Shown verbatim: the complete text as captured from the official PDF posted by the Indiana General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the current version. The official bill page.
First Regular Session of the 124th General Assembly (2025)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in this style type. Also, the
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between statutes enacted by the 2024 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1088
AN ACT to amend the Indiana Code concerning probate.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 29-1-7-7, AS AMENDED BY P.L.162-2022,
SECTION 7, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 7. (a) As soon as letters testamentary or of
administration, general or special, supervised or unsupervised, have
been issued, notice of the estate administration shall be published.
(b) The notice required under subsection (a) shall be published in
a newspaper of general circulation, printed in the English language and
published in the county where the court is located, once each week for
two (2) consecutive weeks. A copy of the notice, with proof of
publication, shall be filed with the clerk of the court as a part of the
administration of the estate within thirty (30) days after the publication.
If no newspaper is published in the county, the notice shall be
published in a newspaper published in an adjacent county.
(c) The notice required under subsection (a) shall be served through
the E-filing System of the Indiana Courts or by first class postage
prepaid mail on each heir, devisee, legatee, and known creditor whose
name and address is set forth in the petition for probate or letters,
except as otherwise ordered by the court.
(d) The personal representative or the personal representative's
agent shall, within one (1) month after the first publication of notice
under subsection (a) or as soon as possible after the elapse of one
(1) month, serve a written or electronic copy of the notice on each
creditor of the decedent:
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(1) whose name is not set forth in the petition for probate or
letters under subsection (c);
(2) who is known or reasonably ascertainable within one (1)
month after the first publication of notice under subsection (a);
and
(3) whose claim has not been paid or settled by the personal
representative.
The notice may be served by mail or any other means reasonably
calculated to ensure actual receipt of the notice by a creditor. The unit
is a reasonably ascertainable creditor under this section if the decedent
was at least fifty-five (55) years of age at the time of death and dies on
or after June 30, 2018. Notice served under this section by mail to the
unit at the unit's address is reasonably calculated to ensure receipt of
the notice by the unit.
(e) Notice under subsection (d) shall be served within one (1) month
after the first publication of notice under subsection (a) or as soon as
possible after the elapse of one (1) month. If the personal representative
or the personal representative's agent fails to give notice to a known or
reasonably ascertainable creditor of the decedent under subsection (d)
within one (1) month after the first publication of notice under
subsection (a), the period during which the creditor may submit a claim
against the estate includes an additional period ending two (2) months
after the date notice is given to the creditor under subsection (d).
However, a
If a creditor described in subsection (d) is served within one (1)
month after the first publication of notice, the personal
representative or the personal representative's agent shall serve a
copy of the notice issued by the clerk under subsection (a). A
creditor that is served notice described in this subsection must file
a claim against the estate within three (3) months after the date of
the first published notice to creditors under IC 29-1-14-1.
(f) If a creditor described in subsection (d) is not served within
one (1) month after the first publication of notice, the personal
representative or the personal representative's agent shall
electronically file a new proposed notice with the clerk of the court.
Once the clerk of the court has issued the new notice, the personal
representative or the personal representative's agent shall serve a
written or electronic copy of the notice by mail or any other means
reasonably calculated to ensure actual receipt of the notice by a
creditor. A creditor that is served notice under this subsection must
submit a claim against the estate within two (2) months from the
date of service of the notice.
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(g) Any claim filed under IC 29-1-14-1(a) more than nine (9)
months after the death of the decedent is barred.
(f) (h) A schedule of creditors that received notice under subsection
subsections (d) and (f) shall be delivered to the clerk of the court as
soon as possible after notice is given.
(g) (i) The giving of notice to a creditor or the listing of a creditor
on the schedule delivered to the clerk of the court does not constitute
an admission by the personal representative that the creditor has an
allowable claim against the estate.
(h) (j) If any person entitled to receive notice under this section is
under a legal disability, the notice may be served upon or waived by the
person's natural or legal guardian or by the person who has care and
custody of the person.
(i) (k) The Notice filed under subsection (a) or served under
subsection (e) shall read substantially as follows:
NOTICE OF ADMINISTRATION
In the _____________ Court of ______________ County, Indiana.
