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S1079................................................by JUDICIARY AND RULES
ESTATE - TRANSFERRED PROPERTY - Amends existing law to remove the one-half
limitation on what portion of previously transferred property can be
recovered by a surviving spouse of the transferor for estate purposes; to
clarify the alternative nature of the qualifications set forth for the
recovery; and to update the reference to the annual exclusion for the
federal gift tax.
02/02 Senate intro - 1st rdg - to printing
02/03 Rpt prt - to Jud
02/11 Rpt out - rec d/p - to 2nd rdg
02/12 2nd rdg - to 3rd rdg
02/18 3rd rdg - PASSED - 34-0-1
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Branch
Floor Sponsor - Darrington
Title apvd - to House
02/19 House intro - 1st rdg - to Jud
03/18 Rpt out - rec d/p - to 2nd rdg
03/19 2nd rdg - to 3rd rdg
Rules susp - PASSED - 61-0-9
AYES -- Alltus, Barraclough, Bell, Bieter, Black, Boe, Bruneel,
Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones,
Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Mader, Marley,
McKague, Meyer(Duncan), Montgomery, Moyle, Pischner, Pomeroy,
Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smylie,
Stevenson, Stoicheff, Stone, Tippets, Watson, Wheeler, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Barrett, Linford, Loertscher, Mortensen, Smith,
Taylor, Tilman, Trail, Williams
Floor Sponsor - Judd
Title apvd - to Senate
03/22 To enrol - rpt enrol - Pres signed - Sp signed
03/23 To Governor
03/24 Governor signed
Session Law Chapter 303
Effective: 07/01/99
S1079|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1079 BY JUDICIARY AND RULES COMMITTEE 1 AN ACT 2 RELATING TO THE AUGMENTED ESTATE; AMENDING SECTION 15-2-202, IDAHO CODE, TO 3 REMOVE THE ONE-HALF LIMITATION ON WHAT PORTION OF PREVIOUSLY TRANSFERRED 4 PROPERTY CAN BE RECOVERED BY A SURVIVING SPOUSE OF THE TRANSFEROR, TO 5 CLARIFY THE ALTERNATIVE NATURE OF THE QUALIFICATIONS SET FORTH FOR THE 6 RECOVERY AND TO UPDATE THE REFERENCE TO THE ANNUAL EXCLUSION FOR THE FED- 7 ERAL GIFT TAX. 8 Be It Enacted by the Legislature of the State of Idaho: 9 SECTION 1. That Section 15-2-202, Idaho Code, be, and the same is hereby 10 amended to read as follows: 11 15-2-202. AUGMENTED ESTATE. Whenever a married person domiciled in the 12 state has made a transfer of quasi-community property to a person other than 13 the surviving spouse without adequate consideration and without the consent of 14 the surviving spouse, the surviving spouse may require the transferee to 15 restore to the decedent's estateone-half (1/2) ofsuch property, 16 if the transferee retains such property and, if not,one-half (1/2) of17its proceeds or, if none,one-half (1/2) ofits value at 18 the time of transfer, if: 19 (a) The decedent retained, at the time of his death, the possession or 20 enjoyment of or the right to income from the property; or 21 (b) The decedent retained, at the time of his death, a power, either 22 alone or in conjunction with any other person, to revoke or to consume, invade 23 or dispose of the principal for his own benefit; or 24 (c) The decedent held the property at the time of his death with another 25 with the right of survivorship; or 26 (d) The decedent had transferred such property within two (2) years of 27 his death to the extent that the aggregate transfers to any one (1) donee in 28 either of the years exceededthree thousand dollars ($3,000)29 ten thousand dollars ($10,000) or the amount of the annual exclusion for 30 the federal gift tax set forth at 26 U.S.C. section 2503, whichever is greater 31 .
STATEMENT OF PURPOSE
RS 08778
The existing statute has a technical flaw in limiting the
recovery of quasi-community property previously transferred by
a now-deceased spouse without adequate consideration and
without the consent of the surviving spouse. The concept of
quasi-community property (set forth in Idaho code 15-2-201) is
to protect the surviving spouse from such transfers. However,
one-half of the quasi-community property is deemed to be owned
by the surviving spouse and one-half by the deceased spouse
(now held by that spouse's estate). the technical method
required to restore this situation is to allow the surviving
spouse to recapture all of any quasi-community property
previously transferred. Otherwise, one-half of the transferred
property would escape recapture. The second change is to
update an antiquated reference to the old limit on gift tax
exclusions of $3,000.00 to the current limit of $10,000.00.
since this current limit is indexed, the federal code section
is also referenced to include such indexing. finally, the
addition of "or" after the (a), (b), and (c) tests for
recovery makes clear that each such test is independent, as is
the () test, and that only one of such tests need to be met.
FISCAL NOTE
This bill should have no effect on revenues or expenditures.
CONTACT: Robert L. Aldrich
1209 North Eighth Street
Boise, Idaho 83702-4297
Telephone: 208-336-9880
FAX: 208-336-9882
e-mail: roberta@micron.net (name) (
STATEMENT OF PURPOSE/ FISCAL NOTE S1079