Bill Text: IN HB1258 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Various estate administration matters.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Enrolled - Dead) 2012-03-19 - Signed by the Governor [HB1258 Detail]

Download: Indiana-2012-HB1258-Introduced.html

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Introduced Version

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HOUSE BILL No. 1258

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DIGEST OF INTRODUCED BILL

Citations Affected: IC 6-4.1; IC 12-14-21-3; IC 12-15-9; IC 29-1; IC 29-3-3-7; IC 30-4; IC 32-17-14; IC 35-45-6-0.1; IC 35-45-6-1.

Synopsis: Various estate planning matters. Specifies that an individual holding a beneficial or ownership interest in an entity is considered the transferee when a transferor makes a transfer subject to the inheritance tax to the entity. Provides that the individual is liable for the same percentage of the inheritance tax as the individual's percentage of beneficial or ownership interest in the entity. Provides that reasonable funeral expenses have priority over claims to recover supplemental assistance for the aged and Medicaid from a recipient's estate. (Current law provides that only amounts of $550 or less have priority over a claim for the recovery of aged assistance and that only amounts of $350 or less have priority over a claim for the recovery of Medicaid.) Eliminates authority to file a recovery claim against the estate of the recipient's spouse. Specifies that for purposes of the Medicaid recovery statute, costs of administration include taxes, penalties, and interest paid by the estate. Eliminates rules of will construction that applied only to decedents dying in 2010. Authorizes foreign wills to be probated after the expiration of the probate deadlines for the same limited purposes for which Indiana wills may be probated after the deadlines. Provides that when an estate's resources are insufficient to pay all claims, the amount given priority for reasonable funeral expenses is not subject to any reductions for various benefits received by the decedent. Provides that costs of administration include the fee of a surrogate attorney for purposes of determining the priority of claims when an estate's resources are insufficient to pay all claims. Eliminates the requirement that a declaration designating a standby guardian include the Social Security number of the child or protected

(Continued next page)

Effective: Upon passage; July 1, 2012.

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Foley, McMillin, DeLaney

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    January 9, 2012, read first time and referred to Committee on Judiciary.

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Digest Continued

person. Specifies that a standby guardian has all of the powers granted by the guardianship statute. Provides that amendments to the trust code apply to trusts created prior to the effective date of the amendment unless certain adverse events would occur because of the application of the amendment. Provides that amendments to the transfer on death (TOD) statute apply to TOD transfers created before the effective date of the amendment. Specifies that a testamentary trust receiving a TOD transfer is considered to have been in existence as of the owner's death if the owner's last will and testament is admitted to probate. Provides that the practice of law by a person who is not an attorney is considered racketeering activity for purposes of the law concerning racketeer influenced and corrupt organizations. Makes technical corrections. Repeals rules of trust construction that applied only to decedents dying in 2010. (The introduced version of this bill was prepared by the probate code study commission.)

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Introduced

Second Regular Session 117th General Assembly (2012)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2011 Regular Session of the General Assembly.

HOUSE BILL No. 1258

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    A BILL FOR AN ACT to amend the Indiana Code concerning probate.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-4.1-1-3.5; (12)IN1258.1.1. -->     SECTION 1. IC 6-4.1-1-3.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3.5. "Entity" refers to a partnership, limited partnership, limited liability partnership, association, corporation, limited liability company, trust, or similar entity.

SOURCE: IC 6-4.1-2-8; (12)IN1258.1.2. -->     SECTION 2. IC 6-4.1-2-8 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 8. If a transferor makes a taxable transfer to an entity, each individual with a beneficial (whether discretionary or not) or ownership interest in the entity is considered a transferee. Each transferee is liable for the same percentage of the taxes imposed on the taxable transfer as that individual's percentage of beneficial (whether discretionary or not) or ownership interest in the entity.

SOURCE: IC 12-14-21-3; (12)IN1258.1.3. -->     SECTION 3. IC 12-14-21-3 IS AMENDED TO READ AS

FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 3. Notwithstanding any other law, a claim filed for recovery of aged assistance has priority in order of payment from the estate over all other claims, except the following:
        (1) Prior recorded encumbrances.
        (2) Taxes.
        (3) Reasonable costs of administration.
        (4) Reasonable funeral expenses. in an amount not to exceed five hundred fifty dollars ($550). However, this amount is zero (0) if the decedent has The court may consider the amount of funds established for prepaid funeral expenses that were excluded as a resource for Medicaid eligibility under IC 12-15-2 to determine the amount of funeral expenses granted priority over the claim under this section.

