Bill Text: IA SSB3015 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the inheritance tax by modifying the requirements to qualify for a deferment of tax payment under certain circumstances in the case of estates with a deferred estate or remainder interest, and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2018-02-08 - Subcommittee recommends passage. [SSB3015 Detail]
Download: Iowa-2017-SSB3015-Introduced.html
Senate
Study
Bill
3015
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
the
inheritance
tax
by
modifying
the
1
requirements
to
qualify
for
a
deferment
of
tax
payment
under
2
certain
circumstances
in
the
case
of
estates
with
a
deferred
3
estate
or
remainder
interest,
and
including
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
450.20,
Code
2018,
is
amended
to
read
as
1
follows:
2
450.20
Record
of
deferred
estates.
3
The
department
of
revenue
shall
keep
a
separate
record
of
4
any
deferred
estate
upon
which
the
tax
due
is
not
paid
on
or
5
before
the
last
day
of
the
ninth
month
after
the
death
of
the
6
decedent,
showing
substantially
the
same
facts
as
are
required
7
in
other
cases,
and
also
showing:
8
1.
The
date
and
amount
of
all
bonds
given
to
secure
the
9
payment
of
the
tax
with
a
list
of
the
sureties
thereon.
10
2.
The
type
and
amount
of
any
security,
other
than
a
bond,
11
given
to
secure
the
payment
of
the
tax.
12
2.
3.
The
name
of
the
person
beneficially
entitled
to
such
13
estate
or
interest,
with
place
of
residence.
14
3.
4.
A
description
of
the
property
or
a
statement
of
15
conditions
upon
which
such
deferred
estate
is
based
or
limited.
16
Sec.
2.
Section
450.47,
Code
2018,
is
amended
to
read
as
17
follows:
18
450.47
Life
and
term
estates
in
personal
property.
19
If
an
estate
or
interest
for
life
or
term
of
years
in
20
personal
property
is
given
to
one
or
more
persons
other
than
21
those
exempt
by
this
chapter
and
the
remainder
or
deferred
22
estate
to
others,
the
property
devised
or
conveyed
shall
be
23
valued
under
section
450.37
as
provided
in
ordinary
estates
24
and
the
value
of
the
estates
or
interests
devised
or
conveyed
25
shall
be
determined
as
provided
in
section
450.51
,
and
the
26
tax
upon
the
estates
or
interests
liable
for
the
tax
shall
be
27
paid
to
the
department
of
revenue
from
the
property
valued
28
or
by
the
persons
entitled
to
the
estate
or
interest
on
or
29
before
the
last
day
of
the
ninth
month
after
the
death
of
the
30
testator,
grantor,
or
donor.
However,
payment
of
the
tax
upon
31
a
deferred
estate
or
remainder
interest
may
be
deferred
until
32
the
determination
of
the
prior
estate
by
the
giving
of
a
good
33
and
sufficient
bond
as
provided
in
section
450.48
.
34
Sec.
3.
Section
450.48,
Code
2018,
is
amended
to
read
as
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follows:
1
450.48
Payment
deferred
——
bond
——
exceptions
.
2
1.
When
Except
as
provided
in
subsection
2,
when
in
case
of
3
deferred
estates
or
remainder
interests
in
personal
property
or
4
in
the
proceeds
of
any
real
estate
that
may
be
sold
during
the
5
time
of
a
life,
term,
or
prior
estate,
the
persons
interested
6
who
may
desire
to
defer
the
payment
of
the
tax
until
the
7
determination
of
the
prior
estate,
shall
file
with
the
clerk
8
of
the
proper
district
court
a
bond
as
provided
herein
in
9
other
cases,
such
bond
to
be
renewed
every
two
years
until
the
10
tax
upon
such
deferred
estate
is
paid.
If
at
the
end
of
any
11
two-year
period
the
bond
is
not
promptly
renewed
as
herein
12
provided
and
the
tax
has
not
been
paid,
the
bond
shall
be
13
declared
forfeited,
and
the
amount
thereof
forthwith
collected.
14
2.
