Text: HSB00561 Text: HSB00563 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 450.1, Code 1997, is amended by 1 2 striking the section and inserting in lieu thereof the 1 3 following: 1 4 450.1 DEFINITIONS – CONSTRUCTION. 1 5 1. For purposes of this chapter, unless the context 1 6 otherwise requires: 1 7 a. "Internal Revenue Code" means the same as defined in 1 8 section 422.3. 1 9 b. "Lineal descendant of the decedent" includes 1 10 stepchildren of the deceased person and persons legally 1 11 adopted by a descendant of the deceased person. 1 12 c. "Person" includes plural as well as singular, and 1 13 artificial as well as natural persons. 1 14 d. "Personal representative" means an executor, 1 15 administrator, or trustee as each is defined in section 633.3. 1 16 e. "Stepchild" means the child of a person who was married 1 17 to the decedent at the time of the decedent's death, or the 1 18 child of a person to whom the decedent was married, which 1 19 person died during the marriage to the decedent. 1 20 2. This chapter shall not be construed to confer upon a 1 21 county attorney authority to represent the state in any case, 1 22 and the county attorney shall represent the department of 1 23 revenue and finance only when specially authorized by the 1 24 department to do so. 1 25 Sec. 2. Section 450.2, Code 1997, is amended by striking 1 26 the section and inserting in lieu thereof the following: 1 27 450.2 TAXABLE ESTATES AND PROPERTY. 1 28 The following estates and property and any interest in or 1 29 income from any of the following estates and property, which 1 30 pass from the decedent owner in any manner described in this 1 31 chapter, are subject to tax as provided in this chapter: 1 32 1. Real estate and tangible personal property located in 1 33 this state regardless of whether the decedent was a resident 1 34 of this state at death. 1 35 2. Intangible personal property owned by a decedent 2 1 domiciled in this state. 2 2 Sec. 3. Section 450.3, subsection 2, Code 1997, is amended 2 3 to read as follows: 2 4 2. By deed, grant, sale, gift, or transfer made within 2 5 three years of the death of the grantor or donor, which is not 2 6 a bona fide sale for an adequate and full consideration in 2 7 money or money's worth and which is in excess of the annual 2 8 gift tax exclusion allowable for each donee under section 2 9 2503, subsections b and e, of the Internal Revenue Code. If 2 10 both spouses consent, a gift made by one spouse to a person 2 11 who is not the other spouse is considered, for the purposes of 2 12 this subsection, as made one half by each spouse under the 2 13 same terms and conditions provided for in section 2513 of the 2 14 Internal Revenue Code. The net market value of a transfer 2 15 described in this subsection shall be the net market value 2 16 determined as of the date of the transfer. 2 17 Sec. 4. Section 450.4, subsection 5, Code 1997, is amended 2 18 by striking the subsection and inserting in lieu thereof the 2 19 following: 2 20 5. On that portion of the decedent's interest in a 2 21 qualified retirement plan or individual retirement account 2 22 that will be subject to federal income tax when paid to the 2 23 beneficiary. 2 24 Sec. 5. NEW SECTION. 450.11 COMPROMISE SETTLEMENT AND 2 25 WILL CONTEST. 2 26 The distribution of property of a decedent pursuant to a 2 27 compromise settlement, an order of court approving a 2 28 compromise settlement, or an order of court settling a will 2 29 contest or disposing of a will contest, when the distribution 2 30 is based on valid claims and the distribution is economically 2 31 fair based on those claims and is consistent with federal 2 32 estate tax provisions, shall be binding upon the department as 2 33 to recipients of property and valuation of property interests 2 34 passing from the decedent for a determination of inheritance 2 35 tax under this chapter. 3 1 Sec. 6. Section 450.20, unnumbered paragraph 1, Code 1997, 3 2 is amended to read as follows: 3 3ItThe department of revenue and finance shallalsokeep a 3 4 separate record of any deferred estate upon which the tax due 3 5 is not paidwithin fifteen months fromon or before the last 3 6 day of the ninth month after the death of the decedent, 3 7 showing substantially the same facts as are required in other 3 8 cases, and also showing: 3 9 Sec. 7. APPLICABILITY DATE. This Act applies to estates 3 10 of decedents dying on or after July 1, 1998. 3 11 EXPLANATION 3 12 The bill amends Code chapter 450, relating to the state 3 13 inheritance and estate taxes as follows: 3 14 Section 1 of the bill, amending Code section 450.1, defines 3 15 a lineal descendant of the decedent to include descendants of 3 16 stepchildren or legally adopted children of descendants of the 3 17 decedent. 3 18 Section 2 of the bill, amending Code section 450.2, exempts 3 19 from tax intangible personal property owned by a decedent who 3 20 was an inhabitant of a state other than Iowa. 3 21 Section 3 of the bill, amending Code section 450.3(2), 3 22 provides that the net market value of property transferred for 3 23 less than full consideration within three years of the 3 24 decedent's death shall be determined as of the date of the 3 25 transfer. 3 26 Section 4 of the bill, amending Code section 450.4(5), 3 27 provides that the exemption from Iowa inheritance tax applies 3 28 to that portion of the decedent's interest in a qualified 3 29 retirement plan or individual retirement account that will be 3 30 subject to federal income tax when paid to the beneficiary. 3 31 Section 5 of the bill, adding new Code section 450.11, 3 32 provides that the distribution of property pursuant to a 3 33 compromise settlement or will contest when the distribution is 3 34 economically fair and consistent with federal estate tax 3 35 provisions is binding for state inheritance tax provisions. 4 1 Section 6 of this bill, amending Code section 450.20, is 4 2 amended to specify that the department must keep a separate 4 3 record on any deferred estate where the tax is not paid on or 4 4 before the last day of the ninth month after the death of the 4 5 decedent. 4 6 Section 7 of this bill provides that the bill applies to 4 7 estates of decedents dying on or after July 1, 1998. 4 8 LSB 3146HC 77 4 9 mg/sc/14
Text: HSB00561 Text: HSB00563 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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