SOURCE: IC 12-15-9-0.5; (12)IN1258.1.4. -->     SECTION 4. IC 12-15-9-0.5, AS AMENDED BY P.L.246-2005, SECTION 107, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 0.5. (a) As used in this chapter, "estate" includes:
        (1) all real and personal property and other assets included within an individual's probate estate;
        (2) any interest in real property owned by the individual at the time of death that was conveyed to the individual's survivor through joint tenancy with right of survivorship, if the joint tenancy was created after June 30, 2002;
        (3) any real or personal property conveyed through a nonprobate transfer; and
        (4) any sum due after June 30, 2005, to a person after the death of a Medicaid recipient that is under the terms of an annuity contract purchased after May 1, 2005, with the assets of
            (A) the Medicaid recipient. or
            (B) the Medicaid recipient's spouse.
    (b) 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.
The term does not include transfer of a survivorship interest in a tenancy by the entireties real estate or payment of the death proceeds of a life insurance policy.

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SOURCE: IC 12-15-9-1; (12)IN1258.1.5. -->     SECTION 5. IC 12-15-9-1, AS AMENDED BY P.L.246-2005, SECTION 108, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) Subject to subsection (b), Upon the death of a Medicaid recipient, or upon the death of a deceased Medicaid recipient's spouse, the total amount of Medicaid paid on behalf of the recipient after the recipient became fifty-five (55) years of age must be allowed as a preferred claim against the estate of the recipient or the recipient's spouse in favor of the state. The affidavit of a person designated by the secretary to administer this section is evidence of the amount of the claim and is payable after the payment of the following in accordance with IC 29-1-14-9:
         (1) The expenses of administering the estate, including the attorney's fees approved by the court and all taxes, interest, and penalties imposed by one (1) or more of the following:
            (A) The federal government.
            (B) A state.
            (C) A political subdivision (as defined in IC 36-1-2-13).
        (1) (2) Reasonable funeral expenses for the recipient. and the recipient's spouse, not to exceed in each individual case three hundred fifty dollars ($350).
        (2) (3) The expenses of the last illness of the recipient and the recipient's spouse that are authorized or paid by the office.
        (3) The expenses of administering the estate, including the attorney's fees approved by the court.
    (b) If a recipient's spouse remarries, the part of the estate of the recipient's spouse that is attributable to the subsequent spouse is not subject to a claim for Medicaid paid on behalf of the recipient.

SOURCE: IC 12-15-9-5; (12)IN1258.1.6. -->     SECTION 6. IC 12-15-9-5, AS AMENDED BY P.L.246-2005, SECTION 109, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 5. (a) The office may not recover on a claim filed file a claim against the estate of a recipient's surviving spouse. while the individual is survived by a child who is:
        (1) less than twenty-one (21) years of age; or
        (2) permanently and totally disabled under criteria established by the federal Supplemental Security Income program.
    (b) The office may not recover on a claim filed against the estate of a surviving spouse from any part of the estate described in section 1(b) of this chapter.

SOURCE: IC 29-1-6-1; (12)IN1258.1.7. -->     SECTION 7. IC 29-1-6-1, AS AMENDED BY P.L.36-2011, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. In the absence of a contrary intent appearing in the will, wills shall be construed as to real and personal estate in

