Transfers of interests in property; transfers in contemplation of
death; transfers for consideration
Sec. 4. (a) The inheritance tax applies to transfers of property
interests described in subsection (d) and to the following types of
property interest transfers:
(1) transfers which are made under a deceased transferor's will
or under the laws of intestate succession, as a result of the
transferor's death;
(2) transfers which are made in contemplation of the transferor's
death;
(3) transfers which are made in such a manner that they are
intended to take effect in possession or enjoyment at or after the
transferor's death;
(4) transfers which are made in payment of a claim against the
transferor's estate if:
(A) the claim results from a contract or antenuptial
agreement made by the transferor; and
(B) payment of the amount claimed is due at or after the
transferor's death under the terms of the transferor's will or
the contract;
(5) those jointly held property transfers described in section 5
of this chapter;
(6) those transfers which are made by a trust deed in the manner
described in section 6 of this chapter; and
(7) those transfers which are made to an executor or trustee in
the manner described in section 7 of this chapter.
(b) A transfer is presumed to have been made in contemplation of
the transferor's death if it is made within one (1) year before the
transferor's date of death. However, the presumption is rebuttable.
(c) If a transfer described in subsection (a)(1), (a)(2), (a)(3), or
(a)(4) is made for valuable consideration, the value of the property
so transferred equals the remainder of:
(1) the total value of the property transferred; minus
(2) the equivalent in money value of the consideration received
by the transferor.
For purposes of this subsection, the term "consideration" does not
include love or affection.
(d) If at the time of death a surviving spouse has been entitled to
income from a property interest that was the subject of a previous
transfer exempt from inheritance tax under IC 6-4.1-3-7(b) or
IC 6-4.1-3-7 (c), then the value of the property interest at the time of
death of the surviving spouse is subject to the inheritance tax as if it
were a transfer of property owned by the surviving spouse. The value
of a property interest subject to inheritance tax under this section
includes the value of each gift of any part of the property interest
made by the surviving spouse in contemplation of death.
As added by Acts 1976, P.L.18, SEC.1. Amended by Acts 1982,
P.L.55, SEC.1; P.L.58-1990, SEC.1.
Last modified: May 28, 2006