Ind. Code ch. 32-17-13

in effect

Ind. Code § 32-17-13-1 "Nonprobate transfer"; transfers involving multiple party accounts, motor vehicles, and watercraft

Sec. 1. (a) As used in this chapter, "nonprobate transfer" means a valid transfer, effective at death, by a transferor: (1) whose last domicile was in Indiana; and (2) who immediately before death had the power, acting alone, to prevent transfer of the property by revocation or withdrawal and: (A) use the property for the benefit of the transferor; or (B) apply the property to discharge claims against the transferor's probate estate. (b) The term does not include a transfer at death (other than a transfer to or from the deceased transferor's probate estate) of: (1) a survivorship interest in a tenancy by the entireties real estate; (2) a life insurance policy or annuity; (3) the death proceeds of a life insurance policy or annuity; (4) an individual retirement account or a similar account or plan; or (5) benefits under an employee benefit plan. (c) With respect to a nonprobate transfer involving a multiple party account, a nonprobate transfer occurs if the last domicile of the depositor whose interest is transferred under IC 32-17-11 was in Indiana. (d) With respect to a motor vehicle or a watercraft, a nonprobate transfer occurs if the transferee obtains a certificate of title in Indiana under IC 9-17. (e) A transfer on death transfer completed under IC 32-17-14 is a nonprobate transfer. As added by P.L.165-2002, SEC.11. Amended by P.L.143-2009, SEC.40; P.L.6-2010, SEC.22; P.L.36-2011, SEC.10; P.L.125-2012, SEC.408; P.L.198-2016, SEC.661; P.L.163-2018, SEC.15.

Ind. Code § 32-17-13-2 "Claimant"; "nonprobate transferee"; liability of nonprobate transferee

Sec. 2. (a) As used in this chapter, "claimant" means the surviving spouse or a surviving child, to the extent that statutory allowances are affected, or a person who has filed a timely claim in a deceased transferor's probate estate under IC 29-1-14, and is entitled to enforce the claim against a transferee of a nonprobate transfer. (b) As used in this chapter, "nonprobate transferee" means a person who acquires an interest in property by a nonprobate transfer. (c) Except as otherwise provided by statute, a transferee of a nonprobate transfer is subject to liability to a deceased transferor's probate estate for: (1) allowed claims against the deceased transferor's probate estate; and (2) statutory allowances to the decedent's spouse and children; to the extent the decedent's probate estate is insufficient to satisfy those claims and allowances. (d) The liability of the nonprobate transferee may not exceed the value of nonprobate transfers received or controlled by the nonprobate transferee. (e) The liability of the nonprobate transferee does not include the net contributions of the nonprobate transferee. As added by P.L.165-2002, SEC.11. Amended by P.L.163-2018, SEC.16.

Ind. Code § 32-17-13-3 Priority of liability to probate estate

Sec. 3. Nonprobate transferees are liable for the insufficiency described in section 2 of this chapter in the following order: (1) As provided in the deceased transferor's will or other governing instrument. (2) To the extent of the value of the nonprobate transfer received or controlled by the trustee of trusts that can be amended, modified, or revoked by the decedent during the deceased transferor's lifetime. If there is more than one (1) such trust, in proportion to the relative value of the trusts. (3) Other nonprobate transferees in proportion to the values received. As added by P.L.165-2002, SEC.11. Amended by P.L.163-2018, SEC.17.

Ind. Code § 32-17-13-4 Beneficiary interests in trusts

Sec. 4. Unless otherwise provided by the trust instrument, interest of beneficiaries in all trusts incurring liabilities under this chapter shall abate as necessary to satisfy the liability as if all of the trust instruments were a single trust. As added by P.L.165-2002, SEC.11. Amended by P.L.101-2008, SEC.11.

Ind. Code § 32-17-13-5 Apportionment of liability by instrument

Sec. 5. (a) A provision made in an instrument may direct the apportionment of the liability among the nonprobate transferees taking under that or any other governing instrument. (b) If a provision in an instrument conflicts with a provision in another instrument, the later provision prevails. As added by P.L.165-2002, SEC.11.

