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Inheritance Tax Laws of the States

Source: World Almanac Questionnaire It is customary for a person who makes a will to Judgments in civil actions for money owed are name an executor of the estate; otherwise the court lens, and as such are obligations. · may appoint an administrator. The executor named Contracts made by the deceased involving con

in a will may be exempted from giving a bond. Not tingent or direct money obligations are debts, if so an administrator,

acknowledged as proven. In the case either of an executor or an ad- Wages owed are in most of the states a debt ministrator, the disposition of the estate is subject and when proven, are a lien. to the supervision of the court, be it probate, Money or other property held in trust by the orphans, or surrogate.

deceased is an obligation. When there is no will, a person is said to have Costs of administration up to the time of settledied intestate, and an administrator takes charge. ment of an estate are obligations. New York and some other states have Public Ad- So also are expenses of the last illness, and ministrators who are paid regular salaries out of burial costs including a tomb at from $100 to $500. the public funds.

according to the State. Every estate is subject to one or more obligations Pending settlement of the estate the necessary before it can be lawfully distributed to the heirs. living expenses of the family are an obligation. These obligations consist of debts of one kind or There is a time limit on obligations. Usually, another.

claims on an estate must be submitted within one Every debt which is a lien on the property is an year, provided the creditors have been given due obligation,

notice of the debtor's death. First among such debts are taxes, federal, state, Following is a brief summary of the Inheritance or local; also mortgages on real estate.

Tax laws of the States. Alabama-A tax equal to the full amount of state State passing to any parent, grandparent, hustax (80%) permissible when levied by and paid band, wife, lineal descendant, adopted child, to Alabama as a credit or deduction in com- adoptive parent and lineal descendant of any puting any Federal Estate Tax payable by such adopted child, in excess of $10,000 in value to estate according to Act of Congress of 1926, with and including $25,000 in value, shall be liable to respect to the items subject to taxation in Ala- a tax of 2% thereof; thence up to 9%. The net bama.

estate for taxation purposes of a resident de

cedent shall be ascertained by adding to the Arizona-Husband and wife, lineal issue, lineal appraised value of the inventoried estate all

ancestor, adopted or acknowledged child; exempt, gains made in reducing to possession choses in widow, $10,000; others, $2,000; tax on first $25,- action, including notes and mortgages but not 000, 1% to $50,000, 2% to $100,000, 3%; to including corporate or governmental stocks or $500,000, 4%; over $500,000, 5%. 2d Group bonds, nor including income accruing after death; Brother sister, descendants of wife or widow and deducting therefrom losses incurred in the of son, or husband of daughter, exempt, $500; reduction to possession of choses in action, Inrates 1% up to 10%. 3d - Brother or sister of cluding notes and mortgages, but not including father or mother or descendants of such-ex- corporate or governmental stocks or bonds, nor empt, $250; rates: 3% up to 15%. 4th--Brother including income accrued after death and other or sister of grandfather or grandmother or de- items allowed as deductions by the statute. scendants of such, exempt, $150; rates: 4% up To the husband or wife of any child, stepchild. to 20%. 5th-Any other degree of consanguinity

brother or sister of the full or half blood and to or stranger in blood, or a body politic or corpo- any descendant of such brother or sister in exrate, exempt $100; rates: 5' up to 25%. Rates cess of $3,000 in value to and including $25,000 where death occurred after July 1, 1937, from 2, in value shall be liable to a tax of 3% thereof; to 20%.

thence up to 10%; to any other person, corpora

tion or association not included above in excess Arkansas-To parents, husband or wife, child, of $500 in value to and including $25,000 in vahe

adopted or foster child, lineal descendant and shall be liable to a tax of 6' thereof; thence up ascendant, son-in-law or daughter-in-law, 10

to 13%. on first $5.000. Then from 2 to 10%. Brother or sister including half-blood, 2%. Then 4% to

Delaware-To grandparents, parents, child or de 20'. To all others the rate on the same amount

scendant, son- or daughter-in-law, or adopted is 4. Then 8. to 40%. Exemptions- $6,000

child, $3,000 exempt; to husband or wife, $20,000 to widow; $4,000 to a minor child; $2,000 to all

exemption, Rates on excess, 150 up to $30,000; others. No exemptions to nephews, nieces,

in respect to husband and wife, 1 up to $27.strangers in blood, etc. Bequests to charitable,

000 to others, thence up to 45. To brother or religious and educational institutions and in

sister of the whole or half blood, uncle, aunt, surance exempt in the latter case, however, only

niece or nephew, grandniece or grandnephew, or when it passes to a direct descendant or de- first cousin, $1.000 exemption. Rates on excess, scendant of the deceased or to a widow of the 2' up to $24,000, thence up to 5%. To others deceased.

and to non-blood 5% up to $25,000, thence up

to 8. Exemptions--Any property, estate or inCalifornia--Husband ($5,000 exemption); wife terest devised or bequeathed for charitable, edu($24,000 exemption); minor child ($12,000 ex

cational, library, hospital, historical or religious emption); adult child ($5.000 exemption): lineal purposes or for purposes of public benefit or im ancestor lineal issue ($5,000 exemption), tax provement. then ranges from 2 to 10%.