Notice is hereby given that _________ was, on the ____ day of
______, 20 __, appointed personal representative of the estate of
_________, deceased, who died on the ___ day of ________, 20 __.
All persons who have claims against this estate, whether or not now
due, must file the claim in the office of the clerk of this court within
three (3) months from the date of the first publication of this notice, or
within nine (9) months after the decedent's death, whichever is earlier,
or the claims will be forever barred.
Dated at ________, Indiana, this ___ day of ______, 20 __.
_______________________________
CLERK OF THE _________ COURT
FOR _______ COUNTY, INDIANA
(l) Notice filed and served under subsection (f) shall read
substantially as follows:
NOTICE OF ADMINISTRATION
In the _____________ Court of ______________ County,
Indiana.
Notice is hereby given that _________ was, on the ____ day of
______, 20 __, appointed personal representative of the estate of
_________, deceased, who died on the ___ day of ________, 20 __.
All persons who have claims against this estate, whether or not
now due, must file the claim in the office of the clerk of this court
within two (2) months from the date of service of this notice, or
within nine (9) months after the decedent's death, whichever is
earlier, or the claims will be forever barred.
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Dated at ________, Indiana, this ___ day of ______, 20 __.
_______________________________
CLERK OF THE _________ COURT
FOR _______ COUNTY, INDIANA
SECTION 2. IC 29-1-7.5-1, AS AMENDED BY P.L.38-2023,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 1. (a) Upon the filing of a petition under
IC 29-1-7-5, the following persons may at any time petition the court
for authority to have a decedent's estate administered without court
supervision:
(1) The decedent's heirs at law if the decedent dies intestate.
(2) The legatees and devisees under the decedent's will.
(3) The personal representative.
(b) The clerk of the court shall sign and issue a notice of the filing
of a petition for unsupervised administration.
(c) The petitioner or the petitioner's agent shall serve the notice
described in subsection (b) upon the known creditors of the decedent
as provided in IC 29-1-7-7(c), and IC 29-1-7-7(d), and IC 29-1-7-7(f).
SECTION 3. IC 29-1-7.5-3, AS AMENDED BY P.L.231-2019,
SECTION 12, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) Subject to section 2(d) of this chapter, a
personal representative who administers an estate under this chapter
may do the following without order of the court:
(1) Retain assets owned by the decedent pending distribution or
liquidation including those in which the representative is
personally interested or which are otherwise improper for trust
investment.
(2) Receive assets from fiduciaries or other sources.
(3) Perform, compromise, or refuse performance of the decedent's
contracts that continue as obligations of the estate, as the personal
representative may determine under the circumstances. In
performing enforceable contracts by the decedent to convey or
lease land, the personal representative, among other possible
courses of action, may:
(A) execute and deliver a deed of conveyance for cash
payment of all sums remaining due or the purchaser's note for
the sum remaining due secured by a mortgage or deed of trust
on the land; or
(B) deliver a deed in escrow with directions that the proceeds,
when paid in accordance with the escrow agreement, be paid
to the successors of the decedent, as designated in the escrow
agreement.
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(4) Satisfy written charitable pledges of the decedent irrespective
of whether the pledges constituted binding obligations of the
decedent or were properly presented as claims, if in the judgment
of the personal representative the decedent would have wanted
the pledges completed under the circumstances.
(5) If funds are not needed to meet debts and expenses currently
payable and are not immediately distributable, deposit or invest
liquid assets of the estate, including moneys received from the
sale of other assets, in federally insured interest-bearing accounts,
readily marketable secured loan arrangements, or other prudent
investments which would be reasonable for use by trustees
generally.
(6) Acquire or dispose of an asset, including land in this or
another state, for cash or on credit, at public or private sale; and
manage, develop, improve, exchange, partition, change the
character of, or abandon an estate asset.
(7) Make ordinary or extraordinary repairs or alterations in
buildings or other structures, demolish any improvements, raze
existing or erect new party walls or buildings.
