Along with Jeffrey S. Dible (Frost Brown Todd, LLC) and Ellen Deeter (Dale & Eke, PC), our own Rebecca Geyer was a presenter at the Indiana State Bar Association’s continuing legal education event reviewing new Indiana probate, trust and guardianship legislation…We featured a whole blog on supported decision making and Indiana guardianship changes, but other legislative changes include:.
- “Afterborn children” - these are children born after the execution of a will or trust and therefore not mentioned by name in those documents. The changes make the probate and trust codes consistent, so that the definition of “child” includes a child conceived before the death of the parent, and born within 43 weeks after the parent’s death. This has become an important issue due to reproductive technology allowing for conception even after a decedent’s death.
- Indiana has now amended its Power of Attorney statutes to allow an agent to designate himself or herself as a trusted contact person in accordance with FINRA Rules. The Customer Account Information Rule, had required FINRA financial institutions (brokers and mutual fund companies) to have customers who are at least 65 years old (or those the broker “reasonably believes” have mental or physical impairment that make it impossible for them to protect his own interests)” to name a “trusted contact person” on each account. The Rule has now been revised to say the financial firm must use its best efforts to encourage the naming of a contact person, but not requiring that as a condition to establishing the account. Effective July 1st, Indiana now gives individuals the right to give their designated attorney-in-fact the authority to designate themselves as a trusted contact person with a financial institution.
- Effective July 1, 2019, Indiana becomes the 18th state to adopt Legacy Trusts. Legacy Trusts are domestic assets protection trusts (DAPTs), sometimes called dynasty trusts. These are created to pass wealth from generation to generation without gift tax, estate tax or generation-skipping transfer tax while assets are in the trust. In addition, the creator of the trust may remain a discretionary beneficiary. If the statute is expressly followed, assets in the trust are free from creditors two years after transfer to the trust. Safeguards were put in place to prevent a person from listing assets on a financial statement or loan application, then transferring that asset to a legacy trust to avoid paying the creditor. In addition, legacy trusts may now be used as substitutes for prenuptial agreements in accordance with the statute.