Brother, sister, or dependant of either, or wife District of Columbia-Where the decedent died or widow of a son or husband of a daughter prior to July 27, 1939, father, mother, husband, thereof, $2,000 exemption); tax then ranges from

wife, children by blood or legally adopted, lineal 5 to 15

descendants or ancestors of decedent, exemption Uncle or aunt or descendant thereof ($500 ex- $5,000, 1% on balance; to brother, sister, nephew emption) with tax above that 6% to 15%.

or niece, whole or half blood, $2,000, 3% on balOthers named as heirs ($50 exemption). tax ance; to grandnephew or grandniece of decedent then varies from 7% to 16€.

and all others, $1,000. 5% on balance. The One half of the community property passing schedule of beneficiaries' exemptions and rates to the wife is exempt and all thereof passing to

where the decedent died on or after July 27 the husband.

1939: Class A, each beneficiary an exemption 01

$5,000, on balance, to $50,000, 12; to $100,000 Colorado-The exemptions are $20,000 for the 2; to $500,000, 3%; to $1,000,000, 4%; all over widow; $10,000 for husband, child, adopted child, 5%; Class B, brother and sister of the whole or or any lineal descendant; $2.000 for wife or half blood of the decedent, $2,000; to $25.000, 3; widow of son, widower of daughter, grandparent, to $50,000, 4%; to $100.000, 66; to $500,000, 8c brother, sister, mutually acknowledged child all over, 10%: Class C, any person other than $500 for all others who inherit $500 or less, but those included in Classes A and B, and any firm, if they inherit more than $500 they pay on institution, association or corporation (unless exall they get. The tax ranges from 2 per cent empt under Class D). $1,000; to $25,000, 576; to to 16 per cent, according to the degree of rela- $50,000, 7%; to $100,000,9%; to $500,000, 12%; tionship and the size of the inheritance. The all over, 15%. Class D, entireiy exempt, is on legislature in 1935, amended the Law so that tax property transferred exclusively for public or exemptions to charitable gifts is limited to use municipal purposes, to the United States or the in Colorado.

District, or exclusively for charitable, educa

tional or religious purposes within the District. Connecticut-The net estate of any resident of this All property and interest therein which shall pass from a decedent to the same beneficiary and all ers $2,000; 2nd class exemption is $500; 3rd class beneficial interests which shall accrue shall be $100. united and treated as a single interest for determining the tax.

lowa-Direct inheritance-Over exemption grad. In addition there is a transfer tax on the

uated tax begins at 1% on the first $10,000, and estate of every decedent who, after Aug, 18, 1937,

rises to 8% on all sums in excess of $200,000, dies a resident of the District of Columbia, equal

when the estate goes to wife, husband, children,

or other next of kin. To brother, sister and to 80% of the Federal Estate tax imposed under the 1926 Federal Revenue Act, less credit for

the like the tax ranges from 5% to 10%; 10% to

15% in the case of other heirs. Exemptions estate, inheritance, legacy or succession taxes lawfully imposed by any State or Territory of the

Husband or wife, $40,000; each child, including United States and inheritance taxes imposed by

grandchildren, $15,000; any other direct heir or

Iineal descendant, $5,000; father or mother, the District of Columbia. A similar tax is im

$10,000. posed on the estates of non-residents in the proportion that the value of real and tangible Kansas-To husband, wife, lineal ancestor, lineal personal property located in the District of descendant, adopted child or lineal descendant of

Columbia bears to the value of the entire estate. adopted child, wife or widow of a son, or husband Florida-The Estate Tax Law, Chapter 16015, Laws

of a daughter, on first $25,000, 1%; thence up to of Florida, 1933, Approved June 7, 1933, is an

5% (except in case of surviving spouse when

rates are one-half those mentioned). Το estate tax law designed to absorb the credit al

brothers and sisters on first $25,000, 3%; thence "lowed by the Federal Estate Tax Law. As applied to the estates of decedents of Florida, the

up to 12!2%. To persons in other degrees of

collateral consanguinity, strangers or others not amount of the tax is the difference between the

included above, on first $25,000, 5% thence up credit allowed under the Federal law and the amount of estate or inheritance taxes paid to

to 15%. Exemptions to surviving spouse, $75,000 the States of the United States. The tax upon

to others of Class A, $15,000; to each member of the estate of non-residents of the State of Fior

Class B, $5,000. Members of Class C have no

exemption. Rates above named are charged only ida is an apportioned amount of the allowable credit under the Federal Act based upon the

on amounts in excess of exemptions allowed;

when the share is less than $200 in excess of the ratio of the property situate in Florida to the

exemption no tax is charged. entire estate wherever situate. Similar provisions

Exemptions and apply to non-residents and aliens. Estates af

allowances if only a part of the estate is in

There fected by the new law are those whose owners

Kansas, are in proportion to that part. died after Nov. 4, 1930. There is an exemption

is a 10-year statute of limitations on the col

lection of taxes. of $100,000 to residents. Georgia--Eighty per cent of the amount due as

