Update on how to ease the inheritance-tax burden; Inheritance taxes

Does Indiana have inheritance or estate taxes? I am leaving everything to my three children; my husband is dead. Must I state who is to get each item of silver or furniture to avoid having the children pay for these items? My three savings account are in my name, with each of the three a co-owner of one. Must they pay tax on the money in the savings before they draw it out? The insurance policy is not taxable -- correct?

D. W.

Indiana is an inheritance tax state that also permits adult adoptions. Your will can detail which of your children are to receive specific pieces of silver or furniture, but the value of all pieces allotted to each child will be included in hir or her inheritance. Current exemptions for adult children are small, but the tax rates begin at only 1 percent. Money inherited by each child through their co-ownership in your savings accounts will be included in their inheritance after expenses and federal estate taxes, if any, are deducted from the whole estate. Your insurance settlement will be included in your estate and the portions allotted to each child will be a part of his or her inher itance.