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Senate File 2303 - EnrolledAn Actrelating to the inheritance tax by modifying the
requirements to qualify for a deferment of tax payment under
certain circumstances in the case of estates with a deferred
estate or remainder interest, and including applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 450.20, Code 2018, is amended to read as
follows:
450.20 Record of deferred estates.
The department of revenue shall keep a separate record of
any deferred estate upon which the tax due is not paid on or
before the last day of the ninth month after the death of the
decedent, showing substantially the same facts as are required
in other cases, and also showing:
1. The date and amount of all bonds given to secure the
payment of the tax with a list of the sureties thereon.
2. The type and amount of any security, other than a bond,
given to secure the payment of the tax.
2. 3. The name of the person beneficially entitled to such
estate or interest, with place of residence.
3. 4. A description of the property or a statement of
conditions upon which such deferred estate is based or limited.
Sec. 2. Section 450.47, Code 2018, is amended to read as
follows:
450.47 Life and term estates in personal property.
If an estate or interest for life or term of years in
personal property is given to one or more persons other than
those exempt by this chapter and the remainder or deferred
estate to others, the property devised or conveyed shall be
valued under section 450.37 as provided in ordinary estates
and the value of the estates or interests devised or conveyed
shall be determined as provided in section 450.51, and the
tax upon the estates or interests liable for the tax shall be
paid to the department of revenue from the property valued
or by the persons entitled to the estate or interest on or
before the last day of the ninth month after the death of the
testator, grantor, or donor. However, payment of the tax upon
a deferred estate or remainder interest may be deferred until
the determination of the prior estate by the giving of a good
and sufficient bond as provided in section 450.48.
Sec. 3. Section 450.48, Code 2018, is amended to read as
-1-follows:
450.48 Payment deferred — bond — exceptions.
1. When Except as provided in subsection 2, when in case of
deferred estates or remainder interests in personal property or
in the proceeds of any real estate that may be sold during the
time of a life, term, or prior estate, the persons interested
who may desire to defer the payment of the tax until the
determination of the prior estate, shall file with the clerk
of the proper district court a bond as provided herein in
other cases, such bond to be renewed every two years until the
tax upon such deferred estate is paid. If at the end of any
two-year period the bond is not promptly renewed as herein
provided and the tax has not been paid, the bond shall be
declared forfeited, and the amount thereof forthwith collected.
2. When the estate of a decedent consists in part of real
and in part of personal property, and there be includes an
estate for life or for a term of years to one or more persons
and a deferred or remainder estate to others, and such deferred
or remainder estate is in whole or in part subject to the tax
imposed by this chapter, if the then payment of the tax upon
such deferred or remainder estates may be postponed until the
determination of the prior estate without giving bond to secure
payment of such tax as required under subsection 1 if one of
the following requirements is satisfied:
a. Thedeferred or remainder estates or interests are so
disposed that good and sufficient security for the payment of
the tax for which such deferred or remainder estates may be
liable can be had because of the lien imposed by this chapter
upon the real property of such estate, then payment of the tax
upon such deferred or remainder estates may be postponed until
the determination of the prior estate without giving bond as
herein required to secure payment of such tax, and but the tax
shall remain a lien upon such real estate until the tax upon
such deferred estate or interest is paid.
b. Security satisfactory to the department of revenue has
-2-been provided, which security includes but is not limited to a
bank or securities account with an irrevocable pay on death or
transfer on death provision naming the department of revenue
as beneficiary, or an escrow agreement with the department of
revenue under which a private attorney will act as escrow agent
and hold the escrow funds in the attorney’s trust account.
Sec. 4. APPLICABILITY. This Act applies to estates of
decedents that include a deferred estate or remainder interest
and that have not, on or before July 1, 2018, received approval
from the department of revenue to defer payment of tax pursuant
to sections 450.44 through 450.49.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
LINDA UPMEYERSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2303, Eighty-seventh General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2018______________________________
KIM REYNOLDSGovernormm/jh
requirements to qualify for a deferment of tax payment under
certain circumstances in the case of estates with a deferred
estate or remainder interest, and including applicability
provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 450.20, Code 2018, is amended to read as
follows:
450.20 Record of deferred estates.
The department of revenue shall keep a separate record of
any deferred estate upon which the tax due is not paid on or
before the last day of the ninth month after the death of the
decedent, showing substantially the same facts as are required
in other cases, and also showing:
1. The date and amount of all bonds given to secure the
payment of the tax with a list of the sureties thereon.
