West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-11 - Inheritance And Transfer Tax › Section 110-11-3 - Jointly Held Property

Current through Register Vol. XLI, No. 28, July 12, 2024
3.1.
				General. The entire value of any property owned by a decedent or to which he
				was absolutely entitled, and which he has transferred or vested, or caused to
				be transferred to or vested in himself and any other person jointly, with right
				of survivorship, in whole or in part, in such other person, shall be subject to
				inheritance tax except as otherwise herein provided. This ruling applies to any
				form of joint ownership of real or personal property where each co-owner has a
				joint interest of any kind during their joint lives and where the surviving
				co-owner takes the whole estate, including common law joint tenancies, "joint
				tenancies with right of survivorship", joint accounts held in "A or B form and
				"A or B or the survivor" form, and any other form of ownership where
				requirements of this Section 1 of this ruling are satisfied regardless of how
				many persons may have joint interests in the property in question. The term
				"joint tenants with the right of survivorship" is used herein for convenience,
				and includes all forms of ownership of property which are subject to provisions
				of this ruling. This ruling does not apply to tenancies by the entirety, and no
				position is taken in this ruling either on the question of the existence of the
				estate of tenancy by the entirety in the State of West Virginia or on the
				question of the application of the inheritance tax to the transfer of property
				so held. This ruling does not apply to undivided interests in property held by
				a decedent as a tenant in common or in some other form of ownership where the
				surviving co-owner takes nothing by survivorship.
Example 1. "A", during his lifetime caused Blackacre, wholly
				  owned by him, to be transferred to himself and "B", his son, as joint tenants
				  with right of survivorship, without consideration by "B". Thereafter, "A" died
				  while Blackacre was still held in such form. The whole value of Blackacre is
				  subject to inheritance tax at "A's" death. The same result would follow if "A"
				  paid the entire consideration for the purchase of Blackacre and caused the
				  seller to convey it to himself and "B" as joint tenants with right of
				  survivorship. The same result would also follow if the transfer was made or
				  caused by "A" without consideration to "A" and his sons "B", "C" and "D", with
				  right of survivorship among the four (4) co-tenants, and "A" died while
				  Blackacre was so held.
Example 2. "H", purchases United States Savings Bonds, of any
				  series, causing them to be issued and registered in the names of "H" and "W",
				  husband and wife. The case value of the bonds on the date of "H's" death is
				  subject to tax as provided herein subject to the provisions of Sections 3.2,
				  3.3, and 3.4 of this regulation, in the case of decedents dying on or after
				  September 15, 1966.
3.2.
				Consideration by survivor. When the survivor of two or more joint tenants has
				provided any part of the consideration for the purchase or acquisition of
				property held in joint tenancy with the right of survivorship, a proportionate
				part of the value of the property will be exclude in the application of the
				inheritance tax. In any case in which it is claimed that the survivor furnished
				part of the consideration hereunder, the person whose duty it is to pay the
				inheritance tax thereon shall have the burden of proving to the Commissioner
				the amount of such consideration furnished by or attributable to the survivor.
Example 1. "A" and "B", brothers, own property as joint
				  tenants with right of survivorship valued at thirty thousand dollars ($30,000)
				  at the death of "A". It is proved to the Commissioner that the property was
				  purchased for twenty thousand dollars ($20,000), and that "A" provided fifteen
				  thousand dollars ($15,000) and "B" five thousand dollars ($5,000). Three-forths
				  (3/4) of thirty thousand dollars ($30,000) or twenty-two thousand five hundred
				  dollars ($22,500) is subject to inheritance tax at "A's" death.
3.3. Aquisition by gift or
				inheritance. In any case where property has been acquired by decedent and
				another as joint tenants with the right of survivorship by gift or inheritance
				from a third party, no part of the value of such property is subject to
				inheritance tax upon the death of the first of such joint tenants to
				die.
3.4. Husband and wife. In the
				case of decedents dying on or after June 3, 1957, where the decedent and his or
				her surviving spouse hold property as joint tenants with right of survivorship,
				not more than fifty percent (50%) of the value of such property shall be
				subject to the inheritance tax.
Example 1. "A" and "B", husband and wife, own real property
				  valued at "A's" death at twenty five thousand dollars ($25,000) as joint
				  tenants with right of survivorship, for which "A" provided the entire purchase
				  price. At "A's" death, one half of the value of the property, or twelve
				  thousand five hundred dollars ($12,500), will be subject to inheritance tax.
				  (See Section 3.5, Example 1, hereunder with regard to joint accounts in the
				  name of husband and wife.)
