IN
Indiana Senate Bill SB0018

Indiana 2024 Regular Session

Indiana Senate Bill SB0018 Compare Versions

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1+*ES0018.1*
2+February 22, 2024
3+ENGROSSED
4+SENATE BILL No. 18
5+_____
6+DIGEST OF SB 18 (Updated February 21, 2024 10:39 am - DI 151)
7+Citations Affected: IC 16-36; IC 23-18; IC 29-1; IC 29-3; IC 30-4;
8+IC 30-5; IC 32-17; IC 32-21; IC 36-2.
9+Synopsis: Various probate matters. Expands the definition of a health
10+care representative. Creates a procedure to transfer the interest of
11+certain single member, limited liability companies to a legatee or heir
12+of the member upon the member's death. Provides that a court may
13+order a convicted felon to serve as a personal representative under
14+certain circumstances. Provides that a personal representative or a
15+trustee is not required to distribute particular assets based upon the
16+potential gain or loss that a distributee would realize if the assets were
17+sold. Provides that a verified petition for the issuance of a confidential
18+(Continued next page)
19+Effective: July 1, 2024.
20+Brown L, Koch, Carrasco
21+(HOUSE SPONSORS — TORR, JETER, STEUERWALD)
22+January 8, 2024, read first time and referred to Committee on Judiciary.
23+January 11, 2024, amended, reported favorably — Do Pass.
24+January 16, 2024, read second time, ordered engrossed. Engrossed.
25+January 29, 2024, read third time, passed. Yeas 49, nays 0.
26+HOUSE ACTION
27+February 6, 2024, read first time and referred to Committee on Judiciary.
28+February 22, 2024, amended, reported — Do Pass.
29+ES 18—LS 6017/DI 149 Digest Continued
30+health disclosure order must state whether the alleged incapacitated
31+person cannot provide or has refused to provide written authorization
32+for disclosure of certain medical information. Provides that a document
33+creating a power of attorney that does not contain a notary and
34+preparation statement may be recorded with the county recorder if the
35+document meets certain criteria. Provides signature formats for an
36+attorney in fact to use when signing an instrument on behalf of a
37+principal. Provides recording requirements when including cross-
38+references to a previously recorded document. Requires the
39+endorsement of the county auditor to record a transfer on death deed
40+and instrument. Specifies who an owner may designate as a grantee in
41+a beneficiary designation instrument. Clarifies the form and scope of
42+a transfer on death instrument. Makes conforming and technical
43+changes. (The introduced version of this bill was prepared by the
44+probate code study commission.)
45+ES 18—LS 6017/DI 149ES 18—LS 6017/DI 149 February 22, 2024
146 Second Regular Session of the 123rd General Assembly (2024)
247 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
348 Constitution) is being amended, the text of the existing provision will appear in this style type,
449 additions will appear in this style type, and deletions will appear in this style type.
550 Additions: Whenever a new statutory provision is being enacted (or a new constitutional
651 provision adopted), the text of the new provision will appear in this style type. Also, the
752 word NEW will appear in that style type in the introductory clause of each SECTION that adds
853 a new provision to the Indiana Code or the Indiana Constitution.
954 Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
1055 between statutes enacted by the 2023 Regular Session of the General Assembly.
11-SENATE ENROLLED ACT No. 18
12-AN ACT to amend the Indiana Code concerning probate.
56+ENGROSSED
57+SENATE BILL No. 18
58+A BILL FOR AN ACT to amend the Indiana Code concerning
59+probate.
1360 Be it enacted by the General Assembly of the State of Indiana:
14-SECTION 1. IC 16-36-7-13, AS ADDED BY P.L.50-2021,
15-SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
16-JULY 1, 2024]: Sec. 13. As used in this chapter, "health care
17-representative" means a competent adult or other person designated
18-by a declarant in an advance directive to:
19-(1) make health care decisions; and
20-(2) receive health information;
21-regarding the declarant. The term includes a person who receives and
22-holds validly delegated authority from a designated health care
23-representative.
24-SECTION 2. IC 23-18-6-4, AS AMENDED BY P.L.156-2023,
25-SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
26-JULY 1, 2024]: Sec. 4. (a) Unless otherwise provided in a written
27-operating agreement, a limited liability company existing under this
28-article on or before June 30, 1999, is governed by this section.
29-(b) Except as otherwise provided in a written operating agreement,
30-if a limited liability company has at least two (2) members, an assignee
31-of an interest may become a member only if the other members
32-unanimously consent. If a limited liability company has only one (1)
33-member, an assignee of the entire interest may become a member:
34-(1) under the terms of an agreement between the assignor and the
35-assignee; or
36-SEA 18 — CC 1 2
37-(2) except as otherwise provided in a written operating agreement
38-by a specific reference to this subsection or as otherwise provided
39-in an agreement between the assignor and the assignee,
40-automatically upon the voluntary assignment by the sole member
41-of all the member's interest to a single assignee that the member
42-consented to at the time of the assignment and that was not
43-affected by foreclosure or other similar legal process.
44-The consent of a member may be evidenced in any manner specified
45-in writing in an operating agreement, but in the absence of a
46-specification, consent must be evidenced by a written instrument, dated
47-and signed by the member.
48-(c) If:
49-(1) a limited liability company has one (1) member;
50-(2) the member of the limited liability company dies;
51-(3) the deceased member's interest in the limited liability
52-company is not registered in beneficiary form under
53-IC 32-17-14; and
54-(4) the limited liability company does not have a written
55-operating agreement that controls or specifies the transfer or
56-other disposition of the deceased member's interest;
57-the deceased member's interest passes as described in subsection
58-(d).
59-(d) This subsection applies to the transfer of a deceased
60-member's interest under the circumstances described in subsection
61-(c). Unless otherwise provided in a written operating agreement or
62-a valid disclaimer under IC 32-17.5, the deceased member's
63-interest in a limited liability company passes automatically upon
64-death to:
65-(1) a legatee identified in the deceased member's will admitted
66-to probate under IC 29-1-7; or
67-(2) the deceased member's heirs under IC 29-1-2-1 if the
68-deceased member died intestate.
69-A transfer of an interest under this subsection is subject to
70-IC 29-1-7-23 and does not affect the enforceability of a timely filed
71-claim by a creditor against the estate of the deceased member. A
72-legatee or an heir is automatically admitted as a member of the
73-limited liability company under this subsection.
74-(e) If a personal representative is appointed under IC 29-1-10
75-for the estate of a deceased member described in subsection (c), the
76-personal representative possesses and may exercise all rights and
77-powers of the deceased member's interest before the interest of the
78-deceased member is distributed to the deceased member's legatees
79-SEA 18 — CC 1 3
80-or heirs under this section.
81-(c) (f) An assignee who becomes a member:
82-(1) has, to the extent assigned, the rights and powers and is
83-subject to the restrictions and liabilities of a member under the
84-articles of organization, any operating agreement, and this article;
85-and
86-(2) is liable for any obligations of the member's assignor for
87-unpaid contributions under IC 23-18-5-1 or for any wrongful
88-distributions under IC 23-18-5-7.
89-However, the assignee is not obligated for liabilities of which the
90-assignee had no knowledge at the time the assignee became a member
91-and that could not be ascertained from a written operating agreement.
92-(d) (g) Whether or not an assignee of an interest becomes a member,
93-the assignor is not released from the assignor's liability to the limited
94-liability company for unpaid contributions under IC 23-18-5-1 or for
95-any wrongful distributions under IC 23-18-5-7 that are solely a result
96-of the assignment.
97-(e) (h) Unless otherwise provided in a written operating agreement,
98-a member who assigns the member's entire interest in the limited
99-liability company ceases to be a member or to have the power to
100-exercise any rights of a member when an assignee of the member's
101-interest becomes a member with respect to the assigned interest.
102-SECTION 3. IC 23-18-6-4.1, AS AMENDED BY P.L.156-2023,
103-SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
104-JULY 1, 2024]: Sec. 4.1. (a) A limited liability company formed under
105-this article after June 30, 1999, is governed by this section.
106-(b) Except as otherwise provided in a written operating agreement,
107-if a limited liability company has at least two (2) members, an assignee
108-of an interest may become a member only if the other members
109-unanimously consent. If a limited liability company has only one (1)
110-member, an assignee of the entire interest may become a member:
111-(1) in accordance with the terms of an agreement between the
112-assignor and the assignee; or
113-(2) except as otherwise provided in a written operating agreement
114-by a specific reference to this subsection or as otherwise provided
115-in an agreement between the assignor and the assignee,
116-automatically upon the voluntary assignment by the sole member
117-of all of the member's interest to a single assignee that the
118-member consented to at the time of the assignment and that was
119-not affected by foreclosure or other similar legal process.
120-The consent of a member may be evidenced in any manner specified
121-in writing in an operating agreement, but in the absence of a
122-SEA 18 — CC 1 4
123-specification, consent must be evidenced by a written instrument, dated
124-and signed by the member.
125-(c) If:
126-(1) a limited liability company has one (1) member;
127-(2) the member of the limited liability company dies;
128-(3) the deceased member's interest in the limited liability
129-company is not registered in beneficiary form under
130-IC 32-17-14; and
131-(4) the limited liability company does not have a written
132-operating agreement that controls or specifies the transfer or
133-other disposition of the deceased member's interest;
134-the deceased member's interest passes as described in subsection
135-(d).
136-(d) This subsection applies to the transfer of a deceased
137-member's interest under the circumstances described in subsection
138-(c). Unless otherwise provided in a written operating agreement or
139-a valid disclaimer under IC 32-17.5, the deceased member's
140-interest in a limited liability company passes automatically upon
141-death to:
142-(1) a legatee identified in the deceased member's will admitted
143-to probate under IC 29-1-7; or
144-(2) the deceased member's heirs under IC 29-1-2-1 if the
145-deceased member died intestate.
146-A transfer of an interest under this subsection is subject to
147-IC 29-1-7-23 and does not affect the enforceability of a timely filed
148-claim by a creditor against the estate of the deceased member. A
149-legatee or an heir is automatically admitted as a successor member
150-or a member of the limited liability company under this subsection.
151-(e) If a personal representative is appointed under IC 29-1-10
152-for the estate of a deceased member described in subsection (c), the
153-personal representative possesses and may exercise all rights and
154-powers of the deceased member's interest before the interest of the
155-deceased member is distributed to the deceased member's legatees
156-or heirs under this section.
157-(c) (f) An assignee who becomes a member:
158-(1) has, to the extent assigned, the rights and powers and is
159-subject to the restrictions and liabilities of a member under the
160-articles of organization, any operating agreement, and this article;
161-and
162-(2) is liable for any obligations of the member's assignor for
163-unpaid contributions under IC 23-18-5-1 or for any wrongful
164-distributions under IC 23-18-5-7.
165-SEA 18 — CC 1 5
166-However, the assignee is not obligated for liabilities of which the
167-assignee had no knowledge at the time the assignee became a member
168-and that could not be ascertained from a written operating agreement.
169-(d) (g) Whether or not an assignee of an interest becomes a member,
170-the assignor is not released from the assignor's liability to the limited
171-liability company for unpaid contributions under IC 23-18-5-1 or for
172-any wrongful distributions under IC 23-18-5-7 that are solely a result
173-of the assignment.
174-(e) (h) Unless otherwise provided in a written operating agreement,
175-a member who assigns the member's entire interest in the limited
176-liability company ceases to be a member or to have the power to
177-exercise any rights of a member.
178-SECTION 4. IC 23-18-6-5 IS AMENDED TO READ AS
179-FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) A person ceases
180-to be a member of a limited liability company upon the occurrence of
181-any of the following events:
182-(1) The person withdraws from the limited liability company as
183-provided in section 6 of this chapter.
184-(2) The person ceases to be a member as provided in section 4(e)
185-or 4.1(e) 4(h) or 4.1(h) of this chapter.
186-(3) The person is removed as a member:
187-(A) in accordance with the operating agreement; or
188-(B) unless otherwise provided in a written operating
189-agreement, by the affirmative vote, approval, or consent of a
190-majority in interest of the members after the member has
191-assigned the member's entire interest in the limited liability
192-company.
193-(4) Unless otherwise provided in a written operating agreement or
194-with the written consent of all other members, in the case of a
195-member who is an individual, the individual's death.
196-(5) Unless otherwise provided in a written operating agreement or
197-with the written consent of all other members, in the case of a
198-member who is acting as a member by virtue of being a trustee of
199-a trust, the termination of the trust, but not merely the substitution
200-of a new trustee.
201-(6) Unless otherwise provided in a written operating agreement or
202-with the written consent of all other members, in the case of a
203-member that is a partnership, limited partnership, or another
204-limited liability company, the dissolution and commencement of
205-winding up of the partnership, limited partnership, or limited
206-liability company.
207-(7) Unless otherwise provided in a written operating agreement or
208-SEA 18 — CC 1 6
209-with the written consent of all other members, in the case of a
210-member that is a corporation, the dissolution of the corporation.
211-(8) Unless otherwise provided in a written operating agreement or
212-with the written consent of all other members, in the case of a
213-member that is an estate, the distribution by the fiduciary of the
214-estate's entire interest in the limited liability company.
215-(b) A written operating agreement may provide for other events that
216-result in a person ceasing to be a member of the limited liability
217-company, including insolvency, bankruptcy, and adjudicated
218-incompetency.
219-SECTION 5. IC 23-18-9-1 IS AMENDED TO READ AS
220-FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Unless otherwise
221-provided in a written operating agreement, a limited liability company
222-existing under this article on or before June 30, 1999, is governed by
223-this section.
224-(b) A limited liability company is dissolved and its affairs must be
225-wound up on the first of the following to occur:
226-(1) At the time or on the occurrence of events specified in writing
227-in the articles of organization or operating agreement.
228-(2) Written consent of all the members.
229-(3) Except as provided in IC 23-18-6-4(c), upon the death of
230-the member of a limited liability company that had one (1)
231-member, an event of dissociation occurs with respect to a
232-member, unless the business of the limited liability company is
233-continued by the consent of all the remaining members not more
234-than ninety (90) days after the occurrence of the event or as
235-otherwise provided in writing in the articles of organization or
236-operating agreement.
237-(4) Entry of a decree of judicial dissolution under section 2 of this
238-chapter.
239-SECTION 6. IC 23-18-9-1.1, AS AMENDED BY P.L.40-2013,
240-SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
241-JULY 1, 2024]: Sec. 1.1. (a) A limited liability company formed under
242-this article after June 30, 1999, is governed by this section.
243-(b) A limited liability company is dissolved and the limited liability
244-company's affairs must be wound up when the first of the following
245-occurs:
246-(1) At the time or on the occurrence of events specified in writing
247-in the articles of organization or operating agreement.
248-(2) Subject to IC 23-18-4-4(a)(4)(A), for a limited liability
249-company:
250-(A) formed under this article after June 30, 2013, the
251-SEA 18 — CC 1 7
252-unanimous consent of the members, unless a written operating
253-agreement provides that dissolution may be authorized by the
254-vote of members holding fewer than all the interests in the
255-limited liability company or holding fewer than all interests in
256-one (1) or more classes of members; or
257-(B) formed under this article after June 30, 1999, and before
258-July 1, 2013, if there is:
259-(i) one (1) class or group of members, written consent of
260-two-thirds (2/3) in interest of the members; or
261-(ii) more than one (1) class or group of members, written
262-consent of two-thirds (2/3) in interest of each class or group
263-of members.
264-(3) Entry of a decree of judicial dissolution under section 2 of this
265-chapter.
266-(c) Except as provided in IC 23-18-6-4.1(c), upon the death of
267-the member of a limited liability company that had one (1)
268-member, a limited liability company is dissolved and the limited
269-liability company's affairs must be wound up if there are no members.
270-However, this subsection does not apply if, under a provision in the
271-operating agreement, not more than ninety (90) days after the
272-occurrence of the event that caused the last remaining member to cease
273-to be a member, either:
274-(1) the personal representative of the last remaining member
275-agrees in writing:
276-(A) to continue the business of the limited liability company;
277-and
278-(B) to the admission of the personal representative or the
279-personal representative's nominee or designee to the limited
280-liability company as a member; or
281-(2) a member is admitted to the limited liability company in the
282-manner provided for in the operating agreement specifically for
283-the admission of a member to the limited liability company after
284-the last remaining member ceases to be a member;
285-effective as of the time of the event that caused the last remaining
286-member to cease to be a member.
287-SECTION 7. IC 29-1-5-8, AS AMENDED BY P.L.136-2018,
61+1 SECTION 1. IC 16-36-7-13, AS ADDED BY P.L.50-2021,
62+2 SECTION 63, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
63+3 JULY 1, 2024]: Sec. 13. As used in this chapter, "health care
64+4 representative" means a competent adult or other person designated
65+5 by a declarant in an advance directive to:
66+6 (1) make health care decisions; and
67+7 (2) receive health information;
68+8 regarding the declarant. The term includes a person who receives and
69+9 holds validly delegated authority from a designated health care
70+10 representative.
