New to estate planning? You’re in the right place. A living trust is a legal document that holds your family’s assets so they pass directly to your loved ones — no probate court, no delays, no public record. That’s the core idea.
If you’re just starting to figure this out, I’d suggest reading Having the Estate Planning Talk with Your Parents first — it walks through the whole picture and how to get the conversation started. Then come back here for the Indiana-specific rules.
Already know the basics? Keep scrolling — everything below is specific to Indiana.
You’re not alone in this. As someone who went through the estate planning process with my own aging parents, I know the weight of these conversations — the awkwardness, the guilt, the fear that you’re not doing enough or doing it too late. Take a breath. You’ve found the right place, and Indiana has been quietly building one of the most modern trust law frameworks in the Midwest.
Here’s what makes Indiana interesting: over the past five years, the legislature has added asset protection trusts (2019), directed trusts (2019), trust decanting (2022), and 360-year dynasty trusts (2026). Combine that with no state estate tax, no inheritance tax, and one of the lowest state income tax rates in the nation (3.00% in 2025, declining annually), and Indiana families have a strong tax environment for estate planning.
But there’s a critical detail that makes Indiana different from many states: the surviving spouse’s elective share applies only to the probate estate — Indiana does not use an augmented estate. That means non-probate transfers (trusts, TOD accounts, joint tenancy) can bypass the spouse’s share entirely. It’s both a planning opportunity and a potential trap, depending on which side of it your family is on.
Here’s everything you need to know — no legal jargon, just clear answers from a son who’s been through it.
Indiana’s Trust Law Modernization (2019-2024)
Recent legislative wave: Indiana has added four major trust law tools in five years — Legacy Trusts/DAPTs (2019), the Uniform Directed Trust Act (2019), the Uniform Trust Decanting Act (2022), and 360-year dynasty trusts (HB 1209, July 2024). This puts Indiana’s trust code among the most modern in the Midwest.
Legacy Trusts (Indiana’s DAPT)
Since July 1, 2019, Indiana has allowed self-settled asset protection trusts — called “Legacy Trusts” (IC 30-4-8). This means you can create an irrevocable trust, name yourself as a beneficiary, and still protect those assets from future creditors. Key requirements:
- The trust must be irrevocable
- At least one qualified trustee must maintain records and materially participate in administration in Indiana
- Two-year statute of limitations for creditor challenges — after two years, existing creditors generally cannot reach trust assets
- Exceptions: Fraudulent transfers, child support obligations, and property division claims in divorce (if the transfer occurred after marriage or within 30 days of marriage)
360-Year Dynasty Trusts
Governor Holcomb signed HB 1209 on March 11, 2024, extending Indiana’s Rule Against Perpetuities from 90 years to 360 years, effective July 1, 2024. This allows families to create trusts that protect assets for multiple generations — keeping wealth within the family and shielded from creditors, divorce, and estate taxes at each generational transfer.
Directed Trusts and Decanting
Indiana adopted the Uniform Directed Trust Act (IC 30-4-9, effective 2019), allowing families to split trustee duties among multiple parties — for example, a corporate trustee handles administration while a family member or advisor controls investment decisions. Indiana also adopted the Uniform Trust Decanting Act (IC 30-4-10, effective 2022), allowing fiduciaries to move assets from an old trust to a new one with better terms, with 60 days’ notice to beneficiaries.
Two Trust Types in Indiana
Indiana has its own comprehensive trust code at IC 30-4 — Indiana has not adopted the Uniform Trust Code (UTC), but its trust statutes served as one of the models the Uniform Law Commission drew upon when drafting the UTC.
Revocable Living Trust
- Avoids probate — assets pass directly to beneficiaries without court involvement
- You maintain full control — revocable and amendable during your lifetime
- Privacy — no trust registration required in Indiana; trust stays completely private
- Incapacity protection — successor trustee steps in without court-appointed guardianship
- Bypasses elective share — trust assets are not part of the probate estate (important for blended families)
- Works alongside TOD deeds — use both for comprehensive coverage
Irrevocable Trust
- Once established, you give up control — the trade-off for asset protection and tax benefits
- Legacy Trust (DAPT) — self-settled asset protection with 2-year creditor limitation (IC 30-4-8)
- Dynasty trusts: Up to 360 years (HB 1209, July 2024)
- Medicaid planning — can protect assets if established 5+ years before applying
- Directed trusts (IC 30-4-9) — split trustee duties among multiple parties
- Decanting (IC 30-4-10) — move assets to a new trust with updated terms
Indiana Rules at a Glance
Probate Rules
- Court system: Circuit Courts and Superior Courts (varies by county; St. Joseph County has a dedicated Probate Court)
- Unsupervised administration available (IC 29-1-7.5) — personal representative acts without court orders
- Small estate affidavit: Estates under $100,000 (after liens and funeral expenses) — 45-day waiting period (IC 29-1-8-1)
- Typical timeline: 6–12 months
- Fee cap: Combined attorney and executor fees cannot exceed 10% of estate assets
- Creditor claims period: 3 months from first publication
- Probate filing deadline: Within 3 years of death
Tax Rules & Property
- No state estate tax (pick-up tax ended 2005)
- No inheritance tax (repealed January 1, 2013)
- No gift tax
- State income tax on trusts: 3.00% flat (2026), declining to 2.95% (2026), 2.90% (2027) — plus county income tax (0.5%–3%)
- Common law (separate property) state
- Tenancy by the entirety: Real property only (not personal property or bank accounts)
- Homestead exemption: $22,750 (spouses may double)
- No real estate transfer tax
The Elective Share: Why It Matters for Indiana Families
Critical distinction: Indiana’s elective share applies only to the probate estate — not to trusts, TOD accounts, life insurance, retirement accounts, or joint tenancy property. Indiana does not use the augmented estate concept used by many other states. This means non-probate planning can effectively bypass the surviving spouse’s share.
