§ 27-9-10. Deduction of value of qualified terminable interest property from gross estate in determining net estate; limitation to resident.
(1) In the case of a resident, the value of qualified terminable interest property shall be deducted from the value of the gross estate in determining the net estate.
(a) For purposes of this subsection (1):
(i) The term "qualified terminable interest property" means property: 1. which passes from the decedent; 2. in which the surviving spouse has a qualifying income interest for life; and 3. to which an election under this subsection applies.
(ii) The surviving spouse has a qualifying income interest for life if: 1. the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals; and 2. no person has a power to appoint any part of the property to any person other than the surviving spouse.
Subparagraph (ii) 2. shall not apply to a power exercisable only at or after the death of the surviving spouse.
(iii) The term "property" includes an interest in property.
(iv) A specific portion of property shall be treated as separate property.
(v) An election under this subsection with respect to any property shall be made by the executor on the return of tax imposed by Section 27-9-5. Such an election, once made, shall be irrevocable. Such an election may be made or not made regardless whether an election was not made or made with respect to the property under Section 2056(b)(7)(B)(v) of the Internal Revenue Code of 1986, as now or hereafter amended.
(vi) In the case of an annuity where only the surviving spouse has the right to receive payments before the death of such surviving spouse:
1. The interest of such surviving spouse shall be treated as a qualifying income interest for life; and
2. The executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax imposed by Section 27-9-5. Such an otherwise election, once made, shall be irrevocable. Such an otherwise election may be made or not made regardless whether an election was not made or made with respect to such annuity under Section 2056(b)(7)(C)(ii) of the Internal Revenue Code of 1986, as now or hereafter amended.
(2) In the case of a resident, there shall be deducted from the value of the gross estate in determining the value of the net estate the value of all interests in property of any kind or nature whatsoever, other than those at subsection (1), that would be deductible under Section 2056 of the Internal Revenue Code of 1986, as now or hereafter amended, if such interests in property were included in the gross estate of the decedent under the provisions of the Internal Revenue Code of 1986, as now or hereafter amended.
(3) A deduction shall be allowed under this section for an interest in property only to the extent that such interest is included in determining the value of the gross estate of the decedent.
(4) The principles of Section 2056(b)(4) of the Internal Revenue Code of 1986, as now or hereafter amended, shall be applied in determining the value of any interest in property to be deducted under this section.
(5) Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent.
(6) This section shall only apply to decedents dying on or after October 1, 1988.
Sources: Laws, 1989, ch. 521, § 4, eff from and after passage (approved April 4, 1989), and applicable to decedents dying on or after October 1, 1988.
§ 27-9-10. Deduction of value of qualified terminable interest property from gross estate in determining net estate; limitation to resident.
(1) In the case of a resident, the value of qualified terminable interest property shall be deducted from the value of the gross estate in determining the net estate.
(a) For purposes of this subsection (1):
(i) The term "qualified terminable interest property" means property: 1. which passes from the decedent; 2. in which the surviving spouse has a qualifying income interest for life; and 3. to which an election under this subsection applies.
(ii) The surviving spouse has a qualifying income interest for life if: 1. the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals; and 2. no person has a power to appoint any part of the property to any person other than the surviving spouse.
Subparagraph (ii) 2. shall not apply to a power exercisable only at or after the death of the surviving spouse.
(iii) The term "property" includes an interest in property.
(iv) A specific portion of property shall be treated as separate property.
(v) An election under this subsection with respect to any property shall be made by the executor on the return of tax imposed by Section 27-9-5. Such an election, once made, shall be irrevocable. Such an election may be made or not made regardless whether an election was not made or made with respect to the property under Section 2056(b)(7)(B)(v) of the Internal Revenue Code of 1986, as now or hereafter amended.