71+11 SECTION 2. IC 23-18-6-4, AS AMENDED BY P.L.156-2023,
72+12 SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
73+13 JULY 1, 2024]: Sec. 4. (a) Unless otherwise provided in a written
74+14 operating agreement, a limited liability company existing under this
75+15 article on or before June 30, 1999, is governed by this section.
76+ES 18—LS 6017/DI 149 2
77+1 (b) Except as otherwise provided in a written operating agreement,
78+2 if a limited liability company has at least two (2) members, an assignee
79+3 of an interest may become a member only if the other members
80+4 unanimously consent. If a limited liability company has only one (1)
81+5 member, an assignee of the entire interest may become a member:
82+6 (1) under the terms of an agreement between the assignor and the
83+7 assignee; or
84+8 (2) except as otherwise provided in a written operating agreement
85+9 by a specific reference to this subsection or as otherwise provided
86+10 in an agreement between the assignor and the assignee,
87+11 automatically upon the voluntary assignment by the sole member
88+12 of all the member's interest to a single assignee that the member
89+13 consented to at the time of the assignment and that was not
90+14 affected by foreclosure or other similar legal process.
91+15 The consent of a member may be evidenced in any manner specified
92+16 in writing in an operating agreement, but in the absence of a
93+17 specification, consent must be evidenced by a written instrument, dated
94+18 and signed by the member.
95+19 (c) If:
96+20 (1) a limited liability company has one (1) member;
97+21 (2) the member of the limited liability company dies;
98+22 (3) the deceased member's interest in the limited liability
99+23 company is not registered in beneficiary form under
100+24 IC 32-17-14; and
101+25 (4) the limited liability company does not have a written
102+26 operating agreement that controls or specifies the transfer or
103+27 other disposition of the deceased member's interest;
104+28 the deceased member's interest passes as described in subsection
105+29 (d).
106+30 (d) This subsection applies to the transfer of a deceased
107+31 member's interest under the circumstances described in subsection
108+32 (c). Unless otherwise provided in a written operating agreement or
109+33 a valid disclaimer under IC 32-17.5, the deceased member's
110+34 interest in a limited liability company passes automatically upon
111+35 death to:
112+36 (1) a legatee identified in the deceased member's will admitted
113+37 to probate under IC 29-1-7; or
114+38 (2) the deceased member's heirs under IC 29-1-2-1 if the
115+39 deceased member died intestate.
116+40 A transfer of an interest under this subsection is subject to
117+41 IC 29-1-7-23 and does not affect the enforceability of a timely filed
118+42 claim by a creditor against the estate of the deceased member. A
119+ES 18—LS 6017/DI 149 3
120+1 legatee or an heir is automatically admitted as a member of the
121+2 limited liability company under this subsection.
122+3 (e) If a personal representative is appointed under IC 29-1-10
123+4 for the estate of a deceased member described in subsection (c), the
124+5 personal representative possesses and may exercise all rights and
125+6 powers of the deceased member's interest before the interest of the
126+7 deceased member is distributed to the deceased member's legatees
127+8 or heirs under this section.
128+9 (c) (f) An assignee who becomes a member:
129+10 (1) has, to the extent assigned, the rights and powers and is
130+11 subject to the restrictions and liabilities of a member under the
131+12 articles of organization, any operating agreement, and this article;
132+13 and
133+14 (2) is liable for any obligations of the member's assignor for
134+15 unpaid contributions under IC 23-18-5-1 or for any wrongful
135+16 distributions under IC 23-18-5-7.
136+17 However, the assignee is not obligated for liabilities of which the
137+18 assignee had no knowledge at the time the assignee became a member
138+19 and that could not be ascertained from a written operating agreement.
139+20 (d) (g) Whether or not an assignee of an interest becomes a member,
140+21 the assignor is not released from the assignor's liability to the limited
141+22 liability company for unpaid contributions under IC 23-18-5-1 or for
142+23 any wrongful distributions under IC 23-18-5-7 that are solely a result
143+24 of the assignment.
144+25 (e) (h) Unless otherwise provided in a written operating agreement,
145+26 a member who assigns the member's entire interest in the limited
146+27 liability company ceases to be a member or to have the power to
147+28 exercise any rights of a member when an assignee of the member's
148+29 interest becomes a member with respect to the assigned interest.
149+30 SECTION 3. IC 23-18-6-4.1, AS AMENDED BY P.L.156-2023,
150+31 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
151+32 JULY 1, 2024]: Sec. 4.1. (a) A limited liability company formed under
152+33 this article after June 30, 1999, is governed by this section.
153+34 (b) Except as otherwise provided in a written operating agreement,
154+35 if a limited liability company has at least two (2) members, an assignee
155+36 of an interest may become a member only if the other members
156+37 unanimously consent. If a limited liability company has only one (1)
157+38 member, an assignee of the entire interest may become a member:
158+39 (1) in accordance with the terms of an agreement between the
159+40 assignor and the assignee; or
160+41 (2) except as otherwise provided in a written operating agreement
161+42 by a specific reference to this subsection or as otherwise provided
162+ES 18—LS 6017/DI 149 4
163+1 in an agreement between the assignor and the assignee,
164+2 automatically upon the voluntary assignment by the sole member
165+3 of all of the member's interest to a single assignee that the
166+4 member consented to at the time of the assignment and that was
167+5 not affected by foreclosure or other similar legal process.
168+6 The consent of a member may be evidenced in any manner specified
169+7 in writing in an operating agreement, but in the absence of a
170+8 specification, consent must be evidenced by a written instrument, dated
171+9 and signed by the member.
172+10 (c) If:
173+11 (1) a limited liability company has one (1) member;
174+12 (2) the member of the limited liability company dies;
175+13 (3) the deceased member's interest in the limited liability
176+14 company is not registered in beneficiary form under
177+15 IC 32-17-14; and
178+16 (4) the limited liability company does not have a written
179+17 operating agreement that controls or specifies the transfer or
180+18 other disposition of the deceased member's interest;
181+19 the deceased member's interest passes as described in subsection
182+20 (d).
183+21 (d) This subsection applies to the transfer of a deceased
184+22 member's interest under the circumstances described in subsection
185+23 (c). Unless otherwise provided in a written operating agreement or
186+24 a valid disclaimer under IC 32-17.5, the deceased member's
187+25 interest in a limited liability company passes automatically upon
188+26 death to:
189+27 (1) a legatee identified in the deceased member's will admitted
190+28 to probate under IC 29-1-7; or
191+29 (2) the deceased member's heirs under IC 29-1-2-1 if the
192+30 deceased member died intestate.
193+31 A transfer of an interest under this subsection is subject to
194+32 IC 29-1-7-23 and does not affect the enforceability of a timely filed
195+33 claim by a creditor against the estate of the deceased member. A
196+34 legatee or an heir is automatically admitted as a successor member
197+35 or a member of the limited liability company under this subsection.
198+36 (e) If a personal representative is appointed under IC 29-1-10
199+37 for the estate of a deceased member described in subsection (c), the
200+38 personal representative possesses and may exercise all rights and
201+39 powers of the deceased member's interest before the interest of the
202+40 deceased member is distributed to the deceased member's legatees
203+41 or heirs under this section.
204+42 (c) (f) An assignee who becomes a member:
205+ES 18—LS 6017/DI 149 5
206+1 (1) has, to the extent assigned, the rights and powers and is
207+2 subject to the restrictions and liabilities of a member under the
208+3 articles of organization, any operating agreement, and this article;
209+4 and
210+5 (2) is liable for any obligations of the member's assignor for
211+6 unpaid contributions under IC 23-18-5-1 or for any wrongful
212+7 distributions under IC 23-18-5-7.
213+8 However, the assignee is not obligated for liabilities of which the
214+9 assignee had no knowledge at the time the assignee became a member
215+10 and that could not be ascertained from a written operating agreement.
216+11 (d) (g) Whether or not an assignee of an interest becomes a member,
217+12 the assignor is not released from the assignor's liability to the limited
218+13 liability company for unpaid contributions under IC 23-18-5-1 or for
219+14 any wrongful distributions under IC 23-18-5-7 that are solely a result
220+15 of the assignment.
221+16 (e) (h) Unless otherwise provided in a written operating agreement,
222+17 a member who assigns the member's entire interest in the limited
223+18 liability company ceases to be a member or to have the power to
224+19 exercise any rights of a member.
225+20 SECTION 4. IC 23-18-6-5 IS AMENDED TO READ AS
226+21 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 5. (a) A person ceases
227+22 to be a member of a limited liability company upon the occurrence of
228+23 any of the following events:
229+24 (1) The person withdraws from the limited liability company as
230+25 provided in section 6 of this chapter.
231+26 (2) The person ceases to be a member as provided in section 4(e)
232+27 or 4.1(e) 4(h) or 4.1(h) of this chapter.
233+28 (3) The person is removed as a member:
234+29 (A) in accordance with the operating agreement; or
235+30 (B) unless otherwise provided in a written operating
236+31 agreement, by the affirmative vote, approval, or consent of a
237+32 majority in interest of the members after the member has
238+33 assigned the member's entire interest in the limited liability
239+34 company.
240+35 (4) Unless otherwise provided in a written operating agreement or
241+36 with the written consent of all other members, in the case of a
242+37 member who is an individual, the individual's death.
243+38 (5) Unless otherwise provided in a written operating agreement or
244+39 with the written consent of all other members, in the case of a
245+40 member who is acting as a member by virtue of being a trustee of
246+41 a trust, the termination of the trust, but not merely the substitution
247+42 of a new trustee.
248+ES 18—LS 6017/DI 149 6
249+1 (6) Unless otherwise provided in a written operating agreement or
250+2 with the written consent of all other members, in the case of a
251+3 member that is a partnership, limited partnership, or another
252+4 limited liability company, the dissolution and commencement of
253+5 winding up of the partnership, limited partnership, or limited
254+6 liability company.
255+7 (7) Unless otherwise provided in a written operating agreement or
256+8 with the written consent of all other members, in the case of a
257+9 member that is a corporation, the dissolution of the corporation.
258+10 (8) Unless otherwise provided in a written operating agreement or
259+11 with the written consent of all other members, in the case of a
260+12 member that is an estate, the distribution by the fiduciary of the
261+13 estate's entire interest in the limited liability company.
262+14 (b) A written operating agreement may provide for other events that
263+15 result in a person ceasing to be a member of the limited liability
264+16 company, including insolvency, bankruptcy, and adjudicated
265+17 incompetency.
266+18 SECTION 5. IC 23-18-9-1 IS AMENDED TO READ AS
267+19 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Unless otherwise
268+20 provided in a written operating agreement, a limited liability company
269+21 existing under this article on or before June 30, 1999, is governed by
270+22 this section.
271+23 (b) A limited liability company is dissolved and its affairs must be
272+24 wound up on the first of the following to occur:
273+25 (1) At the time or on the occurrence of events specified in writing
274+26 in the articles of organization or operating agreement.
275+27 (2) Written consent of all the members.
276+28 (3) Except as provided in IC 23-18-6-4(c), upon the death of
277+29 the member of a limited liability company that had one (1)
278+30 member, an event of dissociation occurs with respect to a
279+31 member, unless the business of the limited liability company is
280+32 continued by the consent of all the remaining members not more
281+33 than ninety (90) days after the occurrence of the event or as
282+34 otherwise provided in writing in the articles of organization or
283+35 operating agreement.
284+36 (4) Entry of a decree of judicial dissolution under section 2 of this
285+37 chapter.
286+38 SECTION 6. IC 23-18-9-1.1, AS AMENDED BY P.L.40-2013,
287+39 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
288+40 JULY 1, 2024]: Sec. 1.1. (a) A limited liability company formed under
289+41 this article after June 30, 1999, is governed by this section.
290+42 (b) A limited liability company is dissolved and the limited liability
291+ES 18—LS 6017/DI 149 7
292+1 company's affairs must be wound up when the first of the following
293+2 occurs:
294+3 (1) At the time or on the occurrence of events specified in writing
295+4 in the articles of organization or operating agreement.
296+5 (2) Subject to IC 23-18-4-4(a)(4)(A), for a limited liability
297+6 company:
298+7 (A) formed under this article after June 30, 2013, the
299+8 unanimous consent of the members, unless a written operating
300+9 agreement provides that dissolution may be authorized by the
301+10 vote of members holding fewer than all the interests in the
302+11 limited liability company or holding fewer than all interests in
303+12 one (1) or more classes of members; or
304+13 (B) formed under this article after June 30, 1999, and before
305+14 July 1, 2013, if there is:
306+15 (i) one (1) class or group of members, written consent of
307+16 two-thirds (2/3) in interest of the members; or
308+17 (ii) more than one (1) class or group of members, written
309+18 consent of two-thirds (2/3) in interest of each class or group
310+19 of members.
311+20 (3) Entry of a decree of judicial dissolution under section 2 of this
312+21 chapter.
313+22 (c) Except as provided in IC 23-18-6-4.1(c), upon the death of
314+23 the member of a limited liability company that had one (1)
315+24 member, a limited liability company is dissolved and the limited
316+25 liability company's affairs must be wound up if there are no members.
317+26 However, this subsection does not apply if, under a provision in the
318+27 operating agreement, not more than ninety (90) days after the
319+28 occurrence of the event that caused the last remaining member to cease
320+29 to be a member, either:
321+30 (1) the personal representative of the last remaining member
322+31 agrees in writing:
323+32 (A) to continue the business of the limited liability company;
324+33 and
325+34 (B) to the admission of the personal representative or the
326+35 personal representative's nominee or designee to the limited
327+36 liability company as a member; or
328+37 (2) a member is admitted to the limited liability company in the
329+38 manner provided for in the operating agreement specifically for
330+39 the admission of a member to the limited liability company after
331+40 the last remaining member ceases to be a member;
332+41 effective as of the time of the event that caused the last remaining
333+42 member to cease to be a member.
334+ES 18—LS 6017/DI 149 8
335+1 SECTION 7. IC 29-1-8-4, AS AMENDED BY P.L.162-2022,
336+2 SECTION 9, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
337+3 JULY 1, 2024]: Sec. 4. (a) As used in this section, "fiduciary" means:
338+4 (1) the personal representative of an unsupervised estate; or
339+5 (2) a person appointed by a court under this title to act on behalf
340+6 of the decedent or the decedent's distributees.
341+7 (b) Unless prohibited by order of the court and except for estates
342+8 being administered by supervised personal representatives, a fiduciary
343+9 may close an estate administered under the summary procedures of
344+10 section 3 of this chapter by disbursing and distributing the estate assets
345+11 to the distributees and other persons entitled to those assets, and by
346+12 filing with the court, at any time after disbursement and distribution of
347+13 the estate, a verified statement stating that:
348+14 (1) to the best knowledge of the fiduciary, the value of the gross
349+15 probate estate, less liens and encumbrances, did not exceed the
350+16 sum of:
351+17 (A) twenty-five thousand dollars ($25,000), for the estate of an
352+18 individual who dies before July 1, 2006, fifty thousand dollars
353+19 ($50,000), for the estate of an individual who dies after June
354+20 30, 2006, and before July 1, 2022, and one hundred thousand
355+21 dollars ($100,000), for the estate of an individual who dies
356+22 after June 30, 2022;
357+23 (B) the costs and expenses of administration; and
358+24 (C) reasonable funeral expenses;
359+25 (2) the fiduciary has fully administered the estate by disbursing
360+26 and distributing it to the persons entitled to it; and
361+27 (3) the fiduciary has sent a copy of the closing statement to all
362+28 distributees of the estate and to all known creditors or other
363+29 claimants of whom the fiduciary is aware and has furnished a full
364+30 accounting in writing of the administration to the distributees
365+31 whose interests are affected.
366+32 If the decedent was at least fifty-five (55) years of age at the time
367+33 of death and a notice of estate administration was not served upon
368+34 the unit under IC 29-1-7-7(d), the fiduciary shall send a copy of the
369+35 verified statement under this subsection to the unit by first class
370+36 mail.
371+37 (c) If no actions, claims, objections, or proceedings involving the
372+38 fiduciary are filed in the court within two (2) months after the closing
373+39 statement is filed, the closing statement filed under this section has the
374+40 same effect as one filed under IC 29-1-7.5-4, and the appointment of
375+41 the personal representative or the duties of the fiduciary, as applicable,
376+42 shall terminate.
377+ES 18—LS 6017/DI 149 9
378+1 (d) A copy of any affidavit recorded under section 3(c) of this
379+2 chapter must be attached to the closing statement filed under this
380+3 section.
381+4 SECTION 8. IC 29-1-10-1, AS AMENDED BY P.L.38-2023,
382+5 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
383+6 JULY 1, 2024]: Sec. 1. (a) Domiciliary letters testamentary or
384+7 domiciliary letters of general administration may be granted to one (1)
385+8 or more of the persons mentioned in this subsection, natural or
386+9 corporate, who are not disqualified, in the following order:
387+10 (1) To the executor or executors designated in a will that has been
388+11 admitted to probate.
389+12 (2) To a surviving spouse who is a devisee in a will that has been
390+13 admitted to probate.
391+14 (3) To a devisee in a will that has been admitted to probate.