accordance with the rules in this section.
    (a) Any estate, right, or interest in land or other things acquired by the testator after the making of the testator's will shall pass as if title was vested in the testator at the time of making of the will.
    (b) All devises of real estate shall pass the whole estate of the testator in the premises devised, although there are no words of inheritance or of perpetuity, whether or not at the time of the execution of the will the decedent was the owner of that particular interest in the real estate devised. Such devise shall also pass any interest which the testator may have at the time of the testator's death as vendor under a contract for the sale of such real estate.
    (c) A devise of real or personal estate, whether directly or in trust, to the testator's or another designated person's "heirs", "next of kin", "relatives", or "family", or to "the persons thereunto entitled under the intestate laws" or to persons described by words of similar import, shall mean those persons (including the spouse) who would take under the intestate laws if the testator or other designated person were to die intestate at the time when such class is to be ascertained, domiciled in this state, and owning the estate so devised. With respect to a devise which does not take effect at the testator's death, the time when such class is to be ascertained shall be the time when the devise is to take effect in enjoyment.
    (d) In construing a will making a devise to a person or persons described by relationship to the testator or to another, any person adopted prior to the person's twenty-first birthday before the death of the testator shall be considered the child of the adopting parent or parents and not the child of the natural or previous adopting parents. However, if a natural parent or previous adopting parent marries the adopting parent before the testator's death, the adopted person shall also be considered the child of such natural or previous adopting parent. Any person adopted after the person's twenty-first birthday by the testator shall be considered the child of the testator, but no other person shall be entitled to establish relationship to the testator through such child.
    (e) In construing a will making a devise to a person described by relationship to the testator or to another, a person born out of wedlock shall be considered the child of the child's mother, and also of the child's father, if, but only if, the child's right to inherit from the child's father is, or has been, established in the manner provided in IC 29-1-2-7.
    (f) A will shall not operate as the exercise of a power of appointment which the testator may have with respect to any real or

personal estate, unless by its terms the will specifically indicates that the testator intended to exercise the power.
    (g) If a devise of real or personal property, not included in the residuary clause of the will, is void, is revoked, or lapses, it shall become a part of the residue, and shall pass to the residuary devisee. Whenever any estate, real or personal, shall be devised to any descendant of the testator, and such devisee shall die during the lifetime of the testator, whether before or after the execution of the will, leaving a descendant who shall survive such testator, such devise shall not lapse, but the property so devised shall vest in the surviving descendant of the devisee as if such devisee had survived the testator and died intestate. The word "descendant", as used in this section, includes children adopted during minority by the testator and by the testator's descendants and includes descendants of such adopted children. "Descendant" also includes children of the mother who are born out of wedlock, and children of the father who are born out of wedlock, if, but only if, such child's right to inherit from such father is, or has been, established in the manner provided in IC 29-1-2-7. This rule applies where the parent is a descendant of the testator as well as where the parent is the testator. Descendants of such children shall also be included.
    (h) Except as provided in subsection (m), if a testator in the testator's will refers to a writing of any kind, such writing, whether subsequently amended or revoked, as it existed at the time of execution of the will, shall be given the same effect as if set forth at length in the will, if such writing is clearly identified in the will and is in existence both at the time of the execution of the will and at the testator's death.
    (i) If a testator devises real or personal property upon such terms that the testator's intentions with respect to such devise can be determined at the testator's death only by reference to a fact or an event independent of the will, such devise shall be valid and effective if the testator's intention can be clearly ascertained by taking into consideration such fact or event even though occurring after the execution of the will.
    (j) If a testator devises or bequeaths property to be added to a trust or trust fund which is clearly identified in the testator's will and which trust is in existence at the time of the death of the testator, such devise or bequest shall be valid and effective. Unless the will provides otherwise, the property so devised or bequeathed shall be subject to the terms and provisions of the instrument or instruments creating or governing the trust or trust fund, including any amendments or modifications in writing made at any time before or after the execution

of the will and before or after the death of the testator.
    (k) If a testator devises securities in a will and the testator then owned securities that meet the description in the will, the devise includes additional securities owned by the testator at death to the extent the additional securities were acquired by the testator after the will was executed as a result of the testator's ownership of the described securities and are securities of any of the following types:
        (1) Securities of the same organization acquired because of an action initiated by the organization or any successor, related, or acquiring organization, excluding any security acquired by exercise of purchase options.
        (2) Securities of another organization acquired as a result of a merger, consolidation, reorganization, or other distribution by the organization or any successor, related, or acquiring organization.
        (3) Securities of the same organization acquired as a result of a plan of reinvestment.
Distributions in cash before death with respect to a described security are not part of the devise.
    (l) For purposes of this subsection, "incapacitated principal" means a principal who is an incapacitated person. An adjudication of incapacity before death is not necessary. The acts of an agent within the authority of a durable power of attorney are presumed to be for an incapacitated principal. If:
        (1) specifically devised property is sold or mortgaged by; or
        (2) a condemnation award, insurance proceeds, or recovery for injury to specifically devised property are paid to;
a guardian or an agent acting within the authority of a durable power of attorney for an incapacitated principal, the specific devisee has the right to a general pecuniary devise equal to the net sale price, the amount of the unpaid loan, the condemnation award, the insurance proceeds, or the recovery.
    (m) A written statement or list that:
        (1) complies with this subsection; and
        (2) is referred to in a will;
may be used to dispose of items of tangible personal property, other than property used in a trade or business, not otherwise specifically disposed of by the will. To be admissible under this subsection as evidence of the intended disposition, the writing must be signed by the testator and must describe the items and the beneficiaries with reasonable certainty. The writing may be prepared before or after the execution of the will. The writing may be altered by the testator after the writing is prepared. The writing may have no significance apart