(vi) In the case of an annuity where only the surviving spouse has the right to receive payments before the death of such surviving spouse:
1. The interest of such surviving spouse shall be treated as a qualifying income interest for life; and
2. The executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax imposed by Section 27-9-5. Such an otherwise election, once made, shall be irrevocable. Such an otherwise election may be made or not made regardless whether an election was not made or made with respect to such annuity under Section 2056(b)(7)(C)(ii) of the Internal Revenue Code of 1986, as now or hereafter amended.
(2) In the case of a resident, there shall be deducted from the value of the gross estate in determining the value of the net estate the value of all interests in property of any kind or nature whatsoever, other than those at subsection (1), that would be deductible under Section 2056 of the Internal Revenue Code of 1986, as now or hereafter amended, if such interests in property were included in the gross estate of the decedent under the provisions of the Internal Revenue Code of 1986, as now or hereafter amended.
(3) A deduction shall be allowed under this section for an interest in property only to the extent that such interest is included in determining the value of the gross estate of the decedent.
(4) The principles of Section 2056(b)(4) of the Internal Revenue Code of 1986, as now or hereafter amended, shall be applied in determining the value of any interest in property to be deducted under this section.
(5) Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent.
(6) This section shall only apply to decedents dying on or after October 1, 1988.
Sources: Laws, 1989, ch. 521, § 4, eff from and after passage (approved April 4, 1989), and applicable to decedents dying on or after October 1, 1988.
§ 27-9-10. Deduction of value of qualified terminable interest property from gross estate in determining net estate; limitation to resident.
(1) In the case of a resident, the value of qualified terminable interest property shall be deducted from the value of the gross estate in determining the net estate.
(a) For purposes of this subsection (1):
(i) The term "qualified terminable interest property" means property: 1. which passes from the decedent; 2. in which the surviving spouse has a qualifying income interest for life; and 3. to which an election under this subsection applies.
(ii) The surviving spouse has a qualifying income interest for life if: 1. the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals; and 2. no person has a power to appoint any part of the property to any person other than the surviving spouse.
Subparagraph (ii) 2. shall not apply to a power exercisable only at or after the death of the surviving spouse.
(iii) The term "property" includes an interest in property.
(iv) A specific portion of property shall be treated as separate property.
(v) An election under this subsection with respect to any property shall be made by the executor on the return of tax imposed by Section 27-9-5. Such an election, once made, shall be irrevocable. Such an election may be made or not made regardless whether an election was not made or made with respect to the property under Section 2056(b)(7)(B)(v) of the Internal Revenue Code of 1986, as now or hereafter amended.
(vi) In the case of an annuity where only the surviving spouse has the right to receive payments before the death of such surviving spouse:
1. The interest of such surviving spouse shall be treated as a qualifying income interest for life; and
2. The executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax imposed by Section 27-9-5. Such an otherwise election, once made, shall be irrevocable. Such an otherwise election may be made or not made regardless whether an election was not made or made with respect to such annuity under Section 2056(b)(7)(C)(ii) of the Internal Revenue Code of 1986, as now or hereafter amended.
(2) In the case of a resident, there shall be deducted from the value of the gross estate in determining the value of the net estate the value of all interests in property of any kind or nature whatsoever, other than those at subsection (1), that would be deductible under Section 2056 of the Internal Revenue Code of 1986, as now or hereafter amended, if such interests in property were included in the gross estate of the decedent under the provisions of the Internal Revenue Code of 1986, as now or hereafter amended.
(3) A deduction shall be allowed under this section for an interest in property only to the extent that such interest is included in determining the value of the gross estate of the decedent.
(4) The principles of Section 2056(b)(4) of the Internal Revenue Code of 1986, as now or hereafter amended, shall be applied in determining the value of any interest in property to be deducted under this section.
(5) Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent.
(6) This section shall only apply to decedents dying on or after October 1, 1988.
Sources: Laws, 1989, ch. 521, § 4, eff from and after passage (approved April 4, 1989), and applicable to decedents dying on or after October 1, 1988.
