TITLE V
TAXATION

Chapter 88-A
UNIFORM ESTATE TAX APPORTIONMENT ACT

Section 88-A:1

    88-A:1 Definitions. –
In this chapter:
I. "Estate" means the gross estate of a decedent as determined for the purpose of federal estate tax and the estate tax payable to this state as provided in RSA 87 and any amendments thereof.
II. "Person" means any individual, partnership, association, joint stock company, corporation, government, political subdivision, governmental agency, or local governmental agency.
III. "Person interested in the estate" means any person entitled to receive, or who has received, from a decedent or by reason of the death of a decedent any property or interest therein included in the decedent's estate. It includes a personal representative, guardian, and trustee.
IV. "State" means any state, territory, or possession of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.
V. "Tax" means the federal estate tax and interest payable to this state as provided in RSA 87 and any amendments thereof and penalties imposed in addition to the taxes.
VI. "Fiduciary" means executor, administrator of any description, and trustee.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:2

    88-A:2 Apportionment. – Unless the will otherwise provides, the tax shall be apportioned among all persons interested in the estate. The apportionment shall be made in the proportion that the value of the interest of each person interested in the estate bears to the total value of the interests of all persons interested in the estate. The values used in determining the tax shall be used for that purpose.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:3

    88-A:3 Procedure for Determining Apportionment. –
I. The probate court having jurisdiction over the administration of the estate of a decedent shall determine the apportionment of the tax. If there are no probate proceedings, the probate court of the county wherein the decedent was domiciled at death upon the application of the person required to pay the tax shall determine the apportionment of the tax.
II. If the probate court finds that it is inequitable to apportion interest and penalties in the manner provided in RSA 88-A:2, because of special circumstances, it may direct apportionment thereof in the manner it finds equitable.
III. The expenses reasonably incurred by any fiduciary and by persons interested in the estate in connection with the determination of the amount and apportionment of the tax shall be apportioned as provided in RSA 88-A:2 and charged and collected as a part of the tax apportioned. If the probate court finds it is inequitable to apportion the expenses as provided in RSA 88-A:2, it may direct apportionment thereof equitably.
IV. If the probate court finds that the assessment of penalties and interest assessed in relation to the tax is due to delay caused by the negligence of the fiduciary, the court may charge the fiduciary with the amount of the assessed penalties and interest.
V. In any suit or judicial proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter, the determination of the probate court in respect thereto shall be prima facie correct.

Source. 1959, 158:1. 1996, 83:1, eff. Jan. 1, 1997.

Section 88-A:4

    88-A:4 Method of Proration. –
I. The fiduciary or other person in possession of the property of the decedent required to pay the tax may withhold from any property distributable to any person interested in the estate, upon its distribution to him, the amount of tax attributable to his interest. If the property in possession of the fiduciary or other person required to pay the tax and distributable to any person interested in the estate is insufficient to satisfy the proportionate amount of the tax determined to be due from the person, the fiduciary or other person required to pay the tax may recover the deficiency from the person interested in the estate. If the property is not in the possession of the fiduciary or other person required to pay the tax, the fiduciary or other person required to pay the tax may recover from any person interested in the estate the amount of the tax apportioned to the person in accordance with this chapter.
II. If property held by the fiduciary is distributed prior to final apportionment of the tax, the distributee shall provide a bond or other security for the apportionment liability in the form and amount prescribed by the fiduciary, with the approval of the probate court having jurisdiction of the administration of the estate.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:5

