Tax on POD in Indiana

[Colswife]

What is the name of your state (only U.S. law)? Indiana
My brother just passed away and his estate is being handled by my other brother. We found two CD's with POD's. One is for me, a non-Indiana resident and the other is for my sister, an Indiana resident. We know the POD CD's are not part of the estate and are not counted as income for Federal taxes, nor is the one for me considered income for my home state. We know we have to claim any interest earned since my brother's death. Indiana has an inheritance tax. Are the POD's taxable in Indiana? Do we need to pay inheritance tax? or any income tax on the principal amount? This seems to be a gray area and we can't find anything specific to Indiana.
Thanks!

 

[anteater]

Yes, the POD's are subject to Indiana inheritance tax.

No, the principal received is not income.

 

[Colswife]

Thanks!

Thanks! The lawyer helping my brother with the estate led us to believe it was income & I'd have to file an IN return. In Indiana there is only one inheritance tax form filed per decedent no matter how many beneficiaries. So I guess even though the POD's are not part of the estate, for inheritance tax purposes they will have to be taken care of with the estate.