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ATTORNEYS FOR APPELLANT: GREGORY F. ZOELLER Feb 08 2011, 3:24 pm ATTORNEY GENERAL OF INDIANA KRISTEN M. KEMP CLERK DEPUTY ATTORNEY GENERAL Indianapolis, IN _____________________________________________________________________
of the supreme court, court of appeals and tax court

FILED

IN THE INDIANA TAX COURT
_____________________________________________________________________ INDIANA DEPARTMENT OF STATE REVENUE, INHERITANCE TAX DIVISION, ) ) ) ) Appellant, ) ) v. ) Case No. 49T10-1007-TA-35 ) IN THE MATTER OF THE ESTATE OF ) DELORAS J. BIDDLE, DECEASED, ) ) Appellee. ) _____________________________________________________________________ ON APPEAL FROM THE KNOX CIRCUIT COURT The Honorable Sherry Biddinger Gregg, Judge Cause No. 42C01-0503-EU-017 FOR PUBLICATION February 8, 2011 WENTWORTH, J. The Indiana Department of State Revenue, Inheritance Tax Division

(Department) appeals the Knox Circuit Court's (probate court) order determining that the Estate of Deloras J. Biddle (Estate) did not owe Indiana inheritance tax and was therefore not required to file an Indiana inheritance tax return. The issue before this Court is whether the probate court erred in making that determination.

RELEVANT FACTS AND PROCEDURAL HISTORY Deloras J. Biddle was born on July 13, 1936; she died intestate on March 13, 2005. Ten days later, the probate court appointed Deloras' son, Curtis Biddle, as the personal representative of her Estate and ordered its unsupervised administration. As the Estate's personal representative, Curtis subsequently filed an inventory, a final accounting, and a verified closing statement. (See Appellant's App. at 53-56, 60-61.) Given that Curtis, as Deloras' sole heir, received a distribution that was less than the exemption to which he was entitled, no inheritance tax return was filed. (See

Appellant's App. at 55-56.) On April 24, 2006, the probate court approved the closing statement and released Curtis from his duties as personal representative. (Appellant's App. at 51.) It appears that sometime in 2008, the Department learned that the Metropolitan Life Insurance Company ("MetLife") issued two checks to Deloras' brother, Richard Fine, in May of 2005. (See Appellant's App. at 43.) The two checks, totaling

$26,629.87, indicated that they "represent[ed] the amount of death claim proceeds from [an ] annuity contract" held by Deloras. (See Appellant's App. at 41-42.) On August 26, 2009, the Department filed with the probate court a "Motion to Compel Compliance with Statutory and Regulatory Requirements," explaining that the annuity proceeds paid to Fine were subject to Indiana's inheritance tax. (See Appellant's App. at 48-49.) As a result, the Department requested that the probate court order the Estate to file an inheritance tax return and remit the appropriate amount of tax due on the transfers to

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Fine.1 (See Appellant's App. at 48-49 (footnote added).) The probate court, however, issued the following order on April 29, 2010: The Court, being duly advised, hereby finds that an Indiana Inheritance Tax Return is not required by Ind. Code 6-4.1-4-1. Richard Fine was a transferee of proceeds under a contract of life insurance that did not pass through the decedent's estate. IT IS THEREFORE ORDERED that neither Richard Fine nor the Personal Representative are required to file an Indiana Inheritance Tax Return. (Appellant's App. at 26.) On June 1, 2010, the Department filed a motion to correct error with the probate court. (Appellant's App. at 10-24.) The Department's motion was deemed denied on July 16, 2010. See Ind. Trial Rule 53.3(A). On July 22, 2010, the Department filed an appeal with this Court. Additional facts will be supplied as necessary. STANDARD OF REVIEW The Indiana Tax Court acts as a true appellate tribunal when it reviews a probate court's determination concerning the amount of Indiana inheritance tax due. IND. CODE ANN.

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