ILNews

Judge reverses probate court in first opinion

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  2. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

  3. This outbreak illustrates the absurdity of the extreme positions taken by today's liberalism, specifically individualism and the modern cult of endless personal "freedom." Ebola reminds us that at some point the person's own "freedom" to do this and that comes into contact with the needs of the common good and "freedom" must be curtailed. This is not rocket science, except, today there is nonstop propaganda elevating individual preferences over the common good, so some pundits have a hard time fathoming the obvious necessity of quarantine in some situations....or even NATIONAL BORDERS...propagandists have also amazingly used this as another chance to accuse Western nations of "racism" which is preposterous and offensive. So one the one hand the idolatry of individualism has to stop and on the other hand facts people don't like that intersect with race-- remain facts nonetheless. People who respond to facts over propaganda do better in the long run. We call it Truth. Sometimes it seems hard to find.

  4. It would be hard not to feel the Kramers' anguish. But Catholic Charities, by definition, performed due diligence and held to the statutory standard of care. No good can come from punishing them for doing their duty. Should Indiana wish to change its laws regarding adoption agreements and or putative fathers, the place for that is the legislature and can only apply to future cases. We do not apply new laws to past actions, as the Kramers seem intent on doing, to no helpful end.

  5. I am saddened to hear about the loss of Zeff Weiss. He was an outstanding member of the Indianapolis legal community. My thoughts are with his family.

ADVERTISEMENT