392+15 (4) To the surviving spouse, or to the person or persons
393+16 nominated by the surviving spouse or to the surviving spouse and
394+17 the person or persons nominated by the surviving spouse.
395+18 (5) To:
396+19 (A) an heir;
397+20 (B) the person or persons nominated by an heir; or
398+21 (C) an heir and the person or persons nominated by an heir.
399+22 (6) If there is not a person listed in subdivisions (1) through (5),
400+23 then to any other qualified person.
401+24 (b) Except as provided in subsection (g), no person is qualified to
402+25 serve as a domiciliary personal representative who is:
403+26 (1) under eighteen (18) years of age;
404+27 (2) incapacitated unless the incapacity is caused only by:
405+28 (A) physical illness;
406+29 (B) physical impairment; or
407+30 (C) physical infirmity;
408+31 (3) a convicted felon, either under the laws of the United States or
409+32 of any state or territory of the United States;
410+33 (4) a resident corporation not authorized to act as a fiduciary in
411+34 this state; or
412+35 (5) a person whom the court finds unsuitable.
413+36 (c) A nonresident individual or corporate fiduciary may qualify and
414+37 serve as a joint personal representative with a resident personal
415+38 representative only by:
416+39 (1) filing with the court that has jurisdiction of the administration
417+40 of the decedent's estate a bond in an amount:
418+41 (A) not less than:
419+42 (i) the probable value of the estate's personal property; plus
420+ES 18—LS 6017/DI 149 10
421+1 (ii) the estimated rents and profits to be derived from the
422+2 property in the estate during the probate period; and
423+3 (B) not greater than the probable gross value of the estate; and
424+4 (2) otherwise meeting the qualifications of subsection (b).
425+5 If the court authorizes the joint personal representative to administer
426+6 the estate without court supervision under IC 29-1-7.5, the court may
427+7 exercise its discretion under IC 29-1-7.5-2.5(c) to increase, decrease,
428+8 or waive the bond that the nonresident joint personal representative
429+9 would otherwise be required to file under this subsection.
430+10 (d) A nonresident individual who otherwise qualifies under
431+11 subsection (b) may qualify to serve as a personal representative in
432+12 Indiana only by filing with the court that has jurisdiction of the
433+13 administration of the decedent's estate:
434+14 (1) notice in writing of the individual's acceptance of the
435+15 appointment as personal representative;
436+16 (2) notice of the appointment of a resident agent to accept service
437+17 of process, notices, and other documents; and
438+18 (3) a bond in an amount:
439+19 (A) not less than:
440+20 (i) the probable value of the estate's personal property; plus
441+21 (ii) the estimated rents and profits to be derived from the
442+22 property in the estate during the probate period; and
443+23 (B) not greater than the probable gross value of the estate.
444+24 If the court authorizes the nonresident personal representative to
445+25 administer the estate without court supervision under IC 29-1-7.5, the
446+26 court may exercise its discretion under IC 29-1-7.5-2.5(c) to increase,
447+27 decrease, or waive the bond that the nonresident personal
448+28 representative would otherwise be required to file under subdivision
449+29 (3).
450+30 (e) If a personal representative becomes a nonresident of this state,
451+31 the representative remains qualified to serve only if the representative
452+32 files with the court that has jurisdiction of the administration of the
453+33 estate a bond in an amount:
454+34 (1) not less than:
455+35 (A) the probable value of the estate's personal property; plus
456+36 (B) the estimated rents and profits to be derived from the
457+37 property in the estate during the probate period; and
458+38 (2) not greater than the probable gross value of the estate.
459+39 If the court previously authorized the personal representative to
460+40 administer the estate without court supervision under IC 29-1-7.5, the
461+41 court may exercise its discretion under IC 29-1-7.5-2.5(c) to increase,
462+42 decrease, or waive the bond that the nonresident personal
463+ES 18—LS 6017/DI 149 11
464+1 representative would otherwise be required to file under this
465+2 subsection.
466+3 (f) A nonresident individual who satisfies the conditions of
467+4 subsection (d) or (e) submits personally to the jurisdiction of the court
468+5 in any proceeding that relates to the estate of the decedent.
469+6 (g) A court may order that a convicted felon may serve as a
470+7 domiciliary personal representative upon consideration of the
471+8 following:
472+9 (1) The amount of time that has elapsed since the person was
473+10 convicted of a felony.
474+11 (2) The nature of the felony conviction.
475+12 (3) Whether the felony conviction is no longer a felony charge
476+13 under current law.
477+14 (4) Whether the felony conviction has been expunged.
478+15 (5) Whether the person's felony conviction was acknowledged
479+16 in the testator's will or in a consent signed by the distributees.
480+17 SECTION 9. IC 29-1-17-11, AS AMENDED BY P.L.41-2012,
481+18 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
482+19 JULY 1, 2024]: Sec. 11. (a) When two (2) or more distributees are
483+20 entitled to distribution of an undivided interest in any real or personal
484+21 property of the estate, distribution shall be made of undivided interests
485+22 in the property unless the personal representative or one (1) or more of
486+23 the distributees petition the court for partition not later than the hearing
487+24 on the petition for final distribution. If a petition is filed, the court, after
488+25 notice is given to all interested persons as the court directs, shall
489+26 proceed in accordance with IC 32-17-4-2.5. With respect to personal
490+27 property, the person who files for partition shall conduct a title search
491+28 with the bureau of motor vehicles (if the personal property is titled) or
492+29 a search for liens under the Uniform Commercial Code (if the personal
493+30 property is not titled). The person shall file a copy of the results of the
494+31 search with the court.
495+32 (b) If:
496+33 (1) a distribution of particular assets of a decedent is to be made
497+34 to two (2) or more distributees that are entitled to receive
498+35 fractional shares in the assets; and
499+36 (2) the decedent's personal representative may, under an
500+37 agreement among the distributees, chooses to distribute the
501+38 particular assets without distributing to each distributee a pro rata
502+39 share of each asset; However, the personal representative shall:
503+40 (1) the personal representative shall distribute to each distributee a
504+41 pro rata share of the total fair market value of all the particular assets
505+42 as of the date of distribution. and
506+ES 18—LS 6017/DI 149 12
507+1 (2) divide the assets in a manner that results in a fair and
508+2 equitable division among the distributees of any capital gain or
509+3 loss on the assets.
510+4 (c) The personal representative is not required to divide and
511+5 distribute particular assets under subsection (b) based upon the
512+6 potential gain or loss that the distributee would realize if the
513+7 distributed assets were sold.
514+8 SECTION 10. IC 29-3-4-1.5, AS ADDED BY P.L.38-2023,
515+9 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
516+10 JULY 1, 2024]: Sec. 1.5. (a) A person may file a verified petition for
517+11 the issuance of a confidential health disclosure order against a
518+12 respondent health care provider that:
519+13 (1) has existing health or medical records in the possession or
520+14 custody of the respondent health care provider that contain
521+15 medical evidence of capacity or incapacity about an alleged
522+16 incapacitated person; or
523+17 (2) may be able to create a report to summarize medical evidence
524+18 of capacity or incapacity about an alleged incapacitated person.
525+19 (b) A verified petition filed under this section must state the
526+20 following:
527+21 (1) The name, age, and residence address of the alleged
528+22 incapacitated person.
529+23 (2) The name and address of any legal counsel that represents the
530+24 alleged incapacitated person, which is known or reasonably
531+25 available to the petitioner.
532+26 (3) The name and last known address of each person described in
533+27 IC 29-3-6-1(a)(4)(A) through IC 29-3-6-1(a)(4)(D).
534+28 (4) Facts sufficient to establish that the following conditions are
535+29 met:
536+30 (A) Any person alleges that the alleged incapacitated person
537+31 requires the appointment of a guardian or limited guardian
538+32 under this article.
539+33 (B) The alleged incapacitated person does not possess medical
540+34 evidence of capacity or incapacity sufficient to establish or
541+35 rebut evidence that may be presented in a hearing for the
542+36 appointment of a guardian under IC 29-3-5-1.
543+37 (C) The alleged incapacitated person cannot provide or has
544+38 refused to provide written authorization under 45 CFR
545+39 164.508 for disclosure of medical evidence of capacity or
546+40 incapacity about the alleged incapacitated person.
547+41 (D) No other person is able and willing to provide a written
548+42 authorization under 45 CFR 164.502(g)(2) for the disclosure
549+ES 18—LS 6017/DI 149 13
550+1 of medical evidence of capacity or incapacity about the alleged
551+2 incapacitated person.
552+3 (E) The respondent health care provider possesses medical
553+4 evidence of capacity or incapacity about the alleged
554+5 incapacitated person and is not willing to disclose the medical
555+6 evidence of capacity or incapacity without a written
556+7 authorization under 45 CFR 164.508 or a court order under 45
557+8 CFR 164.512.
558+9 (5) The name and address of the respondent health care provider.
559+10 (6) A description of:
560+11 (A) the existing health or medical records or the type of
561+12 existing health or medical records in the possession or custody
562+13 of the respondent health care provider that contain medical
563+14 evidence of capacity or incapacity about the alleged
564+15 incapacitated person; or
565+16 (B) a narrative report sought from the respondent health care
566+17 provider that would identify medical evidence of capacity or
567+18 incapacity about the alleged incapacitated person.
568+19 A petition filed under this section is not a confidential case record.
569+20 However, any protected health information contained within the
570+21 petition must be excluded from the publicly filed document and must
571+22 be filed as a confidential document under Rule 5(B) of the Indiana
572+23 Rules on Access to Court Records.
573+24 (c) A verified petition under this section may be combined with any
574+25 other petition for relief filed under this article, including a petition to
575+26 establish a limited or full guardianship.
576+27 (d) If the court receives a verified petition that complies with the
577+28 requirements of subsection (b), the court shall issue an order to set a
578+29 hearing date. In the order setting the hearing date, the court shall do the
579+30 following:
580+31 (1) Appoint an attorney or guardian ad litem to represent the
581+32 alleged incapacitated person if the verified petition does not
582+33 identify an attorney under subsection (b)(2).
583+34 (2) State that any person with an objection to a confidential health
584+35 disclosure order being issued in response to a verified petition
585+36 filed under this section shall file a written objection not later than
586+37 ten (10) days prior to the hearing date set under subsection (e) or
587+38 shall appear in person at the hearing to testify to the objection.
588+39 (e) In its discretion, the court shall set the hearing required under
589+40 subsection (d) on a date that is as soon as practicable.
590+41 (f) Not later than three (3) business days after the court issues an
591+42 order under subsection (d), the petitioner shall serve a copy of the
592+ES 18—LS 6017/DI 149 14
593+1 verified petition and a copy of the order setting a hearing date, by first
594+2 class mail, upon the following:
595+3 (1) The respondent health care provider.
596+4 (2) The alleged incapacitated person or the person having
597+5 physical custody and care of the alleged incapacitated person.
598+6 (3) The alleged incapacitated person's attorney described in
599+7 subsection (b)(2) or the court appointed attorney or guardian ad
600+8 litem appointed under subsection (d)(1).
601+9 (4) Each individual identified in subsection (b)(3) of the verified
602+10 petition.
603+11 (5) Each respondent health care provider identified in subsection
604+12 (b)(5) of the verified petition.
605+13 (6) Any other person to whom the court directs that notice be
606+14 served.
607+15 Any person who is entitled to receive notice under this subsection may
608+16 waive the service of notice in writing.
609+17 (g) At the hearing, the petitioner has the burden of proving, by a
610+18 preponderance of the evidence, that the conditions alleged in
611+19 subsection (b)(4) are met. An individual entitled to receive notice
612+20 under subsection (f) may present evidence at the hearing.
613+21 (h) If the court finds that the petitioner has proven that the
614+22 conditions in subsection (b)(4) apply and it is in the best interest of the
615+23 alleged incapacitated person to issue a confidential health disclosure
616+24 order, it shall grant the verified petition and issue a confidential health
617+25 disclosure order that requires the respondent health care provider to:
618+26 (1) produce a copy of the alleged incapacitated person's medical
619+27 records that contain medical evidence concerning the capacity or
620+28 incapacity of the person; or
621+29 (2) prepare a written narrative report for the court with a
622+30 professional assessment of the capacity or incapacity of the
623+31 alleged incapacitated person to make personal, financial, and
624+32 health care decisions without substantial assistance and the
625+33 suitability of less restrictive alternatives to a guardianship.
626+34 (i) A confidential health disclosure order issued by a court under
627+35 this section is intended to comply with the standard in 45 CFR
628+36 164.512(e) for disclosure of protected health information in judicial
629+37 proceedings.
630+38 (j) The respondent health care provider shall comply with the
631+39 confidential health disclosure order and transmit the medical evidence
632+40 of capacity or incapacity of the person described in subsection (h) to
633+41 the court. Upon receipt of the respondent health care provider's
634+42 response, the court shall:
635+ES 18—LS 6017/DI 149 15
636+1 (1) serve a copy of the medical records or medical report
637+2 produced by the respondent health care provider to the alleged
638+3 incapacitated person and the alleged incapacitated person's
639+4 attorney or guardian ad litem, not more than five (5) days after
640+5 receipt of the records; and
641+6 (2) determine, in the court's discretion, whether it is in the best
642+7 interest of the alleged incapacitated person to disclose all or part
643+8 of the medical records or medical report produced by the
644+9 respondent health care provider to any other individual identified
645+10 in the verified petition under subsection (b)(3).
646+11 To make a determination under subdivision (2) concerning whether the
647+12 medical evidence of capacity or incapacity should be disclosed to any
648+13 other individual, the court shall consider all material facts and
649+14 circumstances stated in the filed pleadings and in any hearing record;
650+15 medical evidence that contains a specific diagnosis of functional
651+16 impairment of the alleged incapacitated person; and the likelihood that
652+17 a limited guardianship or full guardianship may be warranted for the
653+18 alleged incapacitated person in the current proceeding or a future
654+19 proceeding under this article.
655+20 (k) Unless otherwise ordered by the court, the petitioner shall bear
656+21 the costs and expenses incurred by the respondent health care provider
657+22 to comply with the confidential health disclosure order.
658+23 (l) The record of:
659+24 (1) any court hearing held under this section;
660+25 (2) all exhibits entered during a hearing;
661+26 (3) all records or reports produced by a respondent health care
662+27 provider in response to a confidential health disclosure order; and
663+28 (4) all written objections filed or entered as evidence in a
664+29 proceeding under this section;
665+30 must be filed as a nonpublic document under Rule 5 of the Indiana
666+31 Rules on Access to Court Records.
667+32 (m) Once any action filed under this article concerning the alleged
668+33 incapacitated person has been fully adjudicated, every individual who
669+34 received any records in the course of those proceedings shall destroy
670+35 all documents that contain medical evidence of capacity or incapacity
671+36 about the individual alleged to be incapacitated.
672+37 SECTION 11. IC 30-4-1.5-12, AS ADDED BY P.L.40-2018,
673+38 SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
674+39 JULY 1, 2024]: Sec. 12. Any interested person who petitions or
675+40 otherwise seeks to docket files a proceeding under this article
676+41 regarding an electronic trust instrument under IC 30-4-6 may file with
677+42 the clerk of the court a complete converted copy of the electronic trust
678+ES 18—LS 6017/DI 149 16
679+1 instrument with the clerk of the court under IC 30-4-6.
680+2 SECTION 12. IC 30-4-3-3, AS AMENDED BY P.L.137-2016,
681+3 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
682+4 JULY 1, 2024]: Sec. 3. (a) Except as provided in the terms of the trust
683+5 and subject to subsection (c), a trustee has the power to perform
684+6 without court authorization, except as provided in sections 4(b) and
685+7 5(a) of this chapter, every act necessary or appropriate for the purposes
686+8 of the trust including, by way of illustration and not of limitation, the
687+9 following powers:
688+10 (1) The power to:
689+11 (A) deal with the trust estate;
690+12 (B) buy, sell, or exchange and convey or transfer all property
691+13 (real, personal, or mixed) for cash or on credit and at public or
692+14 private sale with or without notice; and
693+15 (C) invest and reinvest the trust estate.
694+16 (2) The power to receive additions to the assets of the trust.
695+17 (3) The power to acquire an undivided interest in a trust asset in
696+18 which the trustee, in any trust capacity, holds an undivided
697+19 interest.
698+20 (4) The power to manage real property in every way, including:
699+21 (A) the adjusting of boundaries;
700+22 (B) erecting, altering, or demolishing buildings;
701+23 (C) dedicating of streets, alleys, or other public uses;
702+24 (D) subdividing;
703+25 (E) developing;
704+26 (F) obtaining vacation of plats;
705+27 (G) granting of easements and rights-of-way;
706+28 (H) partitioning;
707+29 (I) entering into party wall agreements; and
708+30 (J) obtaining title insurance for trust property.
709+31 (5) The power to:
710+32 (A) grant options concerning disposition of trust property,
711+33 including the sale of covered security options; and
712+34 (B) take options for acquisition of trust property, including the
713+35 purchase back of previously sold covered security options.
714+36 (6) The power to enter into a lease as lessor or lessee, with or
715+37 without option to renew.
