Text: SSB01131 Text: SSB01133 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 450.1, Code 2001, 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. "Person" includes plural as well as singular, and 1 10 artificial as well as natural persons. 1 11 c. "Personal representative" means an administrator, 1 12 executor, or trustee as each is defined in section 633.3. 1 13 d. "Real estate or real property" for the purpose of 1 14 appraisal under this chapter means real estate which is the 1 15 land and appurtenances, including structures affixed thereto. 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 2001, 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 2001, 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, subsectionsb(b) ande(e), of the Internal Revenue 2 10 Code. If both spouses consent, a gift made by one spouse to a 2 11 person who is not the other spouse is considered, for the 2 12 purposes of this subsection, as made one half by each spouse 2 13 under the same terms and conditions provided for in section 2 14 2513 of the Internal Revenue Code. The net market value of a 2 15 transfer described in this subsection shall be the net market 2 16 value determined as of the date of the transfer. 2 17 Sec. 4. Section 450.4, subsection 5, Code 2001, 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 2001, 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, 2001. 3 11 EXPLANATION 3 12 This bill amends Code chapter 450, relating to the state 3 13 inheritance and estate taxes as follows: 3 14 Code section 450.1 is amended to define a stepchild as a 3 15 child of a person who was married to the decedent at the time 3 16 of the decedent's death or a child of a person who died while 3 17 married to the decedent. 3 18 Code section 450.2 is amended to exempt from tax intangible 3 19 personal property owned by a decedent who was not domiciled in 3 20 Iowa. 3 21 Code section 450.3, subsection 2, is amended to provide 3 22 that the net market value of property transferred for less 3 23 than full consideration within three years of the decedent's 3 24 death shall be determined as of the date of the transfer. 3 25 Code section 450.4, subsection 5, is amended to to provide 3 26 that the exemption from Iowa inheritance tax applies to that 3 27 portion of the decedent's interest in a qualified retirement 3 28 plan or individual retirement account that will be subject to 3 29 federal income tax when paid to the beneficiary. 3 30 New Code section 450.11 provides that the distribution of 3 31 property pursuant to a compromise settlement or will contest 3 32 when the distribution is economically fair and consistent with 3 33 federal estate tax provisions is binding for state inheritance 3 34 tax purposes. 3 35 Code section 450.20 is amended to specify that the 4 1 department of revenue and finance must keep a separate record 4 2 of any deferred estate where the tax is not paid on or before 4 3 the last day of the ninth month after the death of the 4 4 decedent. 4 5 The bill applies to estates of decedents dying on or after 4 6 July 1, 2001. 4 7 LSB 1904XC 79 4 8 mg/cls/14
Text: SSB01131 Text: SSB01133 Text: SSB01100 - SSB01199 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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