(a) Basic Principles. Unless otherwise expressly stated to the contrary in this section, the value ofproperty shall be that property's fair market value, taking into considerationany applicable discounts. The value shall be determined as of the date ofdeath, except for (i) property transferred to persons other than the survivingspouse described in G.S. 30‑3.2(3f)g. and (ii) property transferred tothe surviving spouse described in G.S. 30‑3.2(3c)e. that is not held intrust, that is not life insurance, and that is not held as tenants by theentirety or some other form of ownership that passes to the surviving spouse byreason of survivorship. The value of gift property described in clauses (i) and(ii) shall be determined as the value on the date of transfer; but if the doneeproves to the satisfaction of the clerk that the value on the date of disposalof the asset prior to the decedent's death is less than on the original date oftransfer or that the value on the date of death is less than on the originaldate of transfer, then the lesser value shall be used.
(b) Certain JointProperty. In valuing a partial interest in jointly owned property with rightof survivorship, there shall be no discount taken to reflect the decedent'spartial interest including, but not limited to, discounts for lack of control,ownership of a fractional interest, or lack of marketability.
(c) Certain Powers ofAppointment. In valuing property over which the decedent held a presentlyexercisable general power of appointment, the value includes only the propertysubject to the power that passes at the decedent's death, whether by exercise,release, lapse, default, or otherwise.
(d) Certain TransfersWith Retained Interests. In valuing property transferred by the decedent witha retained right of possession or enjoyment or the right to income described inG.S. 30‑3.2(3f)e., only the fraction of the property to which thedecedent retained a right shall be included. In valuing property in which thedecedent created a power as described in G.S. 30‑3.2(3f)f., the valueincludes, with respect to a power, the value of the property subject to thepower, and the amount included in the valuation with respect to a power overthe income is the value of the property that produces or produced the income;provided, however, if the power is a power over both income and property andthe foregoing produces different amounts, the amount included in the valuationis the greater amount.
(e) Partial orContingent Interest Property. The valuation of partial and contingentproperty interests, outright or in trust, which are limited to commence orterminate upon the death of one or more persons, upon the expiration of aperiod of time, or upon the occurrence of one or more contingencies, shall bedetermined by computations based upon the mortality and annuity tables setforth in G.S. 8‑46 and G.S. 8‑47, and by using a presumed rate ofreturn of six percent (6%) of the value of the underlying property in whichthose interests are limited. However, in valuing partial and contingentinterests passing to the surviving spouse, the following special rules apply:
(1) The value of thebeneficial interest of a spouse shall be the entire fair market value of anyproperty held in trust if the decedent was the settlor of the trust, if thetrust is held for the exclusive benefit of the surviving spouse during thesurviving spouse's lifetime, and if the terms of the trust meet the followingrequirements:
a. During the lifetimeof the surviving spouse, the trust is controlled by one or more nonadversetrustees.
b. The trustee shalldistribute to or for the benefit of the surviving spouse either (i) the entirenet income of the trust at least annually or (ii) the income of the trust insuch amounts and at such times as the trustee, in its discretion, determinesnecessary for the health, maintenance, and support of the surviving spouse.
c. The trustee shalldistribute to or for the benefit of the surviving spouse out of the principalof the trust such amounts and at such times as the trustee, in its discretion,determines necessary for the health, maintenance, and support of the survivingspouse.
d. In exercisingdiscretion, the trustee may be authorized or required to take into considerationall other income assets and other means of support available to the survivingspouse.
(2) To the extent thatthe partial or contingent interest is dependent upon the occurrence of anycontingency that is not subject to the control of the surviving spouse and thatis not subject to valuation by reference to the mortality and annuity tablesset forth in G.S. 8‑46 and G.S. 8‑47, the contingency will beconclusively presumed to result in the lowest possible value passing to thesurviving spouse. However, a life estate or income interest that will terminateupon the surviving spouse's death or remarriage will be valued without regardto the possibility of termination upon remarriage.
(3) To the extent thatthe valuation of a partial or contingent interest is dependent upon the lifeexpectancy of the surviving spouse, that life expectancy shall be conclusivelypresumed to be no less than 10 years, regardless of the actual attained age ofthe surviving spouse at the decedent's death.
