Sec. 9. Unless written notice asserting that a deceased transferor’s probate estate is insufficient to pay allowed claims and statutory allowances has been received from the deceased transferor’s personal representative, the following rules apply:

(1) Payment or delivery of assets by a financial institution, registrar, or another obligor to a nonprobate transferee under the terms of the governing instrument controlling the transfer releases the obligor from all claims for amounts paid or assets delivered.

Terms Used In Indiana Code 32-17-13-9

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • nonprobate transfer: means a valid transfer, effective at death, by a transferor:

    Indiana Code 32-17-13-1

  • nonprobate transferee: means a person who acquires an interest in property by a nonprobate transfer. See Indiana Code 32-17-13-2
  • Probate: Proving a will
  • Trustee: A person or institution holding and administering property in trust.
(2) A trustee receiving or controlling a nonprobate transfer is released from liability under this section on any assets distributed to the trust’s beneficiaries. Each beneficiary, to the extent of the distribution received, becomes liable for the amount of the trustee’s liability attributable to that asset imposed by sections 2 and 3 of this chapter.

As added by P.L.165-2002, SEC.11. Amended by P.L.163-2018, SEC.21.

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