When
the
estate
of
a
decedent
consists
in
part
of
real
15
and
in
part
of
personal
property,
and
there
be
includes
an
16
estate
for
life
or
for
a
term
of
years
to
one
or
more
persons
17
and
a
deferred
or
remainder
estate
to
others,
and
such
deferred
18
or
remainder
estate
is
in
whole
or
in
part
subject
to
the
tax
19
imposed
by
this
chapter
,
if
the
then
payment
of
the
tax
upon
20
such
deferred
or
remainder
estates
may
be
postponed
until
the
21
determination
of
the
prior
estate
without
giving
bond
to
secure
22
payment
of
such
tax
as
required
under
subsection
1
if
one
of
23
the
following
requirements
is
satisfied:
24
a.
The
deferred
or
remainder
estates
or
interests
are
so
25
disposed
that
good
and
sufficient
security
for
the
payment
of
26
the
tax
for
which
such
deferred
or
remainder
estates
may
be
27
liable
can
be
had
because
of
the
lien
imposed
by
this
chapter
28
upon
the
real
property
of
such
estate,
then
payment
of
the
tax
29
upon
such
deferred
or
remainder
estates
may
be
postponed
until
30
the
determination
of
the
prior
estate
without
giving
bond
as
31
herein
required
to
secure
payment
of
such
tax,
and
but
the
tax
32
shall
remain
a
lien
upon
such
real
estate
until
the
tax
upon
33
such
deferred
estate
or
interest
is
paid.
34
b.
Security
satisfactory
to
the
department
of
revenue
has
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been
provided,
which
security
includes
but
is
not
limited
to
a
1
bank
or
securities
account
with
an
irrevocable
pay
on
death
or
2
transfer
on
death
provision
naming
the
department
of
revenue
3
as
beneficiary,
or
an
escrow
agreement
with
the
department
of
4
revenue
under
which
a
private
attorney
will
act
as
escrow
agent
5
and
hold
the
escrow
funds
in
the
attorney’s
trust
account.
6
Sec.
4.
APPLICABILITY.
This
Act
applies
to
estates
of
7
decedents
that
include
a
deferred
estate
or
remainder
interest
8
and
that
have
not,
on
or
before
July
1,
2018,
received
approval
9
from
the
department
of
revenue
to
defer
payment
of
tax
pursuant
10
to
sections
450.44
through
450.49.
11
EXPLANATION
12
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
13
the
explanation’s
substance
by
the
members
of
the
general
assembly.
14
This
bill
relates
to
the
inheritance
tax.
An
estate
15
subject
to
the
inheritance
tax
may
contain
a
deferred
estate
16
or
remainder
interest,
which
generally
occurs
when
property
is
17
transferred
to
a
person
for
a
certain
period
of
time,
and
then
18
to
a
different
person
(remainderman)
at
the
expiration
of
that
19
time.
Under
Iowa
law,
the
inheritance
tax
accrues
at
the
date
20
of
death
of
the
decedent
and
is
due
on
or
before
the
last
day
of
21
the
ninth
month
following
that
date.
However,
the
payment
of
22
inheritance
tax
may
be
deferred
for
a
remainderman
until
such
23
time
as
the
property
actually
passes
to
that
person.
24
When
inheritance
tax
deferral
is
elected,
Iowa
law
requires
25
that
a
bond
be
given
to
secure
the
payment
of
the
tax
unless
the
26
estate
contains
real
property
and
the
automatic
lien
on
such
27
real
property
is
sufficient
to
secure
payment
of
the
deferred
28
tax.
29
The
bill
provides
that,
in
lieu
of
a
bond,
an
estate
30
containing
personal
property,
real
property,
or
a
mix
of
31
both,
may
provide
other
security
to
secure
payment
of
the
32
deferred
tax.
The
bill
provides
that
the
other
security
must
33
be
satisfactory
to
the
department
of
revenue
(DOR).
The
bill
34
includes
as
examples
of
other
security
a
bank
or
securities
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account
with
an
irrevocable
pay-on-death
or
transfer-on-death
1
provision
naming
DOR
as
beneficiary,
or
an
escrow
agreement
2
with
DOR
under
which
a
private
attorney
will
act
as
escrow
3
agent
and
hold
the
escrow
funds
in
the
attorney’s
trust
4
account.
5
The
bill
requires
that
a
description
of
the
type
and
amount
6
of
the
other
security
be
added
to
the
record
of
the
deferred
7
estate
required
to
be
kept
under
Code
section
450.20.
8
The
bill
applies
to
estates
of
decedents
that
include
a
9
deferred
estate
or
remainder
interest
and
that
have
not,
on
10
or
before
July
1,
2018,
received
approval
from
DOR
to
defer
11
payment
of
the
inheritance
tax.
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