(8) Subdivide, develop, or dedicate land to public use; make or
obtain the vacation of plats and adjust boundaries; or adjust
differences in valuation on exchange or partition by giving or
receiving considerations; or dedicate easements to public use
without consideration.
(9) Enter for any purpose into a lease as lessor or lessee, with or
without option to purchase or renew, for a term within or
extending beyond the period of administration.
(10) Enter into a lease or arrangement for exploration and
removal of minerals or other natural resources or enter into a
pooling or unitization agreement.
(11) Abandon property when, in the opinion of the personal
representatives, it is valueless, or is so encumbered, or is in
condition that it is of no benefit to the estate.
(12) Vote stocks or other securities in person or by general or
limited proxy.
(13) Pay calls, assessments, and other sums chargeable or
accruing against or on account of securities, unless barred by the
provisions relating to claims.
(14) Hold a security in the name of a nominee or in other form
without disclosure of the interest of the estate but the personal
representative is liable for any act of the nominee in connection
with the security so held.
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(15) Hold, manage, safeguard, and control the estate's real and
personal property, insure the assets of the estate against damage,
loss, and liability, and insure the personal representative
personally against liability as to third persons.
(16) Borrow money with or without security to be repaid from the
estate assets or otherwise and advance money for the protection
of the estate.
(17) Effect a fair and reasonable compromise with any debtor or
obligor, or extend, renew, or in any manner modify the terms of
any obligation owing to the estate. If the personal representative
holds a mortgage, pledge, or other lien upon property of another
person, the personal representative may, in lieu of foreclosure,
accept a conveyance or transfer of encumbered assets from the
owner thereof in satisfaction of the indebtedness secured by lien.
(18) Pay taxes, assessments, compensation of the personal
representative, and other expenses incident to the administration
of the estate.
(19) Hold an interest in a proprietorship, partnership, limited
liability company, business trust, corporation, or another domestic
or foreign form of business or enterprise.
(20) Continue a business.
(21) Take any action that may be taken by shareholders, partners,
members, or property owners, including contributing additional
capital to or merging, consolidating, reorganizing, recapitalizing,
dissolving, or otherwise changing the form of the business
organization.
(22) Allocate items of income or expense to either estate income
or principal, as permitted or provided by IC 30-2-14.
(23) Employ persons, including attorneys, auditors, investment
advisors, or agents, even if they are associated with the personal
representative, to advise or assist the personal representative in
the performance of the personal representative's administrative
duties; act without independent investigation upon their
recommendations; and instead of acting personally, employ one
(1) or more agents to perform any act of administration, whether
or not discretionary.
(24) Do any of the following concerning a claim or demand made
in favor of or against the estate for the protection of the estate and
of the personal representative in the performance of the personal
representative's duties:
(A) Release, assign, settle, compromise, or contest the claim
or demand.
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(B) Participate in mediation or submit to arbitration to resolve
any dispute concerning the claim or demand.
(C) Extend the time for payment of the claim or demand.
(D) Abandon the claim or demand.
(25) Sell, mortgage, or lease any real or personal property of the
estate or any interest therein for cash, credit, or for part cash and
part credit, and with or without security for unpaid balances.
(26) Select a settlement option under any qualified or
nonqualified benefit or retirement plan, annuity, or life insurance
payable to the estate, and take appropriate action to collect the
proceeds.
(27) Inspect and investigate property held, directly or indirectly,
by the personal representative for the purpose of:
(A) determining the application of environmental law with
respect to the property; and
(B) doing the following:
(i) Take action to prevent, abate, or remedy an actual or a
potential violation of an environmental law affecting the
property, whether taken before or after the assertion of a
claim or the initiation of governmental enforcement by
federal, state, or local authorities.
(ii) Compromise claims against the estate that may be
asserted for an alleged violation of environmental law.
(iii) Pay the expense of inspection, review, abatement, or
remedial action to comply with the environmental law.
