Bulletin: IN000018

Date:
January 23, 2006
To:
All Issuing Offices in Indiana
RE:
2005 Legislation-Year in Review

The following information is a summary of legislation enacted by the Indiana General Assembly for the year 2005. This listing is by no means comprehensive as to all new legislation dealing with real property and includes only legislation that, in the opinion of the undersigned, will be of interest or significance to Stewart Agents. Please distribute this information to your escrow officers, title examiners, title officers, searchers and anyone else that you feel should know about it. If you have any questions or would like a copy of particular legislation, please contact me with your inquiries.

ABANDONED PROPERTY

I.C. 32-34-1-20; I.C. 32-34-1-45
Effective Date: July 1, 2005
(SEA 0198)

Allows attorney general to waive the payment of interest, in whole or in part, for a holder who fails to pay or deliver property of another within the time period required under the law concerning abandoned and unclaimed property. Reduces the period of time from five to three years after which stock and other payments to a security holder of a business association is deemed abandoned.

BANKRUPTCY

II.C. 4-22-2-37.1; I.C. 34-6-2-33.5 (NEW); I.C. 34-6-2-44.3 (NEW); I.C. 34-6-2-44.4(NEW); I.C. 34-6-2-71.9 (NEW);I.C. 34-6-2-73.5 (NEW); I.C. 34-6-2-73.7(NEW); I.C. 34-6-2-135.5 (NEW); I.C. 34-55-10-1; I.C. 34-55-10-2; I.C. 34-55-10-2.5 (NEW); I.C. 34-55-10-3; I.C. 34-55-10-4; I.C. 34-55-10-5; I.C. 34-55-10-6; I.C. 34-55-10-8; I.C. 34-55-10-9; I.C. 34-55-10-11; I.C. 34-55-10-12

(HEA 1262)
Effective Date: July 1, 2005

Increases exemption amounts for property subject to attachment or execution under a bankruptcy proceeding or based on a judgment against a property owner. Increases individual exemption on personal residence from $7,500.00 to $15,000.00. Increases exemption on other real estate or tangible personal property from $4,000.00 to $8,000.00. Increases exemption on intangible property from $100.00 to $300.00. Allows a maximum exemption of $23,300.00 for the foregoing. Exempts tenancy by the entirety property except those debts for which spouses are jointly liable. Adds exemption for debtor's interest in Roth IRAs, medical care savings account, qualified tuition program, education savings account and earned income credit. Provides that the inclusion of a debtor's interest in property held as tenants by the entireties in the bankruptcy estate will not sever the tenancy by the entireties. Requires the Department of Financial Institutions to adopt a rule establishing new exemption amounts every six (6) years beginning in 2010.

DISCLAIMER

I.C. 32-17.5-4-1
Date: July 1, 2005
(HEA 1153)

Provides that a disclaimed interest arising under the law of intestate succession passes as if the disclaimant died immediately before the intestate's death.

EMINENT DOMAIN

Effective Date: July 1, 2005
Expires: January 1, 2006
(HEA 1063)

Establishes an interim study committee to study the use of eminent domain, especially where the proposed use of the property being acquired by eminent domain is for a commercial use and does not relate directly to providing a governmental service or fulfilling a governmental responsibility.

FORECLOSURE

I.C. 32-29-7-4;I.C. 32-30-10-9
Effective Date: July 1, 2005
(SEA 564)

Allows petitioner in a mortgage foreclosure sale to request an auctioneer that must be approved by court. Requires sheriff to engage auctioneer not more than fourteen (14) days after date court issues order approving auctioneer. Requires auctioneer to schedule the auction.

FOREIGN JUDGMENT

I.C. 34-54-11-2
Effective Date: July 1, 2005
(HEA 1153)

Provides that defenses raised by a foreign judgment debtor must be ruled upon by the court before the foreign judgment constitutes a lien on real estate or the judgment may be enforced by execution. Court in which foreign judgment is entered may issue an order staying the time in which judgment debtor must file a notice of defense. During the time period for which the stay is in effect, the foreign judgment shall not constitute a lien and may not be enforced by execution.

