1999 Legislation
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SENATE BILL NO. 1079 – Estate/transfered property/spouse

SENATE BILL NO. 1079

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Daily Data Tracking History



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

Bill Text


S1079


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN 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 estate  one-half (1/2) of  such property,
16    if  the  transferee retains such property and, if not,  one-half (1/2) of
17     its proceeds or, if none,  one-half (1/2) of  its  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 exceeded   three  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 / Fiscal Impact


                      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