(28) Distribute assets of the estate upon such terms as the
personal representative may impose. To the extent practicable,
taking into account the decedent's probable intention, the power
to distribute assets includes the power to:
(A) pay an amount to a distributee who is under a legal
disability or whom the personal representative reasonably
believes to be incapacitated by:
(i) paying the amount directly to the distributee or applying
the amount for the distributee's use and benefit;
(ii) paying the amount to the guardian appointed for the
distributee;
(iii) paying the amount to a custodian under the Indiana
Uniform Transfers to Minors Act (IC 30-2-8.5) or a
custodial trustee under the Uniform Custodial Trust Act
(IC 30-2-8.6); or
(iv) paying the amount to the trustee of a trust established by
the decedent or by the personal representative under
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subsection (b); and
(B) make distributions of estate income and principal in kind,
in cash, or partly in each, in shares of differing composition.
(29) Distribute in kind all or part of the decedent's interest in
a retirement plan or retirement account that the estate:
(A) is a beneficiary of; or
(B) has an interest in;
to a distributee.
(29) (30) Perform any other act necessary or appropriate to
administer the estate.
(b) A personal representative who administers an estate under this
chapter may, without court order, establish a trust to make distributions
to a distributee who is under a legal disability or whom the personal
representative reasonably believes is incapacitated. In establishing a
trust under this subsection, a personal representative may exercise:
(1) the authority given to custodians under the Indiana Uniform
Transfers to Minors Act (IC 30-2-8.5) to create a trust that
satisfies the requirements of Section 2503(c) of the Internal
Revenue Code and the regulations adopted under that Section; or
(2) the authority given to an attorney in fact under
IC 30-5-5-15(a)(3) to establish a revocable trust for the benefit of
a principal.
(c) Unless the court revokes unsupervised administration and
converts the estate to supervised administration, the issuance of an
order on any matter in an unsupervised estate does not revoke the
personal representative's authority to continue to administer an estate
according to unsupervised administration.
SECTION 4. IC 29-1-7.5-4, AS AMENDED BY P.L.194-2017,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Unless prohibited by order of the court and
except for estates being administered in supervised administration
proceedings, a personal representative may close an estate by filing
with the court no earlier than three (3) months after the date of the first
published notice to creditors under IC 29-1-7-7(b), a verified statement
stating that the personal representative, or a prior personal
representative, has done the following:
(1) Published notice to creditors as provided in IC 29-1-7-7(b),
and that the first publication occurred more than three (3) months
prior to the date of the statement.
(2) Provided notice to creditors as required under IC 29-1-7-7(c),
and IC 29-1-7-7(d), and IC 29-1-7-7(f).
(3) Fully administered the estate of the decedent by making
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payment, settlement, or other disposition of all claims which were
presented, expenses of administration and estate, inheritance, and
other death taxes, except as specified in the statement. If any
claims remain undischarged, the statement shall:
(A) state whether the personal representative has distributed
the estate, subject to possible liability, with the agreement of
the distributees; or
(B) detail other arrangements which have been made to
accommodate outstanding liabilities.
(4) Executed and recorded a personal representative's deed for
any real estate owned by the decedent.
(5) Distributed all the assets of the estate to the persons entitled
to receive the assets.
(6) Sent a copy of the statement to:
(A) all distributees of the estate; and
(B) all creditors or other claimants of whom the personal
representative has actual knowledge whose claims are neither
paid nor barred and has furnished a full account in writing of
the personal representative's administration to the distributees
whose interests are affected, unless waived in writing.
(7) Provided the court with the names and addresses of all
distributees, creditors, and claimants to whom the personal
representative has sent a copy of the statement under subdivision
(6).
(b) If no proceedings involving the personal representative are
pending in the court three (3) months after the closing statement is
filed, the appointment of the personal representative terminates and the
estate is closed by operation of law.
SECTION 5. IC 29-1-8-10, AS ADDED BY P.L.81-2015,
SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 10. (a) This section applies only to a nonprobate
transfer (as defined in IC 32-17-13-1) by a transferee that is As used in
this section, "direct postmortem transfer" means a transfer of an
asset to a testamentary trust established in a will that is admitted to
probate under this article if any of the following apply:
(1) The asset transferred to the testamentary trust is a
distribution of death proceeds under a life insurance policy or
annuity.
