COLORADO INHERITANCE, ESTATE, AND GIFT TAXES Inheritance and Estate Taxes Tax imposed.-Under the inheritances and successions tax law of this State, a tax is imposed, under the conditions and subject to the limitations prescribed, upon transfers hereinafter specified, in trust or otherwise, or any interests therein or income therefrom. (6) Transfers taxable. This act taxes the following transfers: (a) When the transfer is from a resident of this State and is of (1) real property situated in this State; (2) tangible personal property, except such as has an actual situs without this State; (3) all intangible personal property, wheresoever the notes, bonds, stock certificates, or other evidence, if any, thereof, may be physically located, or the banks or other debtors may be located or domiciled. (b) When the transfer is from a nonresident of this State and is of (1) real property situated in this State; (2) tangible personal property which has an actual situs in this State; (3) intangibles that have acquired an actual or business situs in this State, if no transfer or succession tax has been levied and paid on such transfer at the domicile of the decedent. (6) Same. All transfers enumerated above are taxable if made (a) by will; (b) by statutes regulating descent and distribution of property upon the death of the owner; (c) in contemplation of death of the transferor; (d) by gift or grant intended to take effect in possession or enjoyment at or after the death of the transferor; (e) in payment of a claim against the estate of a deceased person arising from a contract made by him and payable by its terms at or after his death. Whenever real or personal property is held in joint names and is transferred under the doctrine of survivorship, the right of the survivor to the immediate ownership or possession and enjoyment is taxable hereunder. A transfer of property by deed or trust wherein the trustor reserves to himself, or to himself and others, powers of revocation, alteration, or amendment, upon the exercise of which the property would revest in him, is, upon the death of the trustor, taxable to the extent of the value of the property subject to such powers and with respect to which such powers remain unexercised. Powers of appointment, transfers to executors or trustees in lieu of commissions or allowances, and certain proceeds of insurance policies, to the extent and under the conditions specified, are subject to this tax. (7, 8, 9, 10, 12) If Additional estate tax. In addition to the tax imposed under the above provisions, an estate tax is imposed for the purpose of taking advantage of the credit allowed under the Federal Estate Act. the net estate exceeds $250,000, this additional tax is equal to 80 percent of the amount imposed under said act. The value of the net estate is determined by deducting from the value of the gross estate the amounts specified in the State act, including an exemption of $100,000. (4) The provisions of law relating to this tax are shown on p. 7. Additional tax for welfare purposes. In addition to all other fees and charges, there is assessed an additional tax of 10 percent upon the amount of any tax payable under the provisions of the inheritance tax laws of this State, the proceeds of this additional levy being credited to the State public welfare fund. (S. L. 1933, p. 764) Deductions allowed.-In determining the value of property transferred, the following deductions are allowed: Debts of the transferor which constitute lawful claims against his estate; unpaid taxes on real and personal property within this State, taxes on personal property of the transferor which constituted a personal obligation during his lifetime, and unpaid income taxes on the income of the transferor to the date of death; special assessments which at the time of death were due and payable on real property located within this State; funeral expenses, and not exceeding $500 for a monument or memorial; commissions of executors and administrators; expenses of administration and reasonable attorney's fees. Federal estate taxes and taxes paid other jurisdictions are not deductions in computing the value of the transfer. Deductions for any indebtedness when founded upon a promise or agreement are limited to the extent that they were contracted bona fide and for an adequate and full consideration in money or money's worth. (16) Exemptions.-There are exempt from the tax all transfers to or for the use of the United States, any State or Territory, or any political subdivision thereof, the District of Columbia, for public purposes, or to or for any public institution, society, or association, or trust formed for charitable, scientific, literary, fraternal, educational, or religious. purposes. Transfers to a wife are taxable only to the extent that the value of the property transferred exceeds $20,000, and transfers to any other person in class A are taxable only to the extent that such value exceeds $10,000; transfers to persons in class B are taxable only to the extent that the value exceeds $2,000. No transfers to any person or corporation in classes C and D are taxable unless the value of the property exceeds $500, in which case the entire transfer is taxable. If a transfer includes property upon the transfer of which to the present transferor a tax was previously and within 3 years imposed by this State and paid, or property which can be identified as having been received by such transferor in exchange for property on which a tax was so imposed and paid, a credit on account of such tax is allowed against the tax imposed and paid with respect to the present transfer, and is apportioned among those liable for the tax according to the amount which each is liable to pay with respect to such property on the present transfer, but such credit allowed to any person liable to pay the tax on the present transfer is not to exceed the amount of tax imposed and paid with respect to such property on the present transfer. The 3-year period is computed from the date the previous tax became due and not from the date of its payment. (15, 17) Classification of beneficiaries.-The beneficiaries under this act are classified as follows: Class A: Father, mother, husband, wife, child, legally adopted child, and any lineal descendant of decedent born in lawful wedlock. Class B: Wife or widow of a son, or husband or widower of a daughter, grandfather, grandmother, brother, or sister, of the decedent, or any person to whom the decedent stood in the mutually acknowledged relationship of a parent. Class C: Uncle, aunt, niece, or nephew, or a lineal descendant of the same, of the decedent. Class D: All other persons and corporations not exempt from taxation under these provisions. Collateral relatives of the half-blood are entitled to the same exemptions, and pay the same rates of tax, as corresponding relatives of the whole blood. (18) Rates. The inheritance tax is imposed on the value of the property transferred at the following rates: (13) Over $5,000 to $10,000. Over $250,000 to $500,000.. 