Indiana: estate, probate and Medicaid rules in one place

Quick answers

State estate tax

Estate-tax dataset 2026.v2

State estate tax

NoNo dataset row

The pinned estate-tax dataset (2026.v2) has no row for Indiana, so it cites no state statute; the state page records no state estate or inheritance tax.

· Checked July 20, 2026

Full detail: Indiana estate and inheritance tax page

Inheritance tax

Estate-tax dataset 2026.v2

Inheritance tax

NoNo dataset row

The pinned estate-tax dataset (2026.v2) has no row for Indiana, so it cites no state statute; the state page records no state estate or inheritance tax.

· Checked July 20, 2026

Full detail: Indiana estate and inheritance tax page

Transfer-on-death deed

Transfer-on-death deed for real estate

Available — Transfer on death deedNot primary-verified

Ind. Code ch. 32-17-14 (Transfer on Death Property Act) — the official text is published only in the Indiana General Assembly's web application; verify the current section there

· Checked July 26, 2026

Controlling statute

Not primary-verified

Ind. Code ch. 32-17-14 (Transfer on Death Property Act) — the official text is published only in the Indiana General Assembly's web application; verify the current section there

· Checked July 26, 2026

Full detail: Indiana transfer-on-death deed page

Small-estate procedure

Current ceiling and wait

$100,000 net probate estate; 45-day waitVerified

Source: Ind. Code § 29-1-8-1 · Effective: deaths after June 30, 2022 · Checked August 23, 2026

Full detail: Indiana small-estate procedure page

Medicaid long-term-care eligibility

Medicaid dataset 2026.v16

Institutional and waiver income limit

$2,982 per monthVerified

• Applies to: single applicant.

Source: Indiana Medicaid Eligibility Policy Manual · Effective: 2026 eligibility standards effective January 1, 2026 · Checked September 5, 2026

Applicant resource limit

$2,000Verified

• Applies to: single applicant or community-spouse case applicant.

Source: Indiana Medicaid Eligibility Policy Manual · Effective: 2026 eligibility standards effective January 1, 2026 · Checked September 5, 2026

Resource limit when both spouses apply

$3,000 combinedVerified

• Applies to: married couple when both spouses apply in the specified fact pattern.

Source: Indiana Medicaid Eligibility Policy Manual · Effective: 2026 eligibility standards effective January 1, 2026 · Checked September 5, 2026

Community-spouse resource allowance

$32,532 minimum to $162,660 maximumVerified

• Applies to: institutionalized applicant with a community spouse.

Source: Indiana Long Term Care Partnership spousal-impoverishment standards · Also: Indiana Medicaid Eligibility Policy Manual · Effective: Page updated May 1, 2026; allowance period beginning July 1, 2026 · Checked September 5, 2026

Community-spouse monthly maintenance-needs allowance

$2,705 minimum to $4,067 maximum; $812 shelter standardVerified

• Applies to: institutionalized applicant with a community spouse; shelter allowance may affect the actual allocation.

Source: Indiana Medicaid Eligibility Policy Manual: July 2026 transfer and allowance updates · Also: Indiana Long Term Care Partnership spousal-impoverishment standards · Effective: Transfer divisor and allowance updates effective July 1, 2026 · Checked September 5, 2026

Home-equity limit

$752,000Verified

• Applies to: applicant subject to Indiana's home-equity rule.

Source: Indiana Medicaid Eligibility Policy Manual · Effective: 2026 eligibility standards effective January 1, 2026 · Checked September 5, 2026

Full detail: Indiana Medicaid eligibility page

Medicaid look-back

Medicaid dataset 2026.v16

Look-back period

60 monthsVerified

Source: Indiana Medicaid Eligibility Policy Manual: July 2026 transfer and allowance updates · Effective: Transfer divisor and allowance updates effective July 1, 2026 · Checked September 5, 2026

Transfer-penalty divisor

$8,027 per month for applications filed on or after July 1, 2026Verified

Source: Indiana Medicaid Eligibility Policy Manual: July 2026 transfer and allowance updates · Effective: Transfer divisor and allowance updates effective July 1, 2026 · Checked September 5, 2026

How the state administers the penalty

Divide uncompensated transfer value by the monthly divisor under the manual's transfer rules; apply the resulting penalty beginning when the applicant is otherwise eligible, following the manual's aggregation and hardship provisions.Verified

Source: Indiana Medicaid Eligibility Policy Manual: July 2026 transfer and allowance updates · Effective: Transfer divisor and allowance updates effective July 1, 2026 · Checked September 5, 2026

Full detail: Indiana Medicaid look-back page

Medicaid estate recovery

Medicaid dataset 2026.v16

Recovery scope

Expanded estate recovery reaches the probate estate and other real or personal property interests in which the recipient held legal title or an interest at death, including specified survivorship and trust arrangements.Verified

