The catch is timing. Every one of these tools requires the signer to have capacity at the moment they sign. Once capacity is gone, the planning window has closed, and the family is left with the court process the planning was meant to prevent.

What Guardianship Looks Like in Indiana

Indiana’s guardianship law, found in Article 29-3 of the Indiana Code, allows a court to appoint a guardian for an adult the court finds to be an incapacitated person, meaning someone unable to manage their property or care for themselves because of a condition the statute describes. The process starts with a petition, notice to family, and a hearing. If the court appoints a guardian, that guardian generally answers to the court through an inventory, periodic accountings, and sometimes prior approval for significant decisions.

None of that is improper. It exists to protect people who cannot protect themselves. It is also public, takes time, costs money, and places decisions with whoever the court selects, who may not be the person you would have chosen. Indiana also made changes to its probate and guardianship rules in 2026, which I covered in a separate post. The documents below let your own choices govern instead.

The Durable Power of Attorney for Financial Matters

A power of attorney lets you name an agent to handle financial and property matters on your behalf. Indiana’s Power of Attorney Act, at Article 30-5 of the Indiana Code, governs how these documents work. To be effective, the document must be signed and properly executed, including acknowledgment before a notary, under Indiana Code 30-5-4-1.

The word that matters for incapacity planning is durable. A durable power of attorney remains effective after you become incapacitated, which is exactly when your family needs it most. You can have it take effect immediately or only upon incapacity, depending on how the document is written and how much you want your agent to be able to do while you are still able to act yourself. A well-drafted financial power of attorney can let your agent pay bills, manage accounts, handle real estate, deal with taxes, and address the practical matters that would otherwise require a guardianship over your property.

The Health Care Representative Appointment

Financial authority does not reach medical decisions. For those, Indiana law lets you appoint a health care representative under Indiana Code 16-36-1-7. The appointment must be in writing, signed, and witnessed by an adult who is not the representative. It takes effect when you become unable to make your own health care decisions and steps aside if you regain that ability.

This is the document that lets a person you trust speak with your doctors and consent to or decline treatment when you cannot. Without it, Indiana law falls back on a priority list of relatives who may consent on your behalf, set out in Indiana Code 16-36-1-5. That list can work, and it can also place authority with someone you would not have chosen, or split it among several people who disagree at the worst possible moment. Naming your own representative removes that uncertainty.

Where a Revocable Trust Adds Protection

For families with real estate, investment accounts, or a business, a funded revocable living trust adds another layer. While you are well, you serve as your own trustee and keep full control. If you become incapacitated, the successor trustee you named takes over management of whatever the trust holds, without any court involvement, under the terms you wrote. A trust handles incapacity for the assets inside it the way a durable power of attorney handles assets outside it, and the two are meant to work together. Assets left out of both can still end up in a guardianship, which is why funding the trust and keeping the power of attorney current both matter.

Planning for incapacity is manageable once the right documents are in place, and it spares your family the expense, delay, and loss of control that come with guardianship. A short review can tell you whether your power of attorney, health care representative appointment, and any trust are current and actually cover what they need to. Attorney Burton Padove brings nearly forty years of Indiana estate planning experience to that kind of review, and Padove Law offers free, in-home consultations throughout the state. To put these protections in place, or confirm the ones you have still work, call the office at (219) 836-2200.

Two groups feel the rule most directly. The first is the adult children and other non-spouse beneficiaries who will inherit these accounts. The second is Indiana families who named a revocable living trust as the beneficiary of a retirement account, often years ago, under rules that no longer apply. A trust written for the old system can now produce a result the family never intended.

What the Inherited IRA 10-Year Rule Requires Now

The SECURE Act of 2019 ended the long-standing practice of stretching inherited retirement account distributions over a beneficiary’s lifetime. In July 2024, the IRS issued final regulations (T.D. 10001) confirming how the rule works, and those regulations apply for distribution years beginning January 1, 2025.

For most non-spouse beneficiaries, a category the rules call non-eligible designated beneficiaries, the inherited account must be fully withdrawn within ten years of the original owner’s death. The final regulations kept a feature that drew heavy criticism. If the owner died on or after the age at which they had to begin taking their own required minimum distributions, the beneficiary must also take a distribution in each of years one through nine, then empty the account by the end of year ten. Where the owner died before that age, the beneficiary can take distributions in any pattern they choose, so long as the account is empty by the tenth year.

The IRS waived the penalty for missed annual distributions for 2021 through 2024 while the rules were unsettled. That relief is gone for 2025 and later years. Beneficiaries who are subject to the annual requirement need to take their distributions or face the penalty for falling short.

Who Still Gets More Time

A limited group of heirs, called eligible designated beneficiaries, can still spread distributions over a longer period. The category includes a surviving spouse, a minor child of the account owner until the child reaches age 21 (after which the ten-year clock begins), a beneficiary who is disabled or chronically ill, and a beneficiary who is not more than ten years younger than the owner. A surviving spouse has additional options, including rolling the account into their own IRA. Most other heirs, including the typical adult child, fall under the ten-year rule.

Why Naming a Trust as Beneficiary Now Needs a Second Look

Indiana families often build a revocable living trust to keep assets out of probate, then name that trust as the beneficiary of an IRA or 401(k). Whether the trust still accomplishes what the family had in mind depends on how it is drafted, and the new rules change the analysis.

For the retirement account to be measured by the people behind a trust rather than by a harsher default, the trust generally has to qualify as a see-through trust under the regulations. Two common designs sit inside that category. A conduit trust passes each distribution out to the beneficiary as it arrives. An accumulation trust can hold distributions inside the trust instead.

Under the old stretch rules, a conduit trust could release small annual amounts over a beneficiary’s lifetime. Now the entire account has to leave the IRA within ten years, so a conduit trust ends up handing the full balance to the beneficiary by the end of that period. For a young beneficiary, a beneficiary with creditor problems, or one who does not manage money well, that outcome can undo the very control the trust was meant to provide. An accumulation trust can keep the funds protected inside the trust, though trust income is taxed at compressed rates that reach the top federal bracket at a low threshold, so retained distributions can carry a heavy tax cost. Neither structure is automatically right or wrong. The point is that a trust drafted before these rules took effect may now do close to the opposite of what the family wanted.

Steps Indiana Families Should Take

Start by confirming the beneficiary designation on each retirement account directly with the custodian. That designation, not the will, controls who inherits the account. Designations made long ago are easy to forget and frequently out of date.