2. The type and amount of any security, other than a bond,
given to secure the payment of the tax.
2. 3. The name of the person beneficially entitled to such
estate or interest, with place of residence.
3. 4. A description of the property or a statement of
conditions upon which such deferred estate is based or limited.
Sec. 2. Section 450.47, Code 2018, is amended to read as
follows:
450.47 Life and term estates in personal property.
If an estate or interest for life or term of years in
personal property is given to one or more persons other than
those exempt by this chapter and the remainder or deferred
estate to others, the property devised or conveyed shall be
valued under section 450.37 as provided in ordinary estates
and the value of the estates or interests devised or conveyed
shall be determined as provided in section 450.51, and the
tax upon the estates or interests liable for the tax shall be
paid to the department of revenue from the property valued
or by the persons entitled to the estate or interest on or
before the last day of the ninth month after the death of the
testator, grantor, or donor. However, payment of the tax upon
a deferred estate or remainder interest may be deferred until
the determination of the prior estate by the giving of a good
and sufficient bond as provided in section 450.48.
Sec. 3. Section 450.48, Code 2018, is amended to read as
-1-follows:
450.48 Payment deferred — bond — exceptions.
1. When Except as provided in subsection 2, when in case of
deferred estates or remainder interests in personal property or
in the proceeds of any real estate that may be sold during the
time of a life, term, or prior estate, the persons interested
who may desire to defer the payment of the tax until the
determination of the prior estate, shall file with the clerk
of the proper district court a bond as provided herein in
other cases, such bond to be renewed every two years until the
tax upon such deferred estate is paid. If at the end of any
two-year period the bond is not promptly renewed as herein
provided and the tax has not been paid, the bond shall be
declared forfeited, and the amount thereof forthwith collected.
2. When the estate of a decedent consists in part of real
and in part of personal property, and there be includes an
estate for life or for a term of years to one or more persons
and a deferred or remainder estate to others, and such deferred
or remainder estate is in whole or in part subject to the tax
imposed by this chapter, if the then payment of the tax upon
such deferred or remainder estates may be postponed until the
determination of the prior estate without giving bond to secure
payment of such tax as required under subsection 1 if one of
the following requirements is satisfied:
a. Thedeferred or remainder estates or interests are so
disposed that good and sufficient security for the payment of
the tax for which such deferred or remainder estates may be
liable can be had because of the lien imposed by this chapter
upon the real property of such estate, then payment of the tax
upon such deferred or remainder estates may be postponed until
the determination of the prior estate without giving bond as
herein required to secure payment of such tax, and but the tax
shall remain a lien upon such real estate until the tax upon
such deferred estate or interest is paid.
b. Security satisfactory to the department of revenue has
-2-been provided, which security includes but is not limited to a
bank or securities account with an irrevocable pay on death or
transfer on death provision naming the department of revenue
as beneficiary, or an escrow agreement with the department of
revenue under which a private attorney will act as escrow agent
and hold the escrow funds in the attorney’s trust account.
Sec. 4. APPLICABILITY. This Act applies to estates of
decedents that include a deferred estate or remainder interest
and that have not, on or before July 1, 2018, received approval
from the department of revenue to defer payment of tax pursuant
to sections 450.44 through 450.49.
______________________________
CHARLES SCHNEIDERPresident of the Senate______________________________
LINDA UPMEYERSpeaker of the House I hereby certify that this bill originated in the Senate and is known as Senate File 2303, Eighty-seventh General Assembly.______________________________
W. CHARLES SMITHSONSecretary of the SenateApproved _______________, 2018______________________________
KIM REYNOLDSGovernormm/jh