Iowa Administrative Code › Agency 701 - Revenue Department › Title X - Inheritance Tax › Chapter 900 - Inheritance Tax › Rule 701-900.1 - Administration

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
The following definitions cover Chapter 86.
"Administrator"
means the administrator of
				  the compliance division of the department of revenue.
"Child"
means a biological or adopted issue entitled to inherit pursuant to Iowa Code
				  chapter 633.
"Compliance division"
is the administrative unit
				  of the department created by the director to administer the inheritance and
				  fiduciary income tax laws of the state.
"Department"
means the department of
				  revenue.
"Devise,"
when used as a verb, means to
				  dispose of property, both real and personal, by a will.
"Director"
means the director of
				  revenue.
"Estate"
means the real and personal
				  property, tangible and intangible, of the decedent or a trust, that over time
				  may change in form due to sale, reinvestment, or otherwise, and augmented by
				  accretions or additions thereto and substitutions therefor, or diminished by
				  any decreases and distributions therefrom. For the definitions of "gross
				  estate" and "net estate" under this chapter, see those terms as referenced in
				  this subrule.
"Executor"
means any person appointed by the
				  court to administer the estate of a testate decedent.
"Fiduciary"
includes personal
				  representative, executor, administrator, and trustee. This term includes both
				  temporary and permanent fiduciaries appointed by the court to settle the
				  decedent's probate estate and also the trustee of an inter vivos trust where
				  the trust assets are part of the gross estate for inheritance tax
				  purposes.
"Gross estate"
as used for inheritance tax
				  purposes as defined in Iowa Code section
				  450.2 includes all those items,
				  or interests in property, passing by any method of transfer specified in Iowa
				  Code section 450.3 without reduction for
				  liabilities specified in Iowa Code section
				  450.12. The gross estate for tax
				  purposes may not be the same as the estate for probate purposes. For example,
				  property owned as joint tenants with right of survivorship, property
				  transferred with a retained life use, gifts in excess of the annual gift tax
				  exclusion set forth in Internal Revenue Code Section 2503(b) and within three
				  years of death, transfers to take effect in possession or enjoyment at death,
				  trust property, "pay on death" accounts, annuities, and certain retirement
				  plans, are not part of the decedent's probate estate, but are includable in the
				  decedent's gross estate for inheritance tax purposes.
In re Louden's
				  Estate,
249 Iowa 1393, 92 N.W.2d 409 (1958);
In re Sayres'
				  Estate,
245 Iowa 132, 60 N.W.2d 120 (1953);
In re Toy's
				  Estate,
220 Iowa 825, 263 N.W. 501 (1935);
In re Mann's
				  Estate,
219 Iowa 597, 258 N.W. 904 (1935);
Matter of Bliven's
				  Estate,
236 N.W.2d 366 (Iowa 1975);
In re English's
				  Estate,
206 N.W.2d 305 (Iowa 1973).
Effective for estates of a decedent dying on or after July 1,
				  2003, property and any interest in or income from any of the estates and
				  property, which pass from the decedent owner in any manner, are subject to tax
				  if the passing interest is in one of the following:
(1) real estate and tangible personal
				property located in Iowa regardless of whether the decedent was a resident of
				Iowa at death; and
(2) intangible
				personal property owned by a decedent domiciled in Iowa.
"Gross share"
means the total amount of
				  property of an heir, beneficiary, surviving joint tenant, or transferee,
				  without reduction of those items properly deductible in computing the net
				  shares. The total of all gross shares is equal to the gross estate.
"Heir"
includes any person, except the
				  surviving spouse, who is entitled to property of the decedent under the
				  statutes of intestate succession.
"Internal Revenue Code"
means the Internal
				  Revenue Code of 1954 as defined in Iowa Code section
				  422.3(5)  and
				  is to include the revisions to the Internal Revenue Code made in 1986 and all
				  subsequent revisions.
"Intestate estate"
means an estate in which
				  the decedent did not have a will. Administration of such estates is governed by
				  Iowa Code sections 633.227 through
				  633.230. Rules of inheritance
				  for such estates are found in Iowa Code sections
				  633.211 through
				  633.226.
"Issue,"
for the purpose of intestate
				  succession, means all lawful lineal descendants of a person, whether biological
				  or adopted. For details regarding intestate succession, see Iowa Code sections
				  633.210 through
				  633.226. For details regarding
				  partial intestate succession, see Iowa Code section
				  633.272.
"Net estate"
means the gross estate less
				  those items specified in Iowa Code section
				  450.12 as deductions in
				  determining the net shares of property of each heir, beneficiary, surviving
				  joint tenant, or transferee.
In re Estate of Waddington,
201
				  N.W.2d 77 (Iowa 1972). The total of all net shares of an estate must equal the
				  total of the net estate.
"Net share"
means the gross share less the
				  liabilities, if any, which are properly deductible from the gross share of an
				  heir, beneficiary, surviving joint tenant, or transferee. The law of abatement
				  of shares may be applicable for purposes of determining the net share subject
				  to tax. See Iowa Code section
				  633.436;
In re Estate of
				  Noe,
195 N.W.2d 361 (Iowa 1972);
Colthurst v.
				  Colthurst,
265 N.W.2d 590 (Iowa 1978);
In re Estate of
				  Duhme,
267 N.W.2d 688 (Iowa 1978). However, see Iowa Code section
				  633.278 for property subject to
				  a mortgage.
"Personal representative"
shall have the
				  same meaning as the term is defined in Iowa Code section
				  633.3(29)  and
				  shall also include trustees. For information regarding claims of a personal
				  representative, see Iowa Code section
				  633.431.
"Probate"
means the administration of an
				  estate in which the decedent either had or did not have a will. Jurisdiction
				  over the administration of such estates, among other matters, is by the
				  district court sitting in probate. For further details on the subject matter
				  and personal jurisdiction of the district court sitting in probate, see Iowa
				  Code sections 633.10 through
				  633.21. For matters regarding
				  the procedure in probate, see Iowa Code sections
				  633.33 through
				  633.53.
"Responsible party"
is the person liable for
				  the payment of tax under this chapter. See
				  701-86.2 (450).
"Simultaneous deaths"
occur when the death
				  of two or more persons occurs at the same time or there is not sufficient
				  evidence that the persons have died otherwise than simultaneously. For
				  distribution of property in this situation, see Iowa Code sections
				  633.523 through
				  633.528.
"Stepchild"
means the child of a person who
				  was married to the decedent at the time of the decedent's death, or the child
				  of a person to whom the decedent was married, which person died during the
				  marriage of the decedent.
"Surviving spouse"
means the legally
				  recognized surviving wife or husband of the decedent.
"Tax"
means the inheritance tax imposed by
				  Iowa Code chapter 450.
"Taxpayer"
means a person liable for the
				  payment of the inheritance tax under Iowa Code section
				  450.5 and includes the executor
				  or personal representative of an estate, the trustee or other fiduciary of
				  property subject to inheritance tax, and includes each heir, beneficiary,
				  surviving joint tenant, transferee, or other person becoming beneficially
				  entitled to any property or interest therein by any method of transfer
				  specified in Iowa Code section
				  450.3, as subject to inheritance
				  tax with respect to any inheritance tax due on the respective shares of the
				  property.
"Trustee"
means the person or persons
				  appointed as trustee by the instrument creating the trust or the person or
				  persons appointed by the court to administer the trust.
"Trusts"
means real or personal property
				  that is legally held by a person or entity for the benefit of another. This
				  includes, but may not be limited to, express trusts, trusts imposed by court
				  order, trusts administered by the court, and testamentary trusts. Such trusts
				  are subject to Iowa Code chapter 450, even in situations when the estate
				  consists solely of trust property.
"Unknown heirs"
means heirs to an estate in
				  which the identities of the heirs or the place of residency of the heirs cannot
				  be ascertained with reasonable certainty.
"Will"
includes codicil; it also includes a
				  testamentary instrument that merely appoints an executor, and a testamentary
				  instrument that merely revokes or revives another will. For information
				  regarding mutual and contractual wills, see Iowa Code section
				  633.270.