Ind. Marion Cnty. Prob. Local Rule LR49-PR00 Rule 411

411.1 Statutory Format for Accountings. In any guardianship or supervised estate, the

personal representative or the guardian of the property must file each accounting in the three-

schedule format required by I.C. §29-1-16-4. Informal, handwritten or transactional accountings

will not be accepted. Each disbursement (expenditure or distribution) must appear as a separate

line item and must include the following information:

(a) Date of the disbursement;

(b) Check number or other identifying number for the method of payment used;

(c) The payee’s name;

(d) The amount of the disbursement; and

(e) If the purpose or reason for the disbursement is not apparent from the information

presented under (a) through (d), a brief description of the purpose or reason that is

sufficient to show that the disbursement was made in the course of the proper

administration of the estate or, in a guardianship, was made for the support or

benefit of the incapacitated person or minor.

The following example of a disbursement line item contains sufficient detail to comply with this

MSCPR 411.1:

01-27-2011 ck 205 Brown and Smith CPAs Decedent’s 2011 Form 1040 prep. 800.00

An Indiana inheritance tax exemption affidavit described in I.C. §6-4.1-4.0.5 is not required to

be filed with the Court, but the Court will accept a copy of such an exemption affidavit as a

supplement to an estate accounting under this Rule, provided that the filer complies with

Administrative Rule 9(G) by redacting the decedent’s social security number and any full

account numbers from the copy filed.

411.2 Satisfying “Voucher” Requirement. I.C. §29-1-16-4 requires a fiduciary to file

“receipts for disbursements of assets,” or “vouchers,” and authorizes the Court to permit other

methods of substantiating the amounts and purposes of disbursements. Only a corporate

fiduciary (bank or trust company) may submit an affidavit confirming that all disbursements

have been made as reported in the accounting, instead of filing receipts or vouchers. In order to

satisfy the receipt or voucher requirement, a fiduciary who is an individual must file, with each

accounting, one of the following types of proof for each disbursement reported in that

accounting:

(a) A copy of the front of a canceled (paid) check;

(b) A digital image of the check as paid by the financial institution holding the

estate’s account, reproduced from the institution’s records or from a periodic

account statement;

(c) For distributions, a receipt signed by the distributee, confirming the payee’s

identity and the amount and approximate date of the distribution;

(d) For disbursements (other than distributions) to third-party creditors or providers

of goods and services, a receipt signed by the payee or its authorized agent,

bearing the payee’s name and business address, and stating the amount, the

purpose, and the date of the disbursement;

(e) For electronic fund transfers, wire transfers, or debit card transactions, a copy of

the digital or paper record confirming the payee’s identity and the date and

amount of the disbursement; or

(f) In the court’s discretion, other satisfactory proof showing the identity of the payee

and the date and amount of the disbursement.

Documents described in (a), (b), (c), or (e) are prima facie evidence of payment.

411.3 Reimbursements to the Personal Representative. If the personal representative of a

supervised or unsupervised estate uses his or her personal funds to pay funeral and burial or

cremation expenses or administration expenses after the decedent’s death, then without the

approval of the Court or the advance consent of the distributees, that personal representative may

reimburse himself or herself with estate funds for:

(a) Funeral, burial or cremation expenses paid by the personal representative out of

personal funds and reimbursed out of estate funds within the statutory period

under I.C. §29-1-14-1(a) for filing creditor claims, and

(b) Administration expenses paid by the personal representative out of personal funds

and reimbursed out of estate funds at any time before administration is concluded,

provided that the personal representative fully and accurately documents the payment of and

reimbursement for each such expenditure in the accounting filed or issued under I.C. 29-1-16 or

29-1-7.5-4(a)(6). All reimbursements permitted under the preceding sentence remain subject to

objection by distributees and other persons whose interests are affected and subject to the

approval or disapproval of the Court. This MSCPR 411.3 does not apply to claims by the

personal representative against the decedent that arose before the decedent’s death, and which

are governed by I.C. §§29-1-14-2 and 29-1-14-17 and MSCPR 414.3.

411.4 Disbursements to the Guardian. In guardianships and without the advance approval of

the Court, the guardian may reimburse himself or herself out of guardianship for all reasonable

expenditures made from the guardian’s personal funds for the benefit of the minor or protected

person or for the preservation of guardianship property, provided that the guardian fully and

accurately documents the original payment of and the reimbursement for each such expenditure

in the guardian’s next accounting. All reimbursements permitted under this MSCPR 411.4

remain subject to the later approval or disapproval of the Court.

411.5 Accountings in Guardianships. Within thirty (30) days after the second anniversary of

his or her appointment as guardian of the property of a minor or incapacitated adult, and every

two years thereafter, the guardian must file with the Court a verified accounting that complies

with MSCPR 411.1 and 411.2, except that a guardian need not file bank account statements as

support for an accounting other than a final accounting unless ordered to do so by the Court.

Nothing in these Rules or in the guardianship statutes prohibits a guardian of the property from

filing and seeking approval of accountings and allowances of guardian compensation and

attorney fees on an annual basis, or at a time other than an anniversary date because of some

change in the health, needs, or circumstances of the minor or incapacitated adult.

411.6 Public or Pension Benefits. If a guardian receives Social Security benefits, public

benefits (such as food stamps, SSI, etc.), pension distributions, or annuity or IRA distributions on

behalf of the incapacitated person or minor, the guardian must account fully for each such benefit

or distribution so received, unless (a) the Court determines that the incapacitated person’s

incapacity is limited enough to permit him or her to live with some independence and less

supervision (consistent with I.C. §29-3-8-3(4)) and to have direct access to some funds from

Social Security, public benefits, other distributions, or wages from supervised employment, or

(b) the Court has previously granted approval to allow such benefits or distributions to be paid to

a residential or health care facility that has physical custody of the minor or incapacitated person.

411.7 After Acquired Assets. Unless an amended inventory is filed, estate or guardianship

assets acquired or discovered after the filing of the inventory or most recent previous accounting

must be identified by the following information in the next accounting filed, as to each new item

of income or principal: (a) a description of the property; (b) the amount received or the value of

the property; (c) the approximate date of receipt; and (d) if the property received is classifiable as

income, identification of the asset (e.g., shares of stock or a specific mutual fund) that was the

source of the income.

411.8 Sales or Changes in Asset Value. If a sale, exchange, redemption, change in

investment, or increase or loss in market value (capital change) occurs with respect to a

guardianship or estate asset, the fiduciary must include the following information in the

accounting: (a) the description of the asset sold, redeemed, exchanged, or lost, or with respect to

which the market value changed; (b) the last value previously reported for the asset in the

inventory or previous accounting; (c) the amount of gain, loss, or change of value; and (d) if a

sale, exchange or redemption occurred, the date of the transaction and a description of the sales

proceeds or other property received in the transaction. The fiduciary may report all such capital

changes in a separate section of the accounting.

411.9 After Accrued Expenses. Expenses accrued after the filing of the inventory or most

recent accounting shall be accounted for in an amended inventory or the next accounting

pursuant to MSCPR 411.1.

411.10 Property at the End of an Accounting Period. When a personal representative or

guardian files an accounting under MSCPR 411.1 or MSCPR 411.5, he or she must include, in

the last schedule of the accounting, the following information with respect to the money or

property that is on hand in the estate or the guardianship estate as of the ending date of the

accounting period: (a) a description of each asset or investment, such as the name and partial

account number of each account held with a financial institution, securities broker, or mutual

fund; (b) the value or closing balance of each such asset or investment as of the ending date

(market values as of the last statement date are sufficient for publicly-traded investments); and

(c) for real property or tangible personal property, the cost basis or inventory value of such

property, as most recently revised (if at all) in a schedule of capital changes under MSCPR

411.9. With each accounting, the personal representative or guardian must file copies of pages

from bank account statements, brokerage or mutual fund statements, etc. for the months in which

the beginning and ending dates of the accounting period fall, in order to confirm that the

beginning and ending asset balances for the estate or guardianship estate agree with the opening

and closing total mounts shown in the accounting.

411.11 Sale or Transfer of Real Property

A. Documentation of Value. In all supervised estates and guardianships in which real property

is to be sold, a written appraisal or market analysis by a qualified real estate professional shall be

filed with the Petition for Sale, unless such document was previously filed with the Inventory.

Such written appraisal or market analysis shall include the following information: (a) a brief

description of the property interest being appraised or valued, including the full legal description

thereof; (b) purpose or objective of the appraisal or valuation; (c) date for which Fair Market

Value is determined; (d) if valuation is established through the comparable method of valuation,

identification of the comparable sales used to value the subject property as well as identification

of all adjustments made to the comparable sale to determine the fair market value of the subject

property; (e) if valuation is established through another method of valuation, all data and

reasoning that supports the Fair Market Value; (f) the Fair Market Value determined; (g) a

statement of assumption and special or limiting conditions; (h) the qualification and background

of the real estate professional; (i) certification of disinterest in the real property; (j) signature of

the real estate professional.

B. Limitations Period for Valuation. The appraisal or market analysis shall be made within one

(1) year of the date of the Petition for Sale.

C. Deeds. The Court does not approve the form of deeds for the sale of real property in an

estate or guardianship.

D. Will Contains Specific Power to Sell. If the decedent’s probated Will expressly gives the

personal representative the specific power to sell “property of the estate” or “real property”

“without order of court,” “without court approval or supervision,” or in words with substantially

the same effect, the personal representative of a supervised estate need not comply with the

petition and appraisal or valuation requirements of this MSCPR 411.11.

411.12 Sale of Personal Property.

A. Documentation of Value. In all supervised estates and guardianships in which personal

property is to be sold, a written basis for valuation shall be filed with the Court with the Petition

for Sale, unless such document was previously filed with the Inventory. The written basis for

valuation shall include the following information: (a) brief description of the property to be sold;

(b) the date and basis of valuation; (c) the qualifications of the person providing the valuation or

the authoritative nature of the source from which the valuation was obtained, including

authoritative sources accessed by electronic media; (d) factors which would affect the value of

the subject property.

B. Limitations Period for Valuation. Written basis for valuation shall be made within one (1)

year of the date of the Petition for Sale.

C. Written Valuation Not Required. No written appraisal shall be required for the sale of assets

which are traded in a market and the value of which is readily ascertainable. Such assets include,

but are not limited to, stocks, bonds, mutual funds, commodities, precious metals and items sold

at public auction. In addition, upon a showing that non-publicly-traded personal property has a

value that is small in comparison to the cost of obtaining a written appraisal, the Court may

waive the appraisal requirement under this MSCPR 411.2.

D. Will Contains Specific Power to Sell. If the decedent’s probated Will expressly gives the

personal representative the specific power to sell “property of the estate” or “personal property”

“without order of court,” “without court approval or supervision,” or in words with substantially

the same effect, the personal representative of a supervised estate need not comply with the

petition and appraisal or valuation requirements of this MSCPR 411.12.

411.13 Guardian’s Current Reports. Current reports filed by a guardian of the person shall

state the present residence of the incapacitated person and a statement of the incapacitated

person's current condition and general welfare. If the incapacitated person is an adult, a report of

a treating physician shall be filed with the current report verifying that the incapacity of the

person remains unchanged since the date the guardianship was established or the date of the last

current report.

411.14 Guardian’s Bond. If a Guardian's bond is required, the guardian shall submit to the

Court proof of payment of current premiums due on said bond. Failure to comply with this

section may result in removal of the guardian.

411.15 Transfer Tax Closing Letters. When a Final Report (Closing Statement) is filed in an

unsupervised estate or when a Supplemental Report of Distribution is filed in a supervised estate,

the personal representative must attach copies of the following documents to the Court’s original

copy of the Report:

(a) The federal estate tax closing letter, if any;

(b) The Indiana inheritance tax closing letter (unless the Report recites that an

inheritance tax exemption affidavit has been filed or recorded under I.C. §6-4.1-4-

0.5); and

(c) The Treasurer’s official receipt showing full payment of the Indiana inheritance

tax and estate tax (if any) that was due.

The personal representative must block out the decedent’s social security number on the copies

that are attached to or filed with the Report under this MSCPR 411.5. The personal

representative may (but is not required to) file the copies of any or all of the documents

described in (a), (b), and (c) on light green paper, consistent with Admin. Rule 9(G) and Trial

Rule 5(G).

411.16 Petitions to Determine No Inheritance Tax Due. In a petition under I.C. §6-4.1-5-7 to

request an order determining that no Indiana inheritance tax is due, the personal representative or

trustee who files the petition must state sufficient information to show that no transferee

(distributee or beneficiary) has received or will receive assets with a total value exceeding his or

her inheritance tax exemption. Such required information includes but is not limited to a

statement of the total value of the decedent’s property transfers that would be reported on an

inheritance tax return if one were filed. A copy of an inheritance tax exemption affidavit

described in I.C. §6-4.1-4-0.5 may be filed with the Court, provided that the decedent’s social

security number is redacted from the affidavit, and the filer of a petition under I.C. §6-4.1-5-7

may cite and rely on that filed affidavit. If the petition (and any attached or accompanying

documents) contain information sufficient to show that no inheritance tax is or will be due, then

in the absence of any objection by interested persons, the Court will enter an order under I.C. §6-

4.1-5-8 without holding a hearing.