What Families Need to Know After a Death in Indiana

Indiana eliminated its state inheritance tax in 2013 and has no estate tax, making it one of the more tax-friendly states for estate settlement in the Midwest. Its probate system runs through the county Circuit Court or Superior Court, and its $100,000 small estate threshold covers many personal property situations. Indiana's advance directive law separates the healthcare representative appointment from the living will declaration — two distinct documents, each serving a different purpose.

Probate
Probate & Small Estate Rules in Indiana

Indiana probate is filed in the Circuit Court or Superior Court of the county where the deceased lived. The small estate threshold is $100,000 for personal property — estates below that value can use an affidavit procedure instead of opening formal probate. The affidavit may be filed 45 days after death under I.C. § 29-1-8-1. The person signing the affidavit takes on personal liability for the estate's debts up to the amount they receive.

Real property cannot be transferred by affidavit — it requires either formal probate or a previously recorded Transfer on Death deed. Indiana recognizes TOD deeds under I.C. § 32-17-14, which allow real estate to pass directly to a named beneficiary without court involvement, as long as the deed was recorded before the owner died.

When full probate is required, the court appoints an executor — called a personal representative in Indiana — who receives Letters Testamentary. Creditors have 3 months from the date of the first published notice to file claims against the estate, and every claim is barred 9 months after death regardless of notice (I.C. § 29-1-14-1). Most uncontested Indiana estates can petition for unsupervised administration, meaning the personal representative can handle routine matters without seeking court approval at each step. Personal representative compensation is set at a reasonable amount — Indiana has no statutory fee schedule (I.C. § 29-1-10-13). Most Indiana probate estates close in 6 to 12 months.

If you are weighing whether to hire an attorney, see probate lawyer costs by state for typical fee ranges, including Indiana. Executor pay is covered in executor fees by state.

Wills
Will Signing Requirements in Indiana

A valid Indiana will requires the testator's signature plus two competent witnesses, who must sign in the presence of both the testator and each other (I.C. § 29-1-5-3). Notarization is not required for a standard witnessed will. However, a self-proving affidavit — a notarized statement signed by the witnesses — eliminates the need for those witnesses to appear in court during probate. It is a small additional step at signing that saves time later.

Indiana does not recognize holographic wills. A handwritten will still needs two witnesses to be valid, exactly like any other will (I.C. § 29-1-5-3) — there is no exception for a document written entirely in the testator's own hand. Indiana Code § 29-1-5-4 covers something different: a narrow oral ("nuncupative") will, made only by someone facing imminent death, limited to $1,000 of personal property ($10,000 for active military), and valid only if declared before two disinterested witnesses, reduced to writing within 30 days, and offered for probate within 6 months. If you find a handwritten document that appears to be a will, do not discard it — present it to the Circuit or Superior Court so a judge can determine whether it meets the witness requirement.

If no valid will exists, Indiana's intestate succession rules under I.C. § 29-1-2-1 determine who inherits. The distribution depends on whether the deceased was survived by a spouse, children, parents, or other relatives.

Advance Directive
Indiana Advance Directives

Indiana uses two separate documents for advance care planning, unlike states that combine them into a single form. The first is a Health Care Representative Appointment, which names a specific person to make medical decisions if the patient cannot. The second is a Living Will Declaration, which states the person's preferences about life-sustaining treatment.

Both documents require the principal's signature and two witnesses. The same witness restrictions apply to each: a witness cannot be the healthcare representative, a healthcare provider or employee of that provider, or anyone who would inherit from the principal under a will or by intestacy.

Indiana also uses an Out-of-Hospital DNR order — a physician-signed form for patients who do not wish to be resuscitated outside a hospital setting. This is a separate medical order, not an advance directive, and requires physician involvement to execute.

Spousal Rights
Spousal Rights & Intestate Succession in Indiana

Indiana is not a community property state. Each spouse owns their individual property separately, and there is no automatic joint ownership of assets acquired during marriage simply because they are married.

Under Indiana intestate succession (I.C. § 29-1-2-1), a surviving spouse's share does not depend on whose children survive — only on whether the deceased left any children (or grandchildren) at all, or a surviving parent:

• If the deceased leaves a surviving spouse and any surviving child or grandchild — whether or not they are also the spouse's child — the spouse receives one-half of the net estate; the children divide the other half.
• If there is no surviving child or grandchild but a parent survives, the spouse receives three-fourths of the net estate.
• If there is no surviving child, grandchild, or parent, the spouse receives the entire net estate.
• If there is no surviving spouse, the estate passes to children, then parents, then siblings and their descendants, following the statutory order.

One exception reduces a spouse's share: if the surviving spouse is a second or later spouse who never had children with the deceased, and the deceased has surviving children (or their descendants) from an earlier relationship, that spouse's share of Indiana real estate drops to 25% of its net value — the rest vests immediately in the deceased's children. The same spouse still receives the normal one-half share of personal property.

