(a)If an agreement between the owner and
a transferring entity is required to carry out a transfer on death transfer
as described in section 7 of this chapter, a transferring entity may not
adopt rules for the making, execution, acceptance, and revocation of a
beneficiary designation that are inconsistent with this chapter.
(b)The following rules apply to a beneficiary designation:
(1)A beneficiary designation or a request for registration of
property in beneficiary form must be made in writing, signed by
the owner, dated, and, in the case of a transfer on death deed,
compliant with all requirements for the recording of deeds.
(2)A security that is not registered in the name of the owner may
be registered in beneficiary form on instructions given by a broker
or person delivering the se
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(a) If an agreement between the owner and
a transferring entity is required to carry out a transfer on death transfer
as described in section 7 of this chapter, a transferring entity may not
adopt rules for the making, execution, acceptance, and revocation of a
beneficiary designation that are inconsistent with this chapter.
(b) The following rules apply to a beneficiary designation:
(1) A beneficiary designation or a request for registration of
property in beneficiary form must be made in writing, signed by
the owner, dated, and, in the case of a transfer on death deed,
compliant with all requirements for the recording of deeds.
(2) A security that is not registered in the name of the owner may
be registered in beneficiary form on instructions given by a broker
or person delivering the security.
(3) A beneficiary designation may designate one (1) or more
primary beneficiaries and one (1) or more contingent
beneficiaries.
(4) On property registered in beneficiary form, a primary
beneficiary is the person shown immediately following the
transfer on death direction. Words indicating that the person is a
primary beneficiary are not required. The name of a contingent
beneficiary in the registration must have the words "contingent
beneficiary" or words of similar meaning to indicate the
contingent nature of the interest being transferred.
(5) Multiple surviving beneficiaries share equally in the property
being transferred unless a different percentage or fractional share
is stated for each beneficiary. If a percentage or fractional share
is designated for multiple beneficiaries, the surviving
beneficiaries share in the proportion that their designated shares
bear to each other.
(6) A transfer of unequal shares to multiple beneficiaries for
property registered in beneficiary form may be expressed in
numerical form following the name of the beneficiary in the
registration.
(7) A transfer on death transfer of property also transfers any
interest, rent, royalties, earnings, dividends, or credits earned or
declared on the property but not paid or credited before the
owner's death.
(8) If a distribution by a transferring entity under a transfer on
death transfer results in fractional shares in a security or other
property that is not divisible, the transferring entity may distribute
the fractional shares in the name of all beneficiaries as tenants in
common or as the beneficiaries may direct, or the transferring
entity may sell the property that is not divisible and distribute the
proceeds to the beneficiaries in the proportions to which they are
entitled.
(9) On the death of the owner, the property, minus all amounts
and charges owed by the owner to the transferring entity, belongs
to the surviving beneficiaries and, in the case of substitute
beneficiaries permitted under section 22 of this chapter, the lineal
descendants of designated beneficiaries who did not survive the
owner are entitled to the property as follows:
(A) If there are multiple primary beneficiaries and a primary
beneficiary does not survive the owner and does not have a
substitute under section 22 of this chapter, the share of the
nonsurviving beneficiary is allocated among the surviving
beneficiaries in the proportion that their shares bear to each
other.
(B) If there are no surviving primary beneficiaries and there are
no substitutes for the nonsurviving primary beneficiaries under
section 22 of this chapter, the property belongs to the surviving
contingent beneficiaries in equal shares or according to the
percentages or fractional shares stated in the registration.
(C) If there are multiple contingent beneficiaries and a
contingent beneficiary does not survive the owner and does not
have a substitute under section 22 of this chapter, the share of
the nonsurviving contingent beneficiary is allocated among the
surviving contingent beneficiaries in the proportion that their
shares bear to each other.
(10) If a trustee designated as a beneficiary:
(A) does not survive the owner;
(B) resigns; or
(C) is unable or unwilling to execute the trust as trustee and no
successor trustee is appointed in the twelve (12) months
following the owner's death;
the transferring entity may make the distribution as if the trust did
not survive the owner.