GUARDIANSHIP

I.C. 29-3-8-5
Effective Date: July 1, 2005
(HEA 1153)

Provides that a sale or encumbrance of a protected person's property to a guardian or relative of guardian or entity in which guardian has interest is void unless approved by court.

INSTRUMENT OF DEFEASANCE

I.C. 32-21-4-3
Effective Date: July 1, 2005
(SEA 295)

Requires instruments of defeasance concerning a conveyance of an estate in land, other than deeds of defeasance or bonds, to: 1) be in a form required by the deed; 2) contain an accurate legal description of the estate in land; 3) be dated; 4) be acknowledged by a notary public; 5) be made for consideration; and 6) be recorded within ninety (90) days after the date of the deed. A deed of defeasance or bond must be recorded in the manner provided by law within ninety (90) days after the date of the deed.

INSURANCE LICENSING AND CONTINUING EDUCATION

I.C. 27-1-15.7-2; I.C. 27-1-15.7-2.5 (NEW)
Effective Date: July 1, 2005
(SEA 0075)

Amends subject matter hours for title insurance producer continuing education. Instead of a minimum of four (4) hours of instruction in either 1) ethical practices in marketing and selling of title insurance; 2) title insurance underwriting; 3) escrow issues, or 4) RESPA, title insurance producers are now required to complete at least one hour of instruction in each of the four categories to meet the fourteen (14) hour continuing education requirement. Insurance producers who are at least seventy (70) years of age and have been licensed continuously for at least twenty (20) years preceding the license renewal date are exempt from continuing education requirements. The above two changes apply to license renewals after June 30, 2005. Requires the insurance commission to establish a policy by September 1, 2005 to allow a waiver of continuing education and license renewal requirements for insurance producers on active duty.

INSURANCE PRODUCER MANAGEMENT COURSES

I.C. 27-1-15.7-4
Effective Date: July 1, 2005
(HEA 1402)

The Insurance Commissioner will not approve a course that concerns only routine office skills including filing, keyboarding and basic computer skills. The Insurance Commissioner shall approve courses submitted by an insurance trade association or professional insurance association if the course objective is 1) to educate a manager or owner of a business entity that is required to be licensed; 2) the course teaches insurance producer management and is designed to result in improved efficiency in operations, systems use or key functions; 3) the course benefits consumers, and 4) the course is not otherwise prohibited.

LENDING

I.C. 24-9-5-4
Effective Date: January 1, 2005 (Retroactive)
(HEA 1021)

Clarifies statutory language by providing that a reference in Indiana's home loan practices law to rescission rights granted for a violation of "a law" refers only to a violation of the Federal Truth in Lending Act (15 U.S.C. 1601 et seq.)

LIENS-STORMWATER AND MUNICIPAL

I.C. 8-1.5-5-29 (NEW); I.C. 8-1.5-5-30 (NEW); I.C. 8-1.5-5-31 (NEW)
Effective Date: July 1, 2005
(SEA 0445)

Stormwater management district fees become a lien against property when notice is filed in the county recorder's office. The lien is superior to all other liens except tax liens. The provisions that follow are not applicable if a city, prior to January 1, 2005, adopted an ordinance for collection of unpaid user fees through enforcement of a lien. The lien will not be enforceable against a subsequent owner unless the lien is recorded prior to a conveyance to a subsequent owner. The lien will also not attach against a non-owner occupant unless the owner is notified within twenty (20) days after user fees become sixty (60) days delinquent and the owner has provided the enforcing department with a written notice of mailing address. Liens filed after the recorded date of conveyance of property to a subsequent owner and delinquent fees on the tax duplicate shall be released and removed upon written demand from purchaser. Bills not paid after ninety (90) days may be certified to the auditor to be collected as delinquent taxes after a list of delinquent fees and penalties or an instrument for each lot or parcel on which fees are delinquent is recorded. The county auditor shall add a fifteen ($15.00) certification fee to the amount due.

