Computation for residents and nonresidents; determination of
value of Indiana gross estate
Sec. 2. (a) The Indiana estate tax is the amount determined in
STEP FOUR of the following formula:
STEP ONE: Divide:
(A) the value of the decedent's Indiana gross estate; by
(B) the value of the decedent's total gross estate for federal
estate tax purposes.
STEP TWO: Multiply:
(A) the quotient determined under STEP ONE; by
(B) the federal state death tax credit allowable against the
decedent's federal estate tax.
The product is the Indiana portion of the federal state death tax
credit.
STEP THREE: Subtract:
(A) the amount of all Indiana inheritance taxes actually paid
as a result of the decedent's death; from
(B) the product determined under STEP TWO.
STEP FOUR: Determine the greater of the following:
(A) The remainder determined under STEP THREE.
(B) Zero (0).
(b) For purposes of this section, the value of a nonresident
decedent's Indiana gross estate equals the total fair market value on
the appraisal date of tangible personal property and real estate which
had an actual situs in Indiana at the time of the decedent's death and
which is included in the decedent's gross estate for federal estate tax
purposes under Sections 2031 through 2044 of the Internal Revenue
Code.
(c) For purposes of this section, the value of a resident decedent's
Indiana gross estate equals the total fair market value on the appraisal
date of personal property and real estate that had an actual situs in
Indiana at the time of the decedent's death and all intangible personal
property wherever located that is included in the decedent's gross
estate for federal estate tax purposes.
(d) For purposes of this section, the value of a resident or
nonresident decedent's total gross estate for federal estate tax
purposes equals the total fair market value on the appraisal date of
the property included in the decedent's gross estate for federal estate
tax purposes under Sections 2031 through 2044 of the Internal
Revenue Code.
(e) For purposes of determining the value of a decedent's Indiana
gross estate and the decedent's total gross estate, the appraisal date
for each property interest is the date on which the property interest
is valued for federal estate tax purposes.
(f) The estate tax does not apply to a property interest transfer
made by a resident decedent if the interest transferred is in:
(1) real property located outside Indiana, regardless of whether
the property is held in a trust or whether the trustee is required
to distribute the property in-kind; or
(2) real property located in Indiana, if:
(A) the real property was transferred to an irrevocable trust
during the decedent's lifetime;
(B) the transfer to the trust was not made in contemplation
of the transferor's death, as determined under IC 6-4.1-2-4;
and
(C) the decedent does not have a retained interest in the
trust.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1979,
P.L.75, SEC.13; P.L.58-1990, SEC.3; P.L.78-1993, SEC.3.
Last modified: May 28, 2006