716+38 (7) The power to enter into arrangements for exploration and
717+39 removal of minerals or other natural resources and enter into a
718+40 pooling or unitization agreement.
719+41 (8) The power to continue the operation or management of any
720+42 business or other enterprise placed in trust.
721+ES 18—LS 6017/DI 149 17
722+1 (9) The power to:
723+2 (A) borrow money, to be repaid from trust property or
724+3 otherwise; and
725+4 (B) encumber, mortgage, pledge, or grant a security interest in
726+5 trust property in connection with the exercise of any power.
727+6 (10) The power to:
728+7 (A) advance money for the benefit of the trust estate and for all
729+8 expenses or losses sustained in the administration of the trust;
730+9 and
731+10 (B) collect any money advanced, without interest or with
732+11 interest, at no more than the lowest rate prevailing when
733+12 advanced.
734+13 (11) The power to prosecute or defend actions, claims, or
735+14 proceedings for the protection of:
736+15 (A) trust property; and
737+16 (B) the trustee in the performance of the trustee's duties.
738+17 (12) The power to:
739+18 (A) pay or contest any claim;
740+19 (B) settle a claim by or against the trust by compromise or
741+20 arbitration; and
742+21 (C) abandon or release, totally or partially, any claim
743+22 belonging to the trust.
744+23 (13) The power to insure the:
745+24 (A) trust estate against damage or loss; and
746+25 (B) trustee against liability with respect to third persons.
747+26 (14) The power to pay taxes, assessments, and other expenses
748+27 incurred in the:
749+28 (A) acquisition, retention, and maintenance of the trust
750+29 property; and
751+30 (B) administration of the trust.
752+31 (15) The power to:
753+32 (A) vote securities, in person or by a general or special proxy;
754+33 (B) hold the securities in the name of a nominee if the trustee
755+34 is a corporate trustee; and
756+35 (C) effect or approve, and deposit securities in connection
757+36 with, any change in the form of the corporation, including:
758+37 (i) dissolution;
759+38 (ii) liquidation;
760+39 (iii) reorganization;
761+40 (iv) acquisition; and
762+41 (v) merger.
763+42 (16) The power to employ persons, including:
764+ES 18—LS 6017/DI 149 18
765+1 (A) attorneys;
766+2 (B) accountants;
767+3 (C) investment advisors; and
768+4 (D) agents;
769+5 to advise and assist the trustee in the performance of the trustee's
770+6 duties.
771+7 (17) The power to effect distribution of property in cash, in kind,
772+8 or partly in cash and partly in kind, in divided or undivided
773+9 interests.
774+10 (18) The power to execute and deliver all instruments necessary
775+11 or appropriate to accomplishing or facilitating the exercise of the
776+12 trustee's powers.
777+13 (19) With respect to an interest in a proprietorship, partnership,
778+14 limited liability company, business trust, corporation, or another
779+15 form of business or enterprise, the power to:
780+16 (A) continue the business or enterprise; and
781+17 (B) take any action that may be taken by shareholders,
782+18 members, or property owners, including:
783+19 (i) merging;
784+20 (ii) dissolving; or
785+21 (iii) changing the form of business organization or
786+22 contributing additional capital.
787+23 (20) With respect to possible liability for violation of
788+24 environmental law, the power to:
789+25 (A) inspect or investigate property:
790+26 (i) the trustee holds or has been asked to hold; or
791+27 (ii) owned or operated by an organization in which the
792+28 trustee holds an interest or has been asked to hold an
793+29 interest;
794+30 to determine the application of environmental law with respect
795+31 to the property;
796+32 (B) take action to prevent, abate, or remedy an actual or
797+33 potential violation of an environmental law affecting property
798+34 held directly or indirectly by the trustee before or after the
799+35 assertion of a claim or the initiation of governmental
800+36 enforcement;
801+37 (C) decline to accept property into the trust or disclaim any
802+38 power with respect to property that is or may be burdened with
803+39 liability for violation of environmental law;
804+40 (D) compromise claims against the trust that may be asserted
805+41 for an alleged violation of environmental law; and
806+42 (E) pay the expense of any inspection, review, abatement, or
807+ES 18—LS 6017/DI 149 19
808+1 remedial action to comply with environmental law.
809+2 (21) The power to exercise elections with respect to federal, state,
810+3 and local taxes.
811+4 (22) The power to select a mode of payment under any employee
812+5 benefit plan or retirement plan, annuity, or life insurance payable
813+6 to the trustee and exercise rights under the plan, annuity, or
814+7 insurance, including the right to:
815+8 (A) indemnification:
816+9 (i) for expenses; and
817+10 (ii) against liabilities; and
818+11 (B) take appropriate action to collect the proceeds.
819+12 (23) The power to make loans out of trust property, including
820+13 loans to a beneficiary on terms and conditions the trustee
821+14 determines fair and reasonable under the circumstances. The
822+15 trustee has a lien on future distributions for repayment of the
823+16 loans.
824+17 (24) The power to pledge trust property to guarantee loans made
825+18 by others to the beneficiary on terms and conditions the trustee
826+19 considers to be fair and reasonable under the circumstances. The
827+20 trustee has a lien on future distributions for repayment of the
828+21 loans.
829+22 (25) The power to:
830+23 (A) appoint a trustee to act in another jurisdiction with respect
831+24 to trust property located in the other jurisdiction;
832+25 (B) confer on the appointed trustee all the appointing trustee's
833+26 powers and duties;
834+27 (C) require the appointed trustee to furnish security; and
835+28 (D) remove the appointed trustee.
836+29 (26) With regard to a beneficiary who is under a legal disability
837+30 or whom the trustee reasonably believes is incapacitated, the
838+31 power to pay an amount distributable to the beneficiary by:
839+32 (A) paying the amount directly to the beneficiary;
840+33 (B) applying the amount for the beneficiary's benefit;
841+34 (C) paying the amount to the beneficiary's guardian;
842+35 (D) paying the amount to the beneficiary's custodian under
843+36 IC 30-2-8.5 to create a custodianship or custodial trust;
844+37 (E) paying the amount to an adult relative or another person
845+38 having legal or physical care or custody of the beneficiary to
846+39 be expended on the beneficiary's behalf, if the trustee does not
847+40 know of a guardian, custodian, or custodial trustee; or
848+41 (F) managing the amount as a separate fund on the
849+42 beneficiary's behalf, subject to the beneficiary's continuing
850+ES 18—LS 6017/DI 149 20
851+1 right to withdraw the distribution.
852+2 (27) The power to:
853+3 (A) combine at least two (2) trusts into one (1) trust; or
854+4 (B) divide one (1) trust into at least two (2) trusts;
855+5 after notice to the qualified beneficiaries, if the result does not
856+6 impair the rights of any beneficiary or adversely affect
857+7 achievement of the purposes of the trust.
858+8 (b) Any act under subsection (a)(4), an option under subsection
859+9 (a)(5), a lease under subsection (a)(6), an arrangement under
860+10 subsection (a)(7), and an encumbrance, mortgage, pledge, or security
861+11 interest under subsection (a)(9) may be for a term either within or
862+12 extending beyond the term of the trust.
863+13 (c) In acquiring, investing, reinvesting, exchanging, retaining,
864+14 selling, and managing property for any trust, the trustee thereof shall
865+15 exercise the judgment and care required by IC 30-4-3.5. Within the
866+16 limitations of the foregoing standard, the trustee is authorized to
867+17 acquire and retain every kind of property, real, personal, or mixed, and
868+18 every kind of investment, including specifically, but without in any way
869+19 limiting the generality of the foregoing, bonds, debentures, and other
870+20 corporate obligations, stocks, preferred or common, and real estate
871+21 mortgages, which persons of prudence, discretion, and intelligence
872+22 acquire or retain for their own account, and within the limitations of the
873+23 foregoing standard, the trustee is authorized to retain property properly
874+24 acquired, without limitation as to time and without regard to its
875+25 suitability for original purchase. Within the limitations of the foregoing
876+26 standard, the trustee is authorized to sell covered security options and
877+27 to purchase back previously sold covered security options.
878+28 (d) If a distribution of particular trust assets is to be made to two (2)
879+29 or more beneficiaries entitled to receive fractional shares in those
880+30 assets, the trustee:
881+31 (1) may distribute the particular assets without distributing to
882+32 each beneficiary a pro rata share of each asset; However, the
883+33 trustee shall:
884+34 (1) (2) shall distribute to each beneficiary a pro rata share of the
885+35 total fair market value of all of the particular assets as of the date
886+36 of distribution; and
887+37 (2) cause the distribution to result in a fair and equitable division
888+38 among the beneficiaries of capital gain or loss on the assets.
889+39 (3) is not required to allocate and distribute particular assets
890+40 based upon the potential gain or loss that the beneficiaries
891+41 would realize if the particular assets were sold.
892+42 (e) If the trust is terminated or partially terminated, the trustee may
893+ES 18—LS 6017/DI 149 21
894+1 send to the beneficiaries a proposal for distribution. If the proposal for
895+2 distribution informs the beneficiary that the beneficiary:
896+3 (1) has a right to object to the proposed distribution; and
897+4 (2) must object not later than thirty (30) days after the proposal
898+5 for distribution was sent;
899+6 the right of the beneficiary to object to the proposed distribution
900+7 terminates if the beneficiary fails to notify the trustee of an objection
901+8 within the time limit set forth in subdivision (2).
902+9 (f) When any real or personal property subject to a lien (as defined
903+10 by IC 29-1-17-9(a)) is specifically distributable, the distributee shall
904+11 take the property subject to the lien unless the terms of the trust provide
905+12 expressly or by necessary implication that the lien be otherwise paid.
906+13 If:
907+14 (1) an event occurs that makes the property distributable; and
908+15 (2) the holder of a lien on the property receives payment on a
909+16 claim based upon the obligation secured by the lien;
910+17 the property subject to the lien shall be charged with the reimbursement
911+18 to the trust of the amount of the payment for the benefit of the
912+19 beneficiaries entitled to the distribution, unless the terms of the trust
913+20 provide expressly or by necessary implication that the payment be
914+21 charged against the residue of the trust estate.
915+22 (g) For purposes of subsection (f), a general directive or authority
916+23 in the trust for payment of debts does not imply an intent that the
917+24 distribution of property subject to a lien be made free from the lien.
918+25 (h) IC 32-39-2-8, IC 32-39-2-9, and IC 32-39-2-10 apply to the right
919+26 of a trustee acting under a trust to access:
920+27 (1) the content of an electronic communication (as defined in
921+28 IC 32-39-1-6);
922+29 (2) a catalogue of electronic communications (as defined in
923+30 IC 32-39-1-5); or
924+31 (3) any other digital asset (as defined in IC 32-39-1-10).
925+32 SECTION 13. IC 30-4-3-6, AS AMENDED BY P.L.56-2020,
926+33 SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
927+34 JULY 1, 2024]: Sec. 6. (a) The trustee has a duty to administer a trust
928+35 according to the terms of the trust.
929+36 (b) Unless the terms of the trust or the provisions of section 1.3 of
930+37 this chapter provide otherwise, the trustee also has a duty to do the
931+38 following:
932+39 (1) Administer the trust in a manner consistent with IC 30-4-3.5.
933+40 (2) Take possession of and maintain control over the trust
934+41 property.
935+42 (3) Preserve the trust property.
936+ES 18—LS 6017/DI 149 22
937+1 (4) Make the trust property productive for both the income and
938+2 remainder beneficiary. As used in this subdivision, "productive"
939+3 includes the production of income or investment for potential
940+4 appreciation.
941+5 (5) Keep the trust property separate from the trustee's individual
942+6 property and separate from or clearly identifiable from property
943+7 subject to another trust.
944+8 (6) Maintain clear and accurate accounts with respect to the trust
945+9 estate.
946+10 (7) Except as provided in subsection (c), keep the following
947+11 beneficiaries reasonably informed about the administration of the
948+12 trust and of the material facts necessary for the beneficiaries to
949+13 protect their interests:
950+14 (A) A current income beneficiary.
951+15 (B) A beneficiary who will become an income beneficiary
952+16 upon the expiration of the term of the current income
953+17 beneficiary, if the trust has become irrevocable by:
954+18 (i) the terms of the trust instrument; or
955+19 (ii) the death of the settlor.
956+20 A trustee satisfies the requirements of this subdivision by
957+21 providing a beneficiary described in clause (A) or (B), upon the
958+22 beneficiary's written request, access to the trust's accounting and
959+23 financial records concerning the administration of trust property
960+24 and the administration of the trust.
961+25 (8) Upon:
962+26 (A) the trust becoming irrevocable:
963+27 (i) by the terms of the trust instrument; or
964+28 (ii) by the death of the settlor; and
965+29 (B) the written request of an income beneficiary or
966+30 remainderman;
967+31 promptly provide a copy of the complete trust instrument to the
968+32 income beneficiary or remainderman. This subdivision does not
969+33 prohibit the terms of the trust from requiring the trustee to
970+34 separately provide each beneficiary only the portions of the trust
971+35 instrument that describe or pertain to that beneficiary's interest in
972+36 the trust and the administrative provisions of the trust instrument
973+37 that pertain to all beneficiaries of the trust.
974+38 (9) Take whatever action is reasonable to realize on claims
975+39 constituting part of the trust property.
976+40 (10) Defend actions involving the trust estate.
977+41 (11) Supervise any person to whom authority has been delegated.
978+42 (12) Determine the trust beneficiaries by acting on information:
979+ES 18—LS 6017/DI 149 23
980+1 (A) the trustee, by reasonable inquiry, considers reliable; and
981+2 (B) with respect to heirship, relationship, survivorship, or any
982+3 other issue relative to determining a trust beneficiary.
983+4 (c) The terms of a trust may expand, restrict, eliminate, or otherwise
984+5 vary the right of a beneficiary to be informed of the beneficiary's
985+6 interest in a trust for a period of time, including a period of time related
986+7 to:
987+8 (1) the age of the beneficiary;
988+9 (2) the lifetime of a settlor or the spouse of a settlor;
989+10 (3) a term of years or a period of time ending on a specific date;
990+11 or
991+12 (4) a specific event that is certain to occur.
992+13 (d) During any period of time that the trust instrument restricts or
993+14 eliminates the right of a beneficiary to be informed of the beneficiary's
994+15 interest in a trust, a designated representative for the beneficiary:
995+16 (1) shall represent that beneficiary and bind that beneficiary's
996+17 interests for purposes of any judiciary judicial proceeding or
997+18 nonjudicial matter involving the trust unless the court finds, after
998+19 a hearing upon notice, that a conflict of interest exists between the
999+20 beneficiary and the designated representative;
1000+21 (2) has the authority to initiate or defend and participate in any
1001+22 proceeding relating to the trust under this article or under IC 30-2
1002+23 on behalf of the beneficiary; and
1003+24 (3) shall not disclose to the beneficiary the information provided
1004+25 by the trustee unless the court orders disclosure or the trustee
1005+26 agrees to the disclosure.
1006+27 An alleged conflict of interest between a beneficiary and the
1007+28 beneficiary's designated representative may be asserted to the court by
1008+29 the beneficiary whose right to be informed of the beneficiary's interest
1009+30 in a trust is restricted or eliminated in the trust instrument or by any
1010+31 other person authorized to represent and bind that beneficiary's interest
1011+32 under IC 30-4-6-10.5.
1012+33 (e) If:
1013+34 (1) a beneficiary is an adult and has not been adjudicated to be an
1014+35 incapacitated person;
1015+36 (2) the trust instrument restricts or eliminates the right of the
1016+37 beneficiary to be informed of the beneficiary's interest in a trust;
1017+38 and
1018+39 (3) the beneficiary discovers material information about the
1019+40 beneficiary's interest in the trust from sources other than the
1020+41 trustee;
1021+42 subsections (c) and (d) do not prohibit the beneficiary from demanding
1022+ES 18—LS 6017/DI 149 24
1023+1 or petitioning for an accounting or statement regarding the trust under
1024+2 IC 30-4-5-12(c), from receiving a copy of all relevant portions of the
1025+3 trust instrument, or from demanding and receiving, under subsection
1026+4 (b)(7), other information about the trust and its administration that is
1027+5 consistent with the content and scope of the information that the
1028+6 beneficiary received from sources other than the trustee. The
1029+7 beneficiary may also initiate and participate in any proceeding against
1030+8 or with the trustee under this chapter.
1031+9 SECTION 14. IC 30-4-7-7 IS AMENDED TO READ AS
1032+10 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. After a compromise
1033+11 is executed, an interested person may docket the trust and submit the
1034+12 following documents to the court for the court's approval:
1035+13 (1) The agreement executed under section 6 of this chapter.
1036+14 (2) A copy of the trust instrument filed under IC 30-4-6.
1037+15 (3) Any other relevant documents.
1038+16 SECTION 15. IC 30-5-3-3 IS AMENDED TO READ AS
1039+17 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Except as
1040+18 provided in subsection (b), an attorney in fact may act under a power
1041+19 of attorney, including executing an instrument on the principal's
1042+20 behalf under IC 30-5-8-8, without recording the power of attorney
1043+21 with the county recorder.
