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Tax court rules on inheritance issue

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In Indiana, a person adopted pre-emancipation can't be considered a Class A transferee beneficiary for inheritance tax purposes, the Indiana Tax Court ruled Thursday afternoon in an issue of first impression.

In In Re The estate of Forrest W. Quackenbush, deceased, et al. v. Indiana Department of Revenue, Inheritance Tax Division, No. 49T10-0810-TA-61, Forrest Quackenbush's estate appealed the decision by the Tippecanoe Circuit Court determining its inheritance tax liability. The case raises an issue of first impression in whether, for inheritance tax purposes, a beneficiary should be classified as Class A or Class C transferee when she was adopted pre-emancipation during the lifetime of her biological grandfather.

Quackenbush included his biological granddaughter Pamela Stewart Martin and her two children in his trust. The estate treated the three as Class A transferees when filing its inheritance tax return, which the probate court accepted. But the inheritance tax division filed a petition for rehearing, during which the probate court later determined Martin and her sons should have been classified as Class C transferees, which increased the estate's inheritance tax liability.

The estate argued that nothing in I.C. Section 6-4.1-1-3 or inheritance tax statutes prevents an adoptee from being treated both as a lineal descendant of a natural ancestor and as the natural child of her adoptive parents for inheritance tax purposes. The Tax Court disagreed after examining the interrelationship between the state's descent and devise statutes and its inheritance statutes.

"The overall design of Indiana's probate code with respect to the distribution of property is to treat an adopted child as the natural child of the adoptive parents only," wrote Judge Thomas Fisher.

The General Assembly has unambiguously determined for purposes of inheritance, a child adopted pre-emancipation by unrelated individuals should be placed in a family status equal to that of a natural child of those adoptive parents only, the judge continued. Martin's biological ties to her natural parents were legally severed.

"The Court, having considered Indiana Code § 6-4.1-1-3 in relation to the aforementioned adoption and descent and devise statutes, concludes that the probate court correctly determined that the legislature did not intend to confer Class A transferee status to Pamela, Miles, or Matthias," wrote Judge Fisher.

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  1. Contact Lea Shelemey attorney in porter county Indiana. She just helped us win our case...she is awesome...

  2. We won!!!! It was a long expensive battle but we did it. I just wanted people to know it is possible. And if someone can point me I. The right direction to help change the way the courts look as grandparents as only grandparents. The courts assume the parent does what is in the best interest of the child...and the court is wrong. A lot of the time it is spite and vindictiveness that separates grandparents and grandchildren. It should not have been this long and hard and expensive...Something needs to change...

  3. Typo on # of Indiana counties

  4. The Supreme Court is very proud that they are Giving a billion dollar public company from Texas who owns Odyssey a statewide monopoly which consultants have said is not unnecessary but worse they have already cost Hoosiers well over $100 MILLION, costing tens of millions every year and Odyssey is still not connected statewide which is in violation of state law. The Supreme Court is using taxpayer money and Odyssey to compete against a Hoosier company who has the only system in Indiana that is connected statewide and still has 40 of the 82 counties despite the massive spending and unnecessary attacks

  5. Here's a recent resource regarding steps that should be taken for removal from the IN sex offender registry. I haven't found anything as comprehensive as of yet. Hopefully this is helpful - http://www.chjrlaw.com/removal-indiana-sex-offender-registry/

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