If a trust is named as beneficiary, have the trust language reviewed against the current rules. A conduit provision that made sense a decade ago may need to become an accumulation provision, or the better answer may be to name individuals directly. The right choice depends on who the beneficiaries are and what you are trying to protect against.

Coordinate the retirement accounts with the rest of the plan rather than treating them as an afterthought. The size of these accounts, the income tax that comes with them, and the ten-year deadline all interact with decisions about trusts, other assets, and which heirs receive what. My earlier writing on coordinating beneficiary designations and transfer-on-death arrangements explains how a single overlooked designation can pull an asset in a direction the plan never intended.

Retirement accounts reward attention to detail, and the rules that govern them have shifted under families who set their plans years ago. A focused review can tell you whether your beneficiary designations, and any trust named to receive these accounts, still match your goals under the current law. Attorney Burton Padove has spent nearly four decades helping Indiana families coordinate these pieces, and Padove Law offers free, in-home consultations across Indiana. To go over your retirement accounts and how they fit your plan, call the office at (219) 836-2200.

The law sets out who may reach your digital assets and under what conditions. The part that surprises people is that a will or power of attorney, on its own, often is not the deciding factor. A provider’s own tools and policies can carry more weight than the documents you signed with an attorney, unless you take a specific step the statute recognizes.

How Indiana’s Digital Assets Law Works

The Revised Uniform Fiduciary Access to Digital Assets Act, adopted in Indiana in 2016 and codified at Indiana Code Article 32-39, governs access by four kinds of fiduciaries: the personal representative of a deceased person’s estate, an agent acting under a power of attorney, a trustee, and a court-appointed guardian. The statute lets these fiduciaries request access to digital assets from the company that holds them, which the law calls the custodian.

Indiana law builds a clear order of priority for deciding access, set out in Indiana Code 32-39-2-1. At the top is an online tool. If the provider offers a feature that lets you name someone to receive or manage your account after death or incapacity, and you use it, that choice controls. Google’s Inactive Account Manager and Apple’s Legacy Contact are common examples. A direction you give through one of these tools overrides instructions in your estate documents and overrides the provider’s general terms of service.

If you have not used an online tool, the next level is your estate planning documents. Directions in a will, trust, or power of attorney about disclosure of digital assets come next in priority. Only if you have done neither does the provider’s terms-of-service agreement govern, and those agreements frequently restrict or block fiduciary access.

This priority order is the practical heart of the statute. The choice you make inside an account can quietly outrank the will you spent time and money preparing. That is not a flaw to fear so much as a feature to use deliberately.

What Your Personal Representative or Agent Can Actually Reach

Indiana’s statute draws a line between the contents of your electronic communications and everything else. The contents of communications, meaning the actual text of your emails and messages, receive the strongest protection. A custodian will disclose those contents to a personal representative only when the deceased user consented, either through an online tool or in a will or other record, as provided in Indiana Code 32-39-2-4. Without that consent, the contents stay private.

Other digital assets, such as a catalogue of whom you communicated with, account balances, files, and similar information, are available on a lower showing. A custodian may disclose this broader category to a personal representative unless the user directed otherwise. The same content-versus-catalogue distinction runs through the provisions that govern an agent acting under a power of attorney.

For an agent under a power of attorney, the document matters a great deal. Authority over the content of communications must be granted expressly in the power of attorney. A general grant of authority will not reach it. This is the kind of detail that turns a routine task, paying a bill from an online account or closing a dormant subscription, into a wall the family cannot get past. Financial institutions in particular can be cautious about granting access, a pattern I have written about before in connection with bank verification and estate administration.

Steps That Keep Accounts From Locking Up

A few concrete moves make a real difference, and none of them are complicated.

Start with the online tools. Where a provider offers a legacy or inactive-account feature, use it and name the person you want. That single step sits at the top of Indiana’s priority order and resolves access for that account without any court involvement.

Next, make sure your estate planning documents speak to digital assets directly. A current will, trust, and durable power of attorney should each include language authorizing your fiduciary to access digital assets, including the content of electronic communications where you want that access granted. The statute gives your written directions real force, but only if the documents actually contain them. Many older documents predate the law entirely and say nothing on the subject.

Keep an inventory of your accounts, stored securely and apart from your passwords. A fiduciary cannot ask for access to an account no one knows exists. A simple list of providers, updated now and then, saves enormous effort later. I generally advise against writing passwords into a will, since a will becomes a public record once it is filed with the court.

Revisit all of this when your circumstances change. New accounts, a new financial institution, or a move to a different platform each give you a reason to confirm that your plan still reaches everything it should.

Digital assets are easy to overlook until a family runs into a locked account with no clear way in. A short review can confirm that your will, trust, and power of attorney are written to work with Indiana’s digital assets law rather than against it. Attorney Burton Padove brings nearly forty years of Indiana estate planning experience to that kind of review, and Padove Law offers free, in-home consultations throughout the state. To make sure the people you trust can reach what they need to, call the office at (219) 836-2200 and arrange a time to go over your plan.

That reality should shift where your attention goes. The real risk for most Indiana families lies elsewhere, in the parts of a plan that decide whether your wishes actually get carried out.

What the $15 Million Federal Estate Tax Exemption Actually Changed

Under the Tax Cuts and Jobs Act of 2017, the exemption had been roughly doubled, sitting at $13.99 million per person in 2025. That increase carried an expiration date. Without congressional action, the exemption was scheduled to fall back to around $5 million per person, adjusted for inflation, on January 1, 2026.

The One Big Beautiful Bill Act, signed July 4, 2025, removed that scheduled drop. It set a $15 million exemption for 2026 and provided for annual inflation adjustments beginning in 2027, using 2025 as the base year. The new figure is written into the Internal Revenue Code as the basic exclusion amount under IRC Section 2010(c)(3)(A). The estate tax rate on amounts above the exemption remains 40 percent.

“Permanent” in this context means there is no built-in sunset. A future Congress could still change the number. For now, families can plan without the pressure of a looming deadline, which is a meaningful change from the uncertainty that hung over 2025.

Indiana Has No Death Tax of Its Own

This is where the Indiana picture matters. Indiana repealed its inheritance tax for anyone who died after December 31, 2012. The repeal was signed into law in 2013 and applied retroactively to the start of that year. Indiana also has no separate state estate tax. The old Indiana estate tax was a pick-up tax tied to a federal credit that disappeared, and no Indiana estate tax has been imposed on deaths since 2004.