LIENS-REGIONAL WATER, SOLID WASTE AND WASTE MANAGEMENT

I.C. 13-26-14-4
Effective Date: July 1, 2005
(SEA 0446)

Rates, charges, fees and assessments for regional water, sewage, solid waste and county onsite waste management districts are liens on land and the recording, enforcement and attachment of the liens shall be in substantial compliance with lien procedures for municipal sewers set forth in I.C. 36-9-23 –31 and I.C. 36-9-23-32.

ORDINANCE VIOLATION LIEN

I.C. 36-1-6-2
Effective Date: July 1, 2005
(SEA 0446)

The expense incurred by a municipal corporation to bring real property into compliance with an ordinance is a lien when notice of the lien is recorded in the office of the county recorder in which the property is located. A bill not paid after thirty (30) days is delinquent and a list of delinquent fees and penalties or an instrument for each lot or parcel on which fees are delinquent may be recorded. The lien amount will be placed on tax duplicate to be collected in the same manner as delinquent taxes. The lien will not be enforceable against a subsequent owner unless the lien is recorded prior to the conveyance to a subsequent owner. Liens filed after the recorded date of conveyance of property to a subsequent owner and delinquent fees shall be released and removed from the tax duplicate upon written demand from purchaser or a title insurance company representative or agent.

POWER OF ATTORNEY

  • CONFLICT OF INTEREST

I.C. 30-5-9-2
Effective Date: July 1, 2005
(HEA 1153)

Provides that a transaction benefiting an attorney-in-fact is not presumptively valid or invalid if it is made by the principal and not made by the attorney-in-fact for the principal under a power of attorney.

  • DEATH OF POA

I.C. 30-5-10-4
Effective Date: July 1, 2005
(HEA 1153)

Allows a power of attorney to act after the death of the principal with respect to donation of organs, an autopsy request and plan for the disposition of the principal's body.

  • GIFT TRANSACTIONS

I.C. 30-5-5-9
Effective Date: July 1, 2005
(HEA 1153)

Changes the annual maximum amount of gifts an attorney-in-fact or a person the attorney-in-fact is legally obligated to support may receive under the attorney-in-fact's gift-making powers from $10,000.00 to the amount allowed as an exclusion from gifts under Section 2503 of the Internal Revenue Code.

  • IMMUNITY FROM LIABILITY AND AFFIDAVIT OF POWERS

I.C. 30-5-8-7 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Provides that a person who acts in good faith in reliance on a power of attorney or affidavit concerning a power of attorney is immune from liability. Allows an attorney-in-fact to furnish an affidavit to a person that states, to the best knowledge of the attorney-in-fact, 1) the power of attorney document is a true copy; 2) the named principal is alive; 3) the power of attorney was validly granted and executed; 4) the relevant powers granted have not been altered or terminated; 5) any successor attorney-in-fact has authority to act; and 6) if the effective date of the power of attorney begins upon the occurrence of a certain event, that event has occurred.

  • INSURANCE TRANSACTIONS

I.C. 30-5-5-7
Effective Date: July 1, 2005
(HEA 1153)

Deletes limitations concerning when an attorney-in-fact may be named as beneficiary under an insurance contract of the principal.

  • POWERS

I.C. 30-5-5-4.5 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Provides authority for attorney-in-fact to exercise powers with respect to principal's retirement plans.

PROBATE

  • ADMISSION OF WILL TO PROBATE

I.C. 29-1-7-15.1
Effective Date: July 1, 2005
(HEA 1153)

No will shall be admitted for probate unless will is presented for probate within three years after the individual's death.

  • ADOPTED PERSONS

I.C. 6-4.1-1-3
(hea 1153)
Effective Date: July 1, 2004 (retroactive)

Provides that an individual adopted as an adult is to be treated as a natural child of the adopting parent for inheritance tax purposes if adoption finalized prior to July 1, 2004.

