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 6017 NOTE PREPARED: Jan 29, 2024
BILL NUMBER: SB 18 BILL AMENDED: Jan 11, 2024
SUBJECT: Various Probate Matters.
FIRST AUTHOR: Sen. Brown L BILL STATUS: As Passed Senate
FIRST SPONSOR: Rep. Torr
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: This bill has the following provisions:
A. It expands the definition of a health care representative.
B. It 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.
C. It provides that certain provisions in a will or revocable trust in favor of the testator's or trust settlor's
former spouse are revoked upon dissolution or annulment of the marriage.
D. It 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 (OMPP).
E. It 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.
F. It 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.
G. It provides that a court may order a convicted felon to serve as a personal representative under
certain circumstances.
SB 18 1 H. It 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.
I. It provides that a verified petition for the issuance of a confidential health disclosure order must state
whether the alleged incapacitated person cannot provide or has refused to provide written
authorization for disclosure of certain medical information.
J. It 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.
K. It provides signature formats for an attorney in fact to use when signing an instrument on behalf of
a principal.
L. It provides recording requirements when including cross-references to a previously recorded
document.
M.It defines a "qualified real property order".
N. It 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.
O. It provides a process for filing and recording the affidavit and a qualified real property order.
P. It requires the endorsement of the county auditor to record a transfer on death deed and instrument.
Q. It specifies who an owner may designate as a grantee in a beneficiary designation instrument.
R. It clarifies the form and scope of a transfer on death instrument.
S. It also makes conforming and technical changes.
(The introduced version of this bill was prepared by the Probate Code Study Commission.)
Effective Date: July 1, 2024.
Explanation of State Expenditures: If the Family Social Services Agency (FSSA) is unable to process
estate recovery claims within two months upon receiving notice, the bill could increase state expenditures
if additional personnel are needed. On average, it takes the FSSA 30 days to process estate recovery claims.
The FSSA estimates that it will cost $72,496 to hire an additional staff member to support the Medicaid
Estate Recovery Unit.
Explanation of State Revenues: Medicaid Estate Recovery Unit: The bill provides that if the unit does not
take action within two months after receiving notice, the unit is barred from seeking recovery against the
decedent’s estate. This provision could potentially decrease revenue to the Medicaid Estate Recovery Unit
to the extent the state is unable to recoup cost paid by Medicaid on behalf of qualified individuals.
Under IC 29-1-7-7, the unit may file a claim against the decedent’s estate within three months from the date
SB 18 2 of notice, or within nine months after the decedent’s death, whichever is earlier. After nine months, the unit
is barred from filing claims against the estate. In FY 2023, the FSSA recovered a total amount of $28.16 M
from estate recovery claims. The state share of the estate recovery claims is $7.9 M.
Explanation of Local Expenditures: County Recorder: The bill could potentially increase the workload
of the county recorder to include cross-references concerning a previously recorded document.
Court: If an objection to the qualified real property order is filed in a timely manner, the court shall hold a
hearing. This provision will have minimal impact on the workload of the court.
Explanation of Local Revenues:
State Agencies Affected: Medicaid Estate Recovery Unit, FSSA.
Local Agencies Affected: County recorders; Trial courts, city and town courts.
Information Sources: FSSA; IC 29-1-7-7; 29-1-7.5-4.
Fiscal Analyst: Corrin Harvey, 317-234-9438.
SB 18 3