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: Mar 8, 2024
BILL NUMBER: SB 18 BILL AMENDED: Mar 7, 2024
SUBJECT: Various Probate Matters.
FIRST AUTHOR: Sen. Brown L BILL STATUS: Enrolled
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 specifies that the provisions in favor of the testator's or trust settlor's former spouse are reinstated
if the testator or the settlor remarries the former spouse.
E. It provides that a court may order a convicted felon to serve as a domiciliary personal representative
under certain circumstances.
F. It provides that a claim by the estate recovery unit is forever barred unless the estate recovery unit
takes certain action against the decedent's estate not later than 120 days after the date of death of the
decedent.
G. 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.
SB 18 1 H. 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.
I. 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.
J. It provides signature formats for an attorney in fact to use when signing an instrument on behalf of
a principal.
K. It provides recording requirements when including cross-references to a previously recorded
document.
L. It requires the endorsement of the county auditor to record a transfer on death deed and instrument.
M.It specifies who an owner may designate as a grantee in a beneficiary designation instrument.
N. It clarifies the form and scope of a transfer on death instrument.
O. It resolves a technical conflict with HEA 1034-2024.
P. 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 not later than 120 days afer the date of death of the decedent, 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 120 days after the date of the death of the decedent, 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
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.
SB 18 2 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