from the writing's effect on the dispositions made by the will. If more than one (1) otherwise effective writing exists, then, to the extent of a conflict among the writings, the provisions of the most recent writing revoke the inconsistent provisions of each earlier writing.
    (n) A will of a decedent who dies after December 31, 2009, and before January 1, 2011, that contains a formula referring to:
        (1) the unified credit;
        (2) the estate tax exemption;
        (3) the applicable credit amount;
        (4) the applicable exclusion amount;
        (5) the generation-skipping transfer tax exemption;
        (6) the GST exemption;
        (7) the marital deduction;
        (8) the maximum marital deduction;
        (9) the unlimited marital deduction;
        (10) the inclusion ratio;
        (11) the applicable fraction;
        (12) any section of the Internal Revenue Code:
            (A) relating to the:
                (i) federal estate tax; or
                (ii) generation-skipping transfer tax; and
            (B) that measures a share of:
                (i) an estate; or
                (ii) a trust;
            based on the amount that can pass free of federal estate taxes or the amount that can pass free of federal generation-skipping transfer tax law; or
        (13) a provision of federal estate tax or generation-skipping transfer tax law that is similar to subdivisions (1) through (12);
refers to the federal estate tax and generation-skipping transfer tax laws as they applied with respect to estates of decedents on December 31, 2009.
    (o) Subsection (n) does not apply to a will:
        (1) that is executed or amended after December 31, 2009; or
        (2) that manifests an intent that a contrary rule apply if the decedent dies on a date on which there is no then applicable federal estate or generation-skipping transfer tax.
    (p) If the federal estate or generation-skipping transfer tax becomes effective before January 1, 2011, the reference to January 1, 2011, in subsection (n) shall refer instead to the first date on which the tax becomes legally effective.
    (q) Within three (3) months following the latest to occur of the:

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            (1) decedent's death;
            (2) fiduciary's appointment; or
            (3) enactment of this subsection;
the personal representative under a will to which subsection (n) applies shall give written notice to the affected beneficiary of the right to commence a proceeding under subsection (r) and to the present income beneficiary of any trust created under the will of the existence of this section and the beneficiary's right to commence a proceeding under subsection (r).
    (r) The personal representative or an affected beneficiary under a will described in subsection (n) may initiate a proceeding to determine whether the decedent intended that a formula described in subsection (n) be construed with respect to the law as it existed after December 31, 2009. A proceeding under this subsection must be commenced within nine (9) months after the death of the testator or grantor.

SOURCE: IC 29-1-7-25; (12)IN1258.1.8. -->     SECTION 8. IC 29-1-7-25 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 25. (a) Any will that has been proved or allowed in any other state or in any foreign country, according to the laws of that state or country, may be received and recorded in this state: within three (3) years after the decedent's death
        (1) before the deadlines imposed by section 15.1(d) of this chapter, unless the will is probated for a purpose described in section 15.1(e) of this chapter; and
         (2) in the manner and for the purpose stated in sections 26 and 27 of this chapter.
     (b) A foreign will received and recorded for a purpose described in section 15.1(e) may not be admitted to probate for any other purpose and is subject to all rules governing the admission of wills to probate.

SOURCE: IC 29-1-14-9; (12)IN1258.1.9. -->     SECTION 9. IC 29-1-14-9, AS AMENDED BY P.L.161-2007, SECTION 39, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 9. (a) All claims shall be classified in one (1) of the following classes. If the applicable assets of the estate are insufficient to pay all claims in full, the personal representative shall make payment in the following order:
        (1) Costs and expenses of administration.
        (2) Reasonable funeral expenses. However, in any estate in which the decedent was a recipient of public assistance under IC 12-1-1 through IC 12-1-12 (before its repeal) or any of the following, the amount of funeral expenses having priority over any claim for the recovery of public assistance shall not exceed the limitations provided for under IC 12-14-6, IC 12-14-17, and IC 12-14-21:

