House
File
886
-
Introduced
HOUSE
FILE
886
BY
GERHOLD
,
THOMPSON
,
and
BLOOMINGDALE
A
BILL
FOR
An
Act
relating
to
the
state
inheritance
tax
by
modifying
1
gift
amounts
excludable
in
an
estate
and
modifying
the
2
exemption
amount
of
estates
of
a
certain
size,
and
including
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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886
Section
1.
Section
450.3,
subsection
2,
Code
2021,
is
1
amended
to
read
as
follows:
2
2.
By
deed,
grant,
sale,
gift,
or
transfer
made
within
3
three
years
of
the
death
of
the
grantor
or
donor,
which
is
4
not
a
bona
fide
sale
for
an
adequate
and
full
consideration
5
in
money
or
money’s
worth
and
which
is
in
excess
of
the
6
greater
of
twenty-five
thousand
dollars
and
the
annual
gift
7
tax
exclusion
allowable
for
each
donee
under
section
2503,
8
subsections
(b)
and
(e),
of
the
Internal
Revenue
Code.
If
9
both
spouses
consent,
a
gift
made
by
one
spouse
to
a
person
10
who
is
not
the
other
spouse
is
considered,
for
the
purposes
11
of
this
subsection
,
as
made
one
half
by
each
spouse
under
the
12
same
terms
and
conditions
provided
for
in
section
2513
of
the
13
Internal
Revenue
Code.
The
net
market
value
of
a
transfer
14
described
in
this
subsection
shall
be
the
net
market
value
15
determined
as
of
the
date
of
the
transfer.
16
Sec.
2.
Section
450.4,
subsection
1,
Code
2021,
is
amended
17
to
read
as
follows:
18
1.
When
the
entire
estate
of
the
decedent
does
not
exceed
19
the
sum
of
twenty-five
one
hundred
thousand
dollars
after
20
deducting
the
liabilities,
as
defined
in
this
chapter
.
21
Sec.
3.
Section
450.44,
Code
2021,
is
amended
to
read
as
22
follows:
23
450.44
Remainders
——
valuation.
24
When
a
person
whose
estate
over
and
above
the
amount
of
that
25
person’s
liabilities,
as
defined
in
this
chapter
,
exceeds
the
26
sum
of
twenty-five
one
hundred
thousand
dollars,
bequeaths,
27
devises,
or
otherwise
transfers
real
property
to
or
for
the
28
use
of
persons
exempt
from
the
tax
imposed
by
this
chapter
,
29
during
life
or
for
a
term
of
years
and
the
remainder
to
persons
30
not
thus
exempt,
this
property,
upon
the
determination
of
the
31
estate
for
life
or
years,
shall
be
valued
at
its
then
actual
32
market
value
from
which
shall
be
deducted
the
value
of
any
33
improvements
on
it
made
by
the
person
who
owns
the
remainder
34
interest
during
the
time
of
the
prior
estate,
to
be
determined
35
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886
as
provided
in
section
450.37,
subsection
1
,
paragraph
“a”
,
and
1
the
tax
on
the
remainder
shall
be
paid
by
the
person
who
owns
2
the
remainder
interest
as
provided
in
section
450.46
.
3
Sec.
4.
APPLICABILITY.
This
Act
applies
to
the
estates
of
4
decedents
dying
on
or
after
July
1,
2021.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
the
state
inheritance
tax
by
modifying
9
gift
amounts
includable
in
an
estate
and
modifying
the
10
exemption
amount
of
estates
of
a
certain
size,
and
includes
11
applicability
provisions.
12
Currently,
annual
gifts
made
within
three
years
of
death
13
of
the
decedent
that
are
in
excess
of
the
federal
gift
tax
14
exclusion,
presently
set
at
$15,000,
are
included
in
an
estate
15
for
purposes
of
calculating
the
state
inheritance
tax.
The
16
federal
gift
tax
exclusion
increases
over
time
with
inflation.
17
The
bill
specifies
that
a
gift
made
within
three
years
of
18
the
death
of
a
decedent
shall
not
be
included
in
the
estate
19
unless
the
gift
exceeds
the
federal
gift
tax
exclusion
amount
20
(currently
$15,000)
or
$25,000,
whichever
is
greater.
21
The
bill
also
increases
from
$25,000
to
$100,000
the
value
at
22
which
estates
are
exempt
from
the
state
inheritance
tax.
23
The
bill
applies
to
estates
of
decedents
dying
on
or
after
24
July
1,
2021.
25
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