FOREIGN ADMINISTRATION
OR ANCILLARY ADMINISTRATION
There is a difference between a foreign administration and
an ancillary administration. An ancillary administration is the process of
opening an ancillary estate because the decedent lived outside of the state of
Indiana but has assets here which need to be administered. The ancillary
administration requires publication to creditors and must remain open during the
same statutory period as a regular Indiana estate. The foreign administration
is accomplished by filing certain documents certified from the court of the
foreign state when submitted properly to the Indiana Court will allow the
foreign administration to sell or vest the assets without the requirement of
publication and other statutory periods. In addition to the
administration, you may owe the State of Indiana, inheritance tax. Indiana
inheritance tax is assessed by the value of the asset and is calculated by a
percentage depending on the relationship to the decedent. For example, a
spouse is exempted. Parents, children or lineal descendants are considered
Class A beneficiaries; aunts/uncles, brothers/sisters and their descendants may
be Class B beneficiaries; cousins, friends or no relation are a Class C
beneficiaries. Charities are exempt. The Classes determine the
amount of exemption allowed and the percentage of tax. This
return is due within 12 months from the date of death. I would be happy
to assist any out-of-state personal representatives or attorneys with this
process. |