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            TANF assistance.
            TANF burials.
            TANF IMPACT/J.O.B.S.
            Temporary Assistance to Other Needy Families (TAONF) assistance.
            ARCH.
            Blind relief.
            Child care.
            Child welfare adoption assistance.
            Child welfare adoption opportunities.
            Child welfare assistance.
            Child welfare child care improvement.
            Child welfare child abuse.
            Child welfare child abuse and neglect prevention.
            Child welfare children's victim advocacy program.
            Child welfare foster care assistance.
            Child welfare independent living.
            Child welfare medical assistance to wards.
            Child welfare program review action group (PRAG).
            Child welfare special needs adoption.
            Food Stamp administration.
            Health care for indigent (HCI).
            ICES.
            IMPACT (food stamps).
            Title IV-D (ICETS).
            Title IV-D child support administration.
            Title IV-D child support enforcement (parent locator).
            Medicaid assistance.
            Medical services for inmates and patients (590).
            Room and board assistance (RBA).
            Refugee social service.
            Refugee resettlement.
            Repatriated citizens.
            SSI burials and disabled examinations.
            Title XIX certification.
        (3) Allowances made under IC 29-1-4-1.
        (4) All debts and taxes having preference under the laws of the United States.
        (5) Reasonable and necessary medical expenses of the last sickness of the decedent, including compensation of persons attending him. the decedent.
        (6) All debts and taxes having preference under the laws of this

state; but no personal representative shall be required to pay any taxes on any property of the decedent unless such taxes are due and payable before possession thereof is delivered by the personal representative pursuant to the provisions of IC 29-1.
        (7) All other claims allowed.
    (b) No preference shall be given in the payment of any claim over any other claim of the same class, nor shall a claim due and payable be entitled to a preference over claims not due.
     (c) For purposes of subsection (a), costs and expenses of administration include the fee of a surrogate attorney that has been:
        (1) approved by a court under the rules of the Indiana Supreme Court governing surrogate attorneys; and
        (2) filed as a claim in the estate of a deceased attorney.

SOURCE: IC 29-3-3-7; (12)IN1258.1.10. -->     SECTION 10. IC 29-3-3-7, AS ADDED BY P.L.178-2011, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 7. (a) Subject to subsection (e), a parent of a minor or the guardian of a protected person may designate a standby guardian by making a written declaration naming the individual designated to serve as a standby guardian. A declarant may name an alternate to the designated standby guardian if the designated standby guardian is unable to serve, refuses to serve, renounces the appointment, dies, or becomes incapacitated after the death of the declarant.
    (b) A declaration under this section must contain the following information:
        (1) The names of the declarant, the designated standby guardian, and the alternate standby guardian, if any.
        (2) The following information concerning each minor child or protected person for whom a standby guardian is designated by the declaration:
            (A) The person's full name as it appears on the birth certificate or as ordered by a court.
            (B) The person's date of birth.
            (C) The person's Social Security number, if any.
        (3) A statement that the declaration becomes effective upon the death or incapacity of the declarant.
        (4) A statement that the declaration terminates ninety (90) days after becoming effective unless the standby guardian files a petition for a guardianship of the minor or protected person during that ninety (90) day period.
    (c) A declaration executed under this section must be signed by the

declarant in the presence of a notary public.
    (d) A declaration executed under this section becomes effective upon the death or incapacity (as defined in IC 29-3-1-7.5) of the parent or guardian and terminates ninety (90) days after the declaration becomes effective. However, if the designated standby guardian files a petition for a guardianship of the minor or protected person during that ninety (90) day period, the declaration remains in effect until the court rules on the petition.
    (e) A declaration executed under this section must be considered by, but is not binding upon, the department of child services, a probation department, or a juvenile court for purposes of determining the placement of a child who is the subject of:
        (1) an allegation of child abuse or neglect under IC 31-33;
        (2) an open child in need of services case under IC 31-34; or
        (3) an open delinquency case under IC 31-37.
     (f) A standby guardian shall have all the powers granted to a guardian under this article.

SOURCE: IC 30-4-1-4; (12)IN1258.1.11. -->     SECTION 11. IC 30-4-1-4 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 4. (Application of the Article with Respect to Pre-Existing Trusts) (a) Except as provided elsewhere in this article, the rules of law contained in this article shall apply to all trusts created prior to September 2, 1971, unless to do so would:
        (1) adversely affect a right given to any beneficiary;
        (2) give a right to any beneficiary which he the beneficiary was not intended to have when the trust was created;
        (3) impose a duty or liability on any person which was not intended to be imposed when the trust was created; or
        (4) relieve any person from any duty or liability imposed by the terms of the trust or under prior law.
     (b) Except as provided elsewhere in this article, an amendment to the rules of law contained in this article applies to all trusts created prior to the effective date of the applicable amendment unless to do so would:
         (1) adversely affect a right given to any beneficiary;
        (2) give a right to any beneficiary that the beneficiary was not intended to have when the trust was created;
        (3) impose a duty or liability on any person that was not intended to be imposed when the trust was created; or
        (4) relieve any person from any duty or liability imposed by the terms of the trust or under prior law.

SOURCE: IC 30-4-2.1-13; (12)IN1258.1.12. -->     SECTION 12. IC 30-4-2.1-13 IS REPEALED [EFFECTIVE JULY

1, 2012]. Sec. 13. (a) A trust of a decedent who dies after December 31, 2009, and before January 1, 2011, that contains a formula referring to:
        (1) the unified credit;
        (2) the estate tax exemption;
        (3) the applicable credit amount;
        (4) the applicable exclusion amount;
        (5) the generation-skipping transfer tax exemption;
        (6) the GST exemption;
        (7) the marital deduction;
        (8) the maximum marital deduction;
        (9) the unlimited marital deduction;
        (10) the inclusion ratio;
        (11) the applicable fraction;
        (12) any section of the Internal Revenue Code:
            (A) relating to the:
                (i) federal estate tax; or
                (ii) generation-skipping transfer tax; and
            (B) that measures a share of trust;
        based on the amount that can pass free of federal estate taxes or the amount that can pass free of federal generation-skipping transfer tax law; or
        (13) a provision of federal estate tax or generation-skipping transfer tax law that is similar to subdivisions (1) through (12);
refers to the federal estate tax and generation-skipping transfer tax laws as they applied with respect to estates of decedents on December 31, 2009.
    (b) Subsection (a) does not apply to a trust:
        (1) that is executed or amended after December 31, 2009; or
        (2) that manifests an intent that a contrary rule apply if the decedent dies on a date on which there is no then applicable federal estate or generation-skipping transfer tax.
    (c) If the federal estate or generation-skipping transfer tax becomes effective before January 1, 2011, the reference to January 1, 2011, in subsection (a) shall refer instead to the first date on which the tax becomes legally effective.
    (d) Within three (3) months following the latest to occur of the:
        (1) decedent's death;
        (2) trustee's appointment; or
        (3) enactment of this subsection;
the trustee of a trust to which subsection (a) applies shall give written notice regarding the beneficiary's right to commence a proceeding under subsection (e) to any beneficiary having a right to trust income

or principal under subsection (a), of the existence of this statute, and of the beneficiary's right to commence a proceeding under subsection (e).
    (e) The trustee of any beneficiary under the trust having a present right to income or principal of the trust may initiate a proceeding to determine whether the decedent intended that a formula described in subsection (a) be construed with respect to the law as it existed after December 31, 2009. A proceeding under this subsection must be commenced within nine (9) months after the death of the settlor.

SOURCE: IC 32-17-14-2.1; (12)IN1258.1.13. -->     SECTION 13. IC 32-17-14-2.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 2.1. An amendment to the rules of law contained in this chapter applies to all transfer on death transfers created prior to the effective date of the applicable amendment.

SOURCE: IC 32-17-14-21; (12)IN1258.1.14. -->     SECTION 14. IC 32-17-14-21, AS ADDED BY P.L.143-2009, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 21. (a) A trustee of a trust may be a designated beneficiary regardless of whether the trust is amendable, revocable, irrevocable, funded, unfunded, or amended after the designation is made.
    (b) Unless a beneficiary designation provides otherwise, a trust that is revoked or terminated before the death of the owner is considered nonexistent at the owner's death.
    (c) Unless a beneficiary designation provides otherwise, a legal entity or trust that does not:
        (1) exist; or
        (2) come into existence effective as of the owner's death;
is considered nonexistent at the owner's death.
     (d) For purposes of this section, an owner's testamentary trust is considered to have come into existence as of the owner's death if the owner's last will and testament is admitted to probate.

SOURCE: IC 32-17-14-27; (12)IN1258.1.15. -->     SECTION 15. IC 32-17-14-27, AS ADDED BY P.L.143-2009, SECTION 41, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 27. (a) An owner who makes arrangements for a transfer on death transfer under this chapter gives to the transferring entity the protections provided in this section for executing the owner's beneficiary designation.
    (b) A transferring entity may execute a transfer on death transfer with or without a written request for execution.
    (c) A transferring entity may rely and act on:
        (1) a certified or authenticated copy of a death certificate issued by an official or an agency of the place where the death occurred

as showing the fact, place, date, and time of death and the identity of the decedent; and
        (2) a certified or authenticated copy of a report or record of any governmental agency that a person is missing, detained, dead, or alive, and the dates, circumstances, and places disclosed by the record or report.
    (d) A transferring entity has no duty to verify the information contained within a written request for the execution of a beneficiary designation. The transferring entity may rely and act on a request made by a beneficiary or a beneficiary's attorney in fact, guardian, conservator, or other agent.
    (e) A transferring entity has no duty to:
        (1) except as provided in subsection (g), give notice to any person of the date, manner, and persons to whom a transfer will be made under beneficiary designation;
        (2) attempt to locate any beneficiary or lineal descendant substitute;
        (3) determine whether a nonsurviving beneficiary or descendant had a lineal descendant who survived the owner;
        (4) locate a trustee or custodian;
        (5) obtain the appointment of a successor trustee or custodian;
        (6) discover the existence of a trust instrument or will that creates an express trust; or
        (7) determine any fact or law that would:
            (A) cause the beneficiary designation to be revoked in whole or in part as to any person because of a change in marital status or other reason; or
            (B) cause a variation in the distribution provided in the beneficiary designation.
    (f) A transferring entity has no duty to withhold making a transfer based on knowledge of any fact or claim adverse to the transfer to be made unless before making the transfer the transferring entity receives a written notice that:
        (1) in manner, place, and time affords a reasonable opportunity to act on the notice before making the transfer; and
        (2) does the following:
            (A) Asserts a claim of beneficial interest in the transfer adverse to the transfer to be made.
            (B) Gives the name of the claimant and an address for communications directed to the claimant.
            (C) Identifies the deceased owner.
            (D) States the nature of the claim as it affects the transfer.

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    (g) If a transferring entity receives a timely notice meeting the requirements of subsection (f), the transferring entity may discharge any duty to the claimant by sending a notice by certified mail to the claimant at the address provided by the claimant's notice of claim. The notice must advise the claimant that a transfer adverse to the claimant's asserted claim will be made at least forty-five (45) days after the date of the mailing unless the transfer is restrained by a court order. If the transferring entity mails the notice described by this subsection to the claimant, the transferring entity shall withhold making the transfer for at least forty-five (45) days after the date of the mailing. Unless the transfer is restrained by court order, the transferring entity may make the transfer at least forty-five (45) days after the date of the mailing.
    (h) Neither notice that does not comply with the requirements of subsection (f) nor any other information shown to have been available to a transferring entity, its transfer agent, or its employees affects the transferring entity's right to the protections provided by this chapter.
    (i) A transferring entity is not responsible for the application or use of property transferred to a fiduciary entitled to receive the property.
    (j) Notwithstanding the protections provided a transferring entity by this chapter, a transferring entity may require parties engaged in a dispute over the propriety of a transfer to:
        (1) adjudicate their respective rights; or
        (2) furnish an indemnity bond protecting the transferring entity.
    (k) A transfer by a transferring entity made in accordance with this chapter and under the beneficiary designation in good faith and reliance on information the transferring entity reasonably believes to be accurate discharges the transferring entity from all claims for the amounts paid and the property transferred.
    (l) All protections provided by this chapter to a transferring entity are in addition to the protections provided by any other applicable Indiana law.

