Indiana will soon join 28 other states who do not impose inheritance taxes. On March 21, 2012, Indiana Governor Mitch Daniels signed a bill to phase out Indiana’s inheritance tax. The new phase-out plan will decrease inheritance tax in stages starting in 2013 until inheritance tax is completely phased out in 2022.
The inheritance tax law would increase the inheritance amount exempted from tax for immediate family from $100,000 to $250,000 and then reduce the tax levy by 10 percentage points annually until the tax is eliminated. Governor Daniels was quoted as saying the he hopes the phasing out of the inheritance tax will attract new business and encourage expansion in Indiana.