2001 Legislation
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SENATE BILL NO. 1253 – Probate code, homestead allowance

SENATE BILL NO. 1253

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S1253................................................by JUDICIARY AND RULES
PROBATE CODE - HOMESTEAD ALLOWANCE - Adds to and amends existing law to
provide application of law to the estate of a decedent who dies domiciled
in Idaho; to revise the homestead allowance for a decedent's estate; to
increase the amount of exempt property and to provide that the amount shall
be in addition to any homestead or homestead allowance; to revise the
family allowance; to increase the living allowance; and to revise
procedures relating to the family allowance.
                                                                        
03/15    Senate intro - 1st rdg - to printing
03/16    Rpt prt - to Jud
    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
      Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor -- Davis
    Title apvd - to House
03/21    House intro - 1st rdg - to Jud
03/28    Rpt out - rec d/p - to 2nd rdg
    Rls susp - PASSED - 68-0-2
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Hansen, Harwood,
      Henbest(Farley), Higgins, Hornbeck, Jaquet, Jones, Kellogg, Kendell,
      Lake, Langford, Loertscher, Mader, Marley, McKague, Meyer,
      Montgomery, Mortensen, Moss, Moyle, Pearce, Pischner, Pomeroy,
      Raybould, Ridinger, Roberts, Robison, Sali, Schaefer, Sellman,
      Shepherd, Smith, Smylie, Stevenson, Stone, Tilman, Trail, Wheeler,
      Wood, Young(Young), Mr. Speaker
      NAYS -- None
      Absent and excused -- Black, Kunz
    Floor Sponsor -- Sali
    Title apvd - to Senate
03/29    To enrol
    Rpt enrol - Pres signed
03/30    Sp signed - to Governor
04/02    Governor signed
         Session Law Chapter 294
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1253
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO EXEMPT PROPERTY AND ALLOWANCES UNDER  THE  UNIFORM  PROBATE  CODE;
  3        AMENDING  SECTION  15-1-201,  IDAHO CODE, TO PROVIDE A CORRECT CODE REFER-
  4        ENCE; AMENDING PART 2, CHAPTER 4, TITLE 15, IDAHO CODE, BY THE ADDITION OF
  5        A NEW SECTION 15-2-401, IDAHO CODE, TO PROVIDE APPLICATION OF LAW  TO  THE
  6        ESTATE  OF  A  DECEDENT  WHO  DIES  DOMICILED  IN  IDAHO; AMENDING SECTION
  7        15-2-401, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO REVISE  THE  HOME-
  8        STEAD ALLOWANCE; AMENDING SECTION 15-2-402, IDAHO CODE, TO REDESIGNATE THE
  9        SECTION  AND TO INCREASE THE AMOUNT OF EXEMPT PROPERTY AND TO PROVIDE THAT
 10        IT SHALL BE IN ADDITION TO ANY HOMESTEAD OR HOMESTEAD ALLOWANCE;  AMENDING
 11        SECTION  15-2-403,  IDAHO  CODE, TO REDESIGNATE THE SECTION, TO REVISE THE
 12        FAMILY ALLOWANCE AND TO MAKE  A  TECHNICAL  CORRECTION;  AMENDING  SECTION
 13        15-2-404,  IDAHO  CODE, TO REDESIGNATE THE SECTION, TO INCREASE THE LIVING
 14        ALLOWANCE TO EIGHTEEN THOUSAND DOLLARS IN A LUMP SUM OR ONE THOUSAND  FIVE
 15        HUNDRED DOLLARS PER MONTH FOR ONE YEAR, TO REVISE PROCEDURES AND TO MAKE A
 16        TECHNICAL  CORRECTION;  AND AMENDING SECTIONS 15-2-602 AND 15-3-906, IDAHO
 17        CODE, TO PROVIDE CORRECT CODE REFERENCES.
                                                                        
