Inheritance Tax

Repeal of Inheritance Tax

Inheritance Tax has been repealed for taxpayers deceased after December 31, 2012. Please click on "Repeal of Inheritance Tax" for further details.

Explanation of 20% holds

20% holds are placed on joint accounts where the date of death values exceeds the exemption levels determined by Indiana Code. Exceptions to this rule depend upon the relationship of the individual receiving the monies or if there has been an estate opened where letters of testamentary or personal representative letters have been granted by the court. If the related individual has not reached their exemption levels when taking all monies into account, the accounts will be released 100%. If the related individual goes above and beyond the exemption level, the 20% hold is placed on the joint account. If the account falls under any other form of ownership other than jointly held, and there is a potential for inheritance tax due, the Greene County Assessor’s Office cannot consent to the transfer. For estates or letters of testamentary, the accounts are automatically released 100% as the actions of the individual(s) are governed by the Greene County Courts. The 20% holds are not the taxes that will be owed, but are simply a guarantee that payment of potential taxes will be made. Since we are a government office, we cannot give legal advice, as such when holds are placed on accounts, we will typically recommend that the heir(s) seek legal counsel in order to have proper paperwork filed.

If a financial institution has a 20% hold placed on an account for an extended period of time, contact the Indiana Dept. of Revenue Inheritance Tax Division (317) 232-2154.


Exemption Levels for Beneficiaries and Heirs Prior to 2012

 100% Exempt

Surviving spouse, charitable organizations

 Class A $100,000

Parents, children (including step-children), grandparents, grandchildren, other lineal ancestors and descendants

 Class B $500

Brothers, sisters, lineal descendants of brothers and sisters, daughters-in-law, sons-in-law

 Class C $100

Everyone else, including but not limited to aunts, uncles, cousins, friends, nieces and nephews by marriage, corporations


Exemption Levels for Beneficiaries and Heirs After 2011

 100% Exempt

 Surviving spouse, charitable organizations

Class A $250,000

Parents, children (including step-children), grandparents, grandchildren, daughters-in-law, sons-in-law, other lineal ancestors and descendants

 Class B $500

Brothers, sisters, lineal descendants of brothers and sisters

Class C $100

Everyone else, including but not limited to aunts, uncles, cousins, friends, nieces and nephews by marriage, corporations


Application for Consent to Transfer

 The following is a step-by-step explanation as to what is considered necessary information in order to process the Application for Consent to Transfer.

 1. Name of decedent – please include middle initial if one is available.

 2. Decedent’s Social Security Number – State requires this information on filed forms. Forms are confidential and will not be released to the public.

 3. Date of death.

 4. County of residence – Assessor’s Office can only approve forms for decedents that were Greene County residents.

 5. Name and relationship of individual filing the form.

 6. Letters of testamentary or PR letters are only issued through an estate that will have a case/cause number similar to ‘28D01-15__-EU-___,’ or ‘28D01-15__-ES-___.’ A case/cause number that is similar to ‘28D01-15__-EM-___,’ does not grant PR letters and thus there is no administration. Keep in mind that ‘EM’ letters did not exist prior to 2009, therefore a case/cause number similar to ‘02D01-08__-EU-___,’ may or may not have PR letters. These would have to be checked through someone who has access to the Courts programs.

 7. Holding institution.

 8. Form of ownership, e.g. sole, joint, or trust. If a trust exists, information regarding to whose benefit the trust was established or who the beneficiary is will be needed, especially if no administration exists. This will tell us if the funds are exceeding any exemption levels. This is especially true if the trust is named as the transferee.

 9. Account number, which may or may not exist depending upon what type of assets are being transferred.

10. Description of property – which may include annuity, stock, savings, checking, ira, cd, etc.

11. Date of death value

12. Name of transferee – the individual who is actually receiving the monies. This also may include trusts as well as the estates.

13. Relationship of decedent – The relationship must be provided, even if there is an estate and they simply list ‘personal representative.’ If a niece or nephew exist, it is helpful to know if they are blood related or not, as this will determine different exemption levels.

14. Transferee signature – each individual must sign for themselves unless they provide a power of attorney. The only time a PR can sign for something other than them self is if the name of the transferee is the estate of the decedent. If a trustee signs for a trust, they must also print ‘as trustee’ below their signature. If there are 2 trustees or personal representatives, only 1 needs to sign.

Please keep in mind that all inheritance taxes that are filed in Greene County must be done so on forms that are prescribed by the Indiana Dept. of Revenue, or they may be denied. A necessary and consistent way to check is the Seal of the State of Indiana, which is found in the upper left-hand corner of the forms with number (R5 / 04-11).


Changes to Inheritance Tax Law

Legislative changes have occurred during the 2012 session resulting in the increase of the exemption levels of Class A beneficiaries as well as including additional relationships within the Class A designation. Those now included within Class A beneficiaries are sons-in-law and daughters-in-law. The exemption levels increased for those designated as Class A from $100,000 to $250,000. Keep in mind that these changes only affect those who have died on or after January 1, 2012.

Additional changes to the Indiana Code include a phase-out of the Inheritance Tax starting in 2013. This phase-out grants those who have died on or after January 1, 2013. The phase-out gives a 10% reduction of the inheritance tax taken at the time of payment for each year starting with 2013. The 10% reduction is taken prior to any other discounts or additional fees are taken into consideration, i.e. 5% discount for early payment, 10% interest due to late payment, etc.



Commonly used, approved forms for inheritance taxes can be found through the Indiana Dept. of Revenue at the following web address: