Indiana Inheritance Tax Return {IH-6}

INDIANA INHERITANCE TAX GENERAL INSTRUCTIONS Indiana Department Of Revenue Rev. 06-2012 American LegalNet, Inc. www.FormsWorkFlow.com IH-6 Instructions Who Must File The personal representative of the estate of an Indiana resident must file the inheritance tax return (Form IH-6). If there is no personal representative, one of the following must file: an heir, a trustee, a joint owner, or another transferee. No filing is required if the total fair market value of the property interests transferred by the decedent to each transferee under a taxable transfer(s) is less than the exemption provided to each transferee. Only one return should be filed per decedent. 3. Power of Attorney If the preparer is not a lawyer or a transferee of the decedent's estate and the personal representative wants the Department to disclose information to the preparer, a completed Form IH-28, power of attorney, must be provided. 4. Dollar Amounts Dollar amounts may be rounded to the nearest dollar. 5. Fair Market Value All property transferred should be valued at the fair market value on the date of the decedent's death except when the alternative valuation is properly elected, used, and accepted for federal estate tax purposes; then the alternative valuation should also be used for inheritance tax. The fair market value is the price to which a willing buyer and a willing seller agree, neither being under compulsion to buy or sell, and both being fully aware of all relevant facts surrounding the exchange. Attach a copy of all appraisals or closing statements for such real estate to the return. 6. Additional Pages If there is not enough space available on any page, continue the list on an additional page and attach it immediately after such page. When to Use This Form Use this form only if the decedent was a resident of the State of Indiana at the time of death. For a non-resident decedent, use Form IH-12, available at www.in.gov/dor/3509.htm; contact the Department of Revenue, Inheritance Tax, Indiana Government Center North, 100 North Senate Ave., Room N248, Mail Stop #102, Indianapolis, Indiana, 46204; or call (317) 232-2154 for a copy of Form IH-12. When to File This Form This form must be filed within 9 months of the date of death. If an appropriate probate court determines that, due to an unavoidable delay, the tax cannot be determined within 9 months, the court may extend the period for filing. Without an extension, a penalty may be assessed by that court for failure to file on time. However, an extension will not stop the accrual of interest. Page-by-Page Instructions Page One -- General Instructions You must place the decedent's Social Security number in box 3. If the decedent died testate, attach a copy of the Will to the return. If the decedent died intestate, check the box in item 10. Even if no U.S. Estate Tax Return (Form 706) is required to be filed, you must check the appropriate box at item 12. If a Form 706 is filed with the Internal Revenue Service, you are also required to file a copy with the Indiana Department of Revenue. Where to File This Form The Inheritance Tax Return must be filed in the probate court of the Indiana county in which the decedent was a resident at death or in the probate court in which the decedent's estate is being administered. Payment The resident inheritance tax is to be paid to the county treasurer of the decedent's county of residence. There is a 5% discount for payments made within 9 months of the decedent's date of death. Payments made more than one year after the date of death accrue interest at 10% per year from the date of death until the date of the payment. If an appropriate probate court determines that, due to an unavoidable delay, the tax cannot be determined within 12 months, the court may reduce the interest rate to 6%. Page Two -- Inheritance Tax Computation List all persons, including corporations and other organizations, receiving an interest from the decedent no matter how the transfer took place. Also list the current address of each beneficiary. If the space provided is not adequate to list all beneficiaries, attach additional pages immediately after this page. For individuals dying after June 30, 2012, a transfer to a partnership, a limited partnership, a limited liability partnership, an association, a corporation, a limited liability company, a trust, or a similar entity will be considered a transfer to each individual with a beneficial (whether discretionary or not) or ownership interest in the entity. Each individual is liable for a percentage of taxes imposed equal to that individual's beneficial or ownership interest in that entity. List the name and address of the entity and each beneficiary or owner of the entity and their respective percentage of beneficial or ownership interest in the entity. Please contact a professional who is familiar with inheritance tax matters or the Department's Inheritance Tax Division for clarification on the taxation of transfers to such entities. In the next column list the relationship of the beneficiary to the decedent. Include enough information to determine the class to American LegalNet, Inc. www.FormsWorkFlow.com Additional Requirements 1. QTIP Election If you elect to treat property passing from the decedent as property transferred directly to the surviving spouse for Indiana inheritance tax purposes, the election must be made in writing and attached to the original return. Electing on the U.S. Estate Tax Return (Form 706) is not an election on this return. See 45 Ind. Admin. Code 4.1-3-5(b) for an acceptable form for the Indiana QTIP election. Once made, the QTIP election is irrevocable. 2. Supplemental Documents You must attach all supplemental documents used to substantiate the statements contained in the return to the back of the return when you file it. Examples include appraisals, trusts, affidavits, disclaimers, elections, death certificates, and all other documents necessary to complete the audit of the return. 2 which the beneficiary belongs. For example: Lisa Smith, niece, daughter of decedent's brother. Also list the entire birth date of each beneficiary. Failure to completely describe the relationship or to list the birth date can significantly slow the audit of the return. When stating the value of interest each beneficiary is to receive (column 3), list the total value of the property interests transferred to each beneficiary. The amount of each beneficiary's exemption (column 4)