Example 2. The facts are the same as in Example 1, except
				  that it is proved to the commissioner that "B" provided five thousand dollars
				  ($5,000) of the cost of the property, purchased for a total of twenty thousand
				  dollars ($20,000) with money inherited by her from her parents. One fourth
				  (1/4) of the value of the property at "A's" death, or six thousand two hundred
				  fifty dollars ($6,250), is excluded because of consideration furnished by the
				  surviving spouse; one half (1/2) of the remaining eighteen thousand seven
				  hundred fifty dollars ($18,750), or nine thousand three hundred seventy-five
				  dollars ($9,375), is excluded under the fifty percent (50%) exclusion provided
				  for jointly held property in the name of husband and wife; the remaining nine
				  thousand, three hundred and seventy-five dollars ($9,375) is subject to
				  inheritance tax at "A,s" death.
3.5. Joint Accounts.
(a) In General. Amounts on deposit in joint
				checking and savings accounts in any bank, federal savings and loan
				associations or building and loan associations in the name of a decedent and
				another, where either party may withdraw funds from the account upon his sole
				signature for his or her own use, and where the whole balance on deposit at the
				death of either vests in the survivor, are wholly subject to inheritance tax
				upon the death of the first of such depositors to die, except as otherwise
				provided herein.
(b) Exemptions for
				Accounts in Name of Husband and Wife. A maximum of fifty percentum (50%) of the
				aggregate amount of joint accounts in the name of husband and wife (in "A or B"
				or "A or B and the survivor" or similar form) is subject to inheritance tax
				upon the death of the first to die of such husband and wife.
(c) Two thousand, five hundred dollar
				($2,500) Exemption. An aggregate of two thousand, five hundred dollars,
				($2,500) on deposit in joint accounts in "A or B" or "A or B and the survivor"
				or similar form, in the name of a decedent and his or her spouse, parent,
				child, step-child or the decedents of a living or deceased child is exempt from
				inheritance tax. Where a decedent maintained joint accounts subject to tax
				hereunder with more than one person within the degree of relationship
				qualifying for the two thousand, five hundred dollar ($2,500) exemption, the
				exemption will be prorated among the various accounts in proportion to the
				amount of deposit and various accounts in proportion to the amount of deposit
				and subject to tax (before application of any exemption) in each
				account.
(d) Contribution by
				Survivor. A portion of any joint account subject to tax hereunder is exempt
				from inheritance tax to the extent that it is proved to the Commissioner that
				survivor was the source of or actual owner of funds in the account.
Example 1. "H and W" husband and wife, have accounts
				  amounting to a total of twenty thousand dollars ($20,000) in various banks in
				  the form "H and W" or "H or W or the survivor". In the absence of proof of
				  contribution by the survivor or ownership of any portion of the account by the
				  survivor or ownership of any portion of the account by the survivor or another
				  person, a total of ten thousand dollars ($10,000) of such accounts is exempt
				  from tax under the exemption provided for property held in the name of husband
				  and wife, as joint tenants with right of ownership; two thousand, five hundred
				  dollars of the remainder is exempt from tax; seven thousand, five hundred
				  dollars ($&,500) of such accounts is subject to the inheritance tax.
Example 2. The facts are the same as in Example 1, except
				  that the twenty thousand dollars ($20,000) is on deposit in a single account
				  and it is proved that "W" contributed five thousand dollars ($5,000) out
				  excluded; one half of the remaining fifteen thousand dollars ($15,000) or seven
				  thousand, five hundred dollars ($7,500) is exempt from tax under the exclusion
				  for property held in the name of husband and wife as joint tenants with right
				  of survivorship; two thousand, five hundred dollars ($2,5000) of the remainder
				  is exempt from tax; five thousand dollars ($5,000) of the account is subject to
				  the inheritance tax.
Example 3. At the date of his death "A" was shown as a
				  co-depositor on the records of various banks as follows "A or B" (A's wife ten
				  thousand dollars ($10,000); "A or C" (A's son) five thousand dollars ($5,000);
				  "A" or D" (A's nephew) five thousand dollars ($5,000) as the account in the
				  name of "A or B" is exempt from inheritance tax under the exemption for
				  property held in the name of husband and wife, as joint tenants with right of
				  survivorship. The two thousand, five hundred dollars ($2,500) exemption is
				  prorated between the accounts passing to the wife "B" and the son "C"; no part
				  of the two thousand, five dollars ($2,500) exemption id prorated to the account
				  in the name of "A" and his nephew "D", because "D" is not within the necessary
				  degree of relationship with "A" to qualify for the exemption. 10,000/15,000ths
				  of the two thousand, five hundred dollar ($2,5000) exemption, or one thousand,
				  six hundred and sixty-six dollars and sixty-seven cents ($1,666.67), is
				  allocated to the "A or B" account and 5,000/15,000ths of the exemption, or
				  eight hundred and thirty-three dollars and thirty-three cents is allocated to
				  the "A or C" account. Thus only three thousand, three hundred and thirty-three
				  dollars and thirty-three cents of the account in the name of "A or B" is
				  subject to the inheritance tax and four thousand, one hundred and sixty-six
				  dollars and sixty-seven cents ($4,166.67) of the account in the name of "A or
				  C' is subject to tax. The entire five thousand dollars ($5,000) on deposit in
				  the account in the names of "A or D" is subject to tax.