(f) Method forDetermining Value. Unless otherwise stated in this Article, the value ofproperty shall be determined as follows:
(1) The value ofproperty passing by intestacy described in G.S. 30‑3.2(3f)a. and PropertyPassing to Surviving Spouse, other than property held in a trust, shall beestablished by the good‑faith agreement of the surviving spouse and thepersonal representative, unless either (i) the surviving spouse is the personalrepresentative or (ii) the clerk determines that the personal representativemay not be able to represent the estate adversely to the surviving spouse, inwhich cases the value of such property shall be determined pursuant tosubdivision (4) of this subsection.
(2) The value ofproperty constituting an interest in a trust shall be established by good‑faithagreement of the surviving spouse, the personal representative, and thetrustee, unless either (i) the surviving spouse is both the personalrepresentative and the trustee or (ii) the clerk determines that the trustee orthe personal representative may not be able to represent the trust or theestate, respectively, adversely to the surviving spouse, in which cases thevalue of such property shall be determined pursuant to subdivision (4) of thissubsection.
(3) The value of allother property shall be established by the good‑faith agreement of thesurviving spouse, the personal representative, and the responsible person thatreceived, held, or controlled such property on the date used to determine thevalue of such property for purposes of determining total assets, unless theclerk determines that valuation under subdivision (4) of this subsection ismore appropriate.
(4) If the value of anyproperty is not established by agreement as provided above, the parties maypresent evidence regarding value, which may include expert testimony, and theclerk may appoint one or more qualified and disinterested persons to helpdetermine the value of such property. After hearing, the clerk shall make afinding of fact of the value of each asset. (2009‑368, s. 1.)
(a) Basic Principles. Unless otherwise expressly stated to the contrary in this section, the value ofproperty shall be that property's fair market value, taking into considerationany applicable discounts. The value shall be determined as of the date ofdeath, except for (i) property transferred to persons other than the survivingspouse described in G.S. 30‑3.2(3f)g. and (ii) property transferred tothe surviving spouse described in G.S. 30‑3.2(3c)e. that is not held intrust, that is not life insurance, and that is not held as tenants by theentirety or some other form of ownership that passes to the surviving spouse byreason of survivorship. The value of gift property described in clauses (i) and(ii) shall be determined as the value on the date of transfer; but if the doneeproves to the satisfaction of the clerk that the value on the date of disposalof the asset prior to the decedent's death is less than on the original date oftransfer or that the value on the date of death is less than on the originaldate of transfer, then the lesser value shall be used.
(b) Certain JointProperty. In valuing a partial interest in jointly owned property with rightof survivorship, there shall be no discount taken to reflect the decedent'spartial interest including, but not limited to, discounts for lack of control,ownership of a fractional interest, or lack of marketability.
(c) Certain Powers ofAppointment. In valuing property over which the decedent held a presentlyexercisable general power of appointment, the value includes only the propertysubject to the power that passes at the decedent's death, whether by exercise,release, lapse, default, or otherwise.
(d) Certain TransfersWith Retained Interests. In valuing property transferred by the decedent witha retained right of possession or enjoyment or the right to income described inG.S. 30‑3.2(3f)e., only the fraction of the property to which thedecedent retained a right shall be included. In valuing property in which thedecedent created a power as described in G.S. 30‑3.2(3f)f., the valueincludes, with respect to a power, the value of the property subject to thepower, and the amount included in the valuation with respect to a power overthe income is the value of the property that produces or produced the income;provided, however, if the power is a power over both income and property andthe foregoing produces different amounts, the amount included in the valuationis the greater amount.
(e) Partial orContingent Interest Property. The valuation of partial and contingentproperty interests, outright or in trust, which are limited to commence orterminate upon the death of one or more persons, upon the expiration of aperiod of time, or upon the occurrence of one or more contingencies, shall bedetermined by computations based upon the mortality and annuity tables setforth in G.S. 8‑46 and G.S. 8‑47, and by using a presumed rate ofreturn of six percent (6%) of the value of the underlying property in whichthose interests are limited. However, in valuing partial and contingentinterests passing to the surviving spouse, the following special rules apply:
(1) The value of thebeneficial interest of a spouse shall be the entire fair market value of anyproperty held in trust if the decedent was the settlor of the trust, if thetrust is held for the exclusive benefit of the surviving spouse during thesurviving spouse's lifetime, and if the terms of the trust meet the followingrequirements:
a. During the lifetimeof the surviving spouse, the trust is controlled by one or more nonadversetrustees.
b. The trustee shalldistribute to or for the benefit of the surviving spouse either (i) the entirenet income of the trust at least annually or (ii) the income of the trust insuch amounts and at such times as the trustee, in its discretion, determinesnecessary for the health, maintenance, and support of the surviving spouse.
c. The trustee shalldistribute to or for the benefit of the surviving spouse out of the principalof the trust such amounts and at such times as the trustee, in its discretion,determines necessary for the health, maintenance, and support of the survivingspouse.
d. In exercisingdiscretion, the trustee may be authorized or required to take into considerationall other income assets and other means of support available to the survivingspouse.