(2) The testamentary trust is a designated beneficiary of an:
(A) individual retirement account; or
(B) employee benefit plan that is governed by the federal
Employee Retirement Income Security Act of 1974 (29
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U.S.C. 1001 et seq.).
(3) The transfer to the testamentary trust is:
(A) a distribution from another trust;
(B) the result of a disclaimer;
(C) a transfer on death transfer under IC 32-17-14; or
(D) a decanting distribution.
(b) All of the following apply to a nonprobate direct postmortem
transfer described in subsection (a):
(1) The nonprobate direct postmortem transfer is considered
effective upon the decedent's death, if the decedent's will is
admitted to probate, regardless of when the will is admitted to
probate subject to IC 29-1-7-15.1(g).
(2) The nonprobate direct postmortem transfer:
(A) does not constitute part of the estate (as defined in
IC 29-1-1-3); and
(B) is not subject to claims other than as provided in
IC 32-17-13.
(3) The nonprobate direct postmortem transfer is not considered
the decedent's transfer to the testamentary trust by the decedent's
will for all other purposes of the Indiana Code. is a transfer of an
asset or property to a trust established in a will for all
purposes of the Social Security Act (42 U.S.C. 301 et seq.).
(c) After the will is admitted to probate, the effective date of the
testamentary trust is the date of the decedent's death.
SECTION 6. IC 29-1-17-2, AS AMENDED BY P.L.211-2019,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 2. (a) After the expiration of the time limit for the
filing of claims, and after all claims against the estate, including state
and federal inheritance and estate taxes, have been determined, paid,
or provision made therefor, except contingent and unmatured claims
which cannot then be paid, the personal representative shall, if the
estate is in a condition to be closed, render a final account and at the
same time petition the court to decree the final distribution of the
estate.
(b) The final account must include a verified statement that the clerk
of the court, the personal representative, or a previous personal
representative, has done the following:
(1) Published notice to creditors as provided in IC 29-1-7-7(b),
with the first publication occurring more than three (3) months
before the date of the final account.
(2) Provided notice to creditors as required under IC 29-1-7-7(c),
and IC 29-1-7-7(d), and IC 29-1-7-7(f).
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(c) Notice of the hearing of the petition shall be provided under
IC 29-1-16-6.
(d) In its decree of final distribution, the court shall designate the
persons to whom distribution is to be made, and the proportions or
parts of the estate, or the amounts, to which each is entitled under the
will and the provisions of this probate code, including the provisions
regarding advancements, election by the surviving spouse, lapse,
renunciation, adjudicated compromise of controversies, and retainer.
Every tract of real property so distributed shall be specifically
described therein. The decree shall find that all state and federal
inheritance and estate taxes are paid, and if all claims have been paid,
it shall so state; otherwise, the decree shall state that all claims except
those therein specified are paid and shall describe the claims for the
payment of which a special fund is set aside, and the amount of such
fund. If any contingent claims which have been duly allowed are still
unpaid and have not become absolute, such claims shall be described
in the decree, which shall state whether the distributees take subject to
them. If a fund is set aside for the payment of contingent claims, the
decree shall provide for the distribution of such fund in the event that
all or a part of it is not needed to satisfy such contingent claims. If a
decree of partial distribution has been previously made, the decree of
final distribution shall expressly confirm it, or, for good cause, shall
modify said decree and state specifically what modifications are made.
(e) If a distributee dies before distribution to the distributee of the
distributee's share of the estate, the distributee's share may be
distributed to the personal representative of the distributee's estate, if
there is one; or if no administration on the deceased distributee's estate
is had and none is necessary according to IC 29-1-8, the share of the
deceased distributee shall be distributed in accordance with IC 29-1-8.
(f) The decree of final distribution shall be a conclusive
determination of the persons who are the successors in interest to the
estate of the decedent and of the extent and character of their interest
therein, subject only to the right of appeal and the right to reopen the
decree. It shall operate as the final adjudication of the transfer of the
right, title, and interest of the decedent to the distributees therein
designated; but no transfer before or after the decedent's death by an
heir or devisee shall affect the decree, nor shall the decree affect any
rights so acquired by grantees from the heirs or devisees.
