Probate in Indiana: What Your Family Goes Through Without a Will

Probate is the rule rather than the exception for estates in Indiana, but not every asset ends up there. If the deceased does not have a will, this is called intestate succession. An estate will go through probate in Indiana if there is no will, with a few exceptions.

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These categories typically pass directly to a named person.

• Life insurance policies when they have a designated beneficiary.

• Retirement accounts when they have a designated beneficiary.

• Bank or brokerage accounts that have a payable-on-death or transfer-on-death designation.

• Property owned jointly with right of survivorship.

If none of the above applies, an estate without a will does go through probate in Indiana. If the gross probate estate is $100,000 or less (increased from $50,000 in 2022), and at least 45 days have passed since the death, you can use a small estate affidavit instead of full probate.

Succession Laws Without a Will in Indiana

Indiana's inheritance rules hinge on a distinction that trips up a lot of families. This involves how property is classified. Indiana is a common law property state, meaning ownership is determined by whose name is on the title, deed, or account.

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If no exceptions apply, the estate will go through probate and be distributed according to the following lines of succession.

• If you have children, your spouse inherits 1/2 of your net estate. Your children inherit the other 1/2, divided equally. (If you have children and your spouse is a second or later spouse who never had children with you, your spouse's share of any real estate drops to 25% of its net value, with the rest vesting immediately in your children. Your spouse still receives the standard 1/2 share of personal property.)

• If you have no children but living parents, your spouse inherits 3/4 of your net estate. Your parents inherit the remaining 1/4.

• If you have no children and no living parents, your spouse inherits everything.

• If you have children but no spouse, your children inherit everything, divided equally.

• If you have no spouse and no children, your parents inherit everything.

Indiana Probate Process

Indiana offers both supervised and unsupervised administration. Under unsupervised administration, the personal representative doesn't need to file formal accountings or get court approval for every distribution, which meaningfully speeds up the process for straightforward estates.

Avoiding Probate in Indiana

Most families can steer the bulk of an estate around probate with these tools.

• A revocable living trust. A living trust provides total control over your estate as the trustee. You name a successor trustee, a person in charge of distributing your assets after your death.

• Beneficiaries on financial and retirement accounts. A payable-on-death (POD) designation specifies who receives payment and a transfer-on-death (TOD) designation names a new owner for those accounts, which will be distributed upon your death.

• Beneficiaries for real estate. Under Indiana law, you can use a transfer-on-death deeds, which automatically names a new owner for that property upon your death.

• Establish joint ownership with right of survivorship. This option gives a spouse or co-owner automatic ownership of any joint property.

Want to learn more about trusts in Indiana? Learn more about trusts.