Transfers Subject To Tax Flashcards
§9107(b). Transfers Subject to Tax
All transfers of property by:
- will
- intestate laws of CW
- nonresident: laws of succession of another jurisdiction
- person determined by decree of a court of competent jurisdiction to be a presumed decedent w/in meaning of this section and §2108
§ 9107(c)(2)
- All transfers of property specified in (3) – (7) made during lifetime when made w/o valuable and adequate consideration at time of transfer
- when D retained/reserved an interest/power w/ respect to only a part of the property transferred, tax under (4) – (7), amount of taxable transfer is only value of that portion of the property transferred which is subject to the retained/reserved interest/power
§ 9107(c)(3). Transfer w/in one (1) year of death
Transfer, w/o valuable and adequate consideration AND made w/in one (1) year of death but only as to value at the time of transfer(s) in aggregate if transfer exceeds three thousand dollars ($3,000) during any calendar year
§ 9107(c)(4). Reversionary Interest
Which effect in possession/enjoyment at or after death AND under which TF retained reversionary interest, value of interest immediately before death of TF MUST >5% of value of property transferred
§ 9107(c)(5). Life Estate
Which TF expressly/impliedly reserves for his life or any period which does not in fact end before his death, the possession/enjoyment of, or the right to the income from, the property transferred, or the right, either alone or in conjunction with any person not having an adverse interest, to designate persons who shall possess or enjoy the property/income from the property
What happens when D retains an interest or power with respect to part of the property transferred?
The amount of taxable transfer is only the value of that portion of the property transferred which is subject to the retained interest or power.
This refers to the tax implications when a transferor retains some control or interest in the transferred property.
In the context of property transfer, what does ‘D’ refer to?
D refers to the transferor or the person who is transferring an interest in the property.
The designation ‘D’ is commonly used in legal contexts to represent the donor or transferor.
What determines the taxable transfer amount when D retains an interest in a property?
The taxable transfer amount is determined by the value of the portion of the property that is subject to the retained or reserved interest or power.
This principle is important for understanding tax liabilities in property transfers.
What is the minimum value percentage of reversionary interest TF must have in property before death to be subject to tax?
> 5% of the value of property transferred.
