South Carolina General Assembly
106th Session, 1985-1986

Bill 452

                    Current Status

Bill Number:               452
Ratification Number:       318
Act Number:                313
Introducing Body:          Senate
Subject:                   Amendments related to the estate tax and
                           the gift tax
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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(A313, R318, S452)

AN ACT TO AMEND SECTION 12-15-40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE METHOD OF DETERMINING THE VALUE OF THE GROSS ESTATE OF A RESIDENT DECEDENT; TO AMEND SECTION 12-15-60, AS AMENDED, RELATING TO THE METHOD OF DETERMINING THE VALUE OF THE TAXABLE ESTATE OF A RESIDENT DECEDENT; TO AMEND SECTION 12-15-250, AS AMENDED, RELATING TO THE METHOD OF DETERMINING THE VALUE OF THE TAXABLE ESTATE OF A NONRESIDENT DECEDENT; TO AMEND SECTION 12-15-1540, AS AMENDED, RELATING TO THE LIABILITY OF BENEFICIARIES RECEIVING PROCEEDS OF LIFE INSURANCE POLICIES AND RELATED ITEMS; TO AMEND SECTION 12-15-1550, RELATING TO THE APPLICABILITY OF CERTAIN ESTATE TAX PROVISIONS OF LAW; TO AMEND SECTION 12-17-40, AS AMENDED, RELATING TO THE DEFINITION OF THE TERM "TAXABLE GIFTS"; TO AMEND SECTION 12-17-44, RELATING TO THE EFFECT THAT CERTAIN DISCLAIMERS OF PROPERTY INTERESTS HAVE UPON THE IMPOSITION OF THE GIFT TAX THEREON, SO AS TO REVISE THESE PROVISIONS FOR THE PURPOSE OF ADOPTING BY REFERENCE FOR STATE OF SOUTH CAROLINA PURPOSES CERTAIN FEDERAL PROVISIONS OF LAW; TO AMEND SECTION 12-15-1560, AS AMENDED, RELATING TO THE TRANSFER OF ASSETS OF AN ESTATE TO CERTAIN PERSONS, SO AS TO REMOVE LIMITATIONS ON THE AMOUNT OF A CHECKING OR SAVINGS ACCOUNT THAT MAY BE TRANSFERRED TO THESE PERSONS UPON NOTIFICATION TO THE TAX COMMISSION BUT WITHOUT ITS CONSENT AND WITHOUT REGARD TO THE REQUIRED TEN-DAY NOTICE PERIOD TO THE COMMISSION; AND TO REPEAL SECTION 12-15-870, RELATING TO THE REQUIREMENT THAT THE TAX COMMISSION GIVE RECEIPTS FOR ALL SUMS COLLECTED BY IT.

Be it enacted by the General Assembly of the State of South Carolina:

Value of gross estate

SECTION 1. Section 12-15-40 of the 1976 Code, as last amended by Act 117 of 1983, is further amended to read:

"Section 12-15-40. The value of the gross estate must be determined by including therein the value of the same property as is included in the gross estate of the decedent for federal estate tax purposes under Sections 2031 through 2046, inclusive, of the Internal Revenue Code of 1954, as amended through December 31, 1985, except the property excluded pursuant to Section 12-15-50."

Value of taxable estate

SECTION 2. The first paragraph of Section 12-15-60 of the 1976 Code, as last amended by Act 117 of 1983, is further amended to read:

"For purposes of the tax imposed by Section 12-15-10, the value of the taxable estate must be determined by deduction from the value of the gross estate the exemptions and deductions allowed for federal estate tax purposes pursuant to Section 2051 and Sections 2053 through 2056, inclusive, of the Internal Revenue Code of 1954, as amended through December 31, 1985."

Further

SECTION 3. Section 12-15-250 of the 1976 Code, as last amended by Act 117 of 1983, is further amended to read:

"Section 12-15-250. For the purposes of the tax imposed by Section 12-15-210, the value of the taxable estate of a nonresident must be determined by deducting from the value of the gross estate of the decedent for federal estate tax purposes under Section 2051 and Sections 2053 through 2056, inclusive, of the Internal Revenue Code of 1954, as amended through December 31, 1985, as adjusted pursuant to Section 12-15-260."

Executor entitled to recover taxes

SECTION 4. Section 12-15-1540 of the 1976 Code, as amended by Act 117 of 1983, is further amended to read:

"Section 12-15-1540. Unless the decedent directs otherwise in his will, if any part of the gross estate on which the tax has been paid consists of the value of property included in the gross estate under Sections 12-15-40 or 12-15-230 by reason of their reference to the provisions of Sections 2034 to 2045, inclusive, of the Internal Revenue Code of 1954, as amended through December 31, 1985, the executor is entitled to recover from the person receiving or in possession of the property the portion of the total tax paid as the value of the property bears to the sum of the taxable estate and the amount of the specific exemption allowed in computing the taxable estate determined under Section 12-15-61. If there is more than one such person, the executor is entitled to receive from these persons in the same ratio. In case of the property received by, or in possession of the surviving spouse of the decedent for which a reduction is allowed under Sections 12-15-60 or 12-15-250 by reason of their reference to Section 2056 of the Internal Revenue Code as amended through December 31, 1985, this section shall not apply to this property except as to the amount thereof in excess of the amount of the marital deduction allowed under these sections."

Applicability of section

SECTION 5. Section 12-15-1550 of the 1976 Code is amended to read:

"Section 12-15-1550. The provisions of Section 12-15-1540 shall apply to the federal estate tax levied under the Internal Revenue Code of 1954, as amended through December 31, 1985."

Checking or savings account may be transferred

SECTION 5A. Item (1) contained in the second paragraph of Section 12-15-1560 of the 1976 Code, as added by Section 8 of Act 117 of 1983, is amended to read:

"(1) any portion of a checking or savings account may be transferred upon notification to the Commission of the intent to transfer without its written consent and without regard to the ten-day notice period. Any amount so withdrawn must be included in the gross estate of the decedent if otherwise includable therein as provided by this chapter;"

Definition

SECTION 6. Section 12-17-40 of the 1976 Code, as last amended by Act 117 of 1983, is further amended to read:

"Section 12-17-40. The term 'taxable gifts' means the transfers by gift which are included in taxable gifts for federal gift tax purposes under Section 2503, and Sections 2511 through 2514, inclusive, and 2516 through 2519, inclusive, of the Internal Revenue Code of 1954, as amended through December 31, 1985, less the deductions allowed in Sections 2522 through 2524 of the Internal Revenue Code of 1954, as amended through December 31, 1985. The words 'secretary or his delegate' as used in the aforementioned sections of the Internal Revenue Code means the 'South Carolina Tax Commission'."

Disclaimer made by person

SECTION 7. Section 12-17-44 of the 1976 Code, which was added by Act 117 of 1983, is further amended to read:

"Section 12-17-44. For the purposes of this chapter, if a person as defined in Section 21-37-40 makes a disclaimer as provided in Section 2518 of the Internal Revenue Code of 1954, as amended through December 31, 1985, (therein referred to as a qualified disclaimer) with respect to any interest in property, this chapter shall apply with respect to this interest as if the interest had never been transferred to the person."

Repeal

SECTION 7A. Section 12-15-870 of the 1976 Code is repealed.

Applicability of provisions

SECTION 8. The provisions of this act shall apply to the estates of decedents dying after December 31, 1985, and to gifts made after December 31, 1985.

Time effective

SECTION 9. This act shall take effect upon approval by the Governor.