The Indiana Legislature voted the Indiana Inheritance Tax into effect on May 1, 1913. This act taxed both collateral relatives (descending ancestors, but not in a direct line) and provided for progressive rates of taxation. A traditionally conservative state, Indiana was the forty-second state to ratify some form of death transfer taxation.

All bank accounts are frozen with the exception of accounts that are titled jointly between husband and wife and non-interest checking accounts. In the case of a bank account where a tax may be due by the joint owner, the County Assessor's Office may hold 20% of the total value of such property until the inheritance tax is satisfied.

Safe Deposit boxes are no longer inventoried by the County Assessor as of July 1st, 1999.