Caregiving in Indiana— the questions adult children actually ask.

No on both counts. Indiana repealed its inheritance tax effective for deaths on or after January 1, 2013, and has never had a state estate tax. Federal estate-tax exemption (~$13.99M per individual in 2025) applies — most Indiana estates owe no estate tax at any level. Planning still matters for incapacity, probate avoidance, and Medicaid look-back, but tax minimization is not the primary driver for most Indiana families.

For long-term-care Medicaid in Indiana, the asset limit is $2,000 for a single applicant — the federal floor. The home is exempt up to the federal equity cap (~$752,000), one vehicle is exempt, and a community spouse can retain up to the federal CSRA maximum (~$157,920 in 2026). Indiana uses the federal income cap (~$2,901/month) and is an income-cap state — applicants above the cap use a Qualified Income Trust (QIT) to qualify.

CHOICE — Community and Home Options to Institutional Care for the Elderly and Disabled — is a state-funded program for Indiana seniors aged 60+ (or younger adults with disabilities) who are at risk of nursing-home placement but don't qualify financially for Medicaid LTC. CHOICE covers in-home aide hours, adult day services, respite, and home modifications. It's one of the better-funded state programs in the Midwest. Apply through your local Area Agency on Aging (1-800-986-3505 statewide entry).

Yes, through the Indiana Medicaid Aged & Disabled (A&D) waiver's Structured Family Caregiver option (where available) and through the Attendant Care service under the waiver, which can be self-directed. Adult children can be paid; spouses generally cannot. Rates vary by region but typically run $14-$18/hour in 2026. CHOICE also allows some family-caregiver compensation through its self-directed service option.

Call the Indiana Adult Protective Services hotline at 1-800-992-6978. APS in Indiana is administered through the prosecutor's offices and coordinated by the Indiana Family and Social Services Administration. Reports cover abuse, neglect, and financial exploitation of adults 60+ and adults with disabilities. For abuse in long-term-care facilities, contact the Indiana State Long-Term Care Ombudsman (1-800-622-4484). For immediate danger, call 911.

Indiana allows a small-estate affidavit when the gross probate estate is $100,000 or less (IC 29-1-8-1). The affidavit is presented to banks, brokerages, and other holders 45 days after death to release personal property without formal probate. For estates exceeding $100,000 or including real estate that doesn't pass by survivorship or beneficiary deed, formal probate through the Probate Division of the circuit court is generally required. Indiana also offers Transfer-on-Death deeds (IC 32-17-14) for real estate, which avoid probate entirely.

Indiana (under IC 30-5) generally recognizes a POA validly executed in another state. In practice, Indiana banks and brokerages can be conservative when presented with out-of-state or older POAs and may require additional documentation. If your parent has relocated to Indiana — or if the existing POA is more than 5-7 years old — a fresh Indiana POA from a local attorney is the path of least resistance. Cost typically runs $200-$500.

The Indiana state median for a private one-bedroom in assisted living was approximately $4,800/month in 2024 dollars (Genworth Cost of Care Survey). Indianapolis metro runs $4,800-$5,600; smaller cities and rural counties often $3,800-$4,500. Memory care typically adds $1,200-$1,800 on top. Indiana also has a fairly active residential-care market — slightly less regulated than assisted living and often lower-cost. Confirm licensure level before signing a contract.

Indiana does not have a state-mandated paid family leave program. Working caregivers rely on the federal Family and Medical Leave Act (12 weeks unpaid, employers with 50+ employees only). Approximately one-third of Indiana's workforce works for employers smaller than the FMLA threshold and receives no federal leave protection. Some Indiana employers voluntarily offer paid caregiver leave or family-care policies — worth asking HR specifically.

Indiana applies the standard federal 60-month (5-year) look-back to all Medicaid LTC applications. Any uncompensated transfer — gifts to children, below-market sales, charitable contributions above modest gift levels — during the 60 months before application produces a penalty period during which Medicaid will not pay. The penalty divisor in Indiana is in the same range as other Midwest states — approximately $7,500-$8,500/month. Plan well ahead of need: legitimate planning works best at the 5-year mark and progressively worse close to application.