the right to revoke or change the beneficiary
30 designation.
31 (c) A direct transfer of property to a transferee grantee to hold as
32 owner in beneficiary form is effective when the written instrument
33 perfecting the transfer becomes effective to make the transferee
34 grantee the owner.
35 (d) A beneficiary designation in an instrument described in
36 subsection (a) may be worded in substance as "(insert owner's
37 name) conveys and warrants (or quitclaims) to (insert grantee's
38 name(s)), TOD to (insert beneficiary's name)". This example is not
39 intended to be exhaustive.
40 (e) A beneficiary designation in an instrument described in
41 subsection (a) is void if the instrument:
42 (1) conveys real property; and
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1 (2) is not recorded with the recorder of deeds in the county in
2 which the real property is situated before the grantee's death.
3 (f) An instrument described in subsection (a) is effective to
4 convey title to the grantee regardless of whether a beneficiary
5 designation is void under subsection (e).
6 (g) If an instrument described in subsection (a) conveys real
7 property, the endorsement of the county auditor under
8 IC 36-2-11-14 and IC 36-2-9-18 is necessary to record the
9 instrument.
10 SECTION 21. IC 32-21-1-14, AS AMENDED BY P.L.185-2021,
11 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2024]: Sec. 14. A conveyance of land by an attorney in fact
13 (as defined in IC 30-5-2-2) under IC 30-5-3-3 is not good effective
14 unless the attorney in fact is empowered by to make the conveyance
15 under a power of attorney (as defined in IC 30-5-2-7) that:
16 (1) is executed or signed by the principal (as defined in
17 IC 30-5-2-8); and
18 (2) has an acknowledgment (as defined in IC 33-42-0.5-2) or a
19 proof (as defined in and permitted under IC 32-21-2).
20 SECTION 22. IC 32-21-2-16 IS ADDED TO THE INDIANA
21 CODE AS A NEW SECTION TO READ AS FOLLOWS
22 [EFFECTIVE JULY 1, 2024]: Sec. 16. (a) A county recorder shall
23 include a cross-reference concerning a previously recorded
24 document if:
25 (1) the person presenting the document for recording has
26 made a request to the county recorder for a cross-reference
27 between the document being recorded and a previously
28 recorded document; and
29 (2) the front page of the document to be recorded contains a
30 cross-reference to a previously recorded document.
31 (b) The requirements of subsection (a) do not apply to the
32 following:
33 (1) A reference required in an affidavit under IC 29-1-7-23 to
34 a previously recorded deed or other instrument.
35 (2) A reference required in a document under IC 30-5-3-3 to
36 a previously recorded power of attorney.
37 (3) A reference required in an affidavit under IC 32-17-14-26
38 to a previously recorded transfer on death deed.
39 (4) A reference required in an easement under IC 32-23-2-5
40 to a recorded plat or a recorded deed of record.
41 (5) A reference required in an affidavit of service of notice
42 under IC 32-28-13-7 to a statement of intention to hold a
2024 IN 18—LS 6017/DI 149 28
1 common law lien.
2 (6) A reference required in an affidavit of service of notice
3 under IC 32-28-14-9 to a homeowners association lien.
4 (7) A reference required in a document under a statute or
5 county ordinance to a previously recorded document.
6 SECTION 23. IC 36-2-9-18, AS AMENDED BY P.L.26-2022,
7 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
8 JULY 1, 2024]: Sec. 18. (a) Before the auditor makes the endorsement
9 required by IC 36-2-11-14, the auditor may require that a tax
10 identification number identifying the affected real property be placed
11 on an instrument that conveys, creates, encumbers, assigns, or
12 otherwise disposes of an interest in or a lien on real property. The tax
13 identification number may be established by the auditor with the
14 approval of the state board of accounts. If the tax identification number
15 is affixed to the instrument or if a tax identification number is not
16 required, the auditor shall make the proper endorsement on demand.
17 (b) On request, a county auditor shall provide assistance in
18 obtaining the proper tax identification number for instruments subject
19 to this section.
20 (c) The tax administration number established by this section is for
21 use in administering statutes concerning taxation of real property and
22 is not competent evidence of the location or size of the real property
23 affected by the instrument.
24 (d) After December 31, 2023, A county auditor may not refuse to
25 endorse a deed or instrument under this section as required by
26 IC 36-2-11-14 because the deed or instrument is:
27 (1) an electronic document; or
28 (2) made under IC 32-17-14.
29 (e) The legislative body of a county shall adopt an ordinance
30 requiring the auditor to collect a fee in the amount of ten dollars ($10)
31 for each:
32 (1) deed; or
33 (2) legal description of each parcel contained in the deed;
34 for which the auditor makes a real property endorsement. This fee is in
35 addition to any other fee provided by law. The auditor shall place the
36 revenue received under this subsection in a dedicated fund for use in
37 maintaining property tax records, in traditional or electronic format.
