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Judge reverses probate court in first opinion

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Judge Martha Wentworth has handed down her first opinion as Indiana’s Tax Court judge. In her decision, she reversed the probate court’s finding that an estate didn’t have to file an inheritance tax return on checks issued to a deceased woman’s brother on an annuity contract.

In Indiana Dept. of State Revenue, Inheritance Tax Division v. In the Matter of the Estate of Deloras J. Biddle, No. 49T10-1007-TA-35, the Department of State Revenue appealed the probate court’s ruling that the estate of Deloras Biddle didn’t have to file an inheritance tax return and pay the appropriate amount of tax due on two checks issued to her brother by Metropolitan Life Insurance Co. The checks, which totaled more than $26,000, indicated they represented the amount of death claim proceeds from an annuity contract held by Biddle.

When she died intestate, Biddle’s son was appointed personal representative of her estate. As sole heir, he received a distribution that was less than the exemption to which he was entitled, so no inheritance tax return was filed. The Department of State Revenue learned of the checks two years after the probate court approved the closing statement and released her son from his duties as personal representative.

The probate court denied the department’s motion to correct error.

Proceeds from life insurance on the life of a decedent are exempt from inheritance tax. So are annuity payments, but only “to the same extent that the annuity … is excluded from the decedent’s federal gross estate under Section 2039 of the Internal Revenue Code,” wrote Judge Wentworth. An annuity payment received by a beneficiary is subject to the inheritance tax if the annuity contract was entered after March 3, 1931; and it was payable to the decedent, or the decedent possessed the right to receive the payment either for his life, for any period not ascertainable without reference to his death, or for any period which doesn’t in fact end before his death, she wrote.

The probate court erred when it determined the checks issued by MetLife were life insurance proceeds and not annuity contract payments. The evidence in this case on its face doesn’t support the lower court’s findings. The checks even clearly say they were from proceeds from an annuity contract.

She remanded with instructions to order the estate to provide a copy of the MetLife contracts so that the probate court may determine whether the estate was required to file an Indiana inheritance tax return and pay inheritance tax on the transfers to Biddle’s brother.

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  1. Should be beat this rap, I would not recommend lion hunting in Zimbabwe to celebrate.

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  4. All these sites putting up all the crap they do making Brent Look like A Monster like he's not a good person . First off th fight actually started not because of Brent but because of one of his friends then when the fight popped off his friend ran like a coward which left Brent to fend for himself .It IS NOT a crime to defend yourself 3 of them and 1 of him . just so happened he was a better fighter. I'm Brent s wife so I know him personally and up close . He's a very caring kind loving man . He's not abusive in any way . He is a loving father and really shouldn't be where he is not for self defense . Now because of one of his stupid friends trying to show off and turning out to be nothing but a coward and leaving Brent to be jumped by 3 men not only is Brent suffering but Me his wife , his kids abd step kidshis mom and brother his family is left to live without him abd suffering in more ways then one . that man was and still is my smile ....he's the one real thing I've ever had in my life .....f@#@ You Lafayette court system . Learn to do your jobs right he maybe should have gotten that year for misdemeanor battery but that s it . not one person can stand to me and tell me if u we're in a fight facing 3 men and u just by yourself u wouldn't fight back that you wouldn't do everything u could to walk away to ur family ur kids That's what Brent is guilty of trying to defend himself against 3 men he wanted to go home tohisfamily worse then they did he just happened to be a better fighter and he got the best of th others . what would you do ? Stand there lay there and be stomped and beaten or would u give it everything u got and fight back ? I'd of done the same only I'm so smallid of probably shot or stabbed or picked up something to use as a weapon . if it was me or them I'd do everything I could to make sure I was going to live that I would make it hone to see my kids and husband . I Love You Brent Anthony Forever & Always .....Soul 1 baby

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