1044+22 (b) An attorney in fact shall record the power of attorney authorizing
1045+23 the execution of a document that must be recorded before presenting
1046+24 the document for recording.
1047+25 (c) A county recorder may not accept a document for recording if
1048+26 the document:
1049+27 (1) was executed; and
1050+28 (2) is presented;
1051+29 by an attorney in fact whose power of attorney is unrecorded.
1052+30 (d) Except as provided in subsection (e), a document creating a
1053+31 power of attorney must comply with recording requirements, including
1054+32 notary and preparation statements, to be recorded under this section.
1055+33 (e) An original document that created a power of attorney or a
1056+34 copy of the document that created the power of attorney may be
1057+35 recorded under this section if:
1058+36 (1) the original document was executed by the principal in
1059+37 accordance with IC 30-5-4-1(a)(4)(B) or IC 30-5-11-4(a)(2);
1060+38 and
1061+39 (2) a proof (as defined in IC 32-21-2-1.7) that:
1062+40 (A) is signed by at least one (1) of the attesting witnesses;
1063+41 and
1064+42 (B) complies with IC 33-42;
1065+ES 18—LS 6017/DI 149 25
1066+1 is attached to the original document or the copy.
1067+2 (e) (f) A document that is presented by an attorney in fact for
1068+3 recording must reference the book and page or instrument number
1069+4 where the instrument creating the power of attorney is recorded before
1070+5 the document may be presented by the attorney in fact.
1071+6 SECTION 16. IC 30-5-8-8 IS ADDED TO THE INDIANA CODE
1072+7 AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1073+8 1, 2024]: Sec. 8. (a) This section applies to an instrument executed
1074+9 under this article by an attorney in fact on a principal's behalf.
1075+10 (b) As used in this section, "agent" has the same meaning as
1076+11 "attorney in fact" as defined in IC 30-5-2-2.
1077+12 (c) A principal's power of attorney may authorize an attorney
1078+13 in fact to execute an instrument on the principal's behalf if a
1079+14 statement appears:
1080+15 (1) above;
1081+16 (2) beside; or
1082+17 (3) below;
1083+18 the attorney in fact's signature.
1084+19 (d) A statement under subsection (c) must:
1085+20 (1) identify the principal; and
1086+21 (2) indicate that the attorney in fact is acting as the principal's
1087+22 agent under the power of attorney.
1088+23 (e) Any of the following example signature formats comply with
1089+24 this section and indicate that the attorney in fact is acting as the
1090+25 principal's agent under the power of attorney:
1091+26 (1) Attorney in fact's signature
1092+27 (Principal's name) by (attorney in fact's name), agent
1093+28 (2) Principal's signature signed by the attorney in fact
1094+29 (Principal's name) by (attorney in fact's name), POA
1095+30 (3) Attorney in fact's signature
1096+31 (Principal's name) by (attorney in fact's name), AIF
1097+32 (4) Principal's printed name
1098+33 Attorney in fact's signature
1099+34 By: (Attorney in fact's name), as attorney in fact
1100+35 (5) Principal's printed name
1101+36 Attorney in fact's signature
1102+37 By: (Attorney in fact's name), agent
1103+38 (6) Principal's printed name
1104+39 Attorney in fact's signature
1105+40 By: (Attorney in fact's name), POA
1106+41 (7) Principal's printed name
1107+42 Attorney in fact's signature
1108+ES 18—LS 6017/DI 149 26
1109+1 By: (Attorney in fact's name), AIF
1110+2 The examples listed in this subsection are not an exhaustive list.
1111+3 (f) If an attorney in fact executes a deed or other instrument
1112+4 that must be recorded in the office of a county recorder, the
1113+5 instrument may incorporate by reference part or all of the
1114+6 principal's power of attorney that was previously recorded under
1115+7 IC 30-5-3-3.
1116+8 SECTION 17. IC 32-17-14-11, AS AMENDED BY P.L.36-2011,
1117+9 SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1118+10 JULY 1, 2024]: Sec. 11. (a) A transfer on death deed transfers the
1119+11 interest provided to the beneficiary if the transfer on death deed is:
1120+12 (1) executed by the owner or owner's legal representative; and
1121+13 (2) recorded with the recorder of deeds in the county in which the
1122+14 real property is situated before the death of the owner.
1123+15 (b) A transfer on death deed is void if it is not recorded with the
1124+16 recorder of deeds in the county in which the real property is situated
1125+17 before the death of the owner.
1126+18 (c) A transfer on death deed is not required to be supported by
1127+19 consideration or delivered to the grantee beneficiary.
1128+20 (d) A transfer on death deed may be used to transfer an interest in
1129+21 real property to either a revocable or an irrevocable trust.
1130+22 (e) If the owner records a transfer on death deed, the effect of the
1131+23 recording the transfer on death deed is determined as follows:
1132+24 (1) If the owner's interest in the real property is as a tenant by the
1133+25 entirety, the conveyance is inoperable and void unless the other
1134+26 spouse joins in the conveyance.
1135+27 (2) If the owner's interest in the real property is as a joint tenant
1136+28 with rights of survivorship, the conveyance severs the joint
1137+29 tenancy and the cotenancy becomes a tenancy in common.
1138+30 (3) If the owner's interest in the real property is as a joint tenant
1139+31 with rights of survivorship and the property is subject to a
1140+32 beneficiary designation, a conveyance of any joint owner's interest
1141+33 has no effect on the original beneficiary designation for the
1142+34 nonsevering joint tenant.
1143+35 (4) If the owner's interest is as a tenant in common, the owner's
1144+36 interest passes to the beneficiary as a transfer on death transfer.
1145+37 (5) If the owner's interest is a life estate determined by the owner's
1146+38 life, the conveyance is inoperable and void.
1147+39 (6) If the owner's interest is any other interest, the interest passes
1148+40 in accordance with this chapter and the terms and conditions of
1149+41 the conveyance establishing the interest. If a conflict exists
1150+42 between the conveyance establishing the interest and this chapter,
1151+ES 18—LS 6017/DI 149 27
1152+1 the terms and conditions of the conveyance establishing the
1153+2 interest prevail.
1154+3 (f) A beneficiary designation in a transfer on death deed may be
1155+4 worded in substance as "(insert owner's name) conveys and warrants
1156+5 (or quitclaims) to (insert owner's name), TOD to (insert beneficiary's
1157+6 name)". This example is not intended to be exhaustive.
1158+7 (g) A transfer on death deed using the phrase "pay on death to" or
1159+8 the abbreviation "POD" may not be construed to require the liquidation
1160+9 of the real property being transferred.
1161+10 (h) This section does not preclude other methods of conveying real
1162+11 property that are permitted by law and have the effect of postponing
1163+12 enjoyment of an interest in real property until after the death of the
1164+13 owner. This section applies only to transfer on death deeds and does
1165+14 not invalidate any deed that is otherwise effective by law to convey title
1166+15 to the interest and estates provided in the deed.
1167+16 (i) The endorsement of the county auditor under IC 36-2-11-14 and
1168+17 IC 36-2-9-18 is not necessary to record a transfer on death deed under
1169+18 this section.
1170+19 SECTION 18. IC 32-17-14-13, AS ADDED BY P.L.143-2009,
1171+20 SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1172+21 JULY 1, 2024]: Sec. 13. (a) A transferor An owner of property, with
1173+22 or without consideration, may execute a written instrument directly
1174+23 transferring the property to one (1) or more individuals as a transferee
1175+24 grantee to hold as owner in beneficiary form. Any grantee may be an
1176+25 individual different from or in addition to the owner who executes
1177+26 the instrument.
1178+27 (b) A transferee grantee under an instrument described in
1179+28 subsection (a) is considered the owner of the property for all purposes
1180+29 and has all the rights to the property provided by law to the owner of
1181+30 the property, including the right to revoke or change the beneficiary
1182+31 designation.
1183+32 (c) A direct transfer of property to a transferee grantee to hold as
1184+33 owner in beneficiary form is effective when the written instrument
1185+34 perfecting the transfer becomes effective to make the transferee
1186+35 grantee the owner.
1187+36 (d) A beneficiary designation in an instrument described in
1188+37 subsection (a) may be worded in substance as "(insert owner's
1189+38 name) conveys and warrants (or quitclaims) to (insert grantee's
1190+39 name(s)), TOD to (insert beneficiary's name)". This example is not
1191+40 intended to be exhaustive.
1192+41 (e) A beneficiary designation in an instrument described in
1193+42 subsection (a) is void if the instrument:
1194+ES 18—LS 6017/DI 149 28
1195+1 (1) conveys real property; and
1196+2 (2) is not recorded with the recorder of deeds in the county in
1197+3 which the real property is situated before the grantee's death.
1198+4 (f) An instrument described in subsection (a) is effective to
1199+5 convey title to the grantee regardless of whether a beneficiary
1200+6 designation is void under subsection (e).
1201+7 (g) If an instrument described in subsection (a) conveys real
1202+8 property, the endorsement of the county auditor under
1203+9 IC 36-2-11-14 and IC 36-2-9-18 is necessary to record the
1204+10 instrument.
1205+11 SECTION 19. IC 32-21-1-14, AS AMENDED BY P.L.185-2021,
1206+12 SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1207+13 JULY 1, 2024]: Sec. 14. A conveyance of land by an attorney in fact
1208+14 (as defined in IC 30-5-2-2) under IC 30-5-3-3 is not good effective
1209+15 unless the attorney in fact is empowered by to make the conveyance
1210+16 under a power of attorney (as defined in IC 30-5-2-7) that:
1211+17 (1) is executed or signed by the principal (as defined in
1212+18 IC 30-5-2-8); and
1213+19 (2) has an acknowledgment (as defined in IC 33-42-0.5-2) or a
1214+20 proof (as defined in and permitted under IC 32-21-2).
1215+21 SECTION 20. IC 32-21-2-16 IS ADDED TO THE INDIANA
1216+22 CODE AS A NEW SECTION TO READ AS FOLLOWS
1217+23 [EFFECTIVE JULY 1, 2024]: Sec. 16. (a) A county recorder shall
1218+24 include a cross-reference concerning a previously recorded
1219+25 document if:
1220+26 (1) the person presenting the document for recording has
1221+27 made a request to the county recorder for a cross-reference
1222+28 between the document being recorded and a previously
1223+29 recorded document; and
1224+30 (2) the front page of the document to be recorded contains a
1225+31 cross-reference to a previously recorded document.
1226+32 (b) The requirements of subsection (a) do not apply to the
1227+33 following:
1228+34 (1) A reference required in an affidavit under IC 29-1-7-23 to
1229+35 a previously recorded deed or other instrument.
1230+36 (2) A reference required in a document under IC 30-5-3-3 to
1231+37 a previously recorded power of attorney.
1232+38 (3) A reference required in an affidavit under IC 32-17-14-26
1233+39 to a previously recorded transfer on death deed.
1234+40 (4) A reference required in an easement under IC 32-23-2-5
1235+41 to a recorded plat or a recorded deed of record.
1236+42 (5) A reference required in an affidavit of service of notice
1237+ES 18—LS 6017/DI 149 29
1238+1 under IC 32-28-13-7 to a statement of intention to hold a
1239+2 common law lien.
1240+3 (6) A reference required in an affidavit of service of notice
1241+4 under IC 32-28-14-9 to a homeowners association lien.
1242+5 (7) A reference required in a document under a statute or
1243+6 county ordinance to a previously recorded document.
1244+7 SECTION 21. IC 36-2-9-18, AS AMENDED BY P.L.26-2022,
1245+8 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1246+9 JULY 1, 2024]: Sec. 18. (a) Before the auditor makes the endorsement
1247+10 required by IC 36-2-11-14, the auditor may require that a tax
1248+11 identification number identifying the affected real property be placed
1249+12 on an instrument that conveys, creates, encumbers, assigns, or
1250+13 otherwise disposes of an interest in or a lien on real property. The tax
1251+14 identification number may be established by the auditor with the
1252+15 approval of the state board of accounts. If the tax identification number
1253+16 is affixed to the instrument or if a tax identification number is not
1254+17 required, the auditor shall make the proper endorsement on demand.
1255+18 (b) On request, a county auditor shall provide assistance in
1256+19 obtaining the proper tax identification number for instruments subject
1257+20 to this section.
1258+21 (c) The tax administration number established by this section is for
1259+22 use in administering statutes concerning taxation of real property and
1260+23 is not competent evidence of the location or size of the real property
1261+24 affected by the instrument.
1262+25 (d) After December 31, 2023, A county auditor may not refuse to
1263+26 endorse a deed or instrument under this section as required by
1264+27 IC 36-2-11-14 because the deed or instrument is:
1265+28 (1) an electronic document; or
1266+29 (2) made under IC 32-17-14.
1267+30 (e) The legislative body of a county shall adopt an ordinance
1268+31 requiring the auditor to collect a fee in the amount of ten dollars ($10)
1269+32 for each:
1270+33 (1) deed; or
1271+34 (2) legal description of each parcel contained in the deed;
1272+35 for which the auditor makes a real property endorsement. This fee is in
1273+36 addition to any other fee provided by law. The auditor shall place the
1274+37 revenue received under this subsection in a dedicated fund for use in
1275+38 maintaining property tax records, in traditional or electronic format.
1276+39 SECTION 22. IC 36-2-11-14, AS AMENDED BY P.L.106-2007,
1277+40 SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1278+41 JULY 1, 2024]: Sec. 14. (a) The recorder may record:
1279+42 (1) a deed of partition;
1280+ES 18—LS 6017/DI 149 30
1281+1 (2) a conveyance of land; or
1282+2 (3) an affidavit of transfer to real estate; or
1283+3 (4) a deed or instrument made under IC 32-17-14;
1284+4 only if it has been endorsed by the auditor of the proper county as "duly
1285+5 entered for taxation subject to final acceptance for transfer", "not
1286+6 taxable", or "duly entered for taxation" as provided by IC 36-2-9-18.
1287+7 (b) A county auditor may not refuse to endorse a deed or
1288+8 instrument under IC 36-2-9-18 as required by this section because
1289+9 the deed or instrument is made under IC 32-17-14.
1290+10 (b) (c) A recorder who violates this section shall forfeit the sum of
1291+11 five dollars ($5), to be recovered by an action in the name of the
1292+12 county, for the benefit of the common school fund.
1293+ES 18—LS 6017/DI 149 31
1294+COMMITTEE REPORT
1295+Madam President: The Senate Committee on Judiciary, to which
1296+was referred Senate Bill No. 18, has had the same under consideration
1297+and begs leave to report the same back to the Senate with the
1298+recommendation that said bill be AMENDED as follows:
1299+Page 7, after line 42, begin a new paragraph and insert:
1300+"SECTION 7. IC 29-1-5-8, AS AMENDED BY P.L.136-2018,
2881301 SECTION 214, IS AMENDED TO READ AS FOLLOWS
2891302 [EFFECTIVE JULY 1, 2024]: Sec. 8. If after making a will the testator
2901303 is divorced, testator's marriage is dissolved or annulled, all
2911304 provisions in the will in favor of the testator's former spouse are
2921305 revoked as of the time of the dissolution or annulment of the
293-marriage. The will provisions are reinstated if the testator
294-SEA 18 — CC 1 8
1306+marriage. The will provisions remain revoked even if the testator
2951307 remarries the former spouse. Annulment of the testator's marriage
2961308 shall have the same effect as a divorce. With this exception, no written
2971309 will, nor any part of the will, can be revoked by any change in the
298-circumstances or condition of the testator.
299-SECTION 8. IC 29-1-10-1, AS AMENDED BY P.L.38-2023,
1310+circumstances or condition of the testator.".
1311+Page 10, between lines 34 and 35, begin a new paragraph and insert:
1312+"SECTION 10. IC 29-1-10-1, AS AMENDED BY P.L.38-2023,
3001313 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3011314 JULY 1, 2024]: Sec. 1. (a) Domiciliary letters testamentary or
3021315 domiciliary letters of general administration may be granted to one (1)
3031316 or more of the persons mentioned in this subsection, natural or
3041317 corporate, who are not disqualified, in the following order:
3051318 (1) To the executor or executors designated in a will that has been
3061319 admitted to probate.
3071320 (2) To a surviving spouse who is a devisee in a will that has been
3081321 admitted to probate.
3091322 (3) To a devisee in a will that has been admitted to probate.
3101323 (4) To the surviving spouse, or to the person or persons
3111324 nominated by the surviving spouse or to the surviving spouse and
3121325 the person or persons nominated by the surviving spouse.
3131326 (5) To:
3141327 (A) an heir;
3151328 (B) the person or persons nominated by an heir; or
3161329 (C) an heir and the person or persons nominated by an heir.
3171330 (6) If there is not a person listed in subdivisions (1) through (5),
3181331 then to any other qualified person.