38 SECTION 24. IC 36-2-11-14, AS AMENDED BY P.L.106-2007,
39 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
40 JULY 1, 2024]: Sec. 14. (a) The recorder may record:
41 (1) a deed of partition;
42 (2) a conveyance of land; or
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1 (3) an affidavit of transfer to real estate; or
2 (4) a deed or instrument made under IC 32-17-14;
3 only if it has been endorsed by the auditor of the proper county as "duly
4 entered for taxation subject to final acceptance for transfer", "not
5 taxable", or "duly entered for taxation" as provided by IC 36-2-9-18.
6 (b) A county auditor may not refuse to endorse a deed or
7 instrument under IC 36-2-9-18 as required by this section because
8 the deed or instrument is made under IC 32-17-14.
9 (b) (c) A recorder who violates this section shall forfeit the sum of
10 five dollars ($5), to be recovered by an action in the name of the
11 county, for the benefit of the common school fund.
12 SECTION 25. IC 36-2-11-15, AS AMENDED BY P.L.160-2007,
13 SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
14 JULY 1, 2024]: Sec. 15. (a) This section does not apply to:
15 (1) an instrument executed before July 1, 1959, or recorded before
16 July 26, 1967;
17 (2) a judgment, order, or writ of a court;
18 (3) a will or death certificate;
19 (4) an instrument executed or acknowledged outside Indiana; or
20 (5) a federal lien on real property or a federal tax lien on personal
21 property, as described in section 25 of this chapter;
22 (6) a judgment, an order, or an agreed entry dividing
23 ownership of Indiana real property, as described in
24 IC 31-15-7-4, that includes the legal description and tax parcel
25 identification number of the Indiana real property; or
26 (7) a qualified real property order, as described in
27 IC 31-15-7-4.5.
28 (b) The recorder may receive for record or filing an instrument that
29 conveys, creates, encumbers, assigns, or otherwise disposes of an
30 interest in or lien on property only if:
31 (1) the name of the person and governmental agency, if any, that
32 prepared the instrument is printed, typewritten, stamped, or
33 signed in a legible manner at the conclusion of the instrument;
34 and
35 (2) all Social Security numbers in the document are redacted,
36 unless required by law.
37 (c) An instrument complies with subsection (b)(1) if it contains a
38 statement in the following form:
39 "This instrument was prepared by (name).".
40 (d) An instrument complies with subsection (b)(2) if it contains a
41 statement in the following form at the conclusion of the instrument and
42 immediately preceding or following the statement required by
2024 IN 18—LS 6017/DI 149 30
1 subsection (b)(1):
2 "I affirm, under the penalties for perjury, that I have taken
3 reasonable care to redact each Social Security number in this
4 document, unless required by law (name).".
5 SECTION 26. IC 36-2-11-16, AS AMENDED BY P.L.185-2021,
6 SECTION 65, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
7 JULY 1, 2024]: Sec. 16. (a) This section does not apply to:
8 (1) an instrument executed before November 4, 1943;
9 (2) a judgment, order, or writ of a court;
10 (3) a will or death certificate; or
11 (4) an instrument executed or acknowledged outside Indiana;
12 (5) a judgment, an order, or an agreed entry dividing
13 ownership of Indiana real property, as described in
14 IC 31-15-7-4, that includes the legal description and tax parcel
15 identification number of the Indiana real property; or
16 (6) a qualified real property order, as described in
17 IC 31-15-7-4.5.
18 (b) Whenever this section prescribes that the name of a person be
19 printed, typewritten, or stamped immediately beneath the person's
20 signature, the signature must be written on the instrument, directly
21 preceding the printed, typewritten, or stamped name, and may not be
22 superimposed on that name so as to render either illegible. However,
23 the instrument may be received for record if the name and signature
24 are, in the discretion of the county recorder, placed on the instrument
25 so as to render the connection between the two apparent.
26 (c) Except as provided in subsection (d), the recorder may receive
27 for record an instrument only if all of the following requirements are
28 met:
29 (1) The name of each person who executed the instrument is
30 legibly printed, typewritten, or stamped immediately beneath the
31 person's signature or the signature itself is printed, typewritten,
32 stamped, or logically associated with the instrument.
33 (2) The name of each witness to the instrument is legibly printed,
34 typewritten, or stamped immediately beneath the signature of the
35 witness or the signature itself is printed, typewritten, stamped, or
36 logically associated with the instrument.
37 (3) The name of each notarial officer whose signature appears on
38 the instrument is legibly printed, typewritten, or stamped
39 immediately beneath the signature of the notarial officer or the
40 signature itself is printed, typewritten, stamped, or logically
41 associated with the instrument.
42 (4) The name of each person who executed the instrument appears
2024 IN 18—LS 6017/DI 149 31
1 identically in the body of the instrument, in the acknowledgment
2 or proof (as defined in and permitted under IC 32-21-2) in the
3 person's signature, and beneath the person's signature.