(g) Whenever the decree of final distribution includes real property,
a certified copy thereof shall be recorded by the personal representative
in every county of this state in which any real property distributed by
the decree is located except the county in which the estate is
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administered. The cost of recording such decree shall be charged to the
estate.
SECTION 7. IC 30-4-3-3, AS AMENDED BY P.L.99-2024,
SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 3. (a) Except as provided in the terms of the trust
and subject to subsection (c), a trustee has the power to perform
without court authorization, except as provided in sections 4(b) and
5(a) of this chapter, every act necessary or appropriate for the purposes
of the trust including, by way of illustration and not of limitation, the
following powers:
(1) The power to:
(A) deal with the trust estate;
(B) buy, sell, or exchange and convey or transfer all property
(real, personal, or mixed) for cash or on credit and at public or
private sale with or without notice; and
(C) invest and reinvest the trust estate.
(2) The power to receive additions to the assets of the trust.
(3) The power to acquire an undivided interest in a trust asset in
which the trustee, in any trust capacity, holds an undivided
interest.
(4) The power to manage real property in every way, including:
(A) the adjusting of boundaries;
(B) erecting, altering, or demolishing buildings;
(C) dedicating of streets, alleys, or other public uses;
(D) subdividing;
(E) developing;
(F) obtaining vacation of plats;
(G) granting of easements and rights-of-way;
(H) partitioning;
(I) entering into party wall agreements; and
(J) obtaining title insurance for trust property.
(5) The power to:
(A) grant options concerning disposition of trust property,
including the sale of covered security options; and
(B) take options for acquisition of trust property, including the
purchase back of previously sold covered security options.
(6) The power to enter into a lease as lessor or lessee, with or
without option to renew.
(7) The power to enter into arrangements for exploration and
removal of minerals or other natural resources and enter into a
pooling or unitization agreement.
(8) The power to continue the operation or management of any
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business or other enterprise placed in trust.
(9) The power to:
(A) borrow money, to be repaid from trust property or
otherwise; and
(B) encumber, mortgage, pledge, or grant a security interest in
trust property in connection with the exercise of any power.
(10) The power to:
(A) advance money for the benefit of the trust estate and for all
expenses or losses sustained in the administration of the trust;
and
(B) collect any money advanced, without interest or with
interest, at no more than the lowest rate prevailing when
advanced.
(11) The power to prosecute or defend actions, claims, or
proceedings for the protection of:
(A) trust property; and
(B) the trustee in the performance of the trustee's duties.
(12) The power to:
(A) pay or contest any claim;
(B) settle a claim by or against the trust by compromise or
arbitration; and
(C) abandon or release, totally or partially, any claim
belonging to the trust.
(13) The power to insure the:
(A) trust estate against damage or loss; and
(B) trustee against liability with respect to third persons.
(14) The power to pay taxes, assessments, and other expenses
incurred in the:
(A) acquisition, retention, and maintenance of the trust
property; and
(B) administration of the trust.
(15) The power to:
(A) vote securities, in person or by a general or special proxy;
(B) hold the securities in the name of a nominee if the trustee
is a corporate trustee; and
(C) effect or approve, and deposit securities in connection
with, any change in the form of the corporation, including:
(i) dissolution;
(ii) liquidation;
(iii) reorganization;
(iv) acquisition; and
(v) merger.
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(16) The power to employ persons, including:
(A) attorneys;
(B) accountants;
(C) investment advisors; and
(D) agents;
to advise and assist the trustee in the performance of the trustee's
duties.
(17) The power to effect distribution of property in cash, in kind,
or partly in cash and partly in kind, in divided or undivided
interests.
(18) The power to execute and deliver all instruments necessary
or appropriate to accomplishing or facilitating the exercise of the
trustee's powers.
(19) With respect to an interest in a proprietorship, partnership,
limited liability company, business trust, corporation, or another
form of business or enterprise, the power to:
(A) continue the business or enterprise; and
(B) take any action that may be taken by shareholders,
members, or property owners, including:
(i) merging;
(ii) dissolving; or
(iii) changing the form of business organization or
contributing additional capital.
