Chapter 10 - Tax Apportionment - Wyoming Statutes

CHAPTER 10 - TAX APPORTIONMENT

 

2-10-101. Short title.

 

Thisact may be cited as the "Uniform Estate Tax Apportionment Act".

 

2-10-102. Definitions.

 

(a) As used in W.S. 2-10-101 through 2-10-110:

 

(i) "Estate" means the gross estate of a decedent asdetermined for the purpose of federal estate tax;

 

(ii) "Fiduciary" means executor, administrator of anydescription, and trustee;

 

(iii) "Person" means any individual, partnership,association, joint stock company, corporation, government, politicalsubdivision of a government, governmental agency or local governmental agency;

 

(iv) "Person interested in the estate" means anyperson entitled to receive or who has received from a decedent or by reason ofthe death of a decedent any property or interest therein included in thedecedent's estate. It includes a personal representative, guardian and trustee;

 

(v) "State" means any state, territory or possessionof the United States, the District of Columbia and the Commonwealth of PuertoRico;

 

(vi) "Tax" means the federal estate tax and interest andpenalties imposed in addition to the tax;

 

(vii) "This act" means W.S. 2-10-101 through 2-10-110.

 

2-10-103. Among all persons interested in estate; exception.

 

Unlessthe will otherwise provides, the tax shall be apportioned among all personsinterested in the estate. The apportionment shall be made in proportion thatthe value of the interest of each person interested in the estate bears to thetotal value of the interests of all persons interested in the estate. Thevalues used in determining the tax shall be used for that purpose.

 

2-10-104. Probate court to determine; discretion allowed; presumptionof correctness.

 

(a) The probate court having jurisdiction over theadministration of the estate of a decedent shall determine the apportionment ofthe tax. If there are no probate proceedings, the probate court of the countywherein the decedent was domiciled at death upon the application of the personrequired to pay the tax shall determine the apportionment of the tax.

 

(b) If the probate court finds that it is inequitable toapportion interest and penalties in the manner provided in W.S. 2-10-103because of special circumstances, it may direct apportionment thereof in themanner it finds equitable.

 

(c) If the probate court finds that the assessment of penaltiesand interest assessed in relation to the tax is due to delay caused by thenegligence of the fiduciary, the court may charge the fiduciary with the amountof the assessed penalties and interest.

 

(d) In any suit or judicial proceeding to recover from anyperson interested in the estate the amount of the tax apportioned to the personin accordance with this act, the determination of the probate court in respectthereto shall be prima facie correct.

 

2-10-105. Withholding upon distribution of estate; right to recoverdeficiency; security required if distribution made prior to finalapportionment.

 

(a) The fiduciary or other person in possession of the propertyof the decedent required to pay the tax may withhold from any property distributableto any person interested in the estate, upon his distribution to him, theamount of tax attributable to his interest. If the property in possession ofthe fiduciary or other person required to pay the tax and distributable to anyperson interested in the estate is insufficient to satisfy the proportionateamount of the tax determined to be due from the person, the fiduciary or otherperson required to pay the tax may recover the deficiency from the personinterested in the estate. If the property is not in the possession of thefiduciary or other person required to pay the tax, the fiduciary or the otherperson required to pay the tax may recover from any person interested in theestate the amount of the tax apportioned to the person in accordance with thisact.

 

(b) If property held by the fiduciary is distributed prior tofinal apportionment of the tax, the distributee shall provide a bond or othersecurity for the apportionment liability in the form and amount prescribed bythe fiduciary, with the approval of the probate court having jurisdiction ofthe administration of the estate.

 

2-10-106. Allowances for exemptions or deductions and credits.

 

(a) In making an apportionment, allowances shall be made forany exemptions granted and for any deductions and credits allowed by the lawimposing the tax.

 

(b) Any exemption or deduction allowed by reason of therelationship of any person to the decedent or by reason of the purposes of thegift shall inure to the benefit of the person bearing such relationship orreceiving the gift; except that when an interest is subject to a prior presentinterest which is now allowable as a deduction, the tax apportionable againstthe present interest shall be paid from principal.

 

(c) Any deduction for property previously taxed and any creditfor gift taxes or death taxes of a foreign country paid by the decedent or hisestate shall inure to the proportionate benefit of all persons liable toapportionment.

 

(d) Any credit for inheritance, succession or estate taxes ortaxes in the nature thereof in respect to property or interests includable inthe estate shall inure to the benefit of the persons or interests chargeablewith the payment thereof to the extent that, or in proportion as the creditreduces the tax.

 

(e) To the extent that property passing to or in trust for asurviving spouse or any charitable, public or similar gift or bequest does notconstitute an allowable deduction for purposes of the tax solely by reason ofan inheritance tax or other death tax imposed upon and deductible from theproperty, the property shall not be included in the computation provided for inW.S. 2-10-103 and to that extent no apportionment shall be made against theproperty. The sentence immediately preceding shall not apply to any case wherethe result will be to deprive the estate of a deduction otherwise allowableunder applicable gift and estate laws, relating to deduction for state deathtaxes on transfers for public, charitable or religious uses.

 

2-10-107. Charging temporary interest and remainder.

 

Nointerest in income and no estate for years or for life or other temporaryinterest in any property or fund shall be subject to apportionment as betweenthe temporary interest and the remainder. The tax on the temporary interest andthe tax, if any, on the remainder shall be chargeable against the corpus of theproperty or funds subject to the temporary interest and remainder.

 

2-10-108. Institution of actions or proceedings to recover tax;generally; apportionment of amounts not collected.

 

Neitherthe fiduciary nor other person required to pay the tax shall be under any dutyto institute any suit or proceeding to recover from any person interested inthe estate the amount of the tax apportioned to the person until the expirationof the three (3) months next following final determination of the tax. Afiduciary or other person required to pay the tax who institutes the suit orproceeding within a reasonable time after the three (3) months period shall notbe subject to any liability or surcharge because any portion of the taxapportioned to any person interested in the estate was collectible at a timefollowing the death of the decedent but thereafter became uncollectible. If thefiduciary or other person required to pay the tax cannot collect from anyperson interested in the estate the amount of the tax apportioned to theperson, the amount not recoverable shall be equitably apportioned among theother persons interested in the estate who are subject to apportionment.

 

2-10-109. Institution of actions or proceedings to recover tax;actions by nonresidents.

 

(a) Subject to the conditions in subsection (b) of this sectiona fiduciary acting in another state or a person required to pay the taxresident in another state may institute an action in the courts of this stateand may recover a proportionate amount of the federal estate tax, of an estatetax payable to another state or of a death duty due by a decedent's estate toanother state from a person interested in the estate who is either resident inthis state or who owns property in this state subject to attachment orexecution. For the purposes of the action the determination of apportionment bythe court having jurisdiction of the administration of the decedent's estate inthe other state shall be prima facie correct.

 

(b) The provisions of subsection (a) of this section shallapply only:

 

(i) If such other state affords a remedy substantially similarto that afforded in subsection (a) of this section;

 

(ii) With respect to federal estate tax, if apportionmentthereof is authorized by congress.

 

2-10-110. Interpretation and construction.

 

Thisact shall be so interpreted and construed as to effectuate its general purposeto make uniform the laws of those states which enact it.