SOURCE: IC 35-45-6-0.1; (12)IN1258.1.16. -->     SECTION 16. IC 35-45-6-0.1, AS ADDED BY P.L.220-2011, SECTION 607, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 0.1. (a) The following amendments to this chapter apply as follows:
        (1) The amendments made to section 1 of this chapter by P.L.112-1998 apply only to offenses committed after June 30, 1998.
        (2) The amendments made to section 1 of this chapter by P.L.17-2001 apply only to offenses committed after June 30, 2001.
        (3) The amendments made to section 1 of this chapter by

P.L.227-2007 apply only to crimes committed after June 30, 2007.
        (4) The amendments made to section 1 of this chapter by P.L.143-2009 apply only to crimes committed after June 30, 2009.
     (b) Section 1(e)(37) of this chapter applies only to crimes committed after June 30, 2012.

SOURCE: IC 35-45-6-1; (12)IN1258.1.17. -->     SECTION 17. IC 35-45-6-1, AS AMENDED BY P.L.182-2011, SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2012]: Sec. 1. (a) The definitions in this section apply throughout this chapter.
    (b) "Documentary material" means any document, drawing, photograph, recording, or other tangible item containing compiled data from which information can be either obtained or translated into a usable form.
    (c) "Enterprise" means:
        (1) a sole proprietorship, corporation, limited liability company, partnership, business trust, or governmental entity; or
        (2) a union, an association, or a group, whether a legal entity or merely associated in fact.
    (d) "Pattern of racketeering activity" means engaging in at least two (2) incidents of racketeering activity that have the same or similar intent, result, accomplice, victim, or method of commission, or that are otherwise interrelated by distinguishing characteristics that are not isolated incidents. However, the incidents are a pattern of racketeering activity only if at least one (1) of the incidents occurred after August 31, 1980, and if the last of the incidents occurred within five (5) years after a prior incident of racketeering activity.
    (e) "Racketeering activity" means to commit, to attempt to commit, to conspire to commit a violation of, or aiding and abetting in a violation of any of the following:
        (1) A provision of IC 23-19, or of a rule or order issued under IC 23-19.
        (2) A violation of IC 35-45-9.
        (3) A violation of IC 35-47.
        (4) A violation of IC 35-49-3.
        (5) Murder (IC 35-42-1-1).
        (6) Battery as a Class C felony (IC 35-42-2-1).
        (7) Kidnapping (IC 35-42-3-2).
        (8) Human and sexual trafficking crimes (IC 35-42-3.5).
        (9) Child exploitation (IC 35-42-4-4).
        (10) Robbery (IC 35-42-5-1).
        (11) Carjacking (IC 35-42-5-2).
        (12) Arson (IC 35-43-1-1).

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        (13) Burglary (IC 35-43-2-1).
        (14) Theft (IC 35-43-4-2).
        (15) Receiving stolen property (IC 35-43-4-2).
        (16) Forgery (IC 35-43-5-2).
        (17) Fraud (IC 35-43-5-4(1) through IC 35-43-5-4(10)).
        (18) Bribery (IC 35-44-1-1).
        (19) Official misconduct (IC 35-44-1-2).
        (20) Conflict of interest (IC 35-44-1-3).
        (21) Perjury (IC 35-44-2-1).
        (22) Obstruction of justice (IC 35-44-3-4).
        (23) Intimidation (IC 35-45-2-1).
        (24) Promoting prostitution (IC 35-45-4-4).
        (25) Professional gambling (IC 35-45-5-3).
        (26) Maintaining a professional gambling site (IC 35-45-5-3.5(b)).
        (27) Promoting professional gambling (IC 35-45-5-4).
        (28) Dealing in or manufacturing cocaine or a narcotic drug (IC 35-48-4-1).
        (29) Dealing in or manufacturing methamphetamine (IC 35-48-4-1.1).
        (30) Dealing in a schedule I, II, or III controlled substance (IC 35-48-4-2).
        (31) Dealing in a schedule IV controlled substance (IC 35-48-4-3).
        (32) Dealing in a schedule V controlled substance (IC 35-48-4-4).
        (33) Dealing in marijuana, hash oil, hashish, salvia, or a synthetic cannabinoid (IC 35-48-4-10).
        (34) Money laundering (IC 35-45-15-5).
        (35) A violation of IC 35-47.5-5.
        (36) A violation of any of the following:
            (A) IC 23-14-48-9.
            (B) IC 30-2-9-7(b).
            (C) IC 30-2-10-9(b).
            (D) IC 30-2-13-38(f).
         (37) Practice of law by a person who is not an attorney (IC 33-43-2-1).

SOURCE: ; (12)IN1258.1.18. -->     SECTION 18. An emergency is declared for this act.