Kentucky--The Inheritance Tax Law which beFederal Inheritance Tax (1926 Act) amended

came effective April 24, 1936, places the surviv. (1941) and the Act approved by the Governor

ing spouse, child by blood, stepchild, adopted

child (if adoption shall have occurred during in(Mar. 18, 1941) whereby tax now applies to estate of a person who may die a non-resident of fancy), and grandchild, if the issue of a deceased

child, in Class A: parent, brother, sister, brother state, whereas the original Act applied only to

or sister of the half blood, nephew, niece, daughthe estate of a person who may die a resident

ter-in-law, son-in-law and grandchild, being of the state. The exemption under that Act is

the issue of a living child, in Class B; and all $100,000. If the estate is not subject to the

other persons not included in either of the other Federal Tax, no tax is assessed by the State.

classes, and corporations, except educational, reIdaho--Tax on estates less than $25,000 at follow- ligious or other institutions, societies or asso

ing rates: To husband or wife, lineal issue or ciations, whose sole object and purpose are to ancestor, adopted child or issue, 2% exempt carry on charitable, educational or religious to widow, $10,000; to minor child, $10,000; to work within the state, and cities and towns or others of this class, $4,000. To brother or public institutions in the state when the transsister, or their descendants, or wife of son, or ters are to be used for public purposes, which husband of daughter, 4%; exempt $1,000. To are exempt, are in Class C. Amount of tax uncles, aunts or descendants, 6%; exempt, $500. runs from 2% to 16% on Class A; from 4% to To others, 8%; no exemption. The tax in the 16% on Class B; from 6% to 16% on Class C. case of husband, wife, lineal issue, etc., rises

Exemptions-The wife or Infant son or daughter

receive an exemption of $10,000; but if the transto 15 per cent, according to the value of the inheritance, and to others the rates range

fer exceeds $30,000 the exemption shall be defrom 4% to 30%. The tax on intangible per

creased by subtracting from $10,000 the amount sonal property is not imposed when the de- by which the distributable share exceeds $30,000, cedent lived in a state other than Idaho where

so that a distributable share greater than $40,there was no tax on such property. (See New

000 shall receive no exemption. All other perYork.)

sons of Class A receive an exemption of $5,000;

but if the transfer exceeds $15,000 the exempMlinois-Class A, father, mothetr, lineal ancesctor,

tion shall be decreased by subtracting from husband, wife,

child.

adopted or mutually $5,000 the amount by which the distributable acknowledged child, brother, sister, wife or

share exceeds $15,000 so that a distributable widow of son, husband or widower of daughter,

share greater than $20,000 shall receive no exlineal descendant-in excess of exemption---to

emption. If the decedent be not a resident of $50,000, 2%; $50,000 to $150,000, 4%; to $250,000, the State of Kentucky, but of the United States, 6%; to $500,000, 10%; over $500,000, 14%. Class

the exemption shall be the same proportion of B, uncles, aunts, nieces, nephews of lineal de

the allowable exemption in the case of residents scendants of the same, in excess of exemption

that the property taxable by Kentucky bears to to $20,000, 6%; $20,000 to $70,000, 8%; $70,000 the whole property transferred by the decedent. to $170,000, 12%, over $170,000, 16%. Class a, Those in classes B and C are not allowed exempall others except Class D (which consists of gifts

tions. In each case the exemption must be taken for hospitals, religious, educational, Bible, mis- out of the first $10,000 inherited and the tax on sionary, tract, scientific, benevolent or charitable

the remainder, if any, on the first $10,000 shall purposes within the State, and all transfers to

be computed at the rates provided. All shares or for the use of the State of Illinois or any of of stock in corporations organized under the law its institutions, municipal corporations or po- of the State, belonging to persons whose domicile litical subdivisions for public purposes, entirely is in a country foreign to the United States or exempt)-in excess of exemption--to $20,000, 10%; its possessions shall on the death of the owner to $50,000, 12% $50,000 to $100,000, 16%; to $150,

be subject to a tax of 5% of its actual value. 000, 20%; to $250,000, 24%; over $250,000, 30%. Exemptions-Class A, $20,000, except to brother Louisiana-To direct descendants by blood or affinand sister, $10,000; Class B, exemption is $500; ity, ascendant or surviving spouse in excess of Class C, $100.