What that means in practice is straightforward. When an Indiana resident dies, there is no state-level tax on the transfer of their property, regardless of the size of the estate. Combine that with a $15 million federal exemption, and the overwhelming majority of Indiana estates owe no death tax at any level.

I raise this because a fair number of people still carry a worry that their children or grandchildren will face a tax bill simply for inheriting. For Indiana families under the federal threshold, that worry is misplaced. The energy spent fearing a tax that will not apply is better spent on the parts of a plan that determine whether your wishes are honored.

What Indiana Families Should Focus On Instead

If federal estate tax is off the table for your household, the value of estate planning has not shrunk. It has simply moved to where it always belonged for most families.

Probate avoidance usually comes first. Indiana probate can be time-consuming and public, and assets titled in a single name with no beneficiary designation generally pass through it. A revocable living trust, properly funded, keeps those assets out of probate. Beneficiary designations and transfer-on-death arrangements do the same for specific accounts and real estate when they are coordinated with the rest of the plan.

Incapacity planning is just as important and often overlooked. A durable financial power of attorney and a health care representative appointment let someone you trust act for you if illness or injury takes away your ability to act for yourself. Without those documents, your family may face a guardianship proceeding in court, which is exactly the kind of expense and delay sound planning is meant to prevent.

Then there is the step-up in basis, the tax issue that actually touches ordinary Indiana families. Under IRC Section 1014, most assets receive a new income tax basis equal to their fair market value at the owner’s death. An adult child who inherits appreciated property and sells it soon afterward often owes little or no capital gains tax because of that adjustment. How property is titled, and whether it sits inside certain trusts, can affect that benefit. This is a real planning concern for families who will never see a dollar of estate tax.

Blended families, minor children, beneficiaries with disabilities, and family businesses each add their own considerations. None of those depend on the size of the exemption. They depend on careful drafting that reflects your family’s actual situation. For a closer look at how the foundational tools fit together, my earlier discussion of wills versus trusts under Indiana law covers when each one makes sense.

When the Higher Exemption Still Calls for Planning

A smaller group of Indiana families does need to think about the federal number. If your combined assets, including life insurance, retirement accounts, business interests, and real estate, are approaching or above $15 million as an individual or $30 million as a couple, the planning conversation changes. Lifetime gifting, irrevocable trusts, and valuation strategies become relevant, and the permanence of the new exemption gives you room to act deliberately rather than under deadline pressure.

Owning property in another state can also pull a different state’s death tax into the picture, since some states still impose one even though Indiana does not. Multi-state ownership is worth reviewing on its own terms.

Whether the new exemption is welcome news you can set aside or a reason to revisit a larger plan, the sensible move is to look at your documents in light of where the law now stands. Attorney Burton Padove has spent nearly four decades helping Indiana families build plans that hold up, and a focused review can tell you quickly whether your current plan still does what you intend. Padove Law offers free, in-home consultations across Indiana, and you can reach the office at (219) 836-2200 to talk through your situation and decide on a practical next step.

Indiana law addresses this problem directly. Under Indiana Code § 30-5-9-9, an institution that refuses to honor a valid Indiana power of attorney within three business days faces significant liability, including treble damages, attorney’s fees, and prejudgment interest. The statute gives agents real leverage, yet most families never learn about it until the rejection has already caused harm.

What Indiana Law Requires When an Institution Refuses a Power of Attorney

The core protection is found in IC § 30-5-9-9(a). If a person or institution refuses to accept the authority of an attorney in fact within three business days of receiving a power of attorney, that person is liable to the principal and the principal’s heirs, assigns, and personal representative in the same manner as if they had refused to deal with the principal directly. If the refusal results in a court action, the statute authorizes treble damages (three times actual damages), reimbursement of the agent’s attorney’s fees, and prejudgment interest running from the date of the refusal.

That is a strong remedy, and it reflects how seriously Indiana treats the agent’s ability to act. The statute does provide institutions with a limited set of defenses under IC § 30-5-9-9(b). An institution is not liable if it has actual notice that the power of attorney has been revoked, if the document has expired by its own terms, or if the institution has actual knowledge that the principal has died. The institution may also refuse if it reasonably believes the document is not valid under Indiana law or does not authorize the specific transaction requested. In either of those last two situations, the institution must provide the agent with a written explanation within ten business days.

The written explanation requirement matters. An institution that simply declines the document without stating why, or that cites a vague internal policy rather than a specific legal deficiency, may not satisfy the statute’s conditions for a valid refusal. Agents who receive this kind of response should request the written explanation and keep a record of it.

Common Reasons Indiana Power of Attorney Documents Are Rejected in Practice

While the statute limits the grounds for a lawful refusal, the practical reasons for rejection are often rooted in the document itself. Indiana law under IC § 30-5-4-1 allows a power of attorney to be executed either before a notary public or in the presence of two witnesses. Both methods produce a valid document. In practice, however, financial institutions are far more comfortable with notarized documents. A witness-only power of attorney, while legally sufficient, is more likely to trigger a compliance review or refusal at a bank branch, particularly if the document is several years old.

Another frequent problem involves the scope of authority granted in the document. Indiana Code § 30-5-5-5 defines what “general authority with respect to banking transactions” means, enumerating specific powers from opening and closing accounts to signing checks and borrowing money. If the power of attorney uses vague or overly general language rather than referencing banking authority specifically, an institution may argue that the agent lacks the power to complete the requested transaction. This is a drafting issue that can be avoided by including specific grant language from the outset.

Age of the document is another source of friction. Indiana does not impose a statutory expiration date on a durable power of attorney. Under IC § 30-5-10-0.5, an attorney in fact may exercise authority until it terminates under Chapter 10 of the statute, even if considerable time has passed since execution. A power of attorney signed five or ten years ago is not invalid for that reason. Some institutions nevertheless treat older documents with suspicion, and the resulting delays can cause significant hardship.

Drafting and Delivery Steps That Reduce the Risk of Rejection

The most reliable way to avoid a rejection is to address the institution’s likely concerns before the agent ever needs to use the document. This starts with execution. Notarization, rather than witnessing alone, should be the default for any Indiana power of attorney used for financial transactions. Recording the document with the county recorder under IC § 30-5-3-3 is required when the agent will need to conduct real estate transactions, and recording can also serve as additional proof of authenticity for financial institutions.