 18    Be It Enacted by the Legislature of the State of Idaho:
 19
 20        SECTION 1.  That Section 15-1-201, Idaho Code, be, and the same is  hereby
 21    amended to read as follows:
                                                                        
 22        15-1-201.  GENERAL  DEFINITIONS.  Subject  to  additional definitions con-
 23    tained in the subsequent chapters which are applicable to specific chapters or
 24    parts, and unless the context otherwise requires, in this code:
 25        (1)  "Application" means a written request to the registrar for  an  order
 26    of informal probate or appointment under part 3 of chapter 3 of this code.
 27        (2)  "Augmented  estate" means the estate described in section 15-2-202 of
 28    this code.
 29        (3)  "Beneficiary," as it relates to trust beneficiaries, includes a  per-
 30    son  who  has  any  present or future interest, vested or contingent, and also
 31    includes the owner of an interest by assignment or other transfer  and  as  it
 32    relates  to  a  charitable  trust, includes any person entitled to enforce the
 33    trust.
 34        (4)  "Child" includes any individual entitled to take  as  a  child  under
 35    this  code  by  intestate  succession  from  the  parent whose relationship is
 36    involved and excludes any person who is only a stepchild, a  foster  child,  a
 37    grandchild or any more remote descendant.
 38        (5)  "Claims,"  in  respect to estates of decedents and protected persons,
 39    includes liabilities of the decedent or protected person  whether  arising  in
 40    contract,  in  tort or otherwise, and liabilities of the estate which arise at
 41    or after the death of the decedent or after the appointment of a  conservator,
 42    including  funeral  expenses and expenses of administration. The term does not
 43    include estate or inheritance taxes, other tax obligations arising from activ-
 44    ities or transactions of the estate, demands or disputes regarding title of  a
                                                                        
                                           2
                                                                        
  1    decedent  or protected person to specific assets alleged to be included in the
  2    estate.
  3        (6)  "Court" means the court or  branch  having  jurisdiction  in  matters
  4    relating  to the affairs of decedents, minors, incapacitated and disabled per-
  5    sons. This court in this state is known as the district court.
  6        (7)  "Conservator" means a person who is appointed by a  court  to  manage
  7    the  estate  of  a  protected  person  and  includes  limited  conservators as
  8    described by section 15-5-420, Idaho Code.
  9        (8)  "Determination of heirship of community  property"  shall  mean  that
 10    determination required by the provisions of section 15-3-303 of this code upon
 11    an application for informal probate not accompanied by presentation of a will.
 12        (9)  "Determination of heirship" shall mean that determination of heirship
 13    required by section 15-3-409 of this code upon a finding of intestacy.
 14        (10) "Devise,"  when  used  as a noun, means a testamentary disposition of
 15    real or personal property and when used as a verb, means to dispose of real or
 16    personal property by will.
 17        (11) "Devisee" means any person designated in a will to receive a  devise.
 18    In  the  case  of a devise to an existing trust or trustee, or to a trustee or
 19    trust described by will, the trust or trustee is the devisee and  the  benefi-
 20    ciaries are not devisees.
 21        (12) "Disability"  means cause for a protective order as described by sub-
 22    section (b)(1) of section 15-5-401 of this code.
 23        (13) "Distributee" means any person who has received property of  a  dece-
 24    dent from his personal representative other than as a creditor or purchaser. A
 25    testamentary trustee is a distributee only to the extent of distributed assets
 26    or  increment  thereto remaining in his hands. A beneficiary of a testamentary
 27    trust to whom the trustee has distributed property received  from  a  personal
 28    representative  is  a distributee of the personal representative. For the pur-
 29    pose of this provision "testamentary  trustee"  includes  a  trustee  to  whom
 30    assets are transferred by will, to the extent of the devised assets.
 31        (14) "Emancipated  minor"  shall mean any male or female who has been mar-
 32    ried.
 33        (15) "Estate" means all property  of  the  decedent,  including  community
 34    property  of  the  surviving  spouse  subject  to  administration, property of
 35    trusts, and property of any other person whose affairs  are  subject  to  this
 36    code as it exists from time to time during administration.
 37        (16) "Exempt property" means that property of a decedent's estate which is
 38    described in section 15-2-4023 of this code.
 39        (17) "Fiduciary"  includes  personal representative, guardian, conservator
 40    and trustee.
 41        (18) "Foreign personal representative" means a personal representative  of
 42    another jurisdiction.
 43        (19) "Formal proceedings" means those conducted before a judge with notice
 44    to interested persons.
 45        (20) "Guardian"  means a person who has qualified as a guardian of a minor
 46    or incapacitated person pursuant to  testamentary  or  court  appointment  and
 47    includes  limited  guardians as described by section 15-5-304, Idaho Code, but
 48    excludes one who is merely a guardian ad litem.
 49        (21) "Heirs" means those persons, including the surviving spouse, who  are
 50    entitled under the statutes of intestate succession to the property of a dece-
 51    dent.
 52        (22) "Incapacitated  person"  is  as  defined  in section 15-5-101 of this
 53    code.
 54        (23) "Informal proceedings" means those conducted without notice to inter-
 55    ested persons by an officer of the court acting as a registrar for probate  of
                                                                        