$5,000, $5,000 to $20,000, 2%; over $20,000, 3%. Indiana-Tax is on the excess above exemption,

To a collateral relation (including brothers or three classes. First includes husband, wife, lineal

sisters by affinity), in excess of $1,000, on ancestor, lineal descendant, legally adopted child

amount in excess of $1,000, $1,000 to $20,000, 5%; or child to whom the transferer for not less than

in excess of $20,000, 7%. To a stranger, in ten years stoc in the mutually acknowledged

excess of $500; on amount in excess of $500, relationship of parent. Second, brother, sister

up to $5,000,5%; in excess of $5,000, 10%. or a descendant of a brother or sister, wife or

Exemptions-To direct descendants, ascendant or widow of a son or husband of a daughter. Third,

surviving spouse, $5,000; to collateral relations, all others. Amount of tax runs from 1% to 10%

$1,000; to a stranger, $500. All legacies and on the first class; from 6% to 15% on the sec

donations to charitable, religious or educational ond class; from 1% to 20% on the third class.

institutions located in State entirely exempt. Exemptions are in the first class, wife $15,000, Maine-To husband, wife, lineal ancestor, linea: children of decedent under 18 years, $5,000, oth- descendant, adopted child, adoptive parent. wife

or widow of a son or husband or widower of a ter; (6) Uncle or aunt by blood or descendant daughter of a decedent, the rates are as follows: thereof; (7) Any other relative or a stranger in Up to $50,000, 2%, thence up to 6%; $10,000 ex- blood to decedent or a corporation except those emption, in each case, to husband, wife, father, included in Class 8, which includes the State mother, child, adopted child, or adoptive parent of Minnesota or any political division for public or child or children of a deceased child, by repre- purpose, religious, charitable, scientific, educasentation; $500 in each case, for any others in tional body, cemeteries, etc., all within the State Class A. To brother, half brother, sister, half of Minnesota- totally exempt. Other exemptions: sister, uncle, aunt, nephew, niece, grandnephew, Classes (1) $10,000; (2 and 3) $5,000; (4) $3,000; grandniece, or cousin of a decedent, in excess of (5) $1,000; (6) $250 and (7) $100. Primary rates: an examption of $500, from 5% in excess of ex- First $15,000, including exemption, 1%; next emption to $25,000 to 12%. For all others, in $15,000, 2%: then $20,000, 3%; $50,000, 3926; excess of an exemption of $500, from 10% on first next $600.000, 4% to 9% (1% added for each $50,000, thence up to 16%. Charities are exempt. $100,000 thereof); $400,000, 10% and 11% (1 The Maine law takes advantage of the 80% credit added for each $200,000 thereof); all over, 12%. allowed under the Federal Tax Law.

Primary rates apply to Classes 1 and 2: for

Classes 3 and 4, 112 times the primary rate; Maryland --Direct, 1%; collateral, 72% (law of Class 5, 3 times; Class 6, 4 times; Class 7. 5

1935). The collateral applies to all distributees times. Life insured in excess of $32,500 and gifts except parents, spouse or lineal descendants of in contemplation of death are subject to tax. decedent, and except the State of Maryland, or Property placed in joint tenancy before April any city or county thereof. Bequests up to $500 1935 taxable at one-half the value of the propfor perpetual upkeep of graves are also exempt. erty; after that date at full value of property: The tax is payable by the executor or adminis- exempt insofar as surviving joint tenant furtrator but out of the distributive shares. Legacies nished consideration. or bequests up to $100 are exempt. Effective Oct. Reasonable expenses of administration, last 1, 1941, this exemption increased to $150, and sickness, claims against decedent duly allowed extends to any property passing. Joint accounts as such, family maintenance as allowed by court, In banks, building associations and property held not exceeding $5,000, federal and state taxes, jointly are taxed. the exemption being husband taxes which have accrued or are a lien on and wife not only as tenants by the entirety but property in the estate at date of death shall be as joint tenants as well.

allowed as deductions in the amount allowed by

probate court having urisdiction before comMaryland-Estate Tax--The only other inheritance puting the tax. Total tax limited to 35% of

tax (except the tax on commissions of an executor property transferred. or administrator.) This is imposed only on estates Minnesota has an estate tax law which makes large enough to be subject to the Federal Estate up the difference between the inheritance tax Tax. The tax payable to Maryland equals the and the 80% credit allowed by the Federal amount of the credit allowable under the federal Government under the 1926 act. law for taxes paid to the State.

The state has a gift tax act which became law

July 16, 1937 which provides for an annual exMassachusetts-No inheritance tax on share of

clusion of $2,500 for any gift, except future husband, wife, father, mother, child, adopted

interest, made to any number of donees during child or adoptive parent unless they receive in

the calendar year. In addition to the annual excess of $10,000, in which case the rate is 1%

exclusion, the donor has an exemption for gifts on the first $10,000; 2% on next $15.000; 3% on made to particular donees equal to those pronext $25,000; 4'on next $50,000; 5'70 on next vided for in the inheritance tax law. Gift tax $150,000, and so on up to 9 on excess over rates are in all cases 34 of the inheritance tax $1,000,000. Grandchildren are taxable if they re

rates; classifications the same as for inheritance ceive over $1,000 at above rates. Anybody may re

tax, except that donees of the 7th Class have no ceive $1,000 free from State inheritance tax. If

exemption. Total tax is limited to 35% of value brother, sister, half brother, half sister, nephew, of property in excess of exemption, niece, step child or step parent receive more than $1,000, entire amount subject to inheri- Mississippi-By the 1928 law the tax on the tance tax; 4% on $10.000; 62, next $15,000; 8%, net estate of a decedent ranges from four-fifths next $25,000; 10%, next $50,000; 11%, next $150,- of 1 per cent for estates not in excess of $50,000, 000, and so on to 15' on excess over $1,000,000. to 16 per cent of the amount by which the net Rates for other classes of heirs range from 2% estate exceeds $10,000,000. For the purposes of to 15%.