Source: Indiana Administrative Code 405 IAC 2-8-1, 2-10-8, and 2-10-9 · Effective: Estate-recovery rule filed June 11, 2021 · Checked September 5, 2026

Controlling authority

Indiana Code chapters 12-15-8.5 and 12-15-9 and 405 IAC 2-8-1, 2-10-8, and 2-10-9 govern recovery and liens.Verified

Source: Indiana Administrative Code 405 IAC 2-8-1, 2-10-8, and 2-10-9 · Effective: Estate-recovery rule filed June 11, 2021 · Checked September 5, 2026

Exemptions and deferrals

Recovery is postponed while a surviving spouse lives and while a surviving child is under 21, blind, or disabled; qualifying resident siblings and caregiver children receive the home protections stated in Indiana law and rule.Verified

Source: Indiana Administrative Code 405 IAC 2-8-1, 2-10-8, and 2-10-9 · Effective: Estate-recovery rule filed June 11, 2021 · Checked September 5, 2026

Hardship waiver

An heir may request an undue-hardship waiver under Indiana's estate-recovery rules and agency process. The amount or timing of relief depends on the rule's hardship criteria and determination.Verified

Source: Indiana Administrative Code 405 IAC 2-8-1, 2-10-8, and 2-10-9 · Effective: Estate-recovery rule filed June 11, 2021 · Checked September 5, 2026

Lien practice

Indiana may place a lien on real property of a permanently institutionalized recipient after the statutory determination and notice, subject to protected-relative rules; the lien must be released when the governing conditions require it.Verified

Source: Indiana Administrative Code 405 IAC 2-8-1, 2-10-8, and 2-10-9 · Effective: Estate-recovery rule filed June 11, 2021 · Checked September 5, 2026

Full detail: Indiana Medicaid estate-recovery page

State income tax on retirement income

Retirement-income tax dataset 2026.v4

Social Security benefits

ExemptVerified

• Indiana deducts Social Security benefits included in federal adjusted gross income.
• Only federally included Social Security requires the Indiana deduction; federally nontaxable benefits are already outside adjusted gross income.

Source: Income Tax Information Bulletin #26 — General Information Concerning Filing Requirements and Specific Tax Benefits Available to the Elderly · Checked December 2, 2024

Public pensions

Partly taxed or conditionalVerified

• Indiana generally taxes pension and annuity income, but an eligible federal civil-service annuitant may deduct up to $16,000 reduced by Social Security and Railroad Retirement benefits.
• The benefit must be a qualifying federal civil-service annuity received while an Indiana resident.
• The annuitant must be age 62 or older at year-end; a qualifying surviving spouse has no minimum age.
• A qualifying surviving spouse may claim the deduction without meeting the age threshold.
• Maximum deduction before reduction for Social Security and Tier 1 and Tier 2 Railroad Retirement benefits.
• Subtract total Social Security and Tier 1 and Tier 2 Railroad Retirement benefits from the lesser of the taxable annuity or $16,000; part-year residents prorate the result.

Source: Income Tax Information Bulletin #6 — Civil Service Annuity Adjustment and Military Retirement or Survivor's Benefit Deduction · Effective: tax year 2025 · Checked June 3, 2025

Private pensions

TaxedVerified

• Indiana generally taxes the federally taxable portion of private pension and annuity income.
• Only the federally taxable portion of the pension or annuity is included.

Source: Income Tax Information Bulletin #26 — General Information Concerning Filing Requirements and Specific Tax Benefits Available to the Elderly · Checked December 2, 2024

IRA and 401(k) distributions

Pending

The reviewed dated Indiana bulletins do not independently enumerate both IRA and 401(k) resident distribution treatment; no category-wide result is inferred.

Military retirement pay

ExemptVerified

• Indiana deducts the full amount of qualifying military retirement pay and survivor benefits for 2022 and later.
• The benefit must result from qualifying active or reserve service in an enumerated U.S. armed or uniformed service.
• Qualifying survivor benefits are included.
• Only the amount otherwise included in Indiana adjusted gross income is deducted.
• The full deduction applies for 2022 and later; the 2025 guidance also enumerates Space Force, Public Health Service, and NOAA commissioned corps.

Source: Income Tax Information Bulletin #6 — Civil Service Annuity Adjustment and Military Retirement or Survivor's Benefit Deduction · Effective: tax year 2025 · Checked June 3, 2025

Full detail: Retirement-income tax dataset, all states (JSON)

About this page

This page assembles entries from datasets the site already publishes; it adds no figure of its own. Entries marked “Not yet verified” or “Pending” have no primary-source value in the underlying dataset yet. Rules change, so confirm anything you plan to act on with the source, the state agency, or a licensed attorney.

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