Indiana Inheritance Tax

Indiana inheritance tax is imposed on the state's residents after their death. It is different from an estate tax because an estate tax is imposed based on the valuation of the deceased's estate, whereas an inheritance tax is imposed on the beneficiary who obtains the inheritance.

Additionally, the inheritance tax in Indiana is levied on the basis of the kinship with the deceased person. In Indiana, the form in which the inheritance tax return is to be filed is known as the IH-6. This return has to be filed by the personal representative of the estate within a period of nine months from the date of death of any resident in Indiana.

It is not necessary to file a return if the estate amount bequeathed to an inheritor is below the permissible exemption. The range of exemption varies from the whole estate, if it is bequeathed to a charitable organization or partner, to $100 for other beneficiaries.

The inheritance tax infrastructure in Indiana has been created in a layered format. The tax amount is dependent on the amount of benefit the beneficiaries are getting after the death of an Indiana resident.

The beneficiaries under Indiana inheritance tax system are categorized into the following types:

• Surviving spouse: Property transfers to a living partner are completely exempted from tax
• Class A: This class includes lineal ancestors, for example parents and grandparents, lineal descendants, for example, children and grandchildren, the parent of a legally acquired son or daughter, legally acquired son or daughter, as well as the descendant of an acquired child or daughter. The amount of tax exemption received by every beneficiary under this class is $100,000.
• Class B: This class includes beneficiaries like sister, brother, descendant of sister or brother, a widow or wife of son, a widower, as well as husband of daughter. The amount of tax exemption received by every beneficiary under this class is $500.
• Class C: Every other type of beneficiaries not mentioned above falls in this class. The maximum amount of exemption received by the beneficiaries under this class is $100.
  
  Contact Details:
  Indiana Department of Revenue
  100 N Senate Avenue
  Indianapolis, IN 46204
  Tel: (317) 232-2240
  Fax:(317) 232-1021