                                           3
                                                                        
  1    a will or appointment of a personal representative.
  2        (24) "Interested  person"  includes  heirs,  devisees,  children, spouses,
  3    creditors, beneficiaries and any others having a property right  in  or  claim
  4    against  a  trust estate or the estate of a decedent, ward or protected person
  5    which may be affected by the proceeding. It also includes persons having  pri-
  6    ority  for appointment as personal representative, and other  fiduciaries rep-
  7    resenting interested persons. The meaning as it relates to particular  persons
  8    may  vary from time to time and must be determined according to the particular
  9    purposes of, and matter involved in, any proceeding.
 10        (25) "Issue" of a person means all his lineal descendants of  all  genera-
 11    tions,  with  the  relationship  of  parent and child at each generation being
 12    determined by the definitions of child and parent contained in this code.
 13        (26) "Lease" includes an oil, gas, or other mineral lease.
 14        (27) "Letters" includes letters  testamentary,  letters  of  guardianship,
 15    letters of administration, and letters of conservatorship.
 16        (28) "Minor"  means  a  male  under eighteen (18) years of age or a female
 17    under eighteen (18) years of age.
 18        (29) "Mortgage" means any conveyance, agreement or  arrangement  in  which
 19    property is used as security.
 20        (30) "Nonresident  decedent" means a decedent who was domiciled in another
 21    jurisdiction at the time of his death.
 22        (31) "Organization" includes a  corporation,  government  or  governmental
 23    subdivision  or agency, business trust, estate, trust, partnership or associa-
 24    tion, two (2) or more persons having a joint or common interest, or any  other
 25    legal entity.
 26        (32) "Parent"  includes any person entitled to take, or who would be enti-
 27    tled to take if the child died without a will, as a parent under this code  by
 28    intestate  succession  from  the  child  whose relationship is in question and
 29    excludes any person who is only a stepparent, foster parent, or grandparent.
 30        (33) "Person" means an individual,  a  corporation,  an  organization,  or
 31    other legal entity.
 32        (34) "Personal representative" includes executor, administrator, successor
 33    personal  representative,  special administrator, and persons who perform sub-
 34    stantially the same function under the law governing  their  status.  "General
 35    personal representative" excludes special administrator.
 36        (35) "Petition"  means  a  written request to the court for an order after
 37    notice.
 38        (36) "Proceeding" includes action at law and suit in equity.
 39        (37) "Property" includes both real and personal property or  any  interest
 40    therein and means anything that may be the subject of ownership.
 41        (38) "Protected person" is as defined in section 15-5-101 of this code.
 42        (39) "Protective  proceeding"  is  as  defined in section 15-5-101 of this
 43    code.
 44        (39A) "Quasi-community  property"  is  the  property  defined  by  section
 45    15-2-201 of this code.
 46        (40) "Registrar" refers to magistrates or judges of the district court who
 47    shall perform the functions of registrar as provided in  section  15-1-307  of
 48    this code.
 49        (41) "Security" includes any note, stock, treasury stock, bond, debenture,
 50    evidence  of indebtedness, certificate of interest or participation in an oil,
 51    gas or mining title or lease or in payments out of  production  under  such  a
 52    title or lease, collateral trust certificate, transferable share, voting trust
 53    certificate  or,  in  general,  any interest or instrument commonly known as a
 54    security, or any certificate of interest or participation,  any  temporary  or
 55    interim  certificate, receipt or certificate of deposit for, or any warrant or
                                                                        
