Indiana, one of the few states to still impose a tax on those who inherit property, is phasing out its tax over a 10-year period, beginning in 2012. The tax will gradually be reduced until it disappears for deaths after June 30, 2022.
The first change to take effect, for deaths that occur after June 30, 2012, is that the inheritance tax exemption goes from $100,000 to $250,000 for "Class A" inheritors. That includes the deceased person's lineal descendants (children, grandchildren, and so on), stepchildren, plus their spouses. (The deceased person's spouse, and charitable organizations, are already exempt from the inheritance tax.)
To get all the details, you can read the text of the new law, Indiana SB 293.