Ind. Code § 32-17-13-6 Enforcement proceedings; jurisdiction

Sec. 6. (a) Upon due notice to a nonprobate transferee, the liability imposed by this chapter is enforceable in proceedings in Indiana in the county where: (1) the transfer occurred; (2) the transferee is located; or (3) the probate action is pending. (b) A proceeding under this chapter may be commenced as a separate cause from a cause in which a probate action is pending with respect to a deceased transferor of a nonprobate transfer by filing a complaint against a nonprobate transferee as a defendant and serving a summons and a complete copy of the complaint to each defendant under the Indiana Rules of Trial Procedure. As added by P.L.165-2002, SEC.11. Amended by P.L.163-2018, SEC.18.

Ind. Code § 32-17-13-7 Commencement of proceedings; requirements; time limits; immunity of personal representative

Sec. 7. (a) This subsection applies to a proceeding commenced under this chapter and a deceased transferor who died before July 1, 2018, if the personal representative or claimant commences the proceeding before January 1, 2020. A proceeding under this chapter may not be commenced unless the personal representative of the deceased transferor's estate has received a written demand for the proceeding from a claimant. (b) This subsection applies to a proceeding commenced under this chapter and a deceased transferor who died before July 1, 2018, if the personal representative or claimant commences the proceeding before January 1, 2020, and the claimant files a timely claim in the deceased transferor's estate before July 1, 2018. If the personal representative declines or fails to commence a proceeding within sixty (60) days after receiving the demand, a person making the demand may commence the proceeding in the name of the decedent's estate at the expense of the person making the demand. (c) This subsection applies to a proceeding commenced under this chapter and a deceased transferor who died before July 1, 2018, if the personal representative or claimant commences the proceeding before January 1, 2020, and the claimant files a timely claim in the deceased transferor's estate before July 1, 2018. A personal representative who declines, in good faith, to commence a requested proceeding incurs no personal liability for declining to commence a proceeding. (d) This subsection applies to a proceeding commenced under this chapter with respect to a deceased transferor who dies after June 30, 2018. A proceeding under this chapter may not be commenced unless: (1) the claimant files a claim in the deceased transferor's estate and delivers a copy of the claim to each nonprobate transferee known by the claimant not later than five (5) months after the deceased transferor's death; (2) the claimant delivers a written demand for the proceeding to: (A) the personal representative of the deceased transferor's estate; and (B) each known nonprobate transferee; and (3) except as provided in subsection (j), the written demand has been filed in the estate not later than seven (7) months after the deceased transferor's death. (e) This subsection applies to a proceeding commenced under this chapter and concerning a deceased transferor who dies after June 30, 2018. The written demand must include the following information: (1) The cause number of the deceased transferor's estate. (2) A statement of the claimant's interest in the deceased transferor's estate and nonprobate transfers, including the date on which the claimant filed a claim in the deceased transferor's estate. (3) A copy of the claim attached as an exhibit to the written demand. (4) A description of the nonprobate transfer, including: (A) a description of the transferred asset, as the asset would be described under IC 29-1-12-1, regardless of whether the asset is part of the decedent's probate estate, subject to the redaction requirements of the Indiana administrative rules, established by the Indiana supreme court; (B) a description or copy of the instrument by which the deceased transferor established the nonprobate transfer, subject to the redaction requirements of the Indiana administrative rules, established by the Indiana supreme court; and (C) the name and mailing address of each nonprobate transferee known by the claimant. (f) This subsection applies to a proceeding commenced under this chapter and concerning a deceased transferor who dies after June 30, 2018. A proceeding under this chapter may not be commenced on behalf of a claimant if the personal representative has neither allowed nor disallowed the claimant's claim within the deadlines in IC 29-1-14-10(a) and IC 29-1-14-10(b), unless the claimant's petition to set the claim for trial in the probate court under IC 29-1-14-10(e) has been filed within thirty (30) days after the expiration of the deadlines applicable to the allowance or disallowance of claims under IC 29-1-14-10(a) and IC 29-1-14-10(b). (g) If the personal representative declines or fails to commence a proceeding under this chapter within thirty (30) days after receiving the written demand required under subsection (a) or (d), a person making the demand may commence the proceeding in the name of the deceased transferor's estate at the expense of the person making the demand and not of the estate. (h) A personal representative who declines in good faith to commence a requested proceeding incurs no personal liability for declining. (i) Nothing in this section shall affect or prevent any action or proceeding to enforce a valid and otherwise enforceable lien, warrant, mortgage, pledge, security interest, or other comparable interest against property included in a nonprobate transfer. (j) This subsection applies to a proceeding commenced under this chapter and concerning a deceased transferor who dies after June 30, 2018. A claimant may file the written demand required in subsection (a) or (d) concurrently with the claimant's filing of a claim in the deceased transferor's estate, but the claimant shall deliver the written demand not later than the later of: (1) seven (7) months after the deceased transferor's death; or (2) thirty (30) days after the final allowance of the claimant's claim. As added by P.L.165-2002, SEC.11. Amended by P.L.6-2010, SEC.23; P.L.163-2018, SEC.19; P.L.231-2019, SEC.41; P.L.56-2020, SEC.15.

