Indiana Department of Revenue, Inheritance Tax Division v. Security Bank & Trust Co.

ROBERTSON, Judge.

The Indiana Department of Revenue, Inheritance Tax Division (Department) appeals an adverse decision in a rehearing concerning a deduction taken by the estate of Lawrence D. O’Donnell, Jr., (Estate) in its computation of the inheritance tax due.

We reverse.

The facts are not in dispute. On November 19, 1974, Lawrence D. O’Donnell, Jr., died. In the determination of the inheritance tax liability, his executor filed a schedule of all assets which listed a mortgage lien on certain real property as a deduction. This property had been held by the decedent and his surviving spouse by…