Grant language should be specific. A well-drafted Indiana power of attorney will reference banking transactions, retirement plan authority, and other categories that match the institutions the agent will need to work with. The document should also name successor agents, since an institution presented with a document by someone not named in it will rightfully decline to act.

Delivery is equally important. Providing a copy of the executed power of attorney to each financial institution while the principal is still competent allows the institution to review the document, place it on file, and raise any concerns before a crisis. Some institutions will ask the principal to sign a separate certification form at that time, which can be handled during a routine branch visit. This eliminates the scenario where the agent presents the document for the first time during an emergency and encounters resistance from unfamiliar staff.

A power of attorney that is properly drafted, notarized, and delivered to the right institutions should work when your family needs it. If your existing document has never been shared with your bank, or if it is several years old and may lack the specific grant language institutions expect, a focused review can identify those gaps. Attorney Burton Padove at Padove Law works directly with Indiana families to prepare and update power of attorney documents built to function under real-world institutional requirements. To schedule a review, call (219) 836-2200.

Indiana’s Transfer on Death Property Act, codified at Indiana Code § 32-17-14-11, allows property owners to name a beneficiary who will receive real estate automatically at death. The deed is revocable during the owner’s lifetime, does not require delivery to the beneficiary, and does not give the beneficiary any present interest in the property. Those features make it attractive. They also make it easy to treat the deed as a standalone fix, when it really needs to work alongside every other piece of the plan.

How Title Type Determines Whether an Indiana Transfer-on-Death Deed Works at All

The most common coordination failure starts with how the property is titled. Many Indiana married couples hold their home as tenants by the entirety. Under Indiana Code § 32-17-14-11(e)(1), a transfer-on-death deed on entireties property is “inoperable and void” unless both spouses join in the conveyance. If only one spouse signs the TOD deed, the deed has no legal effect, even if it was properly notarized and recorded. The family discovers this after the first spouse dies, when the property does not pass to the named beneficiary and instead follows the survivorship rules of the entireties title.

The statute treats other title types differently, and each carries its own consequence. If the owner holds property as a joint tenant with right of survivorship and records a TOD deed, the deed severs the joint tenancy and converts it to a tenancy in common under § 32-17-14-11(e)(2). That may be the opposite of what the owner intended. A property owner who holds a life estate cannot use a TOD deed at all; the statute makes the conveyance void under § 32-17-14-11(e)(5). These are not obscure traps. They are common title arrangements in Lake County and across Indiana, and they require a title check before the deed is signed.

When the Beneficiary Dies First or No Contingent Beneficiary Is Named

A TOD deed names a beneficiary, and that beneficiary must survive the owner for the transfer to take effect. Indiana Code § 32-17-14-22 provides a limited safety net: if the named beneficiary is a lineal descendant of the owner and predeceases the owner, the beneficiary’s share passes to that beneficiary’s own lineal descendants per stirpes, unless the owner opted out of that default by including a “No LDPS” notation on the deed. For beneficiaries who are not lineal descendants of the owner, the per stirpes substitution does not apply automatically. It requires affirmative language on the deed.

In practice, many TOD deeds name a single adult child or a sibling and include no contingent beneficiary at all. If that person dies before the owner, the deed may lapse entirely, and the property passes through probate as part of the owner’s estate. The owner may never have updated the deed, either because no one told them to check it periodically or because they assumed the will would control the property. Under Indiana Code § 32-17-14-16(g), a will cannot revoke or change a TOD deed beneficiary designation unless the deed itself expressly grants that right. This is a critical distinction. The TOD deed operates independently of the will, and the two documents can easily point in different directions if they are not coordinated.

What an Indiana Transfer-on-Death Deed Does Not Protect Against

Families sometimes treat a TOD deed as though it shields the property from creditors or from Medicaid estate recovery. It does not. A transfer-on-death deed does not remove the property from the owner’s estate for creditor purposes during the owner’s lifetime, and the property remains subject to any liens, mortgages, or encumbrances that exist at the time of death. Indiana’s Medicaid estate recovery program can also reach property that passed through a TOD deed, since the state treats the transfer as part of the decedent’s recoverable estate.

There is also an insurance gap that Indiana addressed through a 2025 amendment. Under Indiana Code § 32-17-14-11(j), TOD deeds executed after June 30, 2025, may include a warning that the owner’s homeowner’s insurance will cover the transferred property for only a limited period after death. The warning is optional, and a deed is not invalid for omitting it, yet the underlying coverage gap is real. A beneficiary who receives property and does not secure a new policy promptly could face an uninsured loss.

Recording Requirements and the Void Deed Problem

A TOD deed must be recorded with the county recorder before the owner’s death. Under Indiana Code § 32-17-14-11(b), a deed that is not recorded before death is void. There is no grace period. The statute also requires the endorsement of the county auditor under IC 36-2-11-14 for recording purposes. Families who prepare a TOD deed, sign it, and leave it in a drawer without recording it have accomplished nothing. The property will pass through probate as though the deed never existed.

Similarly, if the owner wants to revoke or change the beneficiary on a recorded TOD deed, the revocation or amended deed must also be recorded before death. Under § 32-17-14-16(k), physically altering or destroying the recorded deed after it has been filed has no legal effect on the beneficiary designation. The recorded version controls.

A transfer-on-death deed can be a practical, low-cost way to keep Indiana real estate out of probate, as long as it fits within a coordinated plan. If you have a TOD deed on file, or if you are considering one, a focused review of the deed alongside your will, trust, beneficiary designations, and title records can identify gaps before they become problems. Attorney Burton Padove at Padove Law works directly with Indiana families to review these documents and confirm that each piece of the plan supports the others. To schedule a conversation, call (219) 836-2200.

The Trust Fight That Landed in Court

The trust was created during a marriage and included real estate held as tenants by the entireties that was later deeded into the trust. After the husband died, a beneficiary filed a verified petition for a statement of accounts. The co-trustees then sought a declaratory judgment that the surviving settlor had authority under the trust to remove the Tennessee real estate from the trust and convey it to herself. The beneficiary argued that the property remained a trust asset at the time of death and should be part of the remaining trust estate to be distributed according to the distribution provision. The trial court sided with the beneficiary and ordered the property transferred in equal shares among three beneficiaries. The Court of Appeals disagreed with that reading and remanded the case.

The First Takeaway for Trustees

Indiana trustees should expect that a beneficiary’s request for an accounting can arrive early, even in a family administration that feels cordial. The petition for a statement of accounts is a procedural tool that can force transparency. It often becomes the first formal point of conflict, especially when one beneficiary suspects a trust asset was shifted out of the trust, retitled, or treated as “belonging” to one branch of the family. Trustees protect themselves by running administration like a business process. If a trustee cannot produce records that explain every material decision, a court fight becomes more likely and more expensive. Good documentation also improves settlement odds, since clarity narrows the dispute to interpretation rather than suspicion.

The Second Takeaway for Beneficiaries

Beneficiaries often assume that requesting an accounting is aggressive. It is not. A statement of accounts can be a reasonable step when trust property includes real estate, mixed titling, or complicated marital property history. The February 2026 dispute shows how quickly those issues can lead to sincere disagreement among family members acting in different roles, such as beneficiary, trustee, and surviving spouse. A beneficiary who raises concerns early, in writing, often increases the likelihood that the trustee will correct course without a long dispute. A beneficiary who waits until assets are transferred may face a harder path, especially if third parties become involved.

How the Court Approached Trust Interpretation

The Court of Appeals reiterated a core Indiana trust principle. Courts interpret trust terms to implement the settlor’s intent and purposes, and when the trust is capable of clear construction, the court applies its clear meaning as a whole rather than lifting one clause out of context. The court also cited Indiana’s Trust Code rule that the statutory rules apply to implement the trust’s terms and purposes, and that the trust’s terms control unless prohibited by law. In practical drafting terms, that statutory framework raises the stakes on internal consistency. If the trust has a distribution clause that seems to point one way and a property-withdrawal clause that points another, trustees and beneficiaries should expect litigation risk unless the instrument clearly resolves the tension.

Tenancy by the Entireties Property Creates Predictable Confusion

Many Indiana married couples hold real estate as tenants by the entireties. When that property gets deeded into a trust, clients often assume the deed alone answers everything. The February 2026 case shows that the trust language still controls how the property is treated after death and whether it can be withdrawn. This issue arises most often when a trust seeks to preserve tenancy-by-the-entireties characteristics during life while also creating a distribution plan after the first death. If the trust has language requiring joint consent during both spouses’ lifetimes for withdrawals of entireties property, trustees and beneficiaries will later argue over whether the surviving spouse has unilateral withdrawal authority after the first death, especially if the trust also uses “trust estate” language that defines what counts as distributable property.

Trustee Accounting Duties as a Litigation Avoidance Tool

Trust accounting is not only a compliance obligation. It is a litigation avoidance tool. Even when a trustee believes a withdrawal or retitling is authorized, an accounting that clearly shows what happened, when it happened, and the basis for the decision reduces the chance that a beneficiary frames the act as misappropriation. A practical accounting approach usually includes an opening inventory, a running ledger of receipts and disbursements, documentation for major transactions, and a clear explanation of changes in titling. Real estate requires extra care, since deeds, tax payments, insurance, and maintenance costs can create confusion about whether the trust or a beneficiary paid an expense and whether reimbursement is required.

Drafting Improvements That Prevent This Dispute

This type of case often reveals opportunities for drafting. A trust that holds or may hold entireties property benefits from explicit language that answers the post-death question directly, rather than leaving it to inference. Trustees and beneficiaries should not have to guess whether a surviving spouse can withdraw a specific class of property or whether it stays in the distributable trust estate. If the plan expects a surviving spouse to receive a specific property outright, the trust should state that, and the funding process should reflect that intent. If the plan expects equal sharing among children and spouse, the trust should also say that clearly and avoid exceptions that look like hidden carve-outs.

Contact Attorney Burton Padove at Padove Law

If you are a trustee facing a request for an accounting, or a beneficiary concerned about transfers of trust property, early guidance can prevent a family conflict from becoming a court case. For planning, clear drafting and proper trust funding can reduce the odds that an entireties property issue turns into litigation after death. Contact Attorney Burton Padove at Padove Law at (219) 836-2200 to review your trust documents, assess your accounting obligations, and build a practical path forward.

What Senate Bill 71 Does in 2026

SB 71 is not a single-issue bill. The bill includes probate-related provisions and establishes a task force to revise the temporary guardianship code. The task force structure matters for Indiana families and practitioners, since guardianship filings often serve as a pressure valve when incapacity planning is missing or a power of attorney does not function in practice. The bill materials reflect that the guardianship task force is designed to study recodification and needed changes, then issue recommendations, rather than pushing a full rewrite through one bill cycle. SB 71 also addresses how Indiana studies probate and trust issues going forward. The committee substitute language provides for repealing the Probate Code Study Committee and shifting the study function to the Interim Study Committee on Courts and the Judiciary in even-numbered years, with an express study mandate that reaches probate, trust code, and other statutes affecting estates, guardianship, probate jurisdiction, trusts, and fiduciary administration. more

The Practical Point for Estate Planning in Northwest Indiana

A study committee change can sound procedural, yet it signals the pipeline for future amendments. When probate and trust topics move into an interim committee with broader court-and-judiciary responsibilities, practitioners should expect greater focus on administrative pain points that courts and clerks repeatedly encounter, including filing practices, guardianship reporting, and fiduciary oversight. Those topics tend to drive changes in how quickly families can access accounts, how guardianship orders are processed, and what documentation third parties, such as banks, title companies, and investment custodians, require. Estate planning clients rarely care which committee studied a change. Clients care about whether a spouse can act during incapacity without a costly court process, whether a successor trustee can step in cleanly, and whether the plan reduces delay at death. Those goals are still met through fundamentals, yet the fundamentals work best when documents and funding choices anticipate the most common friction points.

Guardianship Reform Signals a Renewed Focus on Incapacity Planning

The guardianship code revision task force is a reminder that incapacity planning deserves as much attention as transfer-on-death planning. A well-drafted, durable power of attorney and health care planning set can keep a family out of court, yet in practice, families still end up in guardianship matters when a document is stale, incomplete, rejected by a financial institution, or deemed insufficient by a medical provider. SB 71’s task force structure suggests Indiana expects continued review of how guardianship should operate, including protections, reporting obligations, and procedural clarity. For planning purposes, these points toward three disciplined habits. The first habit is confirming that the person named as agent is available, trustworthy, and capable, as the wrong choice increases the odds that a court proceeding will be necessary. The second habit is drafting powers that are specific enough to satisfy institutional compliance teams, since vague authority often leads to rejection and delay. The third habit is keeping the plan current, since an outdated power of attorney can still cause friction even when it is legally valid.

Probate and Trust Code Study Changes Affect Future Drafting Assumptions

SB 71’s shift in study responsibility does not change the text of every probate or trust rule today, yet it changes the forum that will propose the next wave of revisions. Practitioners should watch for recommendations addressing routine administration disputes, including fiduciary accounting expectations, notice requirements, bond questions, and clarity on nonprobate transfers that intersect with probate filings. For clients, the drafting takeaway is less about predicting specific future statutory language and more about building plans that remain workable as procedures evolve. A trust that includes clear successor trustee provisions, flexible administrative powers, and a sensible approach to accountings often ages better than a document that is technically correct yet operationally vague. A will plan that coordinates with beneficiary designations and payable-on-death registrations often reduces the risk that procedural changes cause additional delay, since fewer assets require court administration in the first place.

What to Review in Your Current Plan Right Now

SB 71 should prompt a practical review rather than a panic rewrite. Many Indiana families have documents that remain valid, yet their plan may not function smoothly under modern institutional expectations and evolving court procedures. The review should focus on how the plan operates when someone is unavailable, when a bank asks for proof, and when the family needs authority quickly. A focused review typically includes confirming that: the power of attorney language actually authorizes the actions the family will need; successor agents are named and are still appropriate; health care documents and HIPAA authorizations reflect current preferences; trust funding matches the intended probate-avoidance strategy; and the plan includes a workable approach for real estate, since property transfers often create the most delay in probate administration. A review should also consider the risk of guardianship. A plan that leaves uncertainty about who should act, or that names an agent who cannot serve, increases the odds of court involvement at the worst possible time. If Indiana updates guardianship procedures after the task force work, families will still prefer to avoid guardianship when a better planning solution exists.

What These Developments Mean for Solo Practitioners and Their Clients

For a solo practice serving Northwest Indiana, the value in tracking SB 71 is practical rather than theoretical. Clients will ask why a financial institution wants different documentation than it wanted five years ago, why a guardianship filing includes new reporting steps, or why a trust administration process now requires more formal recordkeeping. Legislative updates that shape study priorities tend to translate into later procedural updates, and those updates are exactly what families experience as friction. Attorney Burton Padove can help clients position their plans so they remain functional as the state refines the administration of probate and guardianship. That work usually involves tightening the operational details, confirming decision-makers, and aligning documents with how assets are held, rather than creating unnecessary layers.

Contact Attorney Burton Padove at Padove Law

If you want to review an existing estate plan in light of Indiana’s 2026 probate and guardianship developments, or you want a plan that reduces court involvement when possible, contact Attorney Burton Padove at Padove Law at (219) 836-2200.

Local rules rarely change the underlying rights of heirs, beneficiaries, or fiduciaries. Procedure still shapes how quickly those rights become practical. A personal representative may have authority on paper, while a bank waits for letters issued in the precise format the clerk requires. A trustee may need court guidance, while the court expects filings to follow local filing sequence and formatting rules. Families who know what to expect at the county level tend to avoid avoidable setbacks.

Indiana Probate Court Local Rules

Indiana has trial courts that handle probate and trust matters within the broader structure of county courts. Local rules can address filing methods, proposed orders, required captions, scheduling practices, and administrative steps that do not appear in the statutes.

Changes to local rules often take effect at the start of the year, and they can apply to both new and pending cases. That timing matters for families who filed late in December or who are preparing to open an estate in January after a recent death. A plan that worked in one county can run into surprises in another county, even when the facts look nearly identical.

Indiana Estate Administration Filing Requirements

Estate openings often involve a set of standard documents, yet the details vary in practice. Some counties require specific proposed orders, specific verification language, or a particular form of notice and service. Courts may also require proposed letters of administration in a certain format, which can matter when financial institutions insist on exact paperwork.

Delays can arise from small issues. A signature line may not align with local expectations. A filing may lack an exhibit that the court treats as routine. A proposed order may omit a local clause used for bond waiver or publication instructions. Families often experience this as red tape. The court tends to view it as a consistency tool that makes administration clearer across cases.

Indiana Trust Court Filings and Non-Probate Disputes

Trust administration disputes often reach court for targeted reasons. A trustee may need instructions, beneficiaries may request an accounting, or a family may contest whether a distribution aligns with the trust terms.

Local rules can matter here as well. Some courts require specific motion practice for scheduling. Some courts prefer certain forms of orders, especially when the filing seeks interim relief. A trust dispute can also intersect with probate proceedings, such as when a pour-over will is part of the plan or when trust property includes real estate that requires court clarity before sale.

Indiana Probate Proposed Orders and Hearing Scheduling

Proposed orders are a common source of friction. Courts often require a proposed order to be submitted in a particular format, sometimes at filing and sometimes after a hearing. A proposed order that does not match local conventions can slow the process.

Scheduling practices also vary. Some courts set routine hearings on specific days. Some courts rely on paper submissions for uncontested matters. Some courts require a short hearing even for issues that other counties handle solely on written filings. Knowing a county’s cadence helps families set realistic expectations and reduces the chance of last-minute continuances.

Indiana Notice Requirements in Probate and Trust Matters

Notice and service rules can be a source of confusion. State law sets baseline requirements, yet local rules sometimes clarify how notices should be filed, how proof should be shown, and what the court expects in uncontested matters.

Problems arise when a family assumes that informal notice is enough. A trustee may email beneficiaries, only to later face a dispute over whether the notice complied with the court’s requirements for a particular petition. A personal representative may tell family members verbally, then learn that the court requires a filed certificate of service with specific details. The safest approach is consistent documentation that aligns with local requirements.

Indiana Probate Delays and Practical Steps That Help

Families often want to move quickly, especially when bills need to be paid or a home must be secured. Local procedural missteps can slow progress, so preparation matters.

A practical approach usually starts with identifying the correct county and understanding that county’s preferred process. Records should be gathered early, including death certificates, asset statements, and the most recent version of the will or trust. Fiduciaries should also be ready to explain basic facts clearly, including who the heirs and beneficiaries are, what assets exist, and whether any disputes are already forming.

Trust and estate administration runs best when filings align with both the statute and the county’s expectations. That alignment reduces delay, reduces cost, and reduces stress on families who already have a full plate.

Contact an Indiana Trusts and Estates Attorney

Local probate and trust procedures can affect timelines, access to assets, and the day-to-day administration decisions a family needs to make. Padove Law offers free, in-home consultations for Indiana families facing estate administration, probate filings, and trust-related questions. A short review can help you understand what your county court expects and what steps can keep the process moving. Call 219-836-2200 to discuss the situation.

Institutions adopted these changes because attempted account takeovers increased nationwide. Fraudsters targeted accounts belonging to deceased customers, especially those tied to online banking platforms and mobile verification tools, which exposed gaps in older security practices. As a result, banks, credit unions, and fintech providers rolled out stronger identity checks before they release information or funds to anyone claiming authority over an account. Families now deal with a more structured, sometimes slower process when they settle a loved one’s affairs, which is one reason it helps to speak with an estate planning attorney who understands how these verification rules affect real-world administration.

Verification Standards Have Expanded Across Traditional Banks And Fintech Platforms

Recent updates created more demanding procedures for anyone acting on behalf of a deceased customer. Banks now use additional verification layers to confirm that a personal representative or surviving spouse has legal authority to receive information. Many institutions require certified court documents, identification that matches state-issued credentials, and detailed internal forms. Fintech companies go further by requiring digital identity checks that mirror high-level cybersecurity standards.

Executors often encounter multi-step verification sequences. Some banks require repeated submissions of documents because internal review teams across departments must approve the request. Online financial platforms sometimes require video identity confirmation or device-based authentication before releasing account details. These steps intend to reduce fraud, yet they add complexity for families already managing a stressful process.

A careful estate plan anticipates these requirements. Detailed powers of attorney, clear personal property instructions, and organized financial records help families establish the necessary authority faster.

Device-Based Authentication Creates Practical Obstacles For Personal Representatives

Banks and fintech companies now rely heavily on device-based verification. A decedent often stored authentication tools on a smartphone, tablet, or laptop that locks automatically after a period of inactivity. Once a device is locked, an executor may be unable to access the confirmation codes required to access the account.

This creates a significant challenge because many institutions will not disable multi-factor authentication until a representative completes the new verification process. The representative must therefore authenticate without having access to the device that receives security codes. Some families spend weeks or months resolving this loop if the decedent left no access instructions.

Estate planning can reduce these problems. Many clients now maintain lists of digital access resources in secure locations. Others update their documents to authorize fiduciaries to use recovery methods offered by online platforms. Planning reduces the likelihood of extended delays during probate.

New Requirements Can Slow Transfers To Surviving Spouses

Surviving spouses previously accessed joint accounts with minimal paperwork. Updated policies changed that. Banks increasingly request death certificates, identity documents, and internal forms even for accounts with rights of survivorship. These institutions adopted additional steps because fraudulent claims sometimes targeted joint accounts after a death.

Some institutions require a surviving spouse to appear in person at a branch. Others ask for extended address verification or proof of ongoing residence. Fintech platforms often require digital confirmation before releasing funds connected to the decedent’s profile. These steps prolong the transfer process and complicate time-sensitive financial needs.

Families can prepare by keeping joint account records organized and ensuring that financial institutions have current contact information. Spouses benefit when estate plans clearly document ownership and account structure, especially when online providers are involved.

Executors Face More Documentation Requests Throughout The Administration

Institutions once relied primarily on a court appointment document to confirm a personal representative’s authority. That has changed. Many banks now require additional certifications, affidavits, or internal authorization forms. Some institutions ask for updated documents several times during the administration, as different departments handle account access, fund release, and final closure.

These layers create delays that ripple through the entire estate process. An executor who cannot obtain timely access to account information may struggle to prepare inventories, pay expenses, or identify liabilities. Fintech companies can be even slower because support teams often operate through ticket-based systems that require repeated uploads and status confirmations.

Organized planning minimizes these challenges. When families maintain financial inventories, document account structures, and securely store essential information, executors can complete verification more efficiently.

Digital Payment Services And Investment Apps Present Unique Issues

Mobile payment services and online investment platforms use policies that differ from those of traditional banks. Several providers automatically lock accounts after a period of inactivity or after receiving notice of a customer’s death. Others restrict a personal representative’s ability to retrieve asset information until internal fraud teams approve the request.

Some investment apps use automated systems that pause trading, freeze transfers, or disable withdrawals upon receiving a death notification. These platforms require a representative to complete additional steps before reopening the account or beginning the transfer process. Families often discover these accounts only after seeing historical bank transfers or emails, which adds complexity late in the administration.

A thorough estate plan includes provisions addressing these online holdings. Documenting each platform helps personal representatives begin the verification process quickly and avoid liquidity problems that arise when digital assets remain inaccessible.

Indiana Families Benefit From Updating Their Plans To Reflect Modern Banking Rules

Banks and fintech companies will likely continue adjusting their procedures as fraud risks evolve. Families in Indiana can adapt by keeping financial information up to date, updating estate planning documents, and creating secure inventories that list both digital and traditional accounts. Planning with these rules in mind helps reduce administrative issues and provides personal representatives with a smoother path through the process.

Speak With An Indiana Estate Planning Lawyer About These New Requirements

Talk with Attorney Burton Padove about these banking and fintech changes by calling Padove Law at 219-836-2200 to arrange a free, in-home consultation and create an estate plan that respects modern verification rules and protects your family.

These changes affect every family, but the impact becomes significant when the decedent created AI-generated content, operated multiple digital accounts, or held assets protected by multi-factor authentication. Understanding how digital estate audits work helps families plan and protect information that might otherwise become inaccessible during administration.

Digital Estate Audits Are Becoming Standard For Modern Administration

A digital estate audit provides a structured review of all online accounts, digital assets, authentication tools, and revenue streams associated with an individual. Institutions conduct these reviews because fraud and unauthorized access have increased. Several banks, investment platforms, and online service providers now require additional verification before releasing information to a personal representative. These audits began as internal fraud-prevention tools, but they have grown into a routine part of estate administration.

Executors must now prepare for detailed documentation requests. Providers often ask for certified court appointments, notarized proofs of identity, historical login credentials, or device-based verification codes. These demands pose challenges when a decedent did not create a digital asset inventory or left incomplete access instructions. Families regularly discover subscription platforms, online businesses, or creative accounts that they cannot access without a documented plan.

A digital audit can identify gaps before they cause delay. Planners now add digital access clauses to wills, client letters, and powers of attorney. Some clients create encrypted inventories that list devices, authenticator apps, password managers, and digital storage systems. Others appoint a separate digital executor to manage online assets that require technical knowledge.

This preparation ensures that a personal representative can complete institutional audits and maintain compliance with updated security protocols.

AI-generated content Has Become a Transferable Asset Category

Artificial intelligence tools have created a new category of property that did not exist a decade ago. Individuals now produce AI-generated artwork, written material, music, and other content that earns advertising revenue or licensing income. Several creators use AI platforms to build entire businesses. These assets require legal recognition during administration because they often produce ongoing revenue that beneficiaries must receive.

Estate planners must understand the ownership structure behind AI-generated works. Some platforms claim broad usage rights, while others grant creators complete commercial control. Revenue from these platforms may be governed by digital contracts that automatically expire or renew. If an executor cannot access these agreements, beneficiaries risk losing future income or the right to continue using the material.

AI-generated content also raises unique intellectual property issues. Ownership sometimes depends on how the content was created. If the decedent used a platform that limits commercial rights, the asset may have restricted value. If the decedent used tools that grant transferable rights, the asset may resemble traditional intellectual property. Families must determine whether the estate retains those rights, whether beneficiaries can continue to use them, and whether licensing agreements require renewal.

A digital audit can identify each platform, document the rights associated with the content, and preserve income streams that might otherwise disappear during administration.

Authentication Requirements Present Challenges For Families And Executors

Modern institutions use device-based authentication systems that rely on text codes, email prompts, or biometric tools. These security measures protect users throughout their lives, yet they create barriers during estate administration. An executor may sometimes be unable to access essential accounts because the decedent’s device is locked due to inactivity or the authentication app no longer syncs.

Digital estate planning seeks to address this by providing straightforward access instructions and updated powers of attorney. Families now include language authorizing fiduciaries to access authentication tools. Some clients store recovery keys or backup codes in secure locations that an executor can reach without violating privacy laws. Others use cloud-based password managers that allow emergency access for designated individuals.

Institutional audits require an executor to demonstrate lawful access before providers release information. Without planning, a personal representative may spend months recovering accounts, contacting support teams, or providing repeated certification documents. These delays can slow probate, disrupt cash flow, and complicate the administration of digital businesses.

Licensing, Monetization, And Platform Policies Affect Beneficiaries

Digital platforms operate under terms of service that control what happens when a user dies. Some accounts terminate. Others convert to memorial status. Subscription platforms may continue to charge fees until a personal representative cancels or provides proof of death. Monetized content accounts may stop paying revenue if a new owner cannot authenticate them.

AI-generated content adds another layer of complexity because some platforms require creator verification to maintain commercial rights. Beneficiaries must determine whether they can assume the account, whether they must create a new agreement, or whether the platform allows continued use of the existing content. Proper planning ensures that beneficiaries understand which rights transfer, which revenue continues, and which steps they must complete after probate.

A digital estate audit helps identify each platform’s policy before it is administered. Reviewing these rules during planning allows families to avoid accidental forfeiture of value.

Speak With An Indiana Estate Planning Lawyer

If you want to secure your digital assets, protect AI-generated material, and prepare your family for future digital estate audits, you can schedule a free consultation and in-home consultation with Attorney Burton Padove of Padove Law at 219-836-2200 for tailored planning and guidance.

If you pass away without a valid will in Indiana, state law decides who inherits your property—regardless of your personal wishes. This is called intestate succession. Without a will, your loved ones may face confusion, delays, and even legal disputes. You lose the ability to choose who receives your assets, who manages your affairs, and who looks after your children.

Indiana’s intestate laws are not flexible. They follow a fixed formula, even when those outcomes feel unfair to your surviving family. If you want to protect your loved ones and make your own choices, creating a legally valid will is one of the most important steps you can take.

How Indiana Intestate Succession Works

When you die without a will, Indiana Code § 29-1-2 controls the distribution of your estate. The court appoints a personal representative to collect your assets, pay off debts, and distribute whatever remains according to the statute. You do not get a say in who performs this role.

If you are married at the time of death and have children, your spouse does not automatically inherit everything. The surviving spouse generally receives half of the estate, and the children divide the other half equally. If all the children are from your current marriage, this division may feel somewhat balanced. However, if there are children from a previous relationship, the split can become contentious.

If you die unmarried but have children, the entire estate passes to your children in equal shares. If a child passed away before you but had children of their own, that branch of the family still receives a portion through what is called representation.

If you leave behind a spouse and no children, your spouse does not always receive everything. Indiana law gives a portion to your surviving parents if they are still alive. This can create an awkward situation, especially when the surviving spouse and in-laws disagree about finances or funeral arrangements.

When there is no surviving spouse, child, or parent, your assets may pass to siblings, nieces, nephews, or even more distant relatives. If no relatives can be found, your property may eventually be claimed by the State of Indiana.

What This Means for You and Your Family

Relying on the state to handle your estate means giving up control. You cannot designate guardians for minor children, decide who receives family heirlooms, or leave specific gifts to friends or charities. You also cannot exclude estranged relatives or prevent unintended outcomes.

Family disagreements become more likely when there is no clear plan. A properly executed will removes doubt, reduces stress, and helps your loved ones carry out your wishes with confidence.

In addition to naming beneficiaries, a will allows you to choose a personal representative to manage your estate. This person collects your assets, pays debts, and distributes what remains. If you do not name someone, the court makes that decision for you.

Creating a Will Is Easier Than You Think

A basic will does not have to be expensive or time-consuming. What matters is that it meets Indiana’s legal requirements and clearly reflects your wishes. You must be at least 18 years old and of sound mind. The document must be signed by you and witnessed by two competent adults. Handwritten wills, or holographic wills, are not valid in Indiana unless they meet specific standards.

Working with an attorney helps ensure your will is valid and complete. You can also update it as your life changes. Marriage, divorce, the birth of a child, or the loss of a loved one may all warrant a revision.

Talk to Padove Law About Creating a Will in Indiana

If you live in Indiana and do not yet have a will, now is the time to act. Without one, state law takes over when you die, and your wishes may never be honored. A will gives you control and peace of mind—and it gives your family the clarity they deserve.

Call Padove Law today at (877) 448-8585 to schedule a consultation and take the first step toward a clear, enforceable estate plan that reflects your values and protects the people you care about most.