How Indiana’s Elective Share Works (IC 29-1-3-1)
- Standard share: The surviving spouse may elect against the will and receive one-half (1/2) of the net personal and real estate
- Reduced share for childless second spouses: If the surviving spouse never had children with the decedent, and the decedent left children from a prior marriage, the spouse receives only one-third (1/3) of personal property plus 25% of real property equity
- Filing deadline: Written election must be filed within 3 months of the order admitting the will to probate
What This Means for Your Family
If you’re in a first marriage: Indiana’s probate-only elective share is unlikely to cause issues — most couples plan together and want assets to go to the surviving spouse.
If you’re in a blended family or second marriage: This is where Indiana’s rule cuts both ways. A spouse who places most assets in a revocable trust, TOD accounts, or joint tenancy with children from a prior marriage can effectively leave the surviving spouse with very little — because those assets aren’t part of the probate estate. Conversely, a surviving spouse who expected to inherit may find that the elective share covers only a small fraction of the total estate. Either way, professional planning is essential to make sure both sides are protected.
TOD Deeds and Probate Avoidance Tools
Indiana has had transfer-on-death (TOD) deeds since 2009 (IC 32-17-14). A TOD deed lets you name a beneficiary who receives your real property at your death — no probate required. You keep full ownership and control during your lifetime.
How Indiana TOD Deeds Work
- The deed is worded: “(owner’s name) conveys and warrants to (owner’s name), TOD to (beneficiary’s name)“
- Must be signed, dated, and recorded during the owner’s lifetime
- Can designate primary and contingent beneficiaries
- Owner retains full control — can sell, mortgage, or revoke
- At death, the beneficiary files an affidavit with the county recorder (IC 32-17-14-11)
Indiana also allows TOD designations on vehicle titles (IC 9-17-3-9) and POD (payable-on-death) designations on bank accounts (IC 32-17-11). These are simple, low-cost tools for specific assets — but they don’t provide incapacity protection or control over how the beneficiary uses the inheritance.
Medicaid Estate Recovery: Indiana’s Expanded Reach
Warning: Indiana uses an expanded definition of “estate” for Medicaid recovery (IC 12-15-9-0.5). The state can pursue not just probate assets but also joint tenancy property (created after June 30, 2002), non-probate transfers, and annuities (purchased after May 1, 2005). TOD deeds, POD accounts, and even revocable trusts may not fully protect against Medicaid recovery in Indiana.
Indiana’s Medicaid Estate Recovery Program recovers the total amount Medicaid paid on behalf of recipients after age 55. Recovery is not pursued while a surviving spouse, child under 21, or blind/disabled child survives. Effective July 1, 2024, the state has 120 days to file a claim after the date of death. For families concerned about long-term care costs, an irrevocable trust established more than 5 years before applying for Medicaid is the most reliable planning tool — but even irrevocable trusts should be structured carefully given Indiana’s expanded recovery authority.
Official Sources
IC Title 30 — Trusts and Fiduciaries · IC Title 29 — Probate Code · IC Title 32 — Property (TOD Deeds, TBE) · Indiana DOR — Inheritance Tax (Repealed) · Indiana FSSA — Medicaid Estate Recovery · Indiana State Bar Association
What Estate Planning Costs in Indiana
| What You’re Paying For | Typical Range in Indiana | When You’d Use It |
|---|---|---|
| Simple will | $300 – $1,000 | Single person, straightforward assets, no trust needed |
| Revocable living trust (individual) | $1,200 – $3,000 | Individual wanting comprehensive probate avoidance + incapacity protection |
| Revocable living trust (married couple) | $2,000 – $4,000 | Married couple — probate avoidance, blended family planning |
| Full estate plan package (trust + will + POA + advance directive) | $1,500 – $5,650 | Most families — this is what you actually need |
Indianapolis metro vs. rest of state: Fees in Indianapolis, Carmel, and Fishers run toward the higher end of these ranges, with specialist estate planning attorneys charging $300–$400+/hour. Rural and smaller-city attorneys charge $200–$300/hour. Indiana has among the lowest average attorney rates in the country — estate planning here is more affordable than most states.