the tax the value of the taxable estate is deterAmounts are taxable for the "full" amount at mined (law of 1934), in the case of a resident, by the various rates, except that the property can- deducting $50,000 from the difference between not be reduced by taxation below $10,000 or the deductions allowed, and the gross estate. $1,000 respectively. Death Taxes paid to the several states are credited against Federal Estate

Missouri-To husband or wife, $20,000; insane and Taxes up to 80% of Federal Estate Taxes under

blind lineal descendants, $15,000; lineal ancestor the 1926 Federal Act.

of descendant, adopted child or its descendant,

or illegitimate child, $5,000 in exemptions; all Michigan-Four rates-1. Beneficiaries, grand

over 1% up to 6% on over $400,000. To brother, father, grandmother, father, mother, husband,

sister or their descendants, son- or daughter-inwife, child, brother, sister, wife or widow of son

law, $500; aunt, uncle or their descendants, $250; or husband of daughter, adopted and mutually

all over, 3% up to 18%. To brother or sister of acknowledged child, provided such relationship

grandparents or their _descendants, $100; all began at or before child's 17th birthday and con

over, 4% up to 24%. To all others, including tinued until death of such decedent, granter,

foreign, charitable and religious bequests. 5% etc., or any lineal descendant exempt up to

up to 30%. If less than $100 not taxable. $5,000; wife or husband up to $30,000, with an additional $5,000 to the widow for each minor

Montana-Widow, exemption $17,500; rate on 1st child to whom no property is transferred. 2. In

$25,000, less exemptions, 2%; thence up to 8%. heritance tax is based on the total to each bene

Husband, exemption, $5,000; lineal ancestor or ficiary's interest therein and not to the entire

descendant, adopted child or lineal issue of

adopted estate of the decedent less exemptions, at the

child-exemption, $2.000—rates over rate of 2% on the first $50.000, thence up to 8%

exemption same as for widow. Brother or sister provided that that portion of the property so

or descendant, son's wife or daughter's husband,

exempt, $500_rates 4% to 16%. Uncle, aunt or transferred consisting of Real Estate shall be taxed at 34 of the rates specified. 3. In all other

first cousin, no exemption; rates, 6% to 24%; cases 10% on the first $50,000, then up to 15%.

any other degree of relationship, no exemption, 4. In the event that the total of the inheritance

8% to 32%. All property transferred for public taxes imposed by this act do not equal or exceed

or charitable purposes within the State, is ex80% of the amount of the tax imposed by the

empt. Federal Revenue Act of 1926. an additional Nebraska-Parent, spouse, child, brother, sister, amount to equal 80% of said tax shall be added.

son-in-law, daughter-in-law, lineal descendant, Minnesota--In estates of persons dying on or

exemption, $10,000, 1% on all additional; to uncle, after April 1927--Eight classes of beneficiaries:

aunt, niece, nephew, or their lineal descendants, (1) Wife, minor or dependent child. minor or

exemption, $2,000; on all other, 4%; others, 1st dependent adopted child; (2) Adult child, adult

$5,000, 4%; to $10,000, 6%; to $20,000, 8%; to adopted child, lineal issue of adopted child,

$50.000, 10; all over, 12%. Charitable and lineal descendant of decedent; (3) Husband.

similar institutions are not taxable. Estates of

less than $500 are entirely exempt. mutually acknowledged child or lineal issue thereof; (4) Father, mother or other lineal an

Nevada-Law repealed in 1925. cestors; (5) Brother, sister, or descendant thereof; wife or widow of a son, husband of a daugh- New Hampshire-All property within the jurisdic

tion of the state, real, or personal, and any interest therein, belonging to inhabitants of the state, and all real estate within the state, or any interest therein, belonging to persons who are not inhabitants of the state, which shall pass by will, or by the laws regulating intestate succession, or by deed, grant, bargain, sale or gift, made in contemplation of death, or made or intended to take effect in possession or enjoyment at or after the death of the grantor or donor, to any person, absolutely or in trust, except to or for the use of the husband, wife, lineal descendant, or adopted child of a decedent, or for the care of cemetery, lots, or to a city or town in this state for public purposes, shall be subject to a tax of 812% of its value, for the use

of the state. New Jersey-Effective on and after June 2, 1937.