  • DEPOSIT OF WILL IN CIRCUIT COURT

I.C. 29-1-7-3.1 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Allows a person to deposit a will with the circuit court clerk of the county in which testator resided when the will was executed for a fee of $25 unless fee is waived by court. The will shall be indexed alphabetically by testator's name and is not a public record under I.C. 5-14-3. A deposited will may be destroyed by the circuit court clerk if the clerk has not received notice of the death of the testator and at least one hundred (100) years have passed since the date the will was deposited.

  • DISPOSITION OF PERSONAL PROPERTY BY LIST

I.C. 29-1-6-1
Effective Date: July 1, 2005
(HEA 1153)

A will may incorporate by reference a written statement or list disposing of items of tangible personal property that may be amended after the execution of the will.

  • DUE DATE

I.C. 6-4.1-4-2
(hea 1153)
Effective Date: July 1, 2005

If the Internal Revenue service allows an extension on a federal estate tax return, the due date for the Indiana inheritance tax return is automatically extended for the same period. Applies to the estate of a person who dies after June 30, 2005.

  • ELECTION AGAINST WILL

I.C. 29-1-3-2
Effective Date: July 1, 2005
(HEA 1153)

Absent litigation, a spouse must elect to take against a will within three (3) months after will is admitted into probate. Applies to the estate of a person who dies after June 30, 2005.

  • PETITION FOR PROBATE

I.C. 29-1-7-5
Effective Date: July 1, 2005
(HEA 1153)

Requires a petition for probate of a will or for the appointment of an administrator to state whether the decedent, heirs, legatees or devisees are adults or minors.

  • SPOUSES

I.C.29-1-2-1
Effective Date: July 1, 2004 (Retroactive)
(HEA 1153)

A subsequent childless spouse's share of real property of a deceased individual who left surviving the decedent a child or children of a prior marriage is calculated less liens and encumbrances on the real property of the deceased spouse. Applies to the estate of a person who dies after June 30, 2004.

  • STEPCHILDREN

I.C. 6-4.1-1-3
(hea 1153)
Effective Date: July 1, 2004 (retroactive)

Provides that a stepchild or a lineal descendant of a transferor is a Class A beneficiary for purposes of inheritance tax whether or not the stepchild is adopted by the transferor. Applies to estate of individual who dies after June 30, 2004.

  • SUPERVISED ESTATES-REPORT FOR SALE

I.C. 29-1-15-16 (Repealed)
Effective Date: July 1, 2005
(HEA 1153)

Personal representative in a supervised estate is no longer required to file a report of sale with the probate court.

  • SUPERVISED ESTATES CONFIRMATION OF SALE

I.C. 29-1-15-17
Effective Date: July 1, 2005
(HEA 1153)

An order issued by the probate court confirming the report of sale in supervised estate is no longer required.

  • UNSUPERVISED ADMINISTRATION-SPECIFIC BEQUEST

I.C. 29-1-7.5-1.5
Effective Date: July 1, 2005
(HEA 1153)

A person who receives a specific bequest is only entitled to receive an estate inventory limited to the specific bequest.

  • VOID TRANSACTIONS

I.C. 29-1-15-16.5 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

A sale, lease, encumbrance or rental of real property that is an asset of the estate that directly or indirectly benefits the personal representative, in a supervised or unsupervised estate, is void unless authorized by 1) will; 2) trust; 3) consent of all heirs, legatees or beneficiaries or 4) an adjudicated compromise agreement approved by the court. A personal representative is not prevented from acquiring an interest in real property arising out of a contract or agreement that was executed during the decedent's lifetime between the decedent and the personal representative in the personal representative's individual capacity.

