administrators, and attorneys; allowances for the support of the widow or widower, dependent minor children, including adopted children and defective children, but for not longer than 12 months after transferor's death; amounts of unpaid mortgages; and expenses of administration. (1369) Same; nonresidents. When property is transferred by will or intestate laws, the net estate of a nonresident is ascertained by deducting from the gross taxable estate the following items: Fees of the Connecticut probate court; advertising expenses; fees paid appraisers appointed by said court; expenses of fiduciary's bond; commissions on sale of real estate and tangible personal property situated within this State; compensation of executors and administrators qualifying in such court, and fees of Connecticut attorneys; amount of unpaid mortgages; certain unpaid taxes; and special assessments. (1371) Items not deductible.—The following expenses of administration are not allowable deductions: A percentage, as specified, of estate, inheritance, and similar taxes paid; expenses of care, maintenance, or repair of real estate and buildings accrued after death of the transferor; interest; property taxes, except the tax on untaxed property assessed by the State against the estate, assessed as of a date subsequent to the death of the transferor; income taxes accrued subsequent to such death; expenses incurred and taxes assessed upon and in connection with real estate and tangible personal property situated outside this State; and all other charges and expenses of administration properly allocable against income. (1370) Exemptions. There are exempt from this tax all transfers to or for the use of the United States, any State or Territory, or any political subdivision thereof, and the District of Columbia; to any public institution for exclusively public purposes; to any corporation or institution located within this State which receives money appropriations made by the general assembly; to corporations and organizations of this State formed for charitable, educational, literary, scientific, historical, or religious purposes, and to said corporations and organizations of any other State formed for such purposes if the laws of such other State provide a similar exemption to Connecticut corporations and organizations. The personal exemptions are as follows: Class A, $10,000; class B, $3,000; class C, $500. (1366, 1367) Classification of beneficiaries. The beneficiaries under this act are classified as follows: Class A: Parent, grandparent, husband, wife, lineal descendant, adopted child or lineal descendant thereof, or adoptive parent. Class B: Husband or wife of any child of decedent, stepchild, brother or sister of the full or half blood, or descendants thereof. Class C: All others. (1366) Rates. The rates of tax imposed on the values of the estates transferred to the several classes of beneficiaries are as follows: (1366) Payment of taxes; interest. This tax is due and payable to the tax commissioner at the death of the transferor; if not paid within 14 months after the date of such death, it bears interest at the rate of 9 percent per annum beginning at the expiration of said 14 months unless an extension is granted by the court of probate. (1387, 1388) Tax lien.—This tax is a lien in favor of the State upon the real property so passing, but such lien is not valid as against any mortgagee, purchaser, judgment creditor, or bona fide purchaser unless and until notice of such lien has been filed or recorded. (1383) Securing payment of taxes due other States. Provisions exist in this law requiring executors and administrators to file proof that all death taxes, interest, and penalties due the State of domicile of a nonresident decedent have been paid or secured. These provisions are applicable only in the event the laws of said State of domicile contain a provision whereby the payment of similar taxes, interest, and penalties due this State is reasonably assured. (497C) Disposition of proceeds. The proceeds of this tax are for the use of the State. Administration of act.-The State tax commissioner has full supervision of the enforcement of these provisions. (1376, 1377) Sources of information.-Chapter 77, General Statutes of 1930, and Cumulative Supplement of 1931, 1933, 1935, and Supplement of 1937. Estate Tax Tax imposed; rate.-A tax is imposed upon the transfer of the estate of each person who at the time of death was a resident of this State, the amount of which is the amount by which 80 percent of the estate tax payable to the United States under the provisions of the Federal Revenue Act 2 exceeds the aggregate amount of all estate, inheritance, and similar taxes actually paid to the several States and Territories, including this State, in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with his estate. (502C) Payment of tax; interest.