Even if there is a will, the surviving spouse has the right to an elective share of one-half of the net estate — both real and personal property — under I.C. § 29-1-3-1. The same second-spouse exception applies to the elective share: a childless second or later spouse's elective share drops to one-third of the net personal estate plus 25% of the net real estate value. This right exists regardless of what the will says — a spouse cannot be completely disinherited without their consent.

Indiana also provides a single $25,000 survivor's allowance under I.C. § 29-1-4-1, payable to the surviving spouse (or, if there is none, divided among the deceased's children under 18) from personal property, real property, or a combination of both. This is one combined allowance, not a separate spousal payment plus a family exemption, and it has priority over most creditor claims.

Vehicle Transfer
Transferring a Vehicle After Death in Indiana

Indiana allows a simplified vehicle or watercraft title transfer using an affidavit — and it moves faster than the general small estate affidavit. The BMV can transfer title just 5 days after death once the heir signs an affidavit confirming the estate qualifies as a small estate and no personal representative is being appointed (I.C. § 29-1-8-1(c)). The heir presents the affidavit along with a death certificate at an Indiana BMV branch. (The full 45-day wait applies only when the same affidavit is also being used to collect other property, such as bank accounts.)

For larger estates that go through formal probate, the personal representative transfers vehicle title using Letters Testamentary at a BMV branch. The personal representative signs the title over to the heir or new owner, and the BMV processes the transfer.

Vehicles that are jointly titled with survivorship rights transfer automatically to the surviving co-owner — no probate required. The surviving co-owner presents a death certificate at the BMV to have their name placed solely on the title.

Vehicles held inside a living trust transfer to the successor trustee without court involvement. The trustee presents the trust documents and death certificate to complete the transfer.

Medicaid Recovery
Medicaid Estate Recovery in Indiana

Indiana Medicaid, administered by the Family and Social Services Administration (FSSA), has the right to seek reimbursement for long-term care costs paid on behalf of beneficiaries aged 55 and older. This includes nursing facility services, home and community-based waiver services, and related hospital and prescription drug costs.

Indiana's reach is not limited to the probate estate — its definition of "estate" for recovery purposes expressly includes non-probate transfers. Assets that can still be reached include:

• Real estate, including a home conveyed through joint tenancy with right of survivorship created after June 30, 2002
• Bank accounts, regardless of a payable-on-death designation or joint owner
• Funds left in a nursing home account, a Qualified Income ("Miller") Trust, or a prepaid funeral trust after the funeral is paid
• Annuities purchased after May 1, 2005
• Assets in a revocable living trust, if they were transferred into the trust after May 1, 2002

Some assets are protected regardless: life insurance proceeds paid to a named beneficiary, real estate the recipient held only as a life estate, non-probate transfers completed before May 1, 2002, personal effects and keepsakes, and assets covered by an Indiana Long Term Care Insurance Partnership policy.

Recovery is deferred while any of the following are living: a surviving spouse, a child under 21, or a child who is blind or disabled, of any age. When a claim applies, it has preferred status ahead of most other creditors, and the personal representative must send the required Notice of Administration to FSSA's Estate Recovery Program for any decedent who was 55 or older at death — Indiana law treats the state as a "reasonably ascertainable creditor" in that situation (I.C. § 29-1-7-7(d)). As of July 1, 2025, the state generally has 9 months after death to file its claim, though that deadline does not apply to assets never reported to the county FSSA office — including property moved through an unreported Transfer on Death deed.

If you are settling an Indiana estate where the deceased received Medicaid long-term care benefits, contact FSSA's Estate Recovery Program early in the process — 877-267-0013 or EstateRecovery@fssa.in.gov — to determine the extent of any claim and to request an undue-hardship waiver if repayment would create hardship for the survivors.

For how the federal estate recovery rules work, which survivors are protected, and how hardship waivers work, see our guide to Medicaid estate recovery.

Frequently Asked Questions

Does Indiana have a state estate tax?

No. Indiana repealed its inheritance tax in 2013 and has no state estate tax. Only the federal estate tax may apply, and only to estates over $15 million (2026 exemption, subject to change).

What is Indiana's small estate affidavit threshold?

Indiana's small estate threshold is $100,000 for personal property. An affidavit can be used to claim personal property 45 days after death under I.C. § 29-1-8-1. Real property cannot use the affidavit and requires probate or a Transfer on Death deed recorded before death.

How long does probate take in Indiana?

Most Indiana probate estates close in 6 to 12 months. The creditor claim period is 3 months from the date of the first published notice, which sets the minimum timeline. Contested or complex estates can take longer.

Can Indiana Medicaid recover from a living trust?

Often, yes. Indiana's Medicaid estate recovery is not limited to the probate estate — it reaches assets moved into a revocable living trust after May 1, 2002, along with other non-probate assets such as jointly titled real estate and most bank accounts. Recovery is deferred while a surviving spouse, a child under 21, or a blind or disabled child of any age is living.

Does Indiana recognize Transfer on Death deeds for real estate?

Yes. Indiana recognizes Transfer on Death deeds under I.C. § 32-17-14. A TOD deed allows real property to pass directly to a named beneficiary at death without probate, as long as the deed was recorded before the owner's death.