Want to understand exactly what you’ll pay? Many Indiana estate planning attorneys offer free or reduced-cost initial consultations. The Indianapolis Bar Association operates a Lawyer Referral Service at (317) 269-2222. Find Indiana estate planning attorneys below.
With a Trust vs. Without (Probate) in Indiana
| Factor | With a Living Trust | Without (Probate) | Why It Matters |
|---|---|---|---|
| Timeline | Weeks to a few months | 6–12 months (longer for complex estates) | Indiana requires a 3-month creditor claims period even in unsupervised administration |
| Cost | $1,500–$5,650 (one-time trust creation) | $2,000–$5,000+ in attorney fees + court costs (combined fees capped at 10% of assets) | Trust costs are one-time; probate costs recur each generation |
| Privacy | Completely private — no registration required in Indiana | Public record — will, inventory, and accounts filed with the court | Trust assets and beneficiaries stay confidential |
| Elective share | Trust assets are outside the probate estate — not subject to elective share | Full probate estate subject to surviving spouse’s 1/2 elective share | Critical for blended families — Indiana has no augmented estate |
| Court involvement | None | Required — supervised or unsupervised through Circuit/Superior Court | Even unsupervised administration requires court filings and oversight |
| Medicaid exposure | Revocable trusts may still be subject to expanded MERP recovery | Probate assets fully subject to MERP recovery | Indiana’s expanded recovery reaches non-probate assets — irrevocable trusts offer the best protection |
| Incapacity protection | Successor trustee steps in seamlessly | Court-supervised guardianship needed | Guardianship is public, expensive, and emotionally difficult |
Estate Planning Readiness Checklist for Indiana
Estate Planning Readiness Checklist — Indiana
Check each item you feel confident about. Your progress is saved automatically.
Most families begin exactly where you are. Here are the best next steps:
- What Is a Living Trust? — the complete beginner's guide
- Having the Estate Planning Talk — how to start the conversation
- How to Avoid Probate — why this matters
You have a solid foundation. Fill in the remaining gaps:
- Funding Your Trust — how to retitle assets
- The 5 Documents Every Family Needs
- Estate Tax & Gift Tax Guide
You understand the fundamentals and you're prepared to work with a professional. The next step is finding an estate planning attorney who knows Indiana law.
Common Estate Planning Mistakes in Indiana
A trust only avoids probate for assets that have been retitled into it. An unfunded trust is just an expensive stack of paper. Real estate, bank accounts, and investments all need to be moved into the trust’s name.
A will does not avoid probate — it goes through it. A will tells the probate court what you want, but the court still controls the process. Only a trust, joint ownership, beneficiary designations, and certain deeds bypass probate entirely.
Retirement accounts (401k, IRA) and life insurance pass by beneficiary designation — not by your will or trust. Outdated designations (like a former spouse) override everything else in your estate plan.
A trust handles what happens after death, but a durable power of attorney and healthcare directive handle what happens if you become incapacitated. Without these, your family may need an expensive court-supervised guardianship.
There is no perfect time to plan your estate. Every day without a plan is a day your family is unprotected. The best time to start is right now — even if you begin with just the basics.
The best way to avoid these mistakes? Work with an estate planning attorney who knows Indiana law. A qualified attorney will catch the state-specific issues that generic online advice misses.
Other Important Planning Tools in Indiana
Indiana Advance Directive (IC 16-36-7)
Indiana modernized its advance directive law in 2021 (SEA 204), combining three formerly separate documents — healthcare representative appointment, healthcare power of attorney, and living will — into a single “Advance Directive” document. After January 1, 2023, all new advance directives must comply with the new law (documents executed under prior law remain valid).
- Healthcare representative — makes medical decisions when you cannot, can access health information even while you have capacity
- Living will instructions — your wishes about life-sustaining treatment
- Execution: Must be signed in front of two witnesses OR a notary public
Indiana also uses POST (Physician Orders for Scope of Treatment) — medical orders signed by both patient and physician covering CPR, level of intervention, and nutrition preferences. More at indianapost.org.
