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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. On a related note, I offered the ICLU my cases against the BLE repeatedly, and sought their amici aid repeatedly as well. Crickets. Usually not even a response. I am guessing they do not do allegations of anti-Christian bias? No matter how glaring? I have posted on other links the amicus brief that did get filed (search this ezine, e.g., Kansas attorney), read the Thomas More Society brief to note what the ACLU ran from like vampires from garlic. An Examiner pledged to advance diversity and inclusion came right out on the record and demanded that I choose Man's law or God's law. I wonder, had I been asked to swear off Allah ... what result then, ICLU? Had I been found of bad character and fitness for advocating sexual deviance, what result then ICLU? Had I been lifetime banned for posting left of center statements denigrating the US Constitution, what result ICLU? Hey, we all know don't we? Rather Biased.

  2. It was mentioned in the article that there have been numerous CLE events to train attorneys on e-filing. I would like someone to provide a list of those events, because I have not seen any such events in east central Indiana, and since Hamilton County is one of the counties where e-filing is mandatory, one would expect some instruction in this area. Come on, people, give some instruction, not just applause!

  3. This law is troubling in two respects: First, why wasn't the law reviewed "with the intention of getting all the facts surrounding the legislation and its actual impact on the marketplace" BEFORE it was passed and signed? Seems a bit backwards to me (even acknowledging that this is the Indiana state legislature we're talking about. Second, what is it with the laws in this state that seem to create artificial monopolies in various industries? Besides this one, the other law that comes to mind is the legislation that governed the granting of licenses to firms that wanted to set up craft distilleries. The licensing was limited to only those entities that were already in the craft beer brewing business. Republicans in this state talk a big game when it comes to being "business friendly". They're friendly alright . . . to certain businesses.

  4. Gretchen, Asia, Roberto, Tonia, Shannon, Cheri, Nicholas, Sondra, Carey, Laura ... my heart breaks for you, reaching out in a forum in which you are ignored by a professional suffering through both compassion fatigue and the love of filthy lucre. Most if not all of you seek a warm blooded Hoosier attorney unafraid to take on the government and plead that government officials have acted unconstitutionally to try to save a family and/or rescue children in need and/or press individual rights against the Leviathan state. I know an attorney from Kansas who has taken such cases across the country, arguing before half of the federal courts of appeal and presenting cases to the US S.Ct. numerous times seeking cert. Unfortunately, due to his zeal for the constitutional rights of peasants and willingness to confront powerful government bureaucrats seemingly violating the same ... he was denied character and fitness certification to join the Indiana bar, even after he was cleared to sit for, and passed, both the bar exam and ethics exam. And was even admitted to the Indiana federal bar! NOW KNOW THIS .... you will face headwinds and difficulties in locating a zealously motivated Hoosier attorney to face off against powerful government agents who violate the constitution, for those who do so tend to end up as marginalized as Paul Odgen, who was driven from the profession. So beware, many are mere expensive lapdogs, the kind of breed who will gladly take a large retainer, but then fail to press against the status quo and powers that be when told to heel to. It is a common belief among some in Indiana that those attorneys who truly fight the power and rigorously confront corruption often end up, actually or metaphorically, in real life or at least as to their careers, as dead as the late, great Gary Welch. All of that said, I wish you the very best in finding a Hoosier attorney with a fighting spirit to press your rights as far as you can, for you do have rights against government actors, no matter what said actors may tell you otherwise. Attorneys outside the elitist camp are often better fighters that those owing the powers that be for their salaries, corner offices and end of year bonuses. So do not be afraid to retain a green horn or unconnected lawyer, many of them are fine men and woman who are yet untainted by the "unique" Hoosier system.

  5. I am not the John below. He is a journalist and talk show host who knows me through my years working in Kansas government. I did no ask John to post the note below ...

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