                                           4
                                                                        
  1    right to subscribe to or purchase, any of the foregoing.
  2        (42) "Settlement," in reference to a decedent's estate, includes the full
  3    process of administration, distribution and closing.
  4        (43) "Special administrator" means a personal representative as  described
  5    by sections 15-3-614 through 15-3-618 of this code.
  6        (44) "State"  includes  any  state  of  the United States, the District of
  7    Columbia, the Commonwealth of Puerto Rico, and  any  territory  or  possession
  8    subject to the legislative authority of the United States.
  9        (45) "Successor  personal representative" means a personal representative,
 10    other than a special administrator, who is appointed to succeed  a  previously
 11    appointed personal representative.
 12        (46) "Successors" means those persons, other than creditors, who are enti-
 13    tled to property of a decedent under his will or this code.
 14        (47) "Supervised  administration"  refers  to the proceedings described in
 15    part 5, chapter 3, of this code.
 16        (48) "Testacy proceeding" means a proceeding to establish a will or deter-
 17    mine intestacy.
 18        (49) "Trust" includes any express trust, private or charitable, with addi-
 19    tions thereto, wherever and however created. It also includes a trust  created
 20    or  determined  by  judgment or decree under which the trust is to be adminis-
 21    tered in the manner of an express trust. "Trust" excludes  other  constructive
 22    trusts, and it excludes resulting trusts, conservatorships, personal represen-
 23    tatives,  trust  accounts  as  defined  in  chapter  6 of this code, custodial
 24    arrangements pursuant to chapter 8, title 68, Idaho Code, business trusts pro-
 25    viding for certificates to be issued to  beneficiaries,  common  trust  funds,
 26    voting  trusts,  security arrangements, liquidation trusts, and trusts for the
 27    primary purpose of paying debts, dividends, interest, salaries,  wages,  prof-
 28    its,  pensions,  or  employee  benefits of any kind, and any arrangement under
 29    which a person is nominee or escrowee for another.
 30        (50) "Trustee" includes an original,  additional,  or  successor  trustee,
 31    whether or not appointed or confirmed by court.
 32        (51) "Ward" is as defined in section 15-5-101 of this code.
 33        (52) "Will" is a testamentary instrument and includes codicil and any tes-
 34    tamentary  instrument  which merely appoints an executor or revokes or revises
 35    another will.
 36        (53) "Separate property" includes all property of either  the  husband  or
 37    the  wife  owned  by  him  or her before marriage, and that acquired afterward
 38    either by gift, bequest, devise or descent, or that which  either  he  or  she
 39    acquires  with  proceeds  of his or her separate property, by way of moneys or
 40    other property.
 41        (54) "Community property" includes all other property acquired after  mar-
 42    riage  by either husband or wife, including the rents and profits of the sepa-
 43    rate property of the husband and wife, unless, by the instrument by which  any
 44    such property is acquired by the wife, it is provided that the rents and prof-
 45    its thereof be applied to her sole and separate use. Real property conveyed by
 46    one  (1)  spouse  to  the  other shall be presumed to be the sole and separate
 47    estate of the grantee.
                                                                        
 48        SECTION 2.  That Part 2, Chapter 4, Title 15, Idaho Code, be, and the same
 49    is hereby amended by the addition thereto of a NEW SECTION, to  be  known  and
 50    designated as Section 15-2-401, Idaho Code, and to read as follows:
                                                                        