(11) If a trustee is designated as a beneficiary and no affidavit of
certification of trust or probated will creating an express trust is
presented to the transferring entity within the twelve (12) months
after the owner's death, the transferring entity may make the
distribution as if the trust did not survive the owner.
(12) If the transferring entity is not presented evidence during the
twelve (12) months after the owner's death that there are lineal
descendants of a nonsurviving beneficiary for whom LDPS
distribution applies who survived the owner, the transferring
entity may make the transfer as if the nonsurviving beneficiary's
descendants also failed to survive the owner.
(13) If a beneficiary cannot be located at the time the transfer is
made to located beneficiaries, the transferring entity shall hold the
missing beneficiary's share. If the missing beneficiary's share is
not claimed by the beneficiary or by the beneficiary's personal
representative or successor during the twelve (12) months after
the owner's death, the transferring entity shall transfer the share
as if the beneficiary did not survive the owner.
(14) A transferring entity has no obligation to attempt to locate a
missing beneficiary, to pay interest on the share held for a missing
beneficiary, or to invest the share in any different property.
(15) Cash, interest, rent, royalties, earnings, or dividends payable
to a missing beneficiary may be held by the transferring entity at
interest or reinvested by the transferring entity in the account or
in a dividend reinvestment account associated with a security held
for the missing beneficiary.
(16) If a transferring entity is required to make a transfer on death
transfer to a minor or an incapacitated adult, the transfer may be
made under the Indiana Uniform Transfers to Minors Act, the
Indiana Uniform Custodial Trust Act, or a similar law of another
state.
(17) A written request for the execution of a transfer on death
transfer may be made by any beneficiary, a beneficiary's legal
representative or attorney in fact, or the owner's personal
representative.
(18) A transfer under a transfer on death deed occurs
automatically upon the owner's death and does not require a
request for the execution of the transfer.
(19) A written request for the execution of a transfer on death
transfer must be accompanied by the following:
(A) A certificate or instrument evidencing ownership of the
contract, account, security, or property.
(B) Proof of the deaths of the owner and any nonsurviving
beneficiary.
(C) An inheritance tax waiver from states that require it.
(D) In the case of a request by a legal representative, a copy of
the instrument creating the legal authority or a certified copy of
the court order appointing the legal representative.
(E) Any other proof of the person's entitlement that the
transferring entity may require.
(20) For purposes of providing notice to the county, on the death
of an owner whose transfer on death deed has been recorded, the
beneficiary shall file an affidavit in the office of the recorder of
the county in which the real property is located. The affidavit
must be endorsed by the county auditor under IC 36-2-11-14 in
order to be recorded. The affidavit must contain the following:
(A) The legal description of the property.
(B) The date of death of the owner.
(C) The name and address of each designated beneficiary who
survives the owner or is in existence on the date of the owner's
death.
(D) The name of each designated beneficiary who has not
survived the owner's death or is not in existence on the date of
the owner's death.
(E) A cross-reference to the recorded transfer on death deed.
A failure by the beneficiary to file the affidavit under this
subdivision or a delay by the county recorder in recording the
affidavit does not affect the validity of the transfer on death
transfer to the beneficiary under this chapter. However, until the
affidavit is recorded, the transfer on death beneficiary or
beneficiaries named in the transfer on death deed and the estate
of the deceased owner are jointly and severally liable for property
taxes assessed with respect to the real property under IC 6-1.1 for
assessment years beginning with the assessment year in which the
owner's death occurs.
(c) A beneficiary designation is presumed to be valid. A party may
rely on the presumption of validity unless the party has actual
knowledge that the beneficiary designation was not validly executed.
A person who acts in good faith reliance on a transfer on death deed is
immune from liability to the same extent as if the person had dealt
directly with the named owner and the named owner had been
competent and not incapacitated.