Indiana Estate Planning Laws

Estate & Inheritance Tax

Indiana does not impose a state estate tax. Residents are still subject to the federal estate tax for estates exceeding the federal exemption amount ($13.61 million in 2024).

Inheritance Tax: Indiana repealed its inheritance tax effective January 1, 2022. Estates of decedents dying on or after that date are not subject to Indiana inheritance tax.

Probate Process

Indiana uses a both probate system. Estates valued below $50,000 may qualify for simplified small estate procedures, such as a small estate affidavit, which avoids full probate.

Elective Share: The surviving spouse may elect to take one-half of the decedent's net estate (excluding certain transfers).

Will Requirements

In Indiana, a valid will requires:

• The testator must be at least 18 years old and of sound mind
• The will must be in writing
• The will must be signed by the testator (or by another person at the testator's direction)
• 2 witnesses must sign the will

Holographic (Handwritten) Wills: Indiana does not recognize holographic (handwritten) wills. A will must be properly witnessed to be valid.

Self-Proving Affidavit: Notarization is required for a self-proving affidavit, which allows the will to be admitted to probate without witness testimony.

Digital/Electronic Wills: Permitted under state law.

Power of Attorney

Indiana provides a statutory power of attorney form that is widely accepted by financial institutions and government agencies.

A durable power of attorney remains effective if the principal becomes incapacitated. This is a critical estate planning document for Indiana residents.

Medicaid Planning

Indiana follows the federal Medicaid look-back period of 60 months (5 years). Any transfers of assets for less than fair market value made within this period before applying for Medicaid may result in a penalty period of ineligibility.

Planning for potential long-term care needs should begin well in advance of the look-back period. Consult with an elder law attorney in Indiana for strategies specific to your situation.