Ind. Code § 32-17-13-8 Deadline for commencement of proceedings

Sec. 8. (a) This subsection applies to a proceeding commenced under this chapter with respect to a deceased transferor who died before July 1, 2018, if the personal representative or claimant commences the proceeding before January 1, 2020. A proceeding under this chapter must be commenced not later than nine (9) months after the deceased transferor's death. However, a proceeding on behalf of a creditor whose claim was timely filed may be commenced within: (1) sixty (60) days after the final allowance of the claim; or (2) ninety (90) days after demand is made under section 7 of this chapter if the personal representative declines or fails to commence a proceeding after receiving the demand. (b) This subsection applies to a proceeding commenced under this chapter with respect to a deceased transferor who dies on or after June 30, 2018. A proceeding under this chapter must be commenced not later than nine (9) months after the deceased transferor's death, but a proceeding on behalf of a claimant whose claim was timely filed in the deceased transferor's estate may be commenced after the final allowance of the claim within the earlier of: (1) thirty (30) days after the personal representative files in the deceased transferor's estate after final allowance of the claim a written notice that the personal representative does not intend to commence a proceeding under this chapter; or (2) ninety (90) days after final allowance of the claim if: (A) the personal representative declines or fails to commence a proceeding after receiving the demand under section 7 of this chapter; and (B) the personal representative does not file a written notice in the deceased transferor's estate that the personal representative does not intend to commence a proceeding under this chapter. As added by P.L.165-2002, SEC.11. Amended by P.L.6-2010, SEC.24; P.L.163-2018, SEC.20; P.L.231-2019, SEC.42.

Ind. Code § 32-17-13-9 Release of obligor or trustee from liability for transfer of assets to nonprobate transferee

Sec. 9. Unless written notice asserting that a deceased transferor's probate estate is insufficient to pay allowed claims and statutory allowances has been received from the deceased transferor's personal representative, the following rules apply: (1) Payment or delivery of assets by a financial institution, registrar, or another obligor to a nonprobate transferee under the terms of the governing instrument controlling the transfer releases the obligor from all claims for amounts paid or assets delivered. (2) A trustee receiving or controlling a nonprobate transfer is released from liability under this section on any assets distributed to the trust's beneficiaries. Each beneficiary, to the extent of the distribution received, becomes liable for the amount of the trustee's liability attributable to that asset imposed by sections 2 and 3 of this chapter. As added by P.L.165-2002, SEC.11. Amended by P.L.163-2018, SEC.21.

Ind. Code § 32-17-13-10 Recovery of value of nonprobate transfer from nonprobate transferee; intervention

Sec. 10. (a) If the personal representative of a deceased transferor's probate estate commences a separate proceeding under this chapter and recovers all or part of the value of the nonprobate transfer from the nonprobate transferees, the personal representative must: (1) include the value in the inventory of the deceased transferor's probate estate; and (2) pay or distribute the value as the personal representative would pay or distribute other assets of the deceased transferor's probate estate. (b) If: (1) the personal representative of a deceased transferor's probate estate declines or fails to commence a proceeding under this chapter after receiving written demand; (2) the person making the written demand commences a timely and proper action under this chapter; and (3) the person making the written demand recovers all or part of the value of the nonprobate transfer from the nonprobate transferees; the person making the written demand may retain the recovered value without remitting it to the personal representative of the deceased transferor's probate estate. (c) If one (1) or more claimants of the deceased transferor's estate intervenes in the separate proceeding, the court shall enter an order allocating the recovered value among the plaintiff and other claimants according to the priorities of their claims in the deceased transferor's estate, and allow the plaintiff to retain plaintiff's costs and reasonable attorney's fees from the recovered value. (d) Any claimant that recovers assets under this section must file a satisfaction or partial satisfaction of the claimant's claim in the deceased transferor's probate estate to the extent of the recovered value within thirty (30) days after the recovery. As added by P.L.163-2018, SEC.22.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/32Fetched: 10/17/2026