RAILROAD

I.C. 8-4.5-3-1; I.C. 8-4.5-4-1; I.C. 8-4.5-4-1.5(NEW); I.C. 8-4.5-4-3
Effective Date: July 1, 2005
(SEA 0063)

Requires the Department of Transportation (DOT) to contact railroad owners concerning corridors that owners may abandon and prepare a list of corridors for preservation in consultation with affected local and state agencies, on an annual basis. Allows the DOT to acquire a railroad's interest in a railroad corridor without the approval of the transportation corridor planning board.

SMALL CLAIMS-JURISDICTION

I.C. 33-4-3-7; I.C. 33-5-2-4; I.C. 33-10.1-6-10; I.C. 33-10.5-7-1; 33-11.6-4-2; I.C. 33-11.6-4-3; I.C. 33-19-5-5; I.C. 33-19-7-1; I.C. 33-19-7-2; I.C. 33-19-7-3; I.C. 33-19-7-4
(HEA 1047)
Effective Date: July 1, 2005

Makes the small claims jurisdictional limit $6,000.00 across the state. A person who files a small claims action must pay a small claims service fee of $5.00 per defendant after June 30, 2005.

SOCIAL SECURITY NUMBERS

I.C. 36-2-7.5 (NEW);
Effective Date: July 1, 2005
(SEA 503)

  • NOTICE OF SECURITY BREACH

I.C. 4-1-11(NEW)
Effective Date July 1, 2005
(SEA 503)

After June 30, 2006, if a state agency erroneously releases a social security number, the agency is required to provide notice to the person whose social security number was disclosed. A state agency must notify an individual of a security breach in the agency's computer system if the individual's if the state agency reasonably believes that unencrypted personal information was disclosed. The state agency must also notify all consumer reporting agencies if notification is required to be provided to more than 1,000 individuals.

  • RECORDING DOCUMENTS CONTAINING SOCIAL SECURITY NUMBERS

I.C. 36-2-7.5 (NEW);
Effective Date: July 1, 2005
(SEA 503)

After December 31, 2005, a document may not be submitted to the county recorder for recording if the document contains the social security number of an individual. An individual preparing a document for recording is required to affirm, under penalties of perjury, on a form prescribed by the state board of accounts, that: 1) the individual reviewed the entire document before submitting the document for recording for the purpose of identifying and redacting any social security number, and 2) that the individual took reasonable care to redact each social security number in the document. The county recorder will not accept a document for recording without the completed certification form attached to the document. The county recorder shall charge a fee for recording the certification form in accordance with IC 36-2-7-10.

The state board of accounts is required to establish procedures for county recorders to follow when receiving and reviewing the certification form. Each county legislative body shall establish an identity security protection fund. The county recorder shall deposit $2.00 of the fee for recording the certification into the fund to be used for redacting technology. After December 31, 2007, a county recorder must not disclose a recorded document for public inspection until the county recorder has searched the document for a social security number and to the extent possible, redacted any social security number using redacting technology. The county recorder shall post a notice in its office setting forth the duties of the preparer of a document for recording and the county recorder and shall conduct a minimum of two training sessions each year for its employees. A pilot project beginning July 1, 2005 and expiring July 1, 2008 is authorized for the development of procedures and to test technology and equipment for searching recorded documents and redacting social security numbers. County recorders are required to seek federal grants, private funds and other sources of money to implement redacting technology.

  • RELEASE OF SOCIAL SECURITY NUMBERS

I.C. 4-1-10 (NEW)
Effective Date: July 1, 2005
(SEA 503)

Prohibits a state agency from releasing the Social Security number of an individual unless the release is 1) required by state law, federal law, or court order; 2) authorized in writing by the individual; 4) made to comply with the USA Patriot Act or Presidential Executive Order 13224; or (4) made to a commercial entity for permissible uses set forth in the Drivers Privacy Protection Act, the Fair Credit Reporting Act, or the Financial Modernization Act of 1999. The last four digits of a Social Security number are not considered a disclosure of the social security number.