789 6 3 7 10 Payment of tax; discount; interest. This tax is due and payable to the State treasurer at the death of the transferor; if paid within 6 months after becoming due, a discount of 5 percent is allowed; if not paid within 1 year after death, interest at 10 percent per annum is charged. Interest may be reduced or waived, in whole or in part, by the inheritance tax commissioner for reasonable cause. If the total amount of tax imposed on an estate exceeds 5 percent of the net value of all property transferred by the deceased, the tax may be paid in installments. All payments made after the expiration of 1 year from the due date bear interest at the rate of 7 percent per annum from date of death until expiration of the time limited by the commissioner, and thereafter at the rate of 10 percent per annum. The first installment is due within 1 year after the death of the decedent, and no installment, except the last, is to be for less than 5 percent of the net value of the property transferred. (34-37) Tax lien. The tax imposed under these provisions remains a lien on the property transferred until paid, except where the transfer is by deed or grant in the hands of a bona fide purchaser or encumbrancer without notice. (37) Disposition of proceeds. The proceeds of this tax are payable to the State treasurer and are credited to the inheritance tax fund. Administration of act. The provisions of this law are administered by the inheritance tax commissioner. (47) Sources of information.-Chapter 85, Colorado Statutes Annotated, 1935; Chapter 176, Session Laws of 1937. Gift Tax Tax imposed. Beginning with the calendar year 1937, a tax is imposed upon the transfer by any individual, resident or nonresident, of property by gift. (1) Transfers taxable. This tax applies whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible; it applies to all transfers of property within this State or within its jurisdiction, whether by residents or nonresidents, and to all transfers by residents of intangible property wherever situated and of tangible personal property which has not acquired a bona fide permanent situs without this State. (2) Exemptions. Same as under the inheritance tax law, except that gifts made hereunder for charitable, educational, and other similar purposes are limited to those to be used within this State. (4,5) Classification of beneficiaries.-Same as under the inheritance tax law. (3) (3) Rates. Same as those under the inheritance tax law. Filing returns. Every person who makes any transfer by gift is required, on or before March 1 following the close of the calendar year, to make a return to the inheritance tax commissioner, who may extend such time for filing not beyond 6 months; but no return is required in case of gifts of less than $500 to any one person or corporation in any calendar year. (9) Payment of tax; interest.-Notice of the amount of tax due is given the donor by personal service or registered mail, and the tax is payable to the State treasurer within 60 days thereafter; if not so paid, it bears interest at the rate of 10 percent per annum. The time for payment may be extended by the commissioner for not exceeding 6 months. (10) Tax lien. This tax is a personal liability of the donor and the donee, and it is a lien upon the property embraced in the gifts during the calendar year for 10 years from the time the gift is made. (10) Credit allowed on inheritance tax.-If a tax has been paid under this act upon any gifts and there is later imposed an inheritance tax on account of property embraced within such gifts, there is credited against the inheritance tax an amount equal to the gift tax so paid. (12) Disposition of proceeds. Other than the provision that the proceeds of this tax shall be paid to the State treasurer, this act makes no further disposition of such proceeds. (10) Administration of act.—The provisions of this act are administered by the inheritance tax commissioner. (8) Source of information.-Chapter 161, Session Laws of 1937. CONNECTICUT SUCCESSION AND ESTATE TAXES Succession Tax Tax imposed. A tax is imposed upon transfers, in trust or otherwise, at the rates hereinafter shown, and subject to the exemptions prescribed. (1360) Transfers taxable. This tax applies to each transfer from a resident of this State of real property situated in this State; and of tangible personal property, except such as has an actual situs without this. State; and of intangible personal property; and from a nonresident of this State of real property situated in this State, and of tangible personal property which has an actual situs in this State. These transfers are taxable if made by will, by the statutes relating to descent and distribution, or in contemplation of the death of the transferor, or by gift or grant intended to take effect in possession or enjoyment at or after the death of the transferor, or if made in payment of a claim against the estate of a deceased person arising from a contract made by him and payable by its terms at or after his death. (1360, 1361) Same. The transfers taxable include, also, a fractional part of all property held in the joint names of two or more persons and transferred under the doctrine of survivorship, except joint bank accounts aggregating less than $5,000. The proceeds of any policy of life or accident insurance payable to a named beneficiary are not included under the transfers taxable; but the proceeds of any insurance policy (except one issued by the United States upon the life of a soldier, sailor, marine, or member of the Coast Guard) of a decedent payable at his death to his estate or his personal representatives are taxable hereunder. A transfer of property by deed of trust wherein there are reserved powers of revocation, alteration, or amendment, upon the exercise of which the property might revest in the settlor is taxable to the extent of the value of the property subject to such powers and with respect to which such powers remain unexercised. Transfers to executors and administrators in lieu of commissions are taxable to the extent that they are above the amount payable thereto in the absence of such transfers. (1362, 1365) Deductions allowed; residents. When property is transferred by will or by laws relating to intestate estates, the net estate of a resident is ascertained by deducting from the gross taxable estate the following items: Debts of the transferor; losses; certain taxes, including real estate, personal property, income, inheritance, estate, and special assessments; funeral expenses and amounts for a headstone or monument or for the care of a cemetery lot; compensation of executors, (21) |