 51        15-2-401.  APPLICABLE  LAW.  This part applies to the estate of a decedent
 52    who dies domiciled in this state. Rights to the  homestead  allowance,  exempt
 53    property,  and  the  family allowance for a decedent who dies not domiciled in
                                                                        
                                           5
                                                                        
  1    this state are governed by the law of the decedent's domicile at death.
  2
  3        SECTION 3.  That Section 15-2-401, Idaho Code, be, and the same is  hereby
  4    amended to read as follows:
                                                                        
  5        15-2-4012.  HOMESTEAD  ALLOWANCE. If no homestead has been selected during
  6    life and set aside, a surviving spouse of a decedent who was domiciled in this
  7    state is entitled to a homestead allowance of four thousand  dollars  ($4,000)
  8    or ten thousand dollars ($10,000) if there are dependent issue living with the
  9    surviving  spouse.  If there is no surviving spouse, each minor child and each
 10    dependent child of the decedent is entitled to a homestead allowance amounting
 11    to ten thousand dollars ($10,000) divided by the number of minor and dependent
 12    children of the decedent if the same condition exists If a surviving spouse of
 13    a decedent is entitled to the homestead pursuant  to  section  55-1010,  Idaho
 14    Code,  then  no  person  is  entitled to a homestead allowance. If a surviving
 15    spouse of a decedent is not entitled to  the  homestead  pursuant  to  section
 16    55-1010,  Idaho Code, then the surviving spouse of a decedent is entitled to a
 17    homestead allowance. If there is no surviving  spouse,  and  if  no  homestead
 18    passes  to the minor children and/or dependent children of the decedent as set
 19    forth in section 55-1010, Idaho Code, each  minor  child  and  each  dependent
 20    child  of  the  decedent  is  entitled  to a homestead allowance in the amount
 21    determined hereafter divided by the number of minor and dependent children  of
 22    the decedent. The homestead allowance is exempt from and has priority over all
 23    claims  against  the  estate.  The  hHomestead allowance is in addition to any
 24    share passing to the surviving spouse or minor or dependent child by the  will
 25    of the decedent unless otherwise provided in the will, or by intestate succes-
 26    sion, or by way of elective share. The amount of the homestead allowance shall
 27    be  the  sum  set  forth  in the provisions of section 55-1003, Idaho Code, as
 28    those provisions are in effect on the date of the decedent's death.
                                                                        
 29        SECTION 4.  That Section 15-2-402, Idaho Code, be, and the same is  hereby
 30    amended to read as follows:
                                                                        
 31        15-2-4023.  EXEMPT PROPERTY. In addition to the any homestead or homestead
 32    allowance,  the decedent's surviving spouse of a decedent who was domiciled in
 33    this state is entitled from the estate to value, not exceeding three ten thou-
 34    sand five  hundred dollars ($3,510,000) in excess of  any  security  interests
 35    therein, in household furniture, automobiles, furnishings, appliances and per-
 36    sonal effects. If there is no surviving spouse, the decedent's children of the
 37    decedent  are  entitled  jointly to the same value. If encumbered chattels are
 38    selected and if the value in excess of security interests, plus that of  other
 39    exempt  property,  is  less  than  three  ten  thousand  five  hundred dollars
 40    ($3,510,000), or if there is not three ten    thousand  five  hundred  dollars
 41    ($3,510,000)  worth  of  exempt property in the estate, the spouse or children
 42    are entitled to other assets of the estate, if any, to the extent necessary to
 43    make up the three ten thousand  five hundred dollar ($3,510,000) value. Rights
 44    to exempt property and assets needed to make up a deficiency of  exempt  prop-
 45    erty  have  priority over all claims against the estate, except that the right
 46    to any assets to make up a deficiency of exempt property shall abate as neces-
 47    sary to permit prior payment of  homestead  