STATUTE OF LIMITATIONS

I.C. 32-30-1-5
Effective Date: July 1, 2005
(SEA 373)

A ten (10) and twelve (12) year statute of limitation applies to causes of action based on deficient design or construction of an improvement to real property brought against a person who owns or possesses the property at the time of injury or wrongful death. Deficiency does not mean failure of possessor to use reasonable care to maintain an improvement on the property after substantial completion. Repeals provision that prohibited a possessor of property from using the ten (10) and twelve (12) year statute of limitations as a defense. Only applies to causes of action accruing after June 30, 2005.

TAXES-CONSOLIDATED CITY

I.C. 36-3-7-5
Effective Date: July 1, 2005
(SEA 0446)

Liens for taxes levied by a consolidated city are perfected when evidenced on the tax duplicate in the office of the treasurer of the county.

TAXES-REAL PROPERTY

I.C. 6-1.1-1-3.5 (NEW); I.C. 6-1.1-3-23 (retroactive to January 1, 2004); I.C. 6-1.1-4-4; I.C. 6-1.1.-4-4.5; I.C. 6-1.1-4-4.7 (NEW); I.C. 6-1.1-4-13.8; I.C. 6-1.1-4-16; I.C. 6-1.1-4-17; I.C. 6-1.1.-4-27.5; I.C. 6-1.1.-4-28.5; I.C. 6-1.1.-4-31; I.C. 6-1.1.-4-31.5; I.C. 6-1.1-4-31.6 (NEW); I.C. 6-1.1-4-31.7 (NEW); I.C. 6-1.1.-5-15; I.C. 6-1.1.-5.5-3; I.C. 6-1.1.-5.5-4.7; I.C. 6-1.1.-5.5-5; I.C. 6-1.1.-17-13; I.C. 6-1.1-17-16; I.C. 6-1.1-21-4; I.C. 6-1.1.-21.8-4; I.C. 6-1.1.-28-1; I.C. 6-1.1-31.5-2; I.C. 6-1.1-31.5-3.5; I.C. 6-1.1.-31.5-5;
Effective Date: July 1, 2005
(SEA 327)

Delays the next general reassessment of real property two years from July 1, 2007 to July 1, 2009 and requires general reassessments every five years thereafter. Delays until 2006 implementation of annual adjustments of real property tax assessments. Allows assessors to employ professional appraisers to assist with annual adjustments. Requires the Department of Local Government Finance (DLGF) to review and certify annual adjustments, establish local deadlines in the determination of annual adjustments, provide training to assessors and county auditors in the verification of sales, approve a determination by assessors to not employ a professional appraiser for a general reassessment and adopt rules for the establishment of a statewide uniform and common property tax management system. Allows the DLGF to take over local assessment, reassessment or annual adjustment activities after giving at least sixty (60) days notice if it determines that the activities are not being performed properly.

  • SALES DISCLOSURE FORM

I.C. 6-1.1-5.5-5
Effective Date: July 1, 2005
(SEA 327)

Requires the inclusion of the telephone number of the transferor and transferee and the person (formerly title company) that prepared the form. Extends sales disclosure form requirement to property exempt from property taxes. Extends for six years the $10.00 sales disclosure filing fee. Prohibits an appraiser or technical advisor that contracts with a township or county from representing taxpayers in the county, but allows representation with respect to an issue of a taxpayer after the contract term if the appraiser or technical advisor was not directly involved with the issue of the taxpayer while under contract. Authorizes a nonprofit youth soccer organization, certain religious institutions, and certain nonprofit entities established for the purpose of retaining and preserving land and water for their natural characteristics to claim retroactive property tax exemptions. Authorizes refund of taxes paid by certain exempt sororities. Establishes a procedure for resolution and appeal of property tax abatements.