3191332 (b) Except as provided in subsection (g), no person is qualified to
3201333 serve as a domiciliary personal representative who is:
3211334 (1) under eighteen (18) years of age;
1335+ES 18—LS 6017/DI 149 32
3221336 (2) incapacitated unless the incapacity is caused only by:
3231337 (A) physical illness;
3241338 (B) physical impairment; or
3251339 (C) physical infirmity;
3261340 (3) a convicted felon, either under the laws of the United States or
3271341 of any state or territory of the United States;
3281342 (4) a resident corporation not authorized to act as a fiduciary in
3291343 this state; or
3301344 (5) a person whom the court finds unsuitable.
3311345 (c) A nonresident individual or corporate fiduciary may qualify and
3321346 serve as a joint personal representative with a resident personal
3331347 representative only by:
3341348 (1) filing with the court that has jurisdiction of the administration
3351349 of the decedent's estate a bond in an amount:
3361350 (A) not less than:
337-SEA 18 — CC 1 9
3381351 (i) the probable value of the estate's personal property; plus
3391352 (ii) the estimated rents and profits to be derived from the
3401353 property in the estate during the probate period; and
3411354 (B) not greater than the probable gross value of the estate; and
3421355 (2) otherwise meeting the qualifications of subsection (b).
3431356 If the court authorizes the joint personal representative to administer
3441357 the estate without court supervision under IC 29-1-7.5, the court may
3451358 exercise its discretion under IC 29-1-7.5-2.5(c) to increase, decrease,
3461359 or waive the bond that the nonresident joint personal representative
3471360 would otherwise be required to file under this subsection.
3481361 (d) A nonresident individual who otherwise qualifies under
3491362 subsection (b) may qualify to serve as a personal representative in
3501363 Indiana only by filing with the court that has jurisdiction of the
3511364 administration of the decedent's estate:
3521365 (1) notice in writing of the individual's acceptance of the
3531366 appointment as personal representative;
3541367 (2) notice of the appointment of a resident agent to accept service
3551368 of process, notices, and other documents; and
3561369 (3) a bond in an amount:
3571370 (A) not less than:
3581371 (i) the probable value of the estate's personal property; plus
3591372 (ii) the estimated rents and profits to be derived from the
3601373 property in the estate during the probate period; and
3611374 (B) not greater than the probable gross value of the estate.
3621375 If the court authorizes the nonresident personal representative to
3631376 administer the estate without court supervision under IC 29-1-7.5, the
3641377 court may exercise its discretion under IC 29-1-7.5-2.5(c) to increase,
1378+ES 18—LS 6017/DI 149 33
3651379 decrease, or waive the bond that the nonresident personal
3661380 representative would otherwise be required to file under subdivision
3671381 (3).
3681382 (e) If a personal representative becomes a nonresident of this state,
3691383 the representative remains qualified to serve only if the representative
3701384 files with the court that has jurisdiction of the administration of the
3711385 estate a bond in an amount:
3721386 (1) not less than:
3731387 (A) the probable value of the estate's personal property; plus
3741388 (B) the estimated rents and profits to be derived from the
3751389 property in the estate during the probate period; and
3761390 (2) not greater than the probable gross value of the estate.
3771391 If the court previously authorized the personal representative to
3781392 administer the estate without court supervision under IC 29-1-7.5, the
3791393 court may exercise its discretion under IC 29-1-7.5-2.5(c) to increase,
380-SEA 18 — CC 1 10
3811394 decrease, or waive the bond that the nonresident personal
3821395 representative would otherwise be required to file under this
3831396 subsection.
3841397 (f) A nonresident individual who satisfies the conditions of
3851398 subsection (d) or (e) submits personally to the jurisdiction of the court
3861399 in any proceeding that relates to the estate of the decedent.
3871400 (g) A court may order that a convicted felon may serve as a
3881401 domiciliary personal representative upon consideration of the
3891402 following:
3901403 (1) The amount of time that has elapsed since the person was
3911404 convicted of a felony.
3921405 (2) The nature of the felony conviction.
3931406 (3) Whether the felony conviction is no longer a felony charge
3941407 under current law.
3951408 (4) Whether the felony conviction has been expunged.
3961409 (5) Whether the person's felony conviction was acknowledged
397-in the testator's will or in a consent signed by the distributees.
398-SECTION 9. IC 29-1-14-1 IS AMENDED TO READ AS
399-FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 1. (a) Except as
400-provided in IC 29-1-7-7, all claims against a decedent's estate, other
401-than expenses of administration and claims of the United States, the
402-state, or a subdivision of the state, whether due or to become due,
403-absolute or contingent, liquidated or unliquidated, founded on contract
404-or otherwise, shall be forever barred against the estate, the personal
405-representative, the heirs, devisees, and legatees of the decedent, unless
406-filed with the court in which such estate is being administered within:
407-(1) three (3) months after the date of the first published notice to
408-creditors; or
409-(2) three (3) months after the court has revoked probate of a will,
410-in accordance with IC 29-1-7-21, if the claimant was named as a
411-beneficiary in that revoked will;
412-whichever is later.
413-(b) No claim shall be allowed which was barred by any statute of
414-limitations at the time of decedent's death.
415-(c) No claim shall be barred by the statute of limitations which was
416-not barred at the time of the decedent's death, if the claim shall be filed
417-within:
418-(1) three (3) months after the date of the first published notice to
419-creditors; or
420-(2) three (3) months after the court has revoked probate of a will,
421-in accordance with IC 29-1-7-21, if the claimant was named as a
422-beneficiary in that revoked will;
423-SEA 18 — CC 1 11
424-whichever is later.
425-(d) All claims barrable under subsection (a) shall be barred if not
426-filed within nine (9) months after the death of the decedent.
427-(e) Nothing in this section shall affect or prevent any action or
428-proceeding to enforce any mortgage, pledge, or other lien upon
429-property of the estate.
430-(f) Nothing in this section shall affect or prevent the enforcement of
431-a claim for injury to person or damage to property arising out of
432-negligence against the estate of a deceased tort feasor within the period
433-of the statute of limitations provided for the tort action. A tort claim
434-against the estate of the tort feasor may be opened or reopened and suit
435-filed against the special representative of the estate within the period
436-of the statute of limitations of the tort. Any recovery against the tort
437-feasor's estate shall not affect any interest in the assets of the estate
438-unless the suit was filed within the time allowed for filing claims
439-against the estate. The rules of pleading and procedure in such cases
440-shall be the same as apply in ordinary civil actions.
441-(g) A claim by the unit against a decedent's estate is forever
442-barred unless:
443-(1) the unit files a claim in the court in which the decedent's
444-estate is being administered; or
445-(2) the unit opens an estate for the decedent and files a claim
446-against the decedent in the estate;
447-not later than one hundred twenty (120) days after the date of
448-death of the decedent.
449-SECTION 10. IC 29-1-17-11, AS AMENDED BY P.L.41-2012,
450-SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
451-JULY 1, 2024]: Sec. 11. (a) When two (2) or more distributees are
452-entitled to distribution of an undivided interest in any real or personal
453-property of the estate, distribution shall be made of undivided interests
454-in the property unless the personal representative or one (1) or more of
455-the distributees petition the court for partition not later than the hearing
456-on the petition for final distribution. If a petition is filed, the court, after
457-notice is given to all interested persons as the court directs, shall
458-proceed in accordance with IC 32-17-4-2.5. With respect to personal
459-property, the person who files for partition shall conduct a title search
460-with the bureau of motor vehicles (if the personal property is titled) or
461-a search for liens under the Uniform Commercial Code (if the personal
462-property is not titled). The person shall file a copy of the results of the
463-search with the court.
464-(b) If:
465-(1) a distribution of particular assets of a decedent is to be made
466-SEA 18 — CC 1 12
467-to two (2) or more distributees that are entitled to receive
468-fractional shares in the assets; and
469-(2) the decedent's personal representative may, under an
470-agreement among the distributees, chooses to distribute the
471-particular assets without distributing to each distributee a pro rata
472-share of each asset; However, the personal representative shall:
473-(1) the personal representative shall distribute to each distributee a
474-pro rata share of the total fair market value of all the particular assets
475-as of the date of distribution. and
476-(2) divide the assets in a manner that results in a fair and
477-equitable division among the distributees of any capital gain or
478-loss on the assets.
479-(c) The personal representative is not required to divide and
480-distribute particular assets under subsection (b) based upon the
481-potential gain or loss that the distributee would realize if the
482-distributed assets were sold.
483-SECTION 11. IC 29-3-4-1.5, AS ADDED BY P.L.38-2023,
1410+in the testator's will or in a consent signed by the
1411+distributees.".
1412+Page 12, between lines 38 and 39, begin a new paragraph and insert:
1413+"SECTION 11. IC 29-3-4-1.5, AS ADDED BY P.L.38-2023,
4841414 SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
4851415 JULY 1, 2024]: Sec. 1.5. (a) A person may file a verified petition for
4861416 the issuance of a confidential health disclosure order against a
4871417 respondent health care provider that:
4881418 (1) has existing health or medical records in the possession or
4891419 custody of the respondent health care provider that contain
4901420 medical evidence of capacity or incapacity about an alleged
1421+ES 18—LS 6017/DI 149 34
4911422 incapacitated person; or
4921423 (2) may be able to create a report to summarize medical evidence
4931424 of capacity or incapacity about an alleged incapacitated person.
4941425 (b) A verified petition filed under this section must state the
4951426 following:
4961427 (1) The name, age, and residence address of the alleged
4971428 incapacitated person.
4981429 (2) The name and address of any legal counsel that represents the
4991430 alleged incapacitated person, which is known or reasonably
5001431 available to the petitioner.
5011432 (3) The name and last known address of each person described in
5021433 IC 29-3-6-1(a)(4)(A) through IC 29-3-6-1(a)(4)(D).
5031434 (4) Facts sufficient to establish that the following conditions are
5041435 met:
5051436 (A) Any person alleges that the alleged incapacitated person
5061437 requires the appointment of a guardian or limited guardian
5071438 under this article.
5081439 (B) The alleged incapacitated person does not possess medical
509-SEA 18 — CC 1 13
5101440 evidence of capacity or incapacity sufficient to establish or
5111441 rebut evidence that may be presented in a hearing for the
5121442 appointment of a guardian under IC 29-3-5-1.
5131443 (C) The alleged incapacitated person cannot provide or has
5141444 refused to provide written authorization under 45 CFR
5151445 164.508 for disclosure of medical evidence of capacity or
5161446 incapacity about the alleged incapacitated person.
5171447 (D) No other person is able and willing to provide a written
5181448 authorization under 45 CFR 164.502(g)(2) for the disclosure
5191449 of medical evidence of capacity or incapacity about the alleged
5201450 incapacitated person.
5211451 (E) The respondent health care provider possesses medical
5221452 evidence of capacity or incapacity about the alleged
5231453 incapacitated person and is not willing to disclose the medical
5241454 evidence of capacity or incapacity without a written
5251455 authorization under 45 CFR 164.508 or a court order under 45
5261456 CFR 164.512.
5271457 (5) The name and address of the respondent health care provider.
5281458 (6) A description of:
5291459 (A) the existing health or medical records or the type of
5301460 existing health or medical records in the possession or custody
5311461 of the respondent health care provider that contain medical
5321462 evidence of capacity or incapacity about the alleged
5331463 incapacitated person; or
1464+ES 18—LS 6017/DI 149 35
5341465 (B) a narrative report sought from the respondent health care
5351466 provider that would identify medical evidence of capacity or
5361467 incapacity about the alleged incapacitated person.
5371468 A petition filed under this section is not a confidential case record.
5381469 However, any protected health information contained within the
5391470 petition must be excluded from the publicly filed document and must
5401471 be filed as a confidential document under Rule 5(B) of the Indiana
5411472 Rules on Access to Court Records.
5421473 (c) A verified petition under this section may be combined with any
5431474 other petition for relief filed under this article, including a petition to
5441475 establish a limited or full guardianship.
5451476 (d) If the court receives a verified petition that complies with the
5461477 requirements of subsection (b), the court shall issue an order to set a
5471478 hearing date. In the order setting the hearing date, the court shall do the
5481479 following:
5491480 (1) Appoint an attorney or guardian ad litem to represent the
5501481 alleged incapacitated person if the verified petition does not
5511482 identify an attorney under subsection (b)(2).
552-SEA 18 — CC 1 14
5531483 (2) State that any person with an objection to a confidential health
5541484 disclosure order being issued in response to a verified petition
5551485 filed under this section shall file a written objection not later than
5561486 ten (10) days prior to the hearing date set under subsection (e) or
5571487 shall appear in person at the hearing to testify to the objection.
5581488 (e) In its discretion, the court shall set the hearing required under
5591489 subsection (d) on a date that is as soon as practicable.
5601490 (f) Not later than three (3) business days after the court issues an
5611491 order under subsection (d), the petitioner shall serve a copy of the
5621492 verified petition and a copy of the order setting a hearing date, by first
5631493 class mail, upon the following:
5641494 (1) The respondent health care provider.
5651495 (2) The alleged incapacitated person or the person having
5661496 physical custody and care of the alleged incapacitated person.
5671497 (3) The alleged incapacitated person's attorney described in
5681498 subsection (b)(2) or the court appointed attorney or guardian ad
5691499 litem appointed under subsection (d)(1).
5701500 (4) Each individual identified in subsection (b)(3) of the verified
5711501 petition.
5721502 (5) Each respondent health care provider identified in subsection
5731503 (b)(5) of the verified petition.
5741504 (6) Any other person to whom the court directs that notice be
5751505 served.
5761506 Any person who is entitled to receive notice under this subsection may
1507+ES 18—LS 6017/DI 149 36
5771508 waive the service of notice in writing.
5781509 (g) At the hearing, the petitioner has the burden of proving, by a
5791510 preponderance of the evidence, that the conditions alleged in
5801511 subsection (b)(4) are met. An individual entitled to receive notice
5811512 under subsection (f) may present evidence at the hearing.
5821513 (h) If the court finds that the petitioner has proven that the
5831514 conditions in subsection (b)(4) apply and it is in the best interest of the
5841515 alleged incapacitated person to issue a confidential health disclosure
5851516 order, it shall grant the verified petition and issue a confidential health
5861517 disclosure order that requires the respondent health care provider to:
5871518 (1) produce a copy of the alleged incapacitated person's medical
5881519 records that contain medical evidence concerning the capacity or
5891520 incapacity of the person; or
5901521 (2) prepare a written narrative report for the court with a
5911522 professional assessment of the capacity or incapacity of the
5921523 alleged incapacitated person to make personal, financial, and
5931524 health care decisions without substantial assistance and the
5941525 suitability of less restrictive alternatives to a guardianship.
595-SEA 18 — CC 1 15
5961526 (i) A confidential health disclosure order issued by a court under
5971527 this section is intended to comply with the standard in 45 CFR
5981528 164.512(e) for disclosure of protected health information in judicial
5991529 proceedings.
6001530 (j) The respondent health care provider shall comply with the
6011531 confidential health disclosure order and transmit the medical evidence
6021532 of capacity or incapacity of the person described in subsection (h) to
6031533 the court. Upon receipt of the respondent health care provider's
6041534 response, the court shall:
6051535 (1) serve a copy of the medical records or medical report
6061536 produced by the respondent health care provider to the alleged
6071537 incapacitated person and the alleged incapacitated person's
6081538 attorney or guardian ad litem, not more than five (5) days after
6091539 receipt of the records; and
6101540 (2) determine, in the court's discretion, whether it is in the best
6111541 interest of the alleged incapacitated person to disclose all or part
6121542 of the medical records or medical report produced by the
6131543 respondent health care provider to any other individual identified
6141544 in the verified petition under subsection (b)(3).
6151545 To make a determination under subdivision (2) concerning whether the
6161546 medical evidence of capacity or incapacity should be disclosed to any
6171547 other individual, the court shall consider all material facts and
6181548 circumstances stated in the filed pleadings and in any hearing record;
6191549 medical evidence that contains a specific diagnosis of functional
1550+ES 18—LS 6017/DI 149 37
6201551 impairment of the alleged incapacitated person; and the likelihood that
6211552 a limited guardianship or full guardianship may be warranted for the
6221553 alleged incapacitated person in the current proceeding or a future
6231554 proceeding under this article.
6241555 (k) Unless otherwise ordered by the court, the petitioner shall bear
6251556 the costs and expenses incurred by the respondent health care provider
6261557 to comply with the confidential health disclosure order.
6271558 (l) The record of:
6281559 (1) any court hearing held under this section;
6291560 (2) all exhibits entered during a hearing;
6301561 (3) all records or reports produced by a respondent health care
6311562 provider in response to a confidential health disclosure order; and
6321563 (4) all written objections filed or entered as evidence in a
6331564 proceeding under this section;
6341565 must be filed as a nonpublic document under Rule 5 of the Indiana
6351566 Rules on Access to Court Records.
6361567 (m) Once any action filed under this article concerning the alleged
6371568 incapacitated person has been fully adjudicated, every individual who
638-SEA 18 — CC 1 16
6391569 received any records in the course of those proceedings shall destroy
6401570 all documents that contain medical evidence of capacity or incapacity
641-about the individual alleged to be incapacitated.