    88-A:5 Allowance for Exemptions, Deductions and Credits. –
I. In making an apportionment, allowances shall he made for any exemptions granted, and for any deductions and credits allowed by the law imposing the tax.
II. Any exemption or deduction allowed by reason of the relationship of any person to the decedent or by reason of the purposes of the gift shall inure to the benefit of the person bearing such relationship or receiving the gift; except that when an interest is subject to a prior present interest which is not allowable as a deduction, the tax apportionable against the present interest shall be paid from principal.
III. Any deduction for property previously taxed and any credit for gift taxes or death taxes of a foreign country paid by the decedent or his estate shall inure to the proportionate benefit of all persons liable to apportionment.
IV. Any credit for inheritance, succession or estate taxes or taxes in the nature thereof in respect to property or interests includable in the estate shall inure to the benefit of the persons or interests chargeable with the payment thereof to the extent that, or in proportion as the credit reduces the tax.
V. To the extent that property passing to or in trust for a surviving spouse or any charitable, public, or similar gift or bequest does not constitute an allowable deduction for purposes of the tax solely by reason of an inheritance tax or other death tax imposed upon and deductible from the property, the property shall not be included in the computation provided for in RSA 88-A:2, and to that extent no apportionment shall be made against the property. The sentence immediately preceding shall not apply to any case where the result will be to deprive the estate of a deduction otherwise allowable under Section 2053(d) of the Internal Revenue Code of 1954 of the United States or amendments thereof, relating to deduction for state death taxes on transfers for public, charitable or religious uses.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:6

    88-A:6 No Apportionment Between Temporary and Remainder Interests. – No interest in income and no estate for years or for life or other temporary interest in any property or fund shall be subject to apportionment as between the temporary interest and the remainder. The tax on the temporary interest and the tax, if any, on the remainder shall be chargeable against the corpus of the property or funds subject to the temporary interest and remainder.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:7

    88-A:7 Exoneration of Fiduciary. – Neither the fiduciary nor other person required to pay the tax shall be under any duty to institute any suit or proceeding to recover from any person interested in the estate the amount of the tax apportioned to the person until the expiration of the 3 months next following final determination of the tax. A fiduciary or other person required to pay the tax who institutes the suit or proceeding within a reasonable time after the 3 months' period shall not be subject to any liability or surcharge because any portion of tax apportioned to any person interested in the estate was collectable at a time following the death of the decedent but thereafter became uncollectible. If the fiduciary or other person required to pay the tax cannot collect from any person interested in the estate the amount of the tax apportioned to the person, the amount not recoverable shall be paid from the residuary estate. To the extent that the residuary estate is not adequate, the balance shall be equitably apportioned among the other persons interested in the estate who are subject to apportionment.

Source. 1959, 158:1. 1996, 83:2, eff. Jan. 1, 1997.

Section 88-A:8

    88-A:8 Action by Non-Resident, Reciprocity. – Subject to this section a fiduciary acting in another state or a person required to pay the tax domiciled in another state may institute an action in the courts of this state and may recover a proportionate amount of the federal estate tax or an estate tax payable to another state or of a death duty due by a decedent's estate to another state from a person interested in the estate who is either domiciled in this state or who owns property in this state subject to attachment or execution. For the purposes of the action the determination of apportionment by the court having jurisdiction of the administration of the decedent's estate in the other state shall be prima facie correct. The provisions of this section apply only if the state in which the determination of apportionment was made affords a substantially similar remedy.

Source. 1959, 158:1. 1996, 83:3, eff. Jan. 1, 1997.

Section 88-A:9

    88-A:9 Coordination With Federal Law. – If the liabilities of persons interested in the estate as prescribed by this chapter differ from those which result under the federal estate tax law, the liabilities imposed by the federal law will control and the balance of this chapter shall apply as if the resulting liabilities had been prescribed in this chapter.

Source. 1959, 158:1. 1996, 83:4, eff. Jan. 1, 1997.

Section 88-A:9-a

    88-A:9-a Uniformity of Interpretation. – This chapter shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

Source. 1996, 83:5, eff. Jan. 1, 1997.

Section 88-A:10

    88-A:10 Short Title. – This chapter may be cited as the Uniform Estate Tax Apportionment Act.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:11

    88-A:11 Severability. – If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.

Source. 1959, 158:1, eff. Oct. 1, 1959.

Section 88-A:12

    88-A:12 Exception. – This chapter shall not apply to taxes due on account of the death of decedents dying prior to October 1, 1959.

Source. 1959, 158:3, eff. Oct. 1, 1959.