Transfer through Register of Wills

Tuesday, August 11th, 2009

Take this scenario: In 1993, a mother passed away.  She is a widow with only one son.  The son and his wife have been living inside the family home since 1990.  The mother did not leave a will and the son didn’t try to change the title.  Fortunately, the insurance and taxes are up to date and the mortgage is paid off completely since 2001.

Now, the son wants to change the title to his name.  But the problem is, he waited too long to do it.  Nevertheless, he can still work around it.  His first step would be to appoint himself as his mother’s estate administrator.  Then, he can transfer the property to his name.  He has to go to the office of Register of Wills and seek help.  There, he will get the necessary administrator appointment.  He has to bring his birth certificate and the death certificate of his mother to expedite the process.

Most likely, there will be an inheritance tax due commensurate for the property’s value at date of death.  Some say, however, that you can appeal to abate the mentioned penalty.  Seek the help of a lawyer to guide you through the transfer and give you advice on the best course to take.

Tags: administrator, certificate, estate, inheritance tax, insurance, lawyer, mortgage, mother, Register of Wills, taxes, title, widow, will
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Avoid Inheritance Tax on Proceeds of Life Insurance

Saturday, July 4th, 2009

Generally, life insurance proceeds aren’t subject to Indiana Inheritance Tax.  An exception to this rule occurs when proceeds are payable to the estate of the descendant, either because the estate was named as beneficiary or the deceased failed to name any beneficiary.

A few months ago, however, the list server of Indiana Probate Bar was actively discussing this fact - Indiana’s DOR (Department of Revenue) was taking expanded interoperation of the section in the code authorizing an inheritance tax on the proceeds of life insurance.

Apparently, DOR decided that if the life insurance proceeds are payable to one’s trust, then this trust is authorized to pay debts or administrative expenses of the decedent, and the proceeds would be subject to Inheritance Tax.

However, the code should not be interpreted that way.  The schedule B of Indiana Inheritance Tax Return - the only place that lists life insurance proceeds which says that “life insurance is payable to estate.”  Armed with this, many attorneys take the position that life insurance are not required to be filed on Inheritance Tax return and be subjected to Inheritance tax unless the proceeds are payable to one’s estate.

Tags: attorneys, DOR, estate, Indiana, inheritance tax, life insurance, proceeds
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Roles of the Testator

Wednesday, June 24th, 2009

A testator is a person who will decide on the beneficiaries of their estate. If there’s no will, the estate will just be divided according to laws of intestacy, and this may result in another outcome which is not the wish of the deceased.

For instance, significant sums of money may pass to the children instead of the surviving spouse.  Though it may be desirable to have some funds for the children, the testator can provide a limit or the final decision on the beneficiaries that he or she decides to give benefit to.

Also, the testator can select an individual to be their executor.  This individual will be responsible for administering the estate of the testator.  Testators should not only choose individuals that they trust, but most important, those whom they think can cope up with the stress of the role.  Also, the executors may need to apply for insurance in order to protect the estate.

Every testator should make sure that he or she has an accurate and up-to-date will since a well-drafted will may also be a very vital tax-planning tool.  More people can be caught up with inheritance tax or death duties, but these can be avoided easily if the testator seriously considered the creation of a will.

Tags: beneficiaries, estate, executor, inheritance tax, intestacy, testator, will
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