Indiana Probate and Real Estate: What You Need to Know
When someone dies owning real property in Indiana, the house generally cannot be sold until a personal representative is appointed through probate court. Indiana probate is governed by IC 29-1 (the Indiana Probate Code), and depending on how the estate is administered, selling the property can take anywhere from a few months to well over a year.
The good news: Indiana law is more favorable to estate sales than many states. There is no inheritance tax, unsupervised administration is common (and faster), and personal representatives have broad authority to sell real property. The challenge is navigating the process while the property sits vacant, accumulating costs.
We buy probate properties as-is, for cash, and we work directly with the personal representative and estate attorney to handle every step. No repairs, no listing, no waiting for a buyer who may not get financing.
Supervised vs. Unsupervised Administration in Indiana
This distinction is critical because it determines how much court involvement is needed to sell the property — and how fast you can close.
Unsupervised administration is far more common in Indiana and allows the personal representative to sell real estate without filing a petition with the court. If the estate is in supervised administration, we work with your attorney to secure court approval efficiently — we've done it many times in Clark and Floyd County probate courts.
Indiana Probate Timeline
Understanding the timeline helps you plan when the property can realistically be sold and the estate settled.
The critical insight: in unsupervised administration, the personal representative can sell real property immediately after receiving Letters of Administration. You don't have to wait for the 5-month creditor period to expire before selling — only before closing the estate. This means we can close on the house well before the estate is fully settled, putting cash in the estate account sooner.
Indiana repealed its inheritance tax in 2013. This means heirs pay zero state inheritance tax regardless of their relationship to the deceased or the value of the estate. This is a significant advantage over neighboring Kentucky, which still levies inheritance tax of 4-16% on non-Class A beneficiaries (nieces, nephews, friends, and others).
If you're an heir selling a probate property in Indiana, the full sale proceeds go to the estate and are distributed to beneficiaries without any Indiana inheritance tax deduction. Federal estate tax only applies to estates exceeding $13.61 million (2024 threshold), which affects virtually none of our clients.
Transfer on Death Deeds: When Probate Isn't Needed
Under IC 32-17-14, Indiana recognizes Transfer on Death (TOD) deeds. If the deceased recorded a TOD deed before passing, the property transfers directly to the named beneficiary without going through probate at all. The beneficiary simply files the death certificate and an affidavit with the county recorder's office and receives clear title.
If you've inherited a property through a TOD deed, you can sell immediately without waiting for probate. Contact us — we can close in as little as 7 days once you have clear title.
Indiana allows a small estate affidavit for estates valued under $50,000 (IC 29-1-8-1), but this applies only to personal property — bank accounts, vehicles, personal belongings. Real estate cannot be transferred by small estate affidavit. If the deceased owned a house and there is no TOD deed, joint tenancy, or trust, full probate is required to sell the property. There are no shortcuts for real property.
Carrying Costs That Drain the Estate
Every month a probate property sits unsold, the estate loses money. These costs add up fast — and most heirs don't realize how significant they are until they've been paying them for six months.
On a typical Southern Indiana home, carrying costs run $800 to $2,500 per month. Over a 6-12 month probate, that's $5,000 to $30,000 subtracted from what the heirs ultimately receive. Selling the property early in the probate process stops the bleeding and preserves the estate's value.
Multiple Heirs and Disagreements
When multiple heirs inherit a property and cannot agree on what to do with it, Indiana law provides a mechanism: partition action under IC 32-17-4. Any co-owner can file a partition action to force the sale of the property, with proceeds divided among the owners.
Partition actions are expensive, adversarial, and slow. A cash sale is almost always a better outcome for everyone involved. We can work with multiple heirs, present a fair cash offer, and distribute proceeds according to the will or intestate succession — resolving the disagreement without litigation.
Indiana Disclosure Requirements in Probate Sales
Under IC 32-21-5, Indiana sellers must complete a Residential Real Estate Sales Disclosure Form. However, IC 32-21-5-2 provides an executor exemption for certain probate sales — the personal representative may not be required to complete the disclosure form if they never occupied the property and have no actual knowledge of its condition.
This exemption can simplify the sale significantly. When you sell to us, disclosure is straightforward regardless — we inspect the property ourselves and buy in any condition. We don't rely on your disclosure to make our offer.
- Contact us — Call (502) 528-7273 or fill out the form above. Let us know where the probate stands (filed, Letters issued, supervised or unsupervised).
- We evaluate the property — We assess the home's condition and value. No cost to you, no obligation to the estate.
- Cash offer within 24 hours — A fair, transparent offer based on the property's current condition. No commissions, no fees, no repair requests.
- We coordinate with your attorney — We work directly with the estate attorney to handle title, court filings (if supervised), and closing documents.
- Close on the court's timeline — As fast as 7-14 days in unsupervised administration, or whenever the court approves in supervised cases.
Areas We Serve
- New Albany, Jeffersonville, Clarksville
- Charlestown, Scottsburg, Salem
- Corydon, Madison, Seymour
- All of Clark, Floyd, Harrison, Scott, and Washington counties
Frequently Asked Questions
Yes. In unsupervised administration, the personal representative can sell real property as soon as Letters of Administration are issued — there is no requirement to wait for the 5-month creditor period or final estate settlement. In supervised administration, a court petition and approval are needed first, but the property can still be sold well before the estate closes. Selling early reduces carrying costs and gets cash into the estate sooner.
Yes. When someone dies without a will (intestate), the court appoints an administrator under Indiana's intestate succession laws (IC 29-1-2). The administrator has the same authority to sell real property as an executor named in a will. The sale proceeds are then distributed according to Indiana's statutory inheritance order — typically surviving spouse first, then children, then parents, then siblings.
No. Indiana repealed its inheritance tax effective January 1, 2013. There is no state-level inheritance or estate tax in Indiana. This is a meaningful advantage over Kentucky, which charges 4-16% inheritance tax on non-exempt beneficiaries. Federal estate tax only applies to estates over $13.61 million, which is not a factor for the vast majority of homes we purchase.
When heirs cannot agree, any co-owner can file a partition action under IC 32-17-4 to force a sale. However, partition litigation is expensive and adversarial — attorney fees alone can run $5,000-$15,000+. A cash sale often resolves the dispute more quickly and affordably. We can present a clear offer that allows heirs to split proceeds fairly without going to court.
No. Indiana's small estate affidavit (IC 29-1-8-1) applies only to personal property — bank accounts, vehicles, and other non-real-estate assets — in estates under $50,000. Real property cannot be transferred by affidavit. The only ways to avoid probate for a house are a Transfer on Death deed (IC 32-17-14), joint tenancy with right of survivorship, or a living trust. If none of those exist, full probate is required.
The mortgage doesn't go away when the owner dies. Payments must continue during probate, or the lender can initiate foreclosure. The estate is responsible for making payments. If the estate lacks liquid funds to keep up with the mortgage, selling the property quickly prevents foreclosure and preserves whatever equity exists. We can close fast enough to prevent a foreclosure filing in most cases.
No. We buy probate properties in any condition — full of personal belongings, needing major repairs, or completely vacant. Cleaning out a deceased person's home is one of the most emotionally difficult parts of probate. We handle everything after closing, including cleanout, at no cost to the estate.