To father, mother, grandparents, husband, wife, child, grandchild, lineal descendant, adopted child and issue, mutually acknowledged child and step-child, 1% on any amount over $5,000 and up to $50,000, and so on up to 16% on any amount over $3,700,000. To brother or sister or daughter-in-law or son-in-law, 5% on any amount up to $300,000, and so on up to 16% on any amount in excess of $2,200,000. To churches, hospitals, orphan asylums, public libraries, Bible and tract societies, religious, benevolent and charitable institutions, for religious and charitable uses and purposes as well as to institutions, 5% on any amount over $5,000. To every other beneficiary, distributee, or transferee, 8% on any amount up to $900,000, and so on up to 16% in excess of $1,700,000. To State of New Jersey, municipal corporations within State or other political division thereof, entirely exempt. The act also exempts property derived by a deceased soldier's estate from the Federal Government by reason of military service, and deems all persons to have been born in lawful wedlock

The exemption to the widow, husband, child, lineal issue, is $5,000. A legacy of less than $500 to anyone is not taxable. By the 1929 law exemption from the inheritance tax is granted to the proceeds of life insurance policies transferred under trust deeds or agreements. All the debts and expenses are first deducted from estate before calculation of tax, so the tax would be payable out of the balance of the estate after payment of obligations.

New Jersey also has an Estate Tax Act, applying to estates of deceased residents on and after June 22, 1934, in certain cases in addition to any inheritance, succession or legacy taxes imposed by the State of New Jersey under authority of any other act or acts of that State, in order to obtain the benefit of the credit allowed under the federal revenue acts pertaining to federal estate taxes.

It also applies prior to said date in those estates of descendants dying subsequent to Feb. 26, 1926, which are still in process of settlement and subject to jurisdiction of courts of probate in state and in which inheritance taxes remain

unpaid. New Mexico-To father, mother, husband, wife,

lineal descendant, legally adopted child, on amount over exemption, 1%; and an additional tax of 112% on grantee or donee in conveyance taking effect upon death. To wife or widow of son, husband of daughter, lineal descendant or adopted child, brother or sister, on amount over exemption, 5%, and an additional 3% on grantee or donee in conveyance taking effect upon death. To other collateral kindred, strangers to the blood, corporations, voluntary associations or societies, in amount over exemption, 5%, and on additional tax on grantee or donee in conveyance taking effect upon death, 3%. The exemptions are $10,000 in the first two classes of

heirs, and $500 to the last class. New York-Resident-Under the new law, in ef

fect Sept. 1, 1930, an exemption of $20,000 is allowed on property inherited by a husband or wife. To a lineal ancestor or descendant, adopted child, step-child, or lineal descendant of adopted child or step-child, or to a brother or sister, or to the wife or widow of son, or to the husband or widower of a daughter, or to any child to whom the decedent for not less than 10 years prior to such transfer stood in the mutually acknowledged relation of a parent; provided. however, such relationship began at or before the child's 15th birthday and was continuous for 10 years thereafter, the exemption is $5.000. All net estates under $2.000. after deduction of the foregoing exemptions, are exempt after March 21, 1932.

The normal inheritance tax on the net estate,

after allowing for the exemptions is–0.80% on a valuation up to $150.000; 1.60% up to $200,000; 2.40% up to $300,000; 3.20% up to $500,000; 4% up to $700,000; and so on up to 16% of the amount by which the net estate exceeds $10,100,000.

This normal rate is applicable to net estates of those dying on or after September 1, 1930, and prior to April 22, 1933. Unless further change is made in the law it will also be applicable to the estates of those dying on and after July 1, 1942. A 1933 law and subsequent similar laws, increases the rate 25% on net estates of those dying after April 22, 1933, and prior to July 1, 1942.

The temporary rates on the net estate after allowing for the exemptions are 1% on a valuation up to $150,000; $2% up to $200,000; 3% up to $300,000; 4% up to $500,000; 5% up to $700,000; and so on up to 20% of the amount by which the net estate exceeds $10,100,000.

The tax is to be paid by the executor, who collects from the heirs, pro rata. Though due at death, a discount of 5% is allowed if paid within 6 months.

A 1929 law, effective on Sept. 1, 1930, eliminates all distinction between the sexes and between real and personal property in so far as the descent and distribution of property are involved: abolishes dower and courtesy: prohibits a man or woman from disinheriting the surviving spouse; limits to one-half the amount of the estate (as of the date of testator's death) which may be given to charity; and gives an executor the right to sell real estate unless that right is expressly withheld in the will (does not affect wills made prior to Sept. 1, 1930).

After Sept. 1, 1930, executors and trustees were able to compromise and finally pay any transfer tax, the final payment of which had been awaiting the happening of some contingent event. This privilege, of course, applies only to those estates where the contingent tax had not been finally determined and paid, prior to Sept. 1, 1930, or with respect to which the contingency shall not have happened, prior to that date.

In 1931, the Legislature, on the recommendation of the Decedent Estate Commission, shortened the period for administration and distribution of estates from one year to 7 months. It made certain other changes in the law of es

tates. North Carolina-To husband or wife, lineal issue

or lineal ancestors, adopted child. Exempt, $10,000 to widow, $5,000 to minor child, $2,000 to others of this class. Rates on excess, 1% up to 12%. To brothers, sisters, aunts and uncles of the decedent, and descendants of brothers and sisters, but not descendants of aunts and uncles, 4% up to 16%. To other inheritors more remote the rates range from 8% to 17%.

North Dakota-On the net estate the tax is 2%

up to $25,000 and rises gradually to 23% of the amount over $1,500,000. All insurance in excess of $20,000 payable to the estate is included in gross estate. In determining net estate deductions from gross are allowed on account of exemptions to husband or wife of the amount received, not exceeding $20,000; and to each lineal ancestor or descendant the amount received, not exceeding $2,000 (if a minor, $5,000). Deductions are allowed for devises or bequests to or for the use of any public institution for exclusively public purposes, or to or for the use of any corporation, institution, society or association whose sole object and purpose is to carry on charitable, educational or religious work; also Federal estate taxes paid and not refunded. State and Federal income taxes on the

income of the decedent to the date of his death. Ohio-To wife or minor child, on $25,000 or part

thereof, over exemptions, 1%; thence up to 4%. To widower, adult child, adopted child, lineal descendants, on $25,000 or part thereof, over exemptions, 1%; thence up to 4%. To brother, sister, niece, nephew, wife or widow of a son, husband of a daughter, or child treated as son or daughter for ten years though not legally adopted on $25,000 or part thereof, over exemptions, 5%; thence up to 8%. To other persons, institutions or corporations, on $25,000 or part thereof, 7%; thence up to 10%. Exemptions-To wife or minor child, $5,000; to father, mother, husband, adult child, adopted child, or lineal descendants, $3,500; to brother, sister, nephew, niece, wife or widow of son, husband of daughter, "or any child to whom the decedent for not less than ten years prior to the succession stood in the mutual acknowledged relation of parent, $500.

Oklahoma-The value of the estate shall include

or mutually acknowledged for not less than ten the homestead in excess of a value of $5,000 years or lineal issue of such, 2%: to brother or which shall pass to a surviving spouse or minor sister, or descendant, a wife or widow of a son child, and shall also include excess over $20,000 or husband of a daughter, 3%. To brother or of the amount receivable directly, in trust, or sister of father or mother, or a descendant of as annuities by all beneficiaries of the proceeds a brother or sister of the father or mother of of life insurance by virtue of policies under which decedent, 4%; to any person or persons in any the insured has the right to change the benefi- other degree than as above, or strangers, or a ciary except as to proceeds of war risk insurance, body politic or corporate, 5%. Over $15,000 and policies issued pursuant to the World War Vet- up to $50,000, two times the primary rate, $50,erans Adjusted Compensation Act and proceeds 000 to $100,000, 3 times; in excess of $100,000 4 from payment of any Federal gratuity to the times the primary rate. Exemptions-Property veteran of any War in which the United States transferred for public or charitable purposes; was engaged. A $15,000 personal exemptio is property of clear value of $10,000 transferred to granted an estate receivable by father, mother, widow or husband of decedent, each lineal issue, wife, husband, child. adopted child or any lineal or adopted or mutually acknowledged children descendant of decedent or such adopted child. and issue of such, lineal ancestors of decedent,

The rate of taxes upon the net estate and exemption, $3,000; $500 exemption to brother or transfers shall be at the following rates: 170 sister of decedent, or descendants of such, wife to $10,000; thence up to 10%.

or widow of son or husband of daughter; $200 In the event the State estate tax shall not equal exemption to brother or sister of father or moth80% of the 1926 Federal Estate Tax, then there is er or descendants of such; $100 exemption to

levied an additional tax equal to the difference. others. Oregon--To grandfather, grandmother, father, Tennessee To husband, wife, son, daughter, lineal mother, husband, wile, child, or stepchild, or

ancestor or lineal descendant, legally adopted any lineal descendant (exemption $10,000), $10,- child and lineal descendant of such adopted 000 to $25,000, 170; thence up to 15%. To brother,

child, from $10,000 to $25,000, 1% thence up to sister, uncle, aunt, niece, nephew, or lineal de

(A maximum single exemption of $10,000 scendant (exemption $1,000), additional

tax,

against that portion of the net estate distribu$1,000 to $3.000, 14; thence up to 20%. Addi

table to one or more of the beneficiaries of this tional tax in all other cases, exemption $500; $500

class is allowed.) To any other relative, person, to $1,000, 4%, thence up to 25%. Effective on

association or corporation, from $1,000 to $50,000, and after June 9, 1933.

54, thence up to 15%. (A maximum single exPennsylvania-Transfer. Inheritance Tax Act of emption of $1,000 against that portion of estate

1919, imposing a tax on value of estate passing distributable to one or more beneficiaries of this to direct and collateral heirs. To father, mother, class is allowed, provided no exemption is allowed husband, wife, children, lineal descendants, against the estate of a non-resident decedent legally adopted children, step-children or the and no exemption or deduction shall be made on wife or widow of a deceased son, or from the account of dower or courtesy.) In the case of mother of an illegitimate child, 296; to all estates of non-residents, the exemption shall be others, 10%; the only exemption allowed is the apportioned in the ratio that the value of the widow's exemption of $500.

property included in the gross estate, to-wit,

properly, the transfer of which is subject to the Rhode Island ---Estates under $10,000 tax exempt

tax imposed hereby, bears to the value of all the (above said sum a general tax of 1% is im

property that would have been included in the posed in addition to the rates specified below,

gross estate if the decedent had been a resident with an additional tax of 2% on such portion as

of this Ştate; provided that, in any event, such it may be necessary to postpone the assessment

proportionate part of the exemption shall not be of taxes imposed until the beneficiaries come into

less than is permitted by the Constitution of the possession of their inheritance). Tax on legacy or United States. share of distribution-To grandparent. parent, adoptive parent, husband, wife, child, son- and Texas-To husband or wife direct, or any direct daughter-in-law, adopted child mutually ac- lineal descendant of husband, or any direct knowledged child, lineal descendant, $10,000 is lineal descendant of husband or wife, or any exempt. Rates on excess are: 1% below $25,000; direct lineal descendant or ascendant of the 2%, $25,000 to $50,000; 30, $50,000 to $250.000; decedent, or to any adopted child of decedent or 4', $250,000 to $500,000; 5, $500,000 to $750,- to husband of daughter, or wife of son, an ex000; 60, $750,000 to $1,000,000, thence 7% on all

emption of $25,000, and a graduated tax of 1% over $1,000,000. To stepchild, stepparent, brother,

to 6%. If to religious, educational or charitable sister, whole or half blood, nephew, niece, $5,000 organizations in State, bequest to be used within is exempt. Rates on excess are: 2 below $25.000;

State, all is exempt. If to a governmental unit, 3', $25.000 to $50.000; 45, $50,000 to $250.000; National or State, it is the same as to husband or 5%, $250,000 to $500,000: 6%, $500,000 to $750,- wife, provided any bequest to the U. S. be spent 000; , $750,000 to $1,000,000; thence 8% on all in the State of Texas. To brother or sister over $1,000,000. To others more remote, $1,000 of decedent or lineal descendant of such, in exis exempt and rates on excess are: 5 up to cess of $10,000, tax from 3% to 10%. To uncle $25,000; 6, $25,000 to $50,000; 7%. $50.000 to or aunt of decedent or descendant of such, in $250.000; 8%, $250,000 to $500,000; 9%, $500,000 excess of $1,000, tax from 4% to 15%.

To any to $750,000; 10%, $750,000 to $1,000,000; 11% other person or organization tax of from 5% to above $1,000,000. Bequests to corporations ex- 20%, beginning at $500. Bequests to persons not empt by charter or by general laws are exempt related to the deceased are subject to the tax under inheritance tax law.

even if the bequest is to be used in the State An additional tax is imposed on the transfer (1931 Amendment). The Legislature in 1933 of net estates, conformably with the Federal passed an act effective August 31, 1933, taxing Estate Tax credit provision, at classified rates, estates to the extent of 80% of the Federal Esbeginning with 1.046 on estates over $250.000 tate Tax (1926 Federal Revenue Act) which are and ranging to 14.92% on estates over $10,000,- exempt on account of the net estate not exceed000.

ing in amount the total exemptions allowed. South Carolina-To husband, wife, minor child,

This new statute also provides for an additional minor grandchild, adult child, adult grand

tax on estates previously taxed in an amount children, father or mother, on amount in ex

equal to the difference between the sum of such cess of exemption; up to $20,000, 1%; thence up

taxes due or paid the State and 80% of the total to 6%. To lineal ancestor, lineal descendant

sum of the Federal Estate Tax. (other than above), brother, sister, uncle, aunt, niece, nephew, wife or widow of son, or husband Utah-$10,000 of each estate exempt; tax 3%. of de ghter, on amount in excess of exemption,

$10,000 to $25,000; 5% $25,000 to $75.000; 8% up to $20,000, 2); thence up to 7%.

To any

above that to $125,000; 10% of the amount by other beneficiary. double above rates, viz., 4%

which the net estate exceeds $125,000; provided. to 14%. Exemptions-Husband or wife, $10,000;

at the discretion of the tax commission, the tax. minor child. $7,500; adult child, father or moth

payer may choose to pay in kind on an estate or er, $5,000; Dneal ancestor or descendant, brother, any portion thereof which is not liquid. sister, uncle, aunt, grandchild, etc., $500; any other beneficiary, $200. Devises or bequests for

Vermont-To husband, wife, child, father, mother educational, religious or public charities in this

or grandchild, wife or widow of a son or husState, or for city or town for public purposes,

band of a daughter, child adopted during min. entirely exempt.

ority, stepchild or other lineal descendant, no

tax unless legacy or share exceeds $10.000; beSouth Dakota-Primary rates: To wife or lineal tween $10,000 and $25,000, 1%; thence up to issue, up to $15,000 on excess after deducting ex- 5. To all others, 50. Exemptions, devises or emptions from $15,000, 1900; to husband, lineal bequests to corporation or organization created ancestor of decedent or any child legally adopted, and existing under the laws of the State and

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