(2) To the extent thatthe partial or contingent interest is dependent upon the occurrence of anycontingency that is not subject to the control of the surviving spouse and thatis not subject to valuation by reference to the mortality and annuity tablesset forth in G.S. 8‑46 and G.S. 8‑47, the contingency will beconclusively presumed to result in the lowest possible value passing to thesurviving spouse. However, a life estate or income interest that will terminateupon the surviving spouse's death or remarriage will be valued without regardto the possibility of termination upon remarriage.
(3) To the extent thatthe valuation of a partial or contingent interest is dependent upon the lifeexpectancy of the surviving spouse, that life expectancy shall be conclusivelypresumed to be no less than 10 years, regardless of the actual attained age ofthe surviving spouse at the decedent's death.
(f) Method forDetermining Value. Unless otherwise stated in this Article, the value ofproperty shall be determined as follows:
(1) The value ofproperty passing by intestacy described in G.S. 30‑3.2(3f)a. and PropertyPassing to Surviving Spouse, other than property held in a trust, shall beestablished by the good‑faith agreement of the surviving spouse and thepersonal representative, unless either (i) the surviving spouse is the personalrepresentative or (ii) the clerk determines that the personal representativemay not be able to represent the estate adversely to the surviving spouse, inwhich cases the value of such property shall be determined pursuant tosubdivision (4) of this subsection.
(2) The value ofproperty constituting an interest in a trust shall be established by good‑faithagreement of the surviving spouse, the personal representative, and thetrustee, unless either (i) the surviving spouse is both the personalrepresentative and the trustee or (ii) the clerk determines that the trustee orthe personal representative may not be able to represent the trust or theestate, respectively, adversely to the surviving spouse, in which cases thevalue of such property shall be determined pursuant to subdivision (4) of thissubsection.
(3) The value of allother property shall be established by the good‑faith agreement of thesurviving spouse, the personal representative, and the responsible person thatreceived, held, or controlled such property on the date used to determine thevalue of such property for purposes of determining total assets, unless theclerk determines that valuation under subdivision (4) of this subsection ismore appropriate.
(4) If the value of anyproperty is not established by agreement as provided above, the parties maypresent evidence regarding value, which may include expert testimony, and theclerk may appoint one or more qualified and disinterested persons to helpdetermine the value of such property. After hearing, the clerk shall make afinding of fact of the value of each asset. (2009‑368, s. 1.)
(a) Basic Principles. Unless otherwise expressly stated to the contrary in this section, the value ofproperty shall be that property's fair market value, taking into considerationany applicable discounts. The value shall be determined as of the date ofdeath, except for (i) property transferred to persons other than the survivingspouse described in G.S. 30‑3.2(3f)g. and (ii) property transferred tothe surviving spouse described in G.S. 30‑3.2(3c)e. that is not held intrust, that is not life insurance, and that is not held as tenants by theentirety or some other form of ownership that passes to the surviving spouse byreason of survivorship. The value of gift property described in clauses (i) and(ii) shall be determined as the value on the date of transfer; but if the doneeproves to the satisfaction of the clerk that the value on the date of disposalof the asset prior to the decedent's death is less than on the original date oftransfer or that the value on the date of death is less than on the originaldate of transfer, then the lesser value shall be used.
(b) Certain JointProperty. In valuing a partial interest in jointly owned property with rightof survivorship, there shall be no discount taken to reflect the decedent'spartial interest including, but not limited to, discounts for lack of control,ownership of a fractional interest, or lack of marketability.
(c) Certain Powers ofAppointment. In valuing property over which the decedent held a presentlyexercisable general power of appointment, the value includes only the propertysubject to the power that passes at the decedent's death, whether by exercise,release, lapse, default, or otherwise.