(20) With respect to possible liability for violation of
environmental law, the power to:
(A) inspect or investigate property:
(i) the trustee holds or has been asked to hold; or
(ii) owned or operated by an organization in which the
trustee holds an interest or has been asked to hold an
interest;
to determine the application of environmental law with respect
to the property;
(B) take action to prevent, abate, or remedy an actual or
potential violation of an environmental law affecting property
held directly or indirectly by the trustee before or after the
assertion of a claim or the initiation of governmental
enforcement;
(C) decline to accept property into the trust or disclaim any
power with respect to property that is or may be burdened with
liability for violation of environmental law;
(D) compromise claims against the trust that may be asserted
for an alleged violation of environmental law; and
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(E) pay the expense of any inspection, review, abatement, or
remedial action to comply with environmental law.
(21) The power to exercise elections with respect to federal, state,
and local taxes.
(22) The power to select a mode of payment under any employee
benefit plan or retirement plan, annuity, or life insurance payable
to the trustee and exercise rights under the plan, annuity, or
insurance, including the right to:
(A) indemnification:
(i) for expenses; and
(ii) against liabilities; and
(B) take appropriate action to collect the proceeds.
(23) The power to make loans out of trust property, including
loans to a beneficiary on terms and conditions the trustee
determines fair and reasonable under the circumstances. The
trustee has a lien on future distributions for repayment of the
loans.
(24) The power to pledge trust property to guarantee loans made
by others to the beneficiary on terms and conditions the trustee
considers to be fair and reasonable under the circumstances. The
trustee has a lien on future distributions for repayment of the
loans.
(25) The power to:
(A) appoint a trustee to act in another jurisdiction with respect
to trust property located in the other jurisdiction;
(B) confer on the appointed trustee all the appointing trustee's
powers and duties;
(C) require the appointed trustee to furnish security; and
(D) remove the appointed trustee.
(26) With regard to a beneficiary who is under a legal disability
or whom the trustee reasonably believes is incapacitated, the
power to pay an amount distributable to the beneficiary by:
(A) paying the amount directly to the beneficiary;
(B) applying the amount for the beneficiary's benefit;
(C) paying the amount to the beneficiary's guardian;
(D) paying the amount to the beneficiary's custodian under
IC 30-2-8.5 to create a custodianship or custodial trust;
(E) paying the amount to an adult relative or another person
having legal or physical care or custody of the beneficiary to
be expended on the beneficiary's behalf, if the trustee does not
know of a guardian, custodian, or custodial trustee; or
(F) managing the amount as a separate fund on the
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beneficiary's behalf, subject to the beneficiary's continuing
right to withdraw the distribution.
(27) The power to:
(A) combine at least two (2) trusts into one (1) trust; or
(B) divide one (1) trust into at least two (2) trusts;
after notice to the qualified beneficiaries, if the result does not
impair the rights of any beneficiary or adversely affect
achievement of the purposes of the trust.
(28) Distribute in kind, to a beneficiary, all or part of an
interest in a retirement plan or retirement account that is
payable to the trust.
(b) Any act under subsection (a)(4), an option under subsection
(a)(5), a lease under subsection (a)(6), an arrangement under
subsection (a)(7), and an encumbrance, mortgage, pledge, or security
interest under subsection (a)(9) may be for a term either within or
extending beyond the term of the trust.
(c) In acquiring, investing, reinvesting, exchanging, retaining,
selling, and managing property for any trust, the trustee thereof shall
exercise the judgment and care required by IC 30-4-3.5. Within the
limitations of the foregoing standard, the trustee is authorized to
acquire and retain every kind of property, real, personal, or mixed, and
every kind of investment, including specifically, but without in any way
limiting the generality of the foregoing, bonds, debentures, and other
corporate obligations, stocks, preferred or common, and real estate
mortgages, which persons of prudence, discretion, and intelligence
acquire or retain for their own account, and within the limitations of the
foregoing standard, the trustee is authorized to retain property properly
acquired, without limitation as to time and without regard to its
suitability for original purchase. Within the limitations of the foregoing
standard, the trustee is authorized to sell covered security options and
to purchase back previously sold covered security options.