TRUSTS

  • ABANDONING OR ADULTEROUS SPOUSE

I.C. 29-1-2-14; I.C. 29-1-2-15
Effective Date: July 1, 2005
(HEA 1153)

An adulterous or abandoning spouse of decedent cannot take part in trust property

  • CAPACITY OF SETTLOR

I.C. 30-4-2-10
Effective Date: January 1, 2006
(HEA 1153)

Require a settlor of a trust to have the same capacity that is required for a testator making a will.

  • CERTIFICATION OF TRUST

I.C. 30-4-4-5 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Allows trustee to provide a certification of trust to a person other than a beneficiary instead of a copy of the trust. The certification must contain the following information: 1) date trust executed and continued existence of trust; 2) identity of settlor; 3) identity and address of trustee; 4) powers of trustee: 5) whether trust is revocable or irrevocable; 6) authority of co-trustees to sign and whether all or less than all are required to exercise powers; 7) taxpayer i.d. number of trust; 8) manner of taking title to trust property; and 9) certification that trust has not been revoked, modified, or amended in any manner. Certification must be signed by any trustee. A recipient of a certification may require the trustee to furnish copies or excerpts from the original trust agreement and any amendments pertaining to the designation of trustee, and powers of trustee to act in a pending transaction in which a recipient has an interest. Provides immunity from liability for a person who relies on a certificate of trust without knowledge that representations are incorrect. Knowledge of trust provisions will not be inferred solely from the fact that the person relying on the certification has copies of all or parts of the trust agreement. A person in good faith who relies on a certification of trust may enforce the transaction against the trust property as if the representations made in the certification were correct. A person who demands a copy of the trust instrument in addition to the certification is liable for damages if a court of law determines that the person did not act in good faith in demanding the trust instrument. In a judicial proceeding, there are no limitations with respect to the right of a person to obtain a copy of the trust instrument.

  • CONFLICT OF INTEREST

C. 30-4-3-7
Effective Date: July 1, 2005
(HEA 1153)

A trustee is not prohibited from fulfilling any enforceable contract or agreement benefiting the trustee executed during settlor's lifetime and between settlor and trustee in trustee's individual capacity

  • CONSTRUCTIVE TRUST

I.C. 29-1-2-12.1
Effective Date: July 1, 2005
(HEA 1153)

Provides that a person who is convicted of an individual's death is a constructive trustee of any trust property that the person would receive as result of the individual's death.

  • CONTESTING TRUST

I.C. 30-4-6-14 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Actions to contest the validity of a trust must be brought within specified time periods.

  • CREATION

I.C. 30-4-2-1.5 (NEW); I.C. 30-4-2-1;
Effective Date: July 1, 2006
(HEA 1153)

Provides that a valid trust must be in writing and signed by the settlor or settlor's attorney-in-fact. A trust not created by a will is validly created if trust complies with law of the jurisdiction in which trust is executed or the law of the jurisdiction in which settlor is domiciled, trustee is domiciled or has a place of business or where any trust property is located.

  • CY PRES DOCTRINE

I.C. 30-4-3-27
Effective Date: July 1, 2005
(HEA 1153)

Provides that a provision in a charitable trust that would result in the distribution of trust property to a noncharitable beneficiary prevails over the power of the court to apply the cy pres doctrine to modify or terminate the trust if when the provision takes effect the trust property is to revert to a living settlor or less than 21 years have elapsed from the creation of the trust.

  • DEFINITIONS

I.C. 30-4-1-2
Effective Date: July 1, 2005
(HEA 1153)

Amends the definition of "affiliate" to include "an attorney, or an agent". Adds definition of "Qualified beneficiary"

  • DISPOSITION OF PERSONAL PROPERTY BY LIST

I.C. 30-4-2.1-11
Effective Date: July 1, 2005
(HEA 1153)

A trust agreement may incorporate by reference a written statement or list disposing of items of tangible personal property that may be amended after the execution of the trust agreement.

  • DUTY TO DETERMINE TRUST BENEFICIARIES

I.C. 30-4-3-6
Effective Date: July 1, 2005
(HEA 1153)

Trustee has duty to determine trust beneficiaries.

