§560:3-916  Apportionment of estate taxes. 
(a)  For purposes of this section:



"Estate" means the gross estate of a
decedent as determined for the purpose of federal estate tax and the estate tax
payable to this State.



"Fiduciary" means personal representative
or trustee.



"Person" means any individual,
partnership, association, joint stock company, corporation, government,
political subdivision, governmental agency, or local governmental agency.



"Person interested in the estate"
means any person entitled to receive, or who has received, from a decedent or
by reason of the death of a decedent any property or interest therein included
in the decedent's estate.  It includes a personal representative, conservator,
and trustee.



"State" means any state, territory,
or possession of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.



"Tax" means the federal estate tax
and the additional inheritance tax imposed by Hawaii and interest and penalties
imposed in addition to the tax.



(b)  Except as provided in subsection (j) and,
unless the will otherwise provides, the tax shall be apportioned among all
persons interested in the estate.  The apportionment is to be made in the
proportion that the value of the interest of each person interested in the
estate bears to the total value of the interests of all persons interested in
the estate.  The values used in determining the tax are to be used for that
purpose.  If the decedent's will directs a method of apportionment of tax
different from the method described in this chapter, the method described in
the will controls.



(c)  The expenses reasonably incurred by any
fiduciary and by other persons interested in the estate in connection with the
determination of the amount and apportionment of the tax shall be apportioned
as provided in subsection (b) and charged and collected as a part of the tax
apportioned.  If the court finds it is inequitable to apportion the expenses as
provided in subsection (b), it may direct apportionment equitably.



(d) (1)  The court in which venue lies for the
administration of the estate of a decedent, on petition for the purpose may
determine the apportionment of the tax;



(2)  If the court finds that it is inequitable to
apportion interest and penalties in the manner provided in subsection (b),
because of special circumstances, it may direct apportionment thereof in the
manner it finds equitable;



(3)  If the court finds that the assessment of
penalties and interest assessed in relation to the tax is due to delay caused
by the negligence of the fiduciary, the court may charge the fiduciary with the
amount of the assessed penalties and interest;



(4)  In any action to recover from any person
interested in the estate the amount of the tax apportioned to the person in
accordance with this chapter the determination of the court in respect thereto
shall be prima facie correct.



(e) (1)  The personal representative or other person
in possession of the property of the decedent required to pay the tax may
withhold from any property distributable to any person interested in the
estate, upon its distribution to that person, the amount of tax attributable to
that person's interest.  If the property in possession of the personal
representative or other person required to pay the tax and distributable to any
person interested in the estate is insufficient to satisfy the proportionate
amount of the tax determined to be due from the person, the personal
representative or other person required to pay the tax may recover the
deficiency from the person interested in the estate.  If the property is not in
the possession of the personal representative or the other person required to
pay the tax, the personal representative or the other person required to pay
the tax may recover from any person interested in the estate the amount of the
tax apportioned to the person in accordance with this chapter;



(2)  If property held by the personal representative
is distributed prior to final apportionment of the tax, the distributee shall
provide a bond or other security for the apportionment liability in the form
and amount prescribed by the personal representative.



(f) (1)  In making an apportionment, allowances shall
be made for any exemptions granted, any classification made of persons
interested in the estate and for any deductions and credits allowed by the law
imposing the tax;



(2)  Any exemption or deduction allowed by reason of
the relationship of any person to the decedent or by reason of the purposes of
the gift inures to the benefit of the person bearing such relationship or
receiving the gift; but if an interest is subject to a prior present interest
which is not allowable as a deduction, the tax apportionable against the
present interest shall be paid from principal;



(3)  Any deduction for property previously taxed and
any credit for gift taxes or death taxes of a foreign country paid by the
decedent or the decedent's estate inures to the proportionate benefit of all
persons liable to apportionment;



(4)  Any credit for inheritance, succession or estate
taxes or taxes in the nature thereof applicable to property or interests
includable in the estate, inures to the benefit of the persons or interests
chargeable with the payment thereof to the extent proportionately that the
credit reduces the tax;



(5)  To the extent that property passing to or in
trust for a surviving spouse or reciprocal beneficiary or any charitable,
public or similar purpose is not an allowable deduction for purposes of the tax
solely by reason of an inheritance tax or other death tax imposed upon and
deductible from the property, the property is not included in the computation
provided for in subsection (b), and to that extent no apportionment is made
against the property.  The sentence immediately preceding does not apply to any
case if the result would be to deprive the estate of a deduction otherwise
allowable under section 2053(d) of the Internal Revenue Code of 1986, as
amended, of the United States, relating to deduction for state death taxes on
transfers for public, charitable, or religious uses.



(g)  No interest in income and no estate for
years or for life or other temporary interest in any property or fund is
subject to apportionment as between the temporary interest and the remainder. 
The tax on the temporary interest and the tax, if any, on the remainder is
chargeable against the corpus of the property or funds subject to the temporary
interest and remainder.



(h)  Neither the personal representative nor
other person required to pay the tax is under any duty to institute any action
to recover from any person interested in the estate the amount of the tax
apportioned to the person until the expiration of the three months next
following final determination of the tax.  A personal representative or other
person required to pay the tax who institutes the action within a reasonable
time after the three-month period is not subject to any liability or surcharge
because any portion of the tax apportioned to any person interested in the
estate was collectible at a time following the death of the decedent but
thereafter became uncollectible.  If the personal representative or other
person required to pay the tax cannot collect from any person interested in the
estate the amount of the tax apportioned to the person, the amount not recoverable
shall be equitably apportioned among the other persons interested in the estate
who are subject to apportionment.



(i)  A personal representative acting in
another state or a person required to pay the tax domiciled in another state
may institute an action in the courts of this State and may recover a
proportionate amount of the federal estate tax, of an estate tax payable to
another state or of a death duty due by a decedent's estate to another state,
from a person interested in the estate who is either domiciled in this State or
who owns property in this State subject to attachment or execution.  For the
purposes of the action the determination of apportionment by the court having
jurisdiction of the administration of the decedent's estate in the other state
is prima facie correct.



(j)  If the liabilities of persons interested
in the estate as prescribed by this chapter differ from those which result
under the federal estate tax law, the liabilities imposed by the federal law
will control and the balance of this section shall apply as if the resulting
liabilities had been prescribed herein. [L 1996, c 288, pt of §1; am L 1997, c
383, §19; am L 2000, c 48, §5]