Indiana Code 32-17-14-22. Substitution for designated beneficiaries who do not survive the owner
(1) subsection (b) applies in the case of a designated beneficiary who is a lineal descendant of the owner; or
Terms Used In Indiana Code 32-17-14-22
- 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
- Lineal descendant: Direct descendant of the same ancestors.
- Per stirpes: The legal means by which the children of a decedent, upon the death of an ancestor at a level above that of the decedent, receive by right of representation the share of the ancestor
- Property: includes personal and real property. See Indiana Code 1-1-4-5
(b) If a designated beneficiary who is a lineal descendant of the owner:
(1) is deceased at the time the beneficiary designation is made;
(2) does not survive the owner; or
(3) is treated as not surviving the owner;
the beneficiary’s right to a transfer on death transfer belongs to the beneficiary’s lineal descendants per stirpes who survive the owner unless the owner provides otherwise under subsection (c).
(c) An owner may execute a beneficiary designation to which subsection (b) does not apply by:
(1) making the notation “No LDPS” after a beneficiary’s name; or
(2) including other words negating an intention to direct the transfer to the lineal descendant substitutes of the nonsurviving beneficiary.
(d) An owner may execute a beneficiary designation that provides that the right to a transfer on death transfer belonging to a beneficiary who is not a lineal descendant of the owner and does not survive the owner belongs to the beneficiary’s lineal descendants per stirpes who survive the owner. An owner’s intent to direct the transfer to the nonsurviving beneficiary’s lineal descendants must be shown by either of the following on the beneficiary designation after the name of the beneficiary:
(1) The words “and lineal descendants per stirpes”.
(2) The notation “LDPS”.
(e) When two (2) or more individuals receive a transfer on death transfer as substitute beneficiaries under subsection (b) or (d), the individuals are entitled to equal shares of the property if they are of the same degree of kinship to the nonsurviving beneficiary. If the substitute beneficiaries are of unequal degrees of kinship, an individual of a more remote degree is entitled by representation to the share that would otherwise belong to the individual’s parent.
(f) If:
(1) a designated beneficiary of a transfer on death transfer does not survive the owner;
(2) either subsection (b) or (d) applies; and
(3) no lineal descendant of the designated beneficiary survives the owner;
the right to receive the property transferred belongs to the other surviving beneficiaries. If no other beneficiary survives the owner, the property belongs to the owner’s estate.
As added by P.L.143-2009, SEC.41.