§560:2-205  Decedent's nonprobate
transfers to others.  The value of the augmented estate includes the value
of the decedent's nonprobate transfers to others, not included under section
560:2-204, of any of the following types, in the amount provided respectively
for each type of transfer:



(1)  Property owned or owned in substance by the
decedent immediately before death that passed outside probate at the decedent's
death.  Probate included under this category consists of:



(A)  Property over which the decedent alone,
immediately before death, held a presently exercisable general power of
appointment.  The amount included is the value of the property subject to the
power, to the extent the property passed at the decedent's death, by exercise,
release, lapse, in default, or otherwise, to or for the benefit of any person
other than the decedent's estate or surviving spouse or reciprocal beneficiary;



(B)  The decedent's fractional interest in
property held by the decedent in joint tenancy with the right of survivorship. 
The amount included is the value of the decedent's fractional interest, to the
extent the fractional interest passed by right of survivorship at the
decedent's death to a surviving joint tenant other than the decedent's
surviving spouse or reciprocal beneficiary;



(C)  The decedent's ownership interest in
property or accounts held in POD, TOD, or co-ownership registration with the
right of survivorship.  The amount included is the value of the decedent's
ownership interest, to the extent the decedent's ownership interest passed at
the decedent's death to or for the benefit of any person other than the
decedent's estate or surviving spouse or reciprocal beneficiary.  As used
herein, "ownership interest" is determined by dividing (i) the sum of
all the decedent's deposits to the account, including deposit life insurance
proceeds added to the account on account of the decedent's death, less all
withdrawals made by or for the benefit of the decedent, by (ii) the sum of all
deposits to the account;



(D)  Proceeds of insurance, including
accidental death benefits, on the life of the decedent, if the decedent owned
the insurance policy immediately before death or if and to the extent the
decedent alone and immediately before death held a presently exercisable
general power of appointment over the policy or its proceeds.  The amount
included is the value of the proceeds, to the extent they were payable at the
decedent's death to or for the benefit of any person other than the decedent's
estate or surviving spouse or reciprocal beneficiary;



(2)  Property transferred in any of the following
forms by the decedent during marriage:



(A)  Any irrevocable transfer in which the
decedent retained the right to the possession or enjoyment of, or to the
income from, the property if and to the extent the decedent's right terminated
at or continued beyond the decedent's death.  The amount included is the value
of the fraction of the property to which the decedent's right related, to the
extent the fraction of the property passed outside probate to or for the
benefit of any person other than the decedent's estate or surviving spouse or
reciprocal beneficiary;



(B)  Any transfer in which the decedent created
a power over income or property, exercisable by the decedent alone or in
conjunction with any other person, or exercisable by a nonadverse party, to or
for the benefit of the decedent, creditors of the decedent, the decedent's
estate, or creditors of the decedent's estate.  The amount included with
respect to a power over property is the value of the property subject to the
power, and the amount included with respect to a power over income is the value
of the property that produces or produced the income, to the extent the power
in either case was exercisable at the decedent's death to or for the benefit of
any person other than the decedent's surviving spouse or reciprocal beneficiary
or to the extent the property passed at the decedent's death, by exercise,
release, lapse, in default, or otherwise, to or for the benefit of any person
other than the decedent's estate or surviving spouse or reciprocal
beneficiary.  If the power is a power over both income and property and the
preceding sentence produces different amounts, the amount included is the
greater amount;



(3)  Property that passed during marriage and during
the two-year period next preceding the decedent's death as a result of a
transfer by the decedent if the transfer was of any of the following types:



(A)  Any property that passed as a result of
the termination of a right or interest in, or power over, property that
would have been included in the augmented estate under paragraph (1)(A), (B),
or (C), or under paragraph (2), if the right, interest, or power had not
terminated until the decedent's death.  The amount included is the value
of the property that would have been included under those paragraphs if the
property were valued at the time the right, interest, or power terminated, and
is included only to the extent the property passed upon termination to or for
the benefit of any person other than the decedent or the decedent's estate,
spouse or reciprocal beneficiary, or surviving spouse or reciprocal
beneficiary.  As used in this subparagraph, "termination", with
respect to a right or interest in property, occurs when the right or interest
terminated by the terms of the governing instrument or the decedent transferred
or relinquished the right or interest, and, with respect to a power over
property, occurs when the power terminated by exercise, release, lapse,
default, or otherwise, but, with respect to a power described in paragraph
(1)(A), "termination" occurs when the power terminated by exercise or
release, but not otherwise;



(B)  Any transfer of or relating to an
insurance policy on the life of the decedent if the proceeds would have
been included in the augmented estate under paragraph (1)(D) had the transfer
not occurred.  The amount included is the value of the insurance proceeds to
the extent the proceeds were payable at the decedent's death to or for the
benefit of any person other than the decedent's estate or surviving spouse or
reciprocal beneficiary;



(C)  Any transfer of property, to the extent
not otherwise included in the augmented estate, made to or for the benefit of a
person other than the decedent's surviving spouse or reciprocal beneficiary. 
The amount included is the value of the transferred property to the extent the
aggregate transfers to any one donee in either of the two years exceeded
$20,000. [L 1996, c 288, pt of §1; am L 1997, c 244, §1 and c 383, §19]