  • GOOD FAITH ACTS OF TRUSTEE

I.C. 30-4-3-6.5 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

A trustee is not liable for loss resulting from the trustee's lack of knowledge of an event such as a marriage, divorce, performance of education requirements or death affecting the administration or distribution of trust, if trustee exercised reasonable care in confirming the occurrence of the event.

  • MODIFICATION OF TRUST

I.C. 30-4-3-24.4 (NEW)
Effective Date: January 1, 2005
(HEA 1153)

Allows court to modify trust if purpose of trust will not be furthered due to circumstances not anticipated by settlor.

  • NONCHARITABLE TRUST

I.C. 30-4-2-17 (NEW); I.C. 30-4-2-19 (NEW)
Effective Date: July 1, 2006
(HEA 1153)

Authorizes the creation of a noncharitable trust with the beneficiary and purpose to be determined by the trustee.

  • PET TRUST

I.C. 30-4-2-18 (NEW);
Authorizes the creation of a pet trust.

  • PETITION TO DETERMINE HEIRS

I.C. 30-4-3-34(NEW)
Effective Date: July 1, 2005
(HEA 1153)

Allows a trustee or any interested person to petition the court to determine the heirs of the settlor or any person named in the trust and the respective interests of persons in trust property. Allows the court to determine heirs and interests in trust property by evidence or affidavit after a hearing.

  • POWERS OF TRUSTEE

I.C. 30-4-3-3
Effective Date: July 1, 2005
(HEA 1153)

Expands powers of a trustee to include powers with respect to 1) an interest in a proprietorship, partnership, limited liability company, business trust, corporation or another form of business; 2) possible liability for violation of environmental law; 3) exercise of elections with respect to federal, state and local taxes; 4) selecting a mode of payment under retirement, life insurance, employee benefit or similar plan; 5) making loans out of trust property to beneficiaries; 6) pledging trust property to guarantee loans made by others to beneficiaries; 7) appointment of a trustee to act in another jurisdiction where trust property is located; 8) distributions to a beneficiary under a legal disability or whom trustee believes is incapacitated; and 9) power to combine 2 trusts into 1 trust or divide 1 trust into 2 trusts subject to certain conditions.

  • RESIGNATION OF TRUSTEE

I.C. 30-4-3-29
Effective Date: July 1, 2005
(HEA 1153)

Adds provision concerning resignation of trustee.

  • REVOCATION OF TRUST

I.C. 30-4-3-1.5
Effective Date: July 1, 2005
(HEA 1153)

Sets forth the procedure for revocation of revocable trusts executed after June 30, 2005. Presumes a trust is revocable unless specific terms state the trust is irrevocable. Allows an agent or attorney in fact to amend or revoke a trust if authorized by the trust agreement or power of attorney. Allows a guardian of a settlor to revoke, amend, or distribute assets upon approval of court supervising guardianship.

  • TERMINATION OF TRUST

I.C. 30-4-3-24.5 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Allows an uneconomic trust to be modified or terminated by court.

  • VACANCY OF TRUSTEE

I.C. 30-4-3-33 (NEW)
Effective Date: July 1, 2005
(HEA 1153)

Adds provisions concerning filling a trustee vacancy.

UNIFORM TRANSFER TO MINORS

I.C. 30-2-8.5-29
(HEA 1153)
Effective Date: July 1, 2005

Under the Uniform Transfer to Minors Acts, custodial property may be transferred, without a court order to a trust if the minor is the sole beneficiary and the trust meets Internal Revenue Code requirements for not treating the transfer as a gift of a future interest.

UNSAGE PREMISES

I.C.36-7-9-4
Effective Date: July 1, 2005
(SEA 0352)

Vacant, unimproved land is considered an unsafe premises for purposes of the unsafe building law if land is fire hazard, hazard to public health, a public nuisance or dangerous to a person or property because of a violation of statute or ordinance. Does not include land used for production agriculture.

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