Last March, Governor Mitch Daniels signed bills that would phase out Indiana's inheritance tax.
According to WTHR Channel 13's website, the phase out plan approved by legislators will decrease the inheritance tax over time. First, the amount not subject to tax (for immediate family) would increase from $100,000 to $250,000. Then the tax rate on what's left will decrease 10 percentage points per year until the rate is zero. This should eliminate inheritance tax in Indiana by 2021.
Note that this does not affect Federal inheritance taxes, which continues to be a complex issue due to ever changing tax law.