Estate Planning Indiana: A Complete Guide to the Documents You Need

Indiana's estate planning landscape has shifted significantly in recent years. The inheritance tax repeal (effective retroactively to January 1, 2013), the doubled small estate threshold ($100,000 since July 2022), the new TOD deed auditor endorsement requirement (July 2024), and the extended Medicaid recovery window (9 months since July 2026) all change what an effective Indiana estate plan looks like.

Here's a practical breakdown of the documents every Indiana resident needs, what each one controls, and where the traps are.

The Core Four Documents

1. Last Will and Testament

Your will controls the distribution of assets held in your sole name that don't have beneficiary designations. Under IC § 29-1-5-3, you need:

• Written document signed by you
• Two competent, disinterested adult witnesses
• A verbal declaration to witnesses that this is your will
• Everyone signs in each other's physical presence

Add a self-proving affidavit under IC § 29-1-5-3.1 so your witnesses don't need to be tracked down during probate. Indiana doesn't require notarization for wills — declarations under penalties of perjury are sufficient.

Your will is also where you nominate a guardian for minor children and grant your executor authority over digital assets under RUFADAA (IC § 29-1-8-1).

2. Durable Financial Power of Attorney

Under IC § 30-5, this designates someone to manage your finances, real estate, taxes, and legal affairs if you become incapacitated. The word "durable" matters — without explicit durability language, the authority dies when you need it most.

Get it notarized. Banks and financial institutions routinely reject unnotarized POAs, even though Indiana law doesn't technically require it for validity.

3. Healthcare Representative Appointment

Indiana's version of a healthcare POA (IC § 16-36-1). Your designated representative makes medical decisions when your physician certifies you lack capacity. Requires two witnesses or a notary, with strict disqualifications: your spouse, parents, children, estate beneficiaries, and anyone financially responsible for your care cannot witness.

Without this document, Indiana's default hierarchy applies — and unmarried partners have zero statutory authority regardless of relationship length.

4. Living Will Declaration

Under IC § 16-36-4, this expresses your end-of-life treatment preferences for CPR, mechanical ventilation, and artificial nutrition. Only activates when you're terminally ill and death is imminent — it doesn't cover general incapacity.

Same witness requirements as the healthcare representative form, plus additional disqualifications for estate beneficiaries.

Beyond the Core Four: Probate-Avoidance Tools

A will alone doesn't avoid probate — it goes through probate. These tools keep assets out of court:

TOD deeds (IC § 32-17-14) — Name a beneficiary on your real estate deed. Since July 2024, the county auditor must endorse the deed before the recorder accepts it. Record before death or it's void.

POD/TOD account designations — Add beneficiaries to bank accounts, brokerage accounts, and CDs. No probate, no waiting period.

Beneficiary designations — Review and update beneficiaries on retirement accounts, life insurance, and annuities. Always name both primary and contingent beneficiaries.

Joint ownership — Joint tenancy with right of survivorship (JTWROS) or tenancy by the entirety for married couples provides automatic transfer at death.

What Indiana Residents Often Get Wrong

Assuming no state death tax means no tax planning. Indiana has no inheritance or estate tax — repealed in 2013. But federal estate tax still applies above the exemption threshold, and inherited assets can trigger capital gains tax when sold. The tax question isn't eliminated; it's simplified.

Ignoring the Medicaid recovery expansion. Indiana is an expanded-estate state. The FSSA can recover long-term care costs from both probate and non-probate assets — including TOD deeds, POD accounts, and revocable trusts. The July 2026 extension to a 9-month recovery window gives the state substantially more time to pursue claims.

Using a will as the sole estate plan. A will without beneficiary designations, TOD deeds, and a durable POA leaves gaps that cost your family time, money, and court appearances.

Neglecting the counterpart will trap. Remote will signing via counterpart execution (IC § 29-1-5-3(c)) requires attorney supervision, 5-day assembly, and a compliance affidavit. DIY planners who attempt this without a lawyer risk a voidable will.

Outdated beneficiary designations. An ex-spouse listed on a 401(k) beneficiary form from 2008 will receive those funds regardless of what your 2024 will says. Beneficiary designations override wills.

When to Consider a Revocable Trust

For most Indiana residents with a home, some retirement savings, and a straightforward family structure, the core four documents plus TOD/POD designations cover everything. A revocable trust makes sense when:

• You own real estate in multiple states
• You have a blended family needing precise distribution control
• You have minor beneficiaries who shouldn't receive assets outright at 18
• Privacy is a priority (trusts aren't public; probated wills are)

The Indiana Basic Estate Planning Kit covers every document, every execution requirement, and every probate-avoidance strategy specific to current Indiana law — including the 2024 TOD deed rules and the 2026 Medicaid recovery changes.

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