§ 32-17-14-22 — Substitution for designated beneficiaries who do not survive the owner

(a) Notwithstanding sections 9 and 20 of
this chapter, a designated beneficiary's rights under this chapter are not
extinguished when the designated beneficiary does not survive the
owner if:
(1) subsection (b) applies in the case of a designated beneficiary
who is a lineal descendant of the owner; or
(2) subsection (d) applies in the case of a designated beneficiary
who is not a lineal descendant of the owner.
(b) If a designated beneficiary who is a lineal descendant of the
owner:
(1) is deceased at the time the beneficiary designation is made;
(2) does not survive the owner; or
(3) is treated as not surviving the owner;
the beneficiary's right to a transfer on death transfer belongs to the
beneficiary's lineal descendants per stirpes who survive the owner
unless the owner provides otherwise under subsection (c).
(c) An owner may execute a beneficiary designation to which
subsection (b) does not apply by:
(1) making the notation "No LDPS" after a beneficiary's name; or
(2) including other words negating an intention to direct the
transfer to the lineal descendant substitutes of the nonsurviving
beneficiary.
(d) An owner may execute a beneficiary designation that provides
that the right to a transfer on death transfer belonging to a beneficiary
who is not a lineal descendant of the owner and does not survive the
owner belongs to the beneficiary's lineal descendants per stirpes who
survive the owner. An owner's intent to direct the transfer to the
nonsurviving beneficiary's lineal descendants must be shown by either
of the following on the beneficiary designation after the name of the
beneficiary:
(1) The words "and lineal descendants per stirpes".
(2) The notation "LDPS".
(e) When two (2) or more individuals receive a transfer on death
transfer as substitute beneficiaries under subsection (b) or (d), the
individuals are entitled to equal shares of the property if they are of the
same degree of kinship to the nonsurviving beneficiary. If the substitute
beneficiaries are of unequal degrees of kinship, an individual of a more
remote degree is entitled by representation to the share that would
otherwise belong to the individual's parent.
(f) If:
(1) a designated beneficiary of a transfer on death transfer does
not survive the owner;
(2) either subsection (b) or (d) applies; and
(3) no lineal descendant of the designated beneficiary survives the
owner;
the right to receive the property transferred belongs to the other
surviving beneficiaries. If no other beneficiary survives the owner, the
property belongs to the owner's estate.

Legislative History

As added by P.L.143-2009, SEC.41.