4 (5) The execution of the instrument and the acknowledgment or
5 proof (as defined in and permitted under IC 32-21-2), complies
6 with IC 33-42.
7 (6) If the instrument is a copy, the instrument is marked "Copy".
8 (d) The recorder may receive for record an instrument that does not
9 comply with subsection (c) if all of the following requirements are met:
10 (1) A printed or typewritten affidavit of a person with personal
11 knowledge of the facts is recorded with the instrument.
12 (2) The affidavit complies with this section.
13 (3) The affidavit states the correct name of a person, if any, whose
14 signature cannot be identified or whose name is not printed,
15 typewritten, or stamped on the instrument as prescribed by this
16 section.
17 (4) When the instrument does not comply with subsection (c)(4),
18 the affidavit states the correct name of the person and states that
19 each of the names used in the instrument refers to the person.
20 (5) If the instrument is a copy, the instrument is marked "Copy".
21 (e) The recorder shall record a document presented for recording or
22 a copy produced by a photographic process of the document presented
23 for recording if:
24 (1) the document complies with other statutory recording
25 requirements; and
26 (2) the document or copy will produce a clear and unobstructed
27 copy.
28 (f) An instrument, document, or copy received and recorded by a
29 county recorder is conclusively presumed to comply with this section.
30 A recorded copy shall have the same effect as if the original document
31 had been recorded.
32 SECTION 27. IC 36-2-11-16.5, AS AMENDED BY P.L.127-2017,
33 SECTION 80, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
34 JULY 1, 2024]: Sec. 16.5. (a) This section does not apply to the
35 following:
36 (1) A judgment, an order, or a writ of a court.
37 (2) A will or death certificate.
38 (3) A plat.
39 (4) A survey.
40 (5) A judgment, an order, or an agreed entry dividing
41 ownership of Indiana real property, as described in
42 IC 31-15-7-4, that includes the legal description and tax parcel
2024 IN 18—LS 6017/DI 149 32
1 identification number of the Indiana real property.
2 (6) A qualified real property order, as described in
3 IC 31-15-7-4.5.
4 (b) The county recorder may receive for record an instrument or a
5 document if:
6 (1) the instrument or document consists of at least one (1)
7 individual page measuring not more than eight and one-half (8
8 1/2) inches by fourteen (14) inches that is not permanently bound
9 and is not a continuous form;
10 (2) the instrument or document is on white paper of at least
11 twenty (20) pound weight and has clean margins:
12 (A) on the first and last pages of at least two (2) inches on the
13 top and bottom and one-half (1/2) inch on each side; and
14 (B) on each additional page of at least one-half (1/2) inch on
15 the top, bottom, and each side; and
16 (3) the instrument or document is typewritten or computer
17 generated in black ink in at least 10 point type.
18 SECTION 28. IC 36-2-11-19, AS AMENDED BY P.L.57-2013,
19 SECTION 89, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
20 JULY 1, 2024]: Sec. 19. (a) An affidavit that:
21 (1) concerns the birth, marriage, death, name, residence, identity,
22 or relationship of any of the parties named in an instrument
23 affecting real property;
24 (2) is made by a professional surveyor registered under IC 25-21.5
25 and concerns the existence or location of a monument or physical
26 boundary;
27 (3) is made by a professional surveyor registered under IC 25-21.5
28 and reconciles ambiguous descriptions in conveyances with
29 descriptions in a regular chain of title;
30 (4) concerns facts incident to the adverse possession of real
31 property and the payment of taxes on that property; or
32 (5) states facts about the division or transfer of Indiana real
33 property, as described in IC 31-15-7-4, and includes:
34 (A) a copy of the order or decree that approved or ordered
35 the division, transfer, or sale of the Indiana real property;
36 and
37 (B) the legal description and tax parcel identification
38 number of the Indiana real property; or
39 (5) (6) is made by a purchaser of real property sold on foreclosure
40 or conveyed in lieu of foreclosure of:
41 (A) a deed of trust securing an issue of bonds or other
42 evidences of indebtedness;
2024 IN 18—LS 6017/DI 149 33
1 (B) a mortgage;
2 (C) a contract for the sale of real property; or
3 (D) any other security instrument;
4 held by a fiduciary or other representative, and concerns the
5 authority of the purchaser to purchase the property and the terms
6 and conditions on which the property is to be held and disposed
7 of;
8 may be recorded in the office of the recorder of the county in which the
9 property is located. If an affidavit is presented to the recorder for record
10 under this section, the recorder shall record it in the miscellaneous
11 records in the recorder's office.
12 (b) An affidavit recorded under this section may be received in
13 evidence in any proceeding affecting the real property and constitutes
14 prima facie evidence of the facts and circumstances contained in the
15 affidavit.
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