642-SECTION 12. IC 30-4-1.5-12, AS ADDED BY P.L.40-2018,
643-SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
644-JULY 1, 2024]: Sec. 12. Any interested person who petitions or
645-otherwise seeks to docket files a proceeding under this article
646-regarding an electronic trust instrument under IC 30-4-6 may file with
647-the clerk of the court a complete converted copy of the electronic trust
648-instrument with the clerk of the court under IC 30-4-6.
649-SECTION 13. IC 30-4-2-15 IS AMENDED TO READ AS
1571+about the individual alleged to be incapacitated.".
1572+Page 13, between lines 3 and 4, begin a new paragraph and insert:
1573+"SECTION 13. IC 30-4-2-15 IS AMENDED TO READ AS
6501574 FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 15. (a) This section
6511575 does not apply to a trust:
6521576 (1) that is irrevocable on the date of a divorce or an annulment; or
6531577 (2) created by:
6541578 (A) the settlor and the settlor's spouse or former spouse under
6551579 a written agreement with each other that requires the creation
6561580 of the trust; or
6571581 (B) a court order.
6581582 (b) If, after creating a revocable trust, the settlor is divorced or the
6591583 marriage of the settlor to the settlor's spouse is annulled, the settlor's
6601584 former spouse shall for the purposes of the trust be treated as if the
6611585 spouse had died before the settlor died. settlor's marriage is dissolved
6621586 or annulled, all provisions in the revocable trust in favor of the
6631587 settlor's former spouse are revoked as of the time of the dissolution
664-or annulment of the marriage. The trust provisions are reinstated
665-if the settlor remarries the former spouse.
666-SECTION 14. IC 30-4-3-3, AS AMENDED BY P.L.137-2016,
667-SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
668-JULY 1, 2024]: Sec. 3. (a) Except as provided in the terms of the trust
669-and subject to subsection (c), a trustee has the power to perform
670-without court authorization, except as provided in sections 4(b) and
671-5(a) of this chapter, every act necessary or appropriate for the purposes
672-of the trust including, by way of illustration and not of limitation, the
673-following powers:
674-(1) The power to:
675-(A) deal with the trust estate;
676-(B) buy, sell, or exchange and convey or transfer all property
677-(real, personal, or mixed) for cash or on credit and at public or
678-private sale with or without notice; and
679-(C) invest and reinvest the trust estate.
680-(2) The power to receive additions to the assets of the trust.
681-SEA 18 — CC 1 17
682-(3) The power to acquire an undivided interest in a trust asset in
683-which the trustee, in any trust capacity, holds an undivided
684-interest.
685-(4) The power to manage real property in every way, including:
686-(A) the adjusting of boundaries;
687-(B) erecting, altering, or demolishing buildings;
688-(C) dedicating of streets, alleys, or other public uses;
689-(D) subdividing;
690-(E) developing;
691-(F) obtaining vacation of plats;
692-(G) granting of easements and rights-of-way;
693-(H) partitioning;
694-(I) entering into party wall agreements; and
695-(J) obtaining title insurance for trust property.
696-(5) The power to:
697-(A) grant options concerning disposition of trust property,
698-including the sale of covered security options; and
699-(B) take options for acquisition of trust property, including the
700-purchase back of previously sold covered security options.
701-(6) The power to enter into a lease as lessor or lessee, with or
702-without option to renew.
703-(7) The power to enter into arrangements for exploration and
704-removal of minerals or other natural resources and enter into a
705-pooling or unitization agreement.
706-(8) The power to continue the operation or management of any
707-business or other enterprise placed in trust.
708-(9) The power to:
709-(A) borrow money, to be repaid from trust property or
710-otherwise; and
711-(B) encumber, mortgage, pledge, or grant a security interest in
712-trust property in connection with the exercise of any power.
713-(10) The power to:
714-(A) advance money for the benefit of the trust estate and for all
715-expenses or losses sustained in the administration of the trust;
716-and
717-(B) collect any money advanced, without interest or with
718-interest, at no more than the lowest rate prevailing when
719-advanced.
720-(11) The power to prosecute or defend actions, claims, or
721-proceedings for the protection of:
722-(A) trust property; and
723-(B) the trustee in the performance of the trustee's duties.
724-SEA 18 — CC 1 18
725-(12) The power to:
726-(A) pay or contest any claim;
727-(B) settle a claim by or against the trust by compromise or
728-arbitration; and
729-(C) abandon or release, totally or partially, any claim
730-belonging to the trust.
731-(13) The power to insure the:
732-(A) trust estate against damage or loss; and
733-(B) trustee against liability with respect to third persons.
734-(14) The power to pay taxes, assessments, and other expenses
735-incurred in the:
736-(A) acquisition, retention, and maintenance of the trust
737-property; and
738-(B) administration of the trust.
739-(15) The power to:
740-(A) vote securities, in person or by a general or special proxy;
741-(B) hold the securities in the name of a nominee if the trustee
742-is a corporate trustee; and
743-(C) effect or approve, and deposit securities in connection
744-with, any change in the form of the corporation, including:
745-(i) dissolution;
746-(ii) liquidation;
747-(iii) reorganization;
748-(iv) acquisition; and
749-(v) merger.
750-(16) The power to employ persons, including:
751-(A) attorneys;
752-(B) accountants;
753-(C) investment advisors; and
754-(D) agents;
755-to advise and assist the trustee in the performance of the trustee's
756-duties.
757-(17) The power to effect distribution of property in cash, in kind,
758-or partly in cash and partly in kind, in divided or undivided
759-interests.
760-(18) The power to execute and deliver all instruments necessary
761-or appropriate to accomplishing or facilitating the exercise of the
762-trustee's powers.
763-(19) With respect to an interest in a proprietorship, partnership,
764-limited liability company, business trust, corporation, or another
765-form of business or enterprise, the power to:
766-(A) continue the business or enterprise; and
767-SEA 18 — CC 1 19
768-(B) take any action that may be taken by shareholders,
769-members, or property owners, including:
770-(i) merging;
771-(ii) dissolving; or
772-(iii) changing the form of business organization or
773-contributing additional capital.
774-(20) With respect to possible liability for violation of
775-environmental law, the power to:
776-(A) inspect or investigate property:
777-(i) the trustee holds or has been asked to hold; or
778-(ii) owned or operated by an organization in which the
779-trustee holds an interest or has been asked to hold an
780-interest;
781-to determine the application of environmental law with respect
782-to the property;
783-(B) take action to prevent, abate, or remedy an actual or
784-potential violation of an environmental law affecting property
785-held directly or indirectly by the trustee before or after the
786-assertion of a claim or the initiation of governmental
787-enforcement;
788-(C) decline to accept property into the trust or disclaim any
789-power with respect to property that is or may be burdened with
790-liability for violation of environmental law;
791-(D) compromise claims against the trust that may be asserted
792-for an alleged violation of environmental law; and
793-(E) pay the expense of any inspection, review, abatement, or
794-remedial action to comply with environmental law.
795-(21) The power to exercise elections with respect to federal, state,
796-and local taxes.
797-(22) The power to select a mode of payment under any employee
798-benefit plan or retirement plan, annuity, or life insurance payable
799-to the trustee and exercise rights under the plan, annuity, or
800-insurance, including the right to:
801-(A) indemnification:
802-(i) for expenses; and
803-(ii) against liabilities; and
804-(B) take appropriate action to collect the proceeds.
805-(23) The power to make loans out of trust property, including
806-loans to a beneficiary on terms and conditions the trustee
807-determines fair and reasonable under the circumstances. The
808-trustee has a lien on future distributions for repayment of the
809-loans.
810-SEA 18 — CC 1 20
811-(24) The power to pledge trust property to guarantee loans made
812-by others to the beneficiary on terms and conditions the trustee
813-considers to be fair and reasonable under the circumstances. The
814-trustee has a lien on future distributions for repayment of the
815-loans.
816-(25) The power to:
817-(A) appoint a trustee to act in another jurisdiction with respect
818-to trust property located in the other jurisdiction;
819-(B) confer on the appointed trustee all the appointing trustee's
820-powers and duties;
821-(C) require the appointed trustee to furnish security; and
822-(D) remove the appointed trustee.
823-(26) With regard to a beneficiary who is under a legal disability
824-or whom the trustee reasonably believes is incapacitated, the
825-power to pay an amount distributable to the beneficiary by:
826-(A) paying the amount directly to the beneficiary;
827-(B) applying the amount for the beneficiary's benefit;
828-(C) paying the amount to the beneficiary's guardian;
829-(D) paying the amount to the beneficiary's custodian under
830-IC 30-2-8.5 to create a custodianship or custodial trust;
831-(E) paying the amount to an adult relative or another person
832-having legal or physical care or custody of the beneficiary to
833-be expended on the beneficiary's behalf, if the trustee does not
834-know of a guardian, custodian, or custodial trustee; or
835-(F) managing the amount as a separate fund on the
836-beneficiary's behalf, subject to the beneficiary's continuing
837-right to withdraw the distribution.
838-(27) The power to:
839-(A) combine at least two (2) trusts into one (1) trust; or
840-(B) divide one (1) trust into at least two (2) trusts;
841-after notice to the qualified beneficiaries, if the result does not
842-impair the rights of any beneficiary or adversely affect
843-achievement of the purposes of the trust.
844-(b) Any act under subsection (a)(4), an option under subsection
845-(a)(5), a lease under subsection (a)(6), an arrangement under
846-subsection (a)(7), and an encumbrance, mortgage, pledge, or security
847-interest under subsection (a)(9) may be for a term either within or
848-extending beyond the term of the trust.
849-(c) In acquiring, investing, reinvesting, exchanging, retaining,
850-selling, and managing property for any trust, the trustee thereof shall
851-exercise the judgment and care required by IC 30-4-3.5. Within the
852-limitations of the foregoing standard, the trustee is authorized to
853-SEA 18 — CC 1 21
854-acquire and retain every kind of property, real, personal, or mixed, and
855-every kind of investment, including specifically, but without in any way
856-limiting the generality of the foregoing, bonds, debentures, and other
857-corporate obligations, stocks, preferred or common, and real estate
858-mortgages, which persons of prudence, discretion, and intelligence
859-acquire or retain for their own account, and within the limitations of the
860-foregoing standard, the trustee is authorized to retain property properly
861-acquired, without limitation as to time and without regard to its
862-suitability for original purchase. Within the limitations of the foregoing
863-standard, the trustee is authorized to sell covered security options and
864-to purchase back previously sold covered security options.
865-(d) If a distribution of particular trust assets is to be made to two (2)
866-or more beneficiaries entitled to receive fractional shares in those
867-assets, the trustee:
868-(1) may distribute the particular assets without distributing to
869-each beneficiary a pro rata share of each asset; However, the
870-trustee shall:
871-(1) (2) shall distribute to each beneficiary a pro rata share of the
872-total fair market value of all of the particular assets as of the date
873-of distribution; and
874-(2) cause the distribution to result in a fair and equitable division
875-among the beneficiaries of capital gain or loss on the assets.
876-(3) is not required to allocate and distribute particular assets
877-based upon the potential gain or loss that the beneficiaries
878-would realize if the particular assets were sold.
879-(e) If the trust is terminated or partially terminated, the trustee may
880-send to the beneficiaries a proposal for distribution. If the proposal for
881-distribution informs the beneficiary that the beneficiary:
882-(1) has a right to object to the proposed distribution; and
883-(2) must object not later than thirty (30) days after the proposal
884-for distribution was sent;
885-the right of the beneficiary to object to the proposed distribution
886-terminates if the beneficiary fails to notify the trustee of an objection
887-within the time limit set forth in subdivision (2).
888-(f) When any real or personal property subject to a lien (as defined
889-by IC 29-1-17-9(a)) is specifically distributable, the distributee shall
890-take the property subject to the lien unless the terms of the trust provide
891-expressly or by necessary implication that the lien be otherwise paid.
892-If:
893-(1) an event occurs that makes the property distributable; and
894-(2) the holder of a lien on the property receives payment on a
895-claim based upon the obligation secured by the lien;
896-SEA 18 — CC 1 22
897-the property subject to the lien shall be charged with the reimbursement
898-to the trust of the amount of the payment for the benefit of the
899-beneficiaries entitled to the distribution, unless the terms of the trust
900-provide expressly or by necessary implication that the payment be
901-charged against the residue of the trust estate.
902-(g) For purposes of subsection (f), a general directive or authority
903-in the trust for payment of debts does not imply an intent that the
904-distribution of property subject to a lien be made free from the lien.
905-(h) IC 32-39-2-8, IC 32-39-2-9, and IC 32-39-2-10 apply to the right
906-of a trustee acting under a trust to access:
907-(1) the content of an electronic communication (as defined in
908-IC 32-39-1-6);
909-(2) a catalogue of electronic communications (as defined in
910-IC 32-39-1-5); or
911-(3) any other digital asset (as defined in IC 32-39-1-10).
912-SECTION 15. IC 30-4-3-6, AS AMENDED BY P.L.56-2020,
913-SECTION 10, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
914-JULY 1, 2024]: Sec. 6. (a) The trustee has a duty to administer a trust
915-according to the terms of the trust.
916-(b) Unless the terms of the trust or the provisions of section 1.3 of
917-this chapter provide otherwise, the trustee also has a duty to do the
918-following:
919-(1) Administer the trust in a manner consistent with IC 30-4-3.5.
920-(2) Take possession of and maintain control over the trust
921-property.
922-(3) Preserve the trust property.
923-(4) Make the trust property productive for both the income and
924-remainder beneficiary. As used in this subdivision, "productive"
925-includes the production of income or investment for potential
926-appreciation.
927-(5) Keep the trust property separate from the trustee's individual
928-property and separate from or clearly identifiable from property
929-subject to another trust.
930-(6) Maintain clear and accurate accounts with respect to the trust
931-estate.
932-(7) Except as provided in subsection (c), keep the following
933-beneficiaries reasonably informed about the administration of the
934-trust and of the material facts necessary for the beneficiaries to
935-protect their interests:
936-(A) A current income beneficiary.
937-(B) A beneficiary who will become an income beneficiary
938-upon the expiration of the term of the current income
939-SEA 18 — CC 1 23
940-beneficiary, if the trust has become irrevocable by:
941-(i) the terms of the trust instrument; or
942-(ii) the death of the settlor.
943-A trustee satisfies the requirements of this subdivision by
944-providing a beneficiary described in clause (A) or (B), upon the
945-beneficiary's written request, access to the trust's accounting and
946-financial records concerning the administration of trust property
947-and the administration of the trust.
948-(8) Upon:
949-(A) the trust becoming irrevocable:
950-(i) by the terms of the trust instrument; or
951-(ii) by the death of the settlor; and
952-(B) the written request of an income beneficiary or
953-remainderman;
954-promptly provide a copy of the complete trust instrument to the
955-income beneficiary or remainderman. This subdivision does not
956-prohibit the terms of the trust from requiring the trustee to
957-separately provide each beneficiary only the portions of the trust
958-instrument that describe or pertain to that beneficiary's interest in
959-the trust and the administrative provisions of the trust instrument
960-that pertain to all beneficiaries of the trust.
961-(9) Take whatever action is reasonable to realize on claims
962-constituting part of the trust property.
963-(10) Defend actions involving the trust estate.
964-(11) Supervise any person to whom authority has been delegated.
965-(12) Determine the trust beneficiaries by acting on information:
966-(A) the trustee, by reasonable inquiry, considers reliable; and
967-(B) with respect to heirship, relationship, survivorship, or any
968-other issue relative to determining a trust beneficiary.
969-(c) The terms of a trust may expand, restrict, eliminate, or otherwise
970-vary the right of a beneficiary to be informed of the beneficiary's
971-interest in a trust for a period of time, including a period of time related
972-to:
973-(1) the age of the beneficiary;
974-(2) the lifetime of a settlor or the spouse of a settlor;
975-(3) a term of years or a period of time ending on a specific date;
976-or
977-(4) a specific event that is certain to occur.
978-(d) During any period of time that the trust instrument restricts or
979-eliminates the right of a beneficiary to be informed of the beneficiary's
980-interest in a trust, a designated representative for the beneficiary:
981-(1) shall represent that beneficiary and bind that beneficiary's
982-SEA 18 — CC 1 24
983-interests for purposes of any judiciary judicial proceeding or
984-nonjudicial matter involving the trust unless the court finds, after
985-a hearing upon notice, that a conflict of interest exists between the
986-beneficiary and the designated representative;
987-(2) has the authority to initiate or defend and participate in any
988-proceeding relating to the trust under this article or under IC 30-2
989-on behalf of the beneficiary; and
990-(3) shall not disclose to the beneficiary the information provided
991-by the trustee unless the court orders disclosure or the trustee
992-agrees to the disclosure.
993-An alleged conflict of interest between a beneficiary and the
994-beneficiary's designated representative may be asserted to the court by
995-the beneficiary whose right to be informed of the beneficiary's interest
996-in a trust is restricted or eliminated in the trust instrument or by any
997-other person authorized to represent and bind that beneficiary's interest
998-under IC 30-4-6-10.5.