(d) Certain TransfersWith Retained Interests. In valuing property transferred by the decedent witha retained right of possession or enjoyment or the right to income described inG.S. 30‑3.2(3f)e., only the fraction of the property to which thedecedent retained a right shall be included. In valuing property in which thedecedent created a power as described in G.S. 30‑3.2(3f)f., the valueincludes, with respect to a power, the value of the property subject to thepower, and the amount included in the valuation with respect to a power overthe income is the value of the property that produces or produced the income;provided, however, if the power is a power over both income and property andthe foregoing produces different amounts, the amount included in the valuationis the greater amount.
(e) Partial orContingent Interest Property. The valuation of partial and contingentproperty interests, outright or in trust, which are limited to commence orterminate upon the death of one or more persons, upon the expiration of aperiod of time, or upon the occurrence of one or more contingencies, shall bedetermined by computations based upon the mortality and annuity tables setforth in G.S. 8‑46 and G.S. 8‑47, and by using a presumed rate ofreturn of six percent (6%) of the value of the underlying property in whichthose interests are limited. However, in valuing partial and contingentinterests passing to the surviving spouse, the following special rules apply:
(1) The value of thebeneficial interest of a spouse shall be the entire fair market value of anyproperty held in trust if the decedent was the settlor of the trust, if thetrust is held for the exclusive benefit of the surviving spouse during thesurviving spouse's lifetime, and if the terms of the trust meet the followingrequirements:
a. During the lifetimeof the surviving spouse, the trust is controlled by one or more nonadversetrustees.
b. The trustee shalldistribute to or for the benefit of the surviving spouse either (i) the entirenet income of the trust at least annually or (ii) the income of the trust insuch amounts and at such times as the trustee, in its discretion, determinesnecessary for the health, maintenance, and support of the surviving spouse.
c. The trustee shalldistribute to or for the benefit of the surviving spouse out of the principalof the trust such amounts and at such times as the trustee, in its discretion,determines necessary for the health, maintenance, and support of the survivingspouse.
d. In exercisingdiscretion, the trustee may be authorized or required to take into considerationall other income assets and other means of support available to the survivingspouse.
(2) To the extent thatthe partial or contingent interest is dependent upon the occurrence of anycontingency that is not subject to the control of the surviving spouse and thatis not subject to valuation by reference to the mortality and annuity tablesset forth in G.S. 8‑46 and G.S. 8‑47, the contingency will beconclusively presumed to result in the lowest possible value passing to thesurviving spouse. However, a life estate or income interest that will terminateupon the surviving spouse's death or remarriage will be valued without regardto the possibility of termination upon remarriage.
(3) To the extent thatthe valuation of a partial or contingent interest is dependent upon the lifeexpectancy of the surviving spouse, that life expectancy shall be conclusivelypresumed to be no less than 10 years, regardless of the actual attained age ofthe surviving spouse at the decedent's death.
(f) Method forDetermining Value. Unless otherwise stated in this Article, the value ofproperty shall be determined as follows:
(1) The value ofproperty passing by intestacy described in G.S. 30‑3.2(3f)a. and PropertyPassing to Surviving Spouse, other than property held in a trust, shall beestablished by the good‑faith agreement of the surviving spouse and thepersonal representative, unless either (i) the surviving spouse is the personalrepresentative or (ii) the clerk determines that the personal representativemay not be able to represent the estate adversely to the surviving spouse, inwhich cases the value of such property shall be determined pursuant tosubdivision (4) of this subsection.
(2) The value ofproperty constituting an interest in a trust shall be established by good‑faithagreement of the surviving spouse, the personal representative, and thetrustee, unless either (i) the surviving spouse is both the personalrepresentative and the trustee or (ii) the clerk determines that the trustee orthe personal representative may not be able to represent the trust or theestate, respectively, adversely to the surviving spouse, in which cases thevalue of such property shall be determined pursuant to subdivision (4) of thissubsection.
(3) The value of allother property shall be established by the good‑faith agreement of thesurviving spouse, the personal representative, and the responsible person thatreceived, held, or controlled such property on the date used to determine thevalue of such property for purposes of determining total assets, unless theclerk determines that valuation under subdivision (4) of this subsection ismore appropriate.
(4) If the value of anyproperty is not established by agreement as provided above, the parties maypresent evidence regarding value, which may include expert testimony, and theclerk may appoint one or more qualified and disinterested persons to helpdetermine the value of such property. After hearing, the clerk shall make afinding of fact of the value of each asset. (2009‑368, s. 1.)
