Only Executor Should File

• The estate's executor, otherwise known as the deceased person's personal representative, must file inheritance taxes on the estate. No other heir, relative or other interested party must file inheritance taxes. The executor pays inheritance taxes out of the estate's assets; no heir in Indiana pays inheritance taxes on his inheritance before or after receiving it from the estate's assets. However, if the deceased didn't appoint an executor, an heir or other relative may serve as executor.
  
  

Filling Out Part I

• The first part of Form IH-6 requires you to provide general information about the deceased person such as her name, date of death and Social Security number. Provide all needed information in this section of the form. Indicate whether you are required to file a federal estate tax return, and if you are, attach the return to Form IH-6. Attach a copy of the will to Form IH-6 as well.
  
  

List Inheritances

• On the Inheritance Tax Computation Worksheet, list each heir's full name and address. You must also provide the heir's date of birth and relationship to the deceased before listing the amount of the inheritance. Use the relationship with the deceased to determine the amount of exemption, if any. Grandparents, parents and children are entitled to the highest exemption of $100,000, as of 2011. Siblings and their children receive an exemption of $500. Anyone else receives an exemption of only $100. List the exemption amount in the proper column on the Inheritance Tax Computation Sheet. Subtract the exemption from the value of the inheritance. Multiply any remainder by the tax rate listed on the tax table included with the instructions to Form IH-6.
  
  

Complete Schedules

• List assets such as real estate and life insurance policies on Schedules A through E. On Schedule F, list all costs associated with administering the estate, such as funeral costs for the deceased and legal costs associated with preparing tax returns. Transfer the total values listed on these schedules to the first page of Form IH-6. List the entire taxable estate and the entire tax you are paying on the front of the form as well. Sign and date the form, attach all schedules and mail it to the Indiana Department of Revenue with your payment.