1. (a) As used in this section, "descendant" includes the following:

   1. (1) A child adopted before the child is twenty-one (21) years of age by:

      1. (A) the settlor; or
      2. (B) the settlor's descendants.
   2. (2) A descendant of a child adopted as set forth in subdivision (1).

   3. (3) A child who is born of the mother out of wedlock in either of the following circumstances:

      1. (A) The mother is a descendant of the settlor.
      2. (B) The mother is the settlor.

   4. (4) If the right of a child born out of wedlock to inherit from the father is or has been established in the manner provided under IC 29-1-2-7 , the child, in either of the following circumstances:

      1. (A) The father is a descendant of the settlor.
      2. (B) The father is the settlor.
   5. (5) A descendant of a child born out of wedlock as set forth in subdivisions (3) and (4).

2. (b) If:

   1. (1) an estate, real or personal, is devised to a descendant of the settlor; and

   2. (2) the beneficiary:

      1. (A) dies during the lifetime of the settlor before or after the execution of the trust; and

      2. (B) leaves a descendant who survives the settlor;

         the devise does not lapse, but the property devised vests in the surviving descendant of the beneficiary as if the beneficiary had survived the settlor and died intestate.

As added by P.L.4-2003, SEC.7.