California Code of Regulations › Title 18 - Public Revenues › Division 2.5 - State Controller › Chapter 1 - Inheritance Tax › Article 11 - Estates in Probate › Section 14501 - Submission of Documents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
To assist the inheritance tax referee appointed in any
					 proceeding to determine tax (see Revenue and Taxation Code Sections
					 14501
					 through
					 14577,
					 and Probate Code Sections
					 1170 through
					 1175) in
					 arriving at his determination as to whether any tax imposed by the Inheritance
					 Tax Law is due on any transfer of property by a decedent, the following
					 documents must be submitted to the referee:
(a) The original and two copies of any
				  inventory prepared pursuant to Section
				  600 of the
				  Probate Code.
(b) Two copies of the
				  decedent's will, if any, including any codicils thereto.
(c) The original and one copy of Form IT-22,
				  entitled "Inheritance Tax Declaration." This should be executed by the executor
				  of the decedent's will, the administrator of the decedent's estate, or any
				  other person having actual knowledge of the facts required. Copies of the
				  declaration form may be obtained from the referee or from the Division of Tax
				  Administration-Inheritance Tax of the Controller's office in Los Angeles,
				  Sacramento, or San Francisco. (See also Section
				  14501.1).
(d) The original and one copy of form IT-3,
				  entitled "Marital Property Declaration," where the distribution of the estate
				  is determined by the character of the property as either community,
				  quasi-community or separate property, or where the decedent was survived by a
				  spouse and under the terms of the decedent's will admitted to probate the
				  surviving spouse is forced to make an election or during the decedent's
				  lifetime the decedent and the surviving spouse entered into an agreement
				  concerning the character of their property. In all other cases, the form IT-3
				  is not normally required; however, the Controller's office may require the form
				  IT-3 be completed and submitted in any case where the information contained
				  thereon is necessary to determine the proper amount of inheritance tax due. The
				  declaration should be executed by the decedent's surviving spouse. If this is
				  for some reason impossible, it may be executed by any person having actual
				  knowledge of the facts required. In the latter event, the person making the
				  declaration should add a paragraph explaining the reason for not submitting the
				  spouse's declaration and setting forth the declarant's connection with the
				  decedent and his or her means of knowledge of answers to the
				  questions.
(e) The original and one
				  copy of Form IT-2, entitled "Declaration Concerning Residence," if it is
				  claimed that the decedent was a nonresident of California at the time of his
				  death.
If no court proceeding is pending or contemplated, and it
					 is desired to secure the Controller's consent to transfer intangible property
					 belonging to the estate of a decedent who was domiciled outside the State of
					 California, the request for the Controller's consent should be made on form
					 IT-23, entitled "Residence Affidavit and Request for Consent to Transfer," and
					 form IT-23A, entitled "Rider to be Attached to Residence Affidavit and Request
					 for Consent to Transfer, Form IT-23, in Cases Where Decedent was a Nonresident
					 not a Citizen of the United States," in cases where the decedent was a
					 nonresident of the United States, filed with the Division of Tax
					 Administration-Inheritance Tax in Los Angeles, Sacramento or San Francisco.
					 Copies of the forms may be obtained from the Division of Tax
					 Administration-Inheritance Tax. (See also Sections
					 13303.4,
					 13851.1 and
					 14345.1).
(f) Two copies of any petition filed pursuant
				  to Sections
				  1170 through
				  1175 of the
				  Probate Code to establish the fact of the decedent's death.
(g) An affidavit executed by any joint tenant
				  of the decedent's who survived the latter's death, if it is claimed that such
				  tenant made any contribution to the acquisition of the joint tenancy property.
				  (See Sections
				  13554 and
				  13671
				  through
				  13671.5,
				  and Revenue and Taxation Code Sections
				  13671 and
				  13671.5). There is no prescribed
				  form for this affidavit. It may be incorporated in the space provided in the
				  Inheritance Tax Declaration, Form IT-22, or by a rider or exhibit attached
				  thereto. A full statement should be made explaining the transactions whereby
				  the joint tenancy titles involved were created, giving in regard to each item
				  the date of acquisition, the net amount invested by the decedent and by the
				  survivor, and the economic origin of the survivor's contribution. Stating that
				  the survivor's investment was made with his own or separate property is not
				  sufficient since this would be true if the decedent had some time in the past
				  given to the survivor the money or property which was later reinvested in the
				  joint tenancy property. If such were the case, the survivor's contribution
				  would be subject to inheritance tax.
(h) Two copies of any trust or other
				  instrument by which the decedent made any transfer during his lifetime (see
				  Revenue and Taxation Code Sections
				  13641
				  through
				  13648),
				  together with two copies of a list of the property, as of the date of the
				  decedent's death, included in such transfer.
(i) In the case of a transfer by the decedent
				  of listed inactive stock, of unlisted stock not actively traded in, or of stock
				  of a closed corporation, balance sheets of the issuing corporation as of a date
				  as near to the date of death as is practicable, and profit and loss statements
				  of the corporation for each of the five years immediately preceding the date of
				  death. Copies of balance sheets and statements already prepared by the
				  company's accountant should be submitted. The number of shares outstanding and
				  the nature of the business in which the company is engaged must be
				  shown.
(j) If a transfer consisted
				  of a parcel of real property, the most recent real property tax bill, or other
				  satisfactory evidence of ad valorem tax value, covering such parcel.
(k) If any property transferred was subject
				  to a bona fide lien or other encumbrance which reduced the market value of the
				  property at the date of death, a copy of the lien or encumbrance instrument, or
				  a statement of the terms thereof.
(l) Such other documents and copies of the
				  foregoing as may be of assistance to the referee in determining whether any tax
				  is due.
If a referee has been appointed to determine tax in a
					 probate proceeding, the aforementioned documents should be submitted to the
					 referee by the executor of the decedent's will or the administrator of the
					 decedent's estate.
1. Amendment
					 of subsections (c), (d) and (e) filed 7-2-81; effective thirtieth day
					 thereafter (Register 81, No. 27.)
Note: Authority cited: Section
						14740,
						Revenue and Taxation Code. Reference: Section
						14501,
						Revenue and Taxation Code.