Direct postmortem transfer; application

Sec. 10. (a) 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 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 direct postmortem transfer described in subsection (a):

(1) The 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 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 direct postmortem transfer 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.

As added by P.L.81-2015, SEC.16. Amended by P.L.50-2025, SEC.5.