999-(e) If:
1000-(1) a beneficiary is an adult and has not been adjudicated to be an
1001-incapacitated person;
1002-(2) the trust instrument restricts or eliminates the right of the
1003-beneficiary to be informed of the beneficiary's interest in a trust;
1004-and
1005-(3) the beneficiary discovers material information about the
1006-beneficiary's interest in the trust from sources other than the
1007-trustee;
1008-subsections (c) and (d) do not prohibit the beneficiary from demanding
1009-or petitioning for an accounting or statement regarding the trust under
1010-IC 30-4-5-12(c), from receiving a copy of all relevant portions of the
1011-trust instrument, or from demanding and receiving, under subsection
1012-(b)(7), other information about the trust and its administration that is
1013-consistent with the content and scope of the information that the
1014-beneficiary received from sources other than the trustee. The
1015-beneficiary may also initiate and participate in any proceeding against
1016-or with the trustee under this chapter.
1017-SECTION 16. IC 30-4-7-7 IS AMENDED TO READ AS
1018-FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 7. After a compromise
1019-is executed, an interested person may docket the trust and submit the
1020-following documents to the court for the court's approval:
1021-(1) The agreement executed under section 6 of this chapter.
1022-(2) A copy of the trust instrument filed under IC 30-4-6.
1023-(3) Any other relevant documents.
1024-SECTION 17. IC 30-5-3-3 IS AMENDED TO READ AS
1025-SEA 18 — CC 1 25
1026-FOLLOWS [EFFECTIVE JULY 1, 2024]: Sec. 3. (a) Except as
1027-provided in subsection (b), an attorney in fact may act under a power
1028-of attorney, including executing an instrument on the principal's
1029-behalf under IC 30-5-8-8, without recording the power of attorney
1030-with the county recorder.
1031-(b) An attorney in fact shall record the power of attorney authorizing
1032-the execution of a document that must be recorded before presenting
1033-the document for recording.
1034-(c) A county recorder may not accept a document for recording if
1035-the document:
1036-(1) was executed; and
1037-(2) is presented;
1038-by an attorney in fact whose power of attorney is unrecorded.
1039-(d) Except as provided in subsection (e), a document creating a
1040-power of attorney must comply with recording requirements, including
1041-notary and preparation statements, to be recorded under this section.
1042-(e) An original document that created a power of attorney or a
1043-copy of the document that created the power of attorney may be
1044-recorded under this section if:
1045-(1) the original document was executed by the principal in
1046-accordance with IC 30-5-4-1(a)(4)(B) or IC 30-5-11-4(a)(2);
1047-and
1048-(2) a proof (as defined in IC 32-21-2-1.7) that:
1049-(A) is signed by at least one (1) of the attesting witnesses;
1050-and
1051-(B) complies with IC 33-42;
1052-is attached to the original document or the copy.
1053-(e) (f) A document that is presented by an attorney in fact for
1054-recording must reference the book and page or instrument number
1055-where the instrument creating the power of attorney is recorded before
1056-the document may be presented by the attorney in fact.
1057-SECTION 18. IC 30-5-8-8 IS ADDED TO THE INDIANA CODE
1058-AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1059-1, 2024]: Sec. 8. (a) This section applies to an instrument executed
1060-under this article by an attorney in fact on a principal's behalf.
1061-(b) As used in this section, "agent" has the same meaning as
1062-"attorney in fact" as defined in IC 30-5-2-2.
1063-(c) A principal's power of attorney may authorize an attorney
1064-in fact to execute an instrument on the principal's behalf if a
1065-statement appears:
1066-(1) above;
1067-(2) beside; or
1068-SEA 18 — CC 1 26
1069-(3) below;
1070-the attorney in fact's signature.
1071-(d) A statement under subsection (c) must:
1072-(1) identify the principal; and
1073-(2) indicate that the attorney in fact is acting as the principal's
1074-agent under the power of attorney.
1075-(e) Any of the following example signature formats comply with
1076-this section and indicate that the attorney in fact is acting as the
1077-principal's agent under the power of attorney:
1078-(1) Attorney in fact's signature
1079-(Principal's name) by (attorney in fact's name), agent
1080-(2) Principal's signature signed by the attorney in fact
1081-(Principal's name) by (attorney in fact's name), POA
1082-(3) Attorney in fact's signature
1083-(Principal's name) by (attorney in fact's name), AIF
1084-(4) Principal's printed name
1085-Attorney in fact's signature
1086-By: (Attorney in fact's name), as attorney in fact
1087-(5) Principal's printed name
1088-Attorney in fact's signature
1089-By: (Attorney in fact's name), agent
1090-(6) Principal's printed name
1091-Attorney in fact's signature
1092-By: (Attorney in fact's name), POA
1093-(7) Principal's printed name
1094-Attorney in fact's signature
1095-By: (Attorney in fact's name), AIF
1096-The examples listed in this subsection are not an exhaustive list.
1097-(f) If an attorney in fact executes a deed or other instrument
1098-that must be recorded in the office of a county recorder, the
1099-instrument may incorporate by reference part or all of the
1100-principal's power of attorney that was previously recorded under
1101-IC 30-5-3-3.
1102-SECTION 19. IC 32-17-14-11, AS AMENDED BY HEA
1103-1034-2024, SECTION 2, IS AMENDED TO READ AS FOLLOWS
1104-[EFFECTIVE JULY 1, 2024]: Sec. 11. (a) A transfer on death deed
1105-transfers the interest provided to the beneficiary if the transfer on death
1106-deed is:
1107-(1) executed by the owner or owner's legal representative; and
1108-(2) recorded with the recorder of deeds in the county in which the
1109-real property is situated before the death of the owner.
1110-(b) A transfer on death deed is void if it is not recorded with the
1111-SEA 18 — CC 1 27
1112-recorder of deeds in the county in which the real property is situated
1113-before the death of the owner.
1114-(c) A transfer on death deed is not required to be supported by
1115-consideration or delivered to the grantee beneficiary.
1116-(d) A transfer on death deed may be used to transfer an interest in
1117-real property to either a revocable or an irrevocable trust.
1118-(e) If the owner records a transfer on death deed, the effect of the
1119-recording the transfer on death deed is determined as follows:
1120-(1) If the owner's interest in the real property is as a tenant by the
1121-entirety, the conveyance is inoperable and void unless the other
1122-spouse joins in the conveyance.
1123-(2) If the owner's interest in the real property is as a joint tenant
1124-with rights of survivorship, the conveyance severs the joint
1125-tenancy and the cotenancy becomes a tenancy in common.
1126-(3) If the owner's interest in the real property is as a joint tenant
1127-with rights of survivorship and the property is subject to a
1128-beneficiary designation, a conveyance of any joint owner's interest
1129-has no effect on the original beneficiary designation for the
1130-nonsevering joint tenant.
1131-(4) If the owner's interest is as a tenant in common, the owner's
1132-interest passes to the beneficiary as a transfer on death transfer.
1133-(5) If the owner's interest is a life estate determined by the owner's
1134-life, the conveyance is inoperable and void.
1135-(6) If the owner's interest is any other interest, the interest passes
1136-in accordance with this chapter and the terms and conditions of
1137-the conveyance establishing the interest. If a conflict exists
1138-between the conveyance establishing the interest and this chapter,
1139-the terms and conditions of the conveyance establishing the
1140-interest prevail.
1141-(f) A beneficiary designation in a transfer on death deed may be
1142-worded in substance as "(insert owner's name) conveys and warrants
1143-(or quitclaims) to (insert owner's name), TOD to (insert beneficiary's
1144-name)". This example is not intended to be exhaustive.
1145-(g) A transfer on death deed using the phrase "pay on death to" or
1146-the abbreviation "POD" may not be construed to require the liquidation
1147-of the real property being transferred.
1148-(h) This section does not preclude other methods of conveying real
1149-property that are permitted by law and have the effect of postponing
1150-enjoyment of an interest in real property until after the death of the
1151-owner. This section applies only to transfer on death deeds and does
1152-not invalidate any deed that is otherwise effective by law to convey title
1153-to the interest and estates provided in the deed.
1154-SEA 18 — CC 1 28
1155-(i) The endorsement of the county auditor under IC 36-2-11-14 and
1156-IC 36-2-9-18 is not necessary to record a transfer on death deed under
1157-this section.
1158-(j) For a transfer on death deed executed after December 31, 2024,
1159-the transfer on death deed may include the following warning:
1160-"WARNING: After the death of the owner, the owner's insurance
1161-policy is required by IC 27-1-13-18 to cover the real property
1162-transferred for a period of time as set forth in IC 27-1-13-18(e)
1163-and IC 27-1-13-18(f). Once the period of time as set forth in
1164-IC 27-1-13-18(e) and IC 27-1-13-18(f) expires, the insurance
1165-policy may no longer cover the real property and the beneficiary
1166-of a transfer on death deed and the real property may become
1167-uninsured.".
1168-A transfer on death deed is not invalid due to the failure to include the
1169-warning described in this subsection, or due to a defect in the wording
1170-of the warning described in this subsection.
1171-SECTION 20. IC 32-17-14-13, AS ADDED BY P.L.143-2009,
1172-SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1173-JULY 1, 2024]: Sec. 13. (a) A transferor An owner of property, with
1174-or without consideration, may execute a written instrument directly
1175-transferring the property to one (1) or more individuals as a transferee
1176-grantee to hold as owner in beneficiary form. Any grantee may be an
1177-individual different from or in addition to the owner who executes
1178-the instrument.
1179-(b) A transferee grantee under an instrument described in
1180-subsection (a) is considered the owner of the property for all purposes
1181-and has all the rights to the property provided by law to the owner of
1182-the property, including the right to revoke or change the beneficiary
1183-designation.
1184-(c) A direct transfer of property to a transferee grantee to hold as
1185-owner in beneficiary form is effective when the written instrument
1186-perfecting the transfer becomes effective to make the transferee
1187-grantee the owner.
1188-(d) A beneficiary designation in an instrument described in
1189-subsection (a) may be worded in substance as "(insert owner's
1190-name) conveys and warrants (or quitclaims) to (insert grantee's
1191-name(s)), TOD to (insert beneficiary's name)". This example is not
1192-intended to be exhaustive.
1193-(e) A beneficiary designation in an instrument described in
1194-subsection (a) is void if the instrument:
1195-(1) conveys real property; and
1196-(2) is not recorded with the recorder of deeds in the county in
1197-SEA 18 — CC 1 29
1198-which the real property is situated before the grantee's death.
1199-(f) An instrument described in subsection (a) is effective to
1200-convey title to the grantee regardless of whether a beneficiary
1201-designation is void under subsection (e).
1202-(g) If an instrument described in subsection (a) conveys real
1203-property, the endorsement of the county auditor under
1204-IC 36-2-11-14 and IC 36-2-9-18 is necessary to record the
1205-instrument.
1206-SECTION 21. IC 32-21-1-14, AS AMENDED BY P.L.185-2021,
1207-SECTION 35, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1208-JULY 1, 2024]: Sec. 14. A conveyance of land by an attorney in fact
1209-(as defined in IC 30-5-2-2) under IC 30-5-3-3 is not good effective
1210-unless the attorney in fact is empowered by to make the conveyance
1211-under a power of attorney (as defined in IC 30-5-2-7) that:
1212-(1) is executed or signed by the principal (as defined in
1213-IC 30-5-2-8); and
1214-(2) has an acknowledgment (as defined in IC 33-42-0.5-2) or a
1215-proof (as defined in and permitted under IC 32-21-2).
1216-SECTION 22. IC 32-21-2-16 IS ADDED TO THE INDIANA
1217-CODE AS A NEW SECTION TO READ AS FOLLOWS
1218-[EFFECTIVE JULY 1, 2024]: Sec. 16. (a) A county recorder shall
1219-include a cross-reference concerning a previously recorded
1220-document if:
1221-(1) the person presenting the document for recording has
1222-made a request to the county recorder for a cross-reference
1223-between the document being recorded and a previously
1224-recorded document; and
1225-(2) the front page of the document to be recorded contains a
1226-cross-reference to a previously recorded document.
1227-(b) The requirements of subsection (a) do not apply to the
1228-following:
1229-(1) A reference required in an affidavit under IC 29-1-7-23 to
1230-a previously recorded deed or other instrument.
1231-(2) A reference required in a document under IC 30-5-3-3 to
1232-a previously recorded power of attorney.
1233-(3) A reference required in an affidavit under IC 32-17-14-26
1234-to a previously recorded transfer on death deed.
1235-(4) A reference required in an easement under IC 32-23-2-5
1236-to a recorded plat or a recorded deed of record.
1237-(5) A reference required in an affidavit of service of notice
1238-under IC 32-28-13-7 to a statement of intention to hold a
1239-common law lien.
1240-SEA 18 — CC 1 30
1241-(6) A reference required in an affidavit of service of notice
1242-under IC 32-28-14-9 to a homeowners association lien.
1243-(7) A reference required in a document under a statute or
1244-county ordinance to a previously recorded document.
1245-SECTION 23. IC 36-2-9-18, AS AMENDED BY P.L.26-2022,
1246-SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1247-JULY 1, 2024]: Sec. 18. (a) Before the auditor makes the endorsement
1248-required by IC 36-2-11-14, the auditor may require that a tax
1249-identification number identifying the affected real property be placed
1250-on an instrument that conveys, creates, encumbers, assigns, or
1251-otherwise disposes of an interest in or a lien on real property. The tax
1252-identification number may be established by the auditor with the
1253-approval of the state board of accounts. If the tax identification number
1254-is affixed to the instrument or if a tax identification number is not
1255-required, the auditor shall make the proper endorsement on demand.
1256-(b) On request, a county auditor shall provide assistance in
1257-obtaining the proper tax identification number for instruments subject
1258-to this section.
1259-(c) The tax administration number established by this section is for
1260-use in administering statutes concerning taxation of real property and
1261-is not competent evidence of the location or size of the real property
1262-affected by the instrument.
1263-(d) After December 31, 2023, A county auditor may not refuse to
1264-endorse a deed or instrument under this section as required by
1265-IC 36-2-11-14 because the deed or instrument is:
1266-(1) an electronic document; or
1267-(2) made under IC 32-17-14.
1268-(e) The legislative body of a county shall adopt an ordinance
1269-requiring the auditor to collect a fee in the amount of ten dollars ($10)
1270-for each:
1271-(1) deed; or
1272-(2) legal description of each parcel contained in the deed;
1273-for which the auditor makes a real property endorsement. This fee is in
1274-addition to any other fee provided by law. The auditor shall place the
1275-revenue received under this subsection in a dedicated fund for use in
1276-maintaining property tax records, in traditional or electronic format.
1277-SECTION 24. IC 36-2-11-14, AS AMENDED BY P.L.106-2007,
1278-SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
1279-JULY 1, 2024]: Sec. 14. (a) The recorder may record:
1280-(1) a deed of partition;
1281-(2) a conveyance of land; or
1282-(3) an affidavit of transfer to real estate; or
1283-SEA 18 — CC 1 31
1284-(4) a deed or instrument made under IC 32-17-14;
1285-only if it has been endorsed by the auditor of the proper county as "duly
1286-entered for taxation subject to final acceptance for transfer", "not
1287-taxable", or "duly entered for taxation" as provided by IC 36-2-9-18.
1288-(b) A county auditor may not refuse to endorse a deed or
1289-instrument under IC 36-2-9-18 as required by this section because
1290-the deed or instrument is made under IC 32-17-14.
1291-(b) (c) A recorder who violates this section shall forfeit the sum of
1292-five dollars ($5), to be recovered by an action in the name of the
1293-county, for the benefit of the common school fund.
1294-SEA 18 — CC 1 President of the Senate
1295-President Pro Tempore
1296-Speaker of the House of Representatives
1297-Governor of the State of Indiana
1298-Date: Time:
1299-SEA 18 — CC 1
1588+or annulment of the marriage. The trust provisions remain revoked
1589+even if the settlor remarries the former spouse.".
1590+Renumber all SECTIONS consecutively.
1591+and when so amended that said bill do pass.
1592+ES 18—LS 6017/DI 149 38
1593+(Reference is to SB 18 as introduced.)
1594+BROWN L, Chairperson
1595+Committee Vote: Yeas 11, Nays 0.
1596+_____
1597+COMMITTEE REPORT
1598+Mr. Speaker: Your Committee on Judiciary, to which was referred
1599+Senate Bill 18, has had the same under consideration and begs leave to
1600+report the same back to the House with the recommendation that said
1601+bill be amended as follows:
1602+Delete pages 8 through 9.
1603+Page 13, delete lines 17 through 42.
1604+Page 14, delete lines 1 through 29.
1605+Page 19, delete lines 15 through 31.
1606+Page 29, delete lines 38 through 42.
1607+Delete page 30.
1608+Page 31, delete lines 1 through 34.
1609+ Page 35, delete lines 40 through 42.
1610+Delete pages 36 through 40.
1611+Renumber all SECTIONS consecutively.
1612+and when so amended that said bill do pass.
1613+(Reference is to SB 18 as printed January 12, 2024.)
1614+JETER
1615+Committee Vote: yeas 9, nays 0.
1616+ES 18—LS 6017/DI 149