(d) If a distribution of particular trust assets is to be made to two (2)
or more beneficiaries entitled to receive fractional shares in those
assets, the trustee:
(1) may distribute the particular assets without distributing to
each beneficiary a pro rata share of each asset;
(2) shall distribute to each beneficiary a pro rata share of the total
fair market value of all of the particular assets as of the date of
distribution; and
(3) is not required to allocate and distribute particular assets
based upon the potential gain or loss that the beneficiaries would
realize if the particular assets were sold.
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(e) If the trust is terminated or partially terminated, the trustee may
send to the beneficiaries a proposal for distribution. If the proposal for
distribution informs the beneficiary that the beneficiary:
(1) has a right to object to the proposed distribution; and
(2) must object not later than thirty (30) days after the proposal
for distribution was sent;
the right of the beneficiary to object to the proposed distribution
terminates if the beneficiary fails to notify the trustee of an objection
within the time limit set forth in subdivision (2).
(f) When any real or personal property subject to a lien (as defined
by IC 29-1-17-9(a)) is specifically distributable, the distributee shall
take the property subject to the lien unless the terms of the trust provide
expressly or by necessary implication that the lien be otherwise paid.
If:
(1) an event occurs that makes the property distributable; and
(2) the holder of a lien on the property receives payment on a
claim based upon the obligation secured by the lien;
the property subject to the lien shall be charged with the reimbursement
to the trust of the amount of the payment for the benefit of the
beneficiaries entitled to the distribution, unless the terms of the trust
provide expressly or by necessary implication that the payment be
charged against the residue of the trust estate.
(g) For purposes of subsection (f), a general directive or authority
in the trust for payment of debts does not imply an intent that the
distribution of property subject to a lien be made free from the lien.
(h) IC 32-39-2-8, IC 32-39-2-9, and IC 32-39-2-10 apply to the right
of a trustee acting under a trust to access:
(1) the content of an electronic communication (as defined in
IC 32-39-1-6);
(2) a catalogue of electronic communications (as defined in
IC 32-39-1-5); or
(3) any other digital asset (as defined in IC 32-39-1-10).
SECTION 8. IC 30-5-10-4, AS AMENDED BY P.L.238-2005,
SECTION 53, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2025]: Sec. 4. (a) Except as provided in subsections (b) and
(c), a power of attorney terminates on the death of the principal.
(b) The death of a principal who has executed a written power of
attorney does not revoke or terminate the power of attorney as to the
attorney in fact or other person who, without actual knowledge of the
death of the principal, acts in good faith under the power. Unless
otherwise invalid or unenforceable, an action taken under this
subsection binds the principal and the principal's successors in interest.
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(c) The death of a principal who executes a written power of
attorney does not revoke or terminate the power of attorney as to
authority granted under one (1) or more of the following:
(1) IC 30-5-5-14(a)(2).
(2) IC 30-5-5-14(a)(3).
(3) IC 30-5-5-14(a)(5).
(4) IC 30-5-5-14(a)(7).
(5) IC 30-5-5-16(b)(5). through
(6) IC 30-5-5-16(b)(6).
(7) IC 30-5-5-16(b)(7).
An action taken under this subsection binds the principal and the
principal's successors in interest, unless the action is inconsistent with
a written directive executed by the principal before the principal's
death. The authority of the attorney in fact under subdivisions (1)
through (4) is limited to the tax periods prior to and including the
date of the principal's death and terminates upon the appointment
of a personal representative under IC 29-1.
(d) Notice from the United States Department of Defense of the
death of a principal who has given a power of attorney is official notice
of the death of the principal. A report or listing of the principal's being
missing or missing in action does not do any of the following:
(1) Constitute and may not be interpreted as actual notice of the
death of the principal.
(2) Terminate the power of attorney.
HEA 1088 — Concur
Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1088 — ConcurEvery fact on this page links to its source, starting with the official bill record.