Learn more about healthcare directives →
Financial Power of Attorney (IC 30-5)
Indiana has its own comprehensive POA statute (not the Uniform Power of Attorney Act). Key features:
- Durable by default — remains effective even after the principal becomes incapacitated unless the document says otherwise
- Statutory form available — incorporates specific powers by reference to IC 30-5-5 (real property, banking, gifts, claims)
- Execution: Must be signed by the principal before a notary public OR two witnesses
- Electronic POAs permitted under IC 30-5-11
- Springing powers (effective only upon incapacity) are permitted but generally not recommended
Learn more about powers of attorney →
Long-Term Care Considerations
Indiana’s expanded Medicaid estate recovery makes long-term care planning especially critical. Unlike states that only recover from probate assets, Indiana can pursue joint tenancy property, non-probate transfers, and annuities. An irrevocable trust established more than 5 years before applying is the most reliable planning tool — but even that requires careful structuring. Indiana also permits pre-death TEFRA liens on real property for certain institutionalized Medicaid beneficiaries (IC 12-15-8).
Learn more about long-term care planning →
Find an Indiana Estate Planning Attorney
Find an Indiana Estate Planning Attorney
Indiana’s modernized trust code — Legacy Trusts, 360-year dynasty trusts, directed trusts, decanting — combined with the probate-only elective share and expanded Medicaid recovery creates a planning landscape where professional guidance matters. Whether you’re in Indianapolis, Fort Wayne, Evansville, or rural Indiana, an attorney who understands these tools can help protect your family.
Use the directories below to find a qualified estate planning attorney in your area, or email us and we’ll point you in the right direction.
Where are you in this journey?
- My parents are getting older — just starting to think about this
- We need a plan now — ready to take action
- Settling an estate — dealing with a parent’s passing
Indiana attorney directories:
- Indiana State Bar Association
- ISBA — Locate Your Lawyer
- Indianapolis Bar Association — Lawyer Referral Service
- American College of Trust and Estate Counsel (ACTEC) — Find a Fellow
- National Academy of Elder Law Attorneys (NAELA)
Questions to Ask Before You Hire an Indiana Estate Planning Attorney
- How many estate plans do you create per year, and what percentage of your practice is trust and estate work?
- Should we use a TOD deed, a living trust, or both for our real estate?
- How does Indiana’s probate-only elective share affect our plan — especially if this is a blended family?
- Do we need a Legacy Trust (DAPT) for asset protection, or is a standard revocable trust sufficient?
- What’s included in your flat fee (trust, pour-over will, POA, advance directive, trust funding)?
- Will you help with funding the trust — retitling deeds, bank accounts, and investment accounts?
- How should we plan around Indiana’s expanded Medicaid estate recovery?
Recent Indiana Updates
- 2025 — HB 1088 (Probate Matters): Clarifies personal representative notice requirements for creditors — served creditors now have two months from date of notice to file claims. Includes template for late-served notice. Addresses testamentary trust provisions. Effective July 1, 2025.
- 2024 — HB 1209 (Dynasty Trusts): Extended Indiana’s Rule Against Perpetuities from 90 years to 360 years, effective July 1, 2024. Applies to trusts created on or after that date; may also apply to earlier trusts depending on trust provisions.
- 2024 — Medicaid Recovery Deadline: State now has 120 days to file a recovery claim after date of death (effective July 1, 2024).
- 2022 — Trust Decanting Act: Adopted the Uniform Trust Decanting Act (IC 30-4-10), allowing fiduciaries to modify trust terms by distributing to a new trust with 60 days’ notice.
- 2019 — Legacy Trust Act: Indiana became the 18th state to allow DAPTs (IC 30-4-8), with a 2-year statute of limitations for creditor claims.
- 2019 — Directed Trust Act: Adopted the Uniform Directed Trust Act (IC 30-4-9), enabling split-duty trust administration.
- 2013 — Inheritance Tax Repeal: Governor Pence signed legislation retroactively repealing Indiana’s inheritance tax effective January 1, 2013.
Last reviewed: February 2026
Last updated: February 2026. I review Indiana’s estate planning rules quarterly and update this page whenever laws change. Bookmark it.
Go Deeper: Estate Planning Guides
| Guide | What You’ll Learn |
|---|---|
| Living Trusts: The Complete Guide | What a living trust is, how it works, and whether your family needs one — the foundation |
| How to Avoid Probate | Every method to keep your family out of court — trusts, TOD accounts, joint tenancy, and more |
| Having the Estate Planning Talk | How to start the hardest conversation your family will ever have — with scripts and strategies |
| Estate Tax Planning | Federal and state estate taxes, gift tax exclusions, and the step-up in basis explained |
| How to Fund Your Trust | The step everyone forgets — how to actually move your assets into your trust |
| The 5 Documents Every Family Needs | Trust, will, powers of attorney, healthcare directive — the complete package |
| Protecting Your Parents’ Legacy | Long-term care, Medicaid, blended families, and the threats nobody warns you about |
| Compare State Estate Planning Rules | See how your state compares on probate costs, estate taxes, and trust-friendly features |