—This tax is due at the date of the taxable transfer and becomes payable at the expiration of 18 months from date of death; if not paid within said 18 months, interest is charged at the rate of 9 percent per annum from the time the same became 2 The provisions of law relating to this tax are shown on p. 7. payable. The time for payment may be extended with or without interest. (503C) Administration of act. All necessary administrative provisions of the succession tax law of this State are effective and applicable to all corresponding matters in the administration of this estate tax, except that no lien attaches to any property of any estate on account of this estate tax. (506C) Source of information. Chapter 77a, 1931, 1933, 1935 Cumulative Supplement to the General Statutes. Estate Penalty Tax This is not a succession tax, nor is it in the nature of such a tax. It is a penalty imposed on nonpayment of property taxes during decedent's lifetime. DELAWARE INHERITANCE AND ESTATE TAXES Inheritance Tax Tax imposed. All property, real and personal, and every estate and interest therein, belonging to any person who at the time of his death was a resident of this State, and all tangible personal property having an actual situs in this State and all real property actually situated in this State and every estate or interest therein, legal or equitable, belonging to any person who at the time of his death was not a resident of this State, and which passes by will or by the intestate laws of this State, or by deed, grant, gift, or settlement (except in case of a bona fide purchase for full consideration in money or money's worth) made in contemplation of death or intended to take effect in possession or enjoyment at or after the death of the grantor, donor, or settlor to any person or persons, body politic or corporate (resident or nonresident) in trust or otherwise, is subject to a tax. (101) Transfers taxable.-Whenever any person, institution, or corporation exercises a general power of appointment derived from any disposition of property, such appointment is deemed a transfer subject to this tax in the same manner as though the property to which it relates belonged absolutely to the donee of such power and has been bequeathed or devised by him by will. Whenever property is held under joint ownership and is transferred to the survivor upon the death of a joint owner, the right of the survivor to immediate ownership or possession and enjoyment is deemed a transfer taxable hereunder. Any transfer of a decedent in the nature of a final disposition or distribution of his property, made within two years prior to his death, without full consideration, is deemed to have been made in contemplation of death, unless the contrary is shown. Proceeds of life insurance payable otherwise than to the estate of the insured are exempt from this tax. (101) Deductions allowed.-In determining the value of the net estate for distribution, the deductions allowed from the fair market value of the estate on date of decedent's death are as follows: Funeral and burial expenses; debts of decedent owing at date of death; mortgages unpaid on date of death; commissions of executors and administrators, and costs of administration, but not including losses on sales of assets. (102) Exemptions. All property, estate, or interest devised or bequeathed for charitable, educational, library, hospital, historical, or religious purposes or for purposes of public benefit or improvement is exempt from this tax. Beneficiaries receive the following exemptions: Class A, $20,000; class B, $3,000; class C, $1,000; no exemption for class D. (101, 102) Classification of beneficiaries.—The beneficiaries under this act are classified as follows: Class A: Husband or wife. Class B: Parent, grandparent, child by birth or adopted child, wife or widow of a son or husband or widower of a daughter, or lineal descendant of the decedent. Class C: Brother or sister, of the whole or half blood, of decedent, or of any brother or sister of decedent's parent or first cousins. of decedent, or a lineal descendant of any such brother or sister, of the whole or half blood, of decedent. Class D: All others. (102) Rates of tax. The estate, interest, or distributive share of every person, body politic or corporate, in all property taxable hereunder is subject to this tax, which is computed upon the fair market value of the property, at the time of the death of the decedent, and at the following rates: (102) Payment of tax; interest.—This tax is payable to the State tax department within 30 days after determination of the amount due. From 14 months after date of death, and until paid, interest is charged at the rate of 4 percent per annum. If an estate becomes involved in litigation, no interest is charged until one month after adjudication. (105) Disposition of proceeds.-The proceeds of this tax are for the use of the State. (103) Administration of act.-The administration and enforcement of the provisions of this act are vested in the State tax department and the State tax commissioner. (108) Sources of information.-Chapter 6, Article 10, Revised Code of Delaware, 1935; Chapter 8, Session Laws of 1937. Estate Tax Tax imposed. An estate tax is imposed on the estate of every person who, at the time of his death, was a resident of this State, provided such estate is in the class of estates that are subject under the laws of the United States to a Federal estate tax.2 (109) Computation of tax. This tax is computed in the following manner: The aggregate amount of taxes due this State under the above inheritance tax provisions in respect to any property, or estate, or interest therein, belonging to decedent at the time of his death is first ascertained. To such amount there is added the aggregate amount of all estate, inheritance, legacy, and succession taxes paid to any other State or Territory of the United States or to the District of Columbia in respect to any property owned by such decedent or subject to such taxes as a part of or in connection with his estate. The sum resulting is deducted from the amount of the maximum credit allowable to the estate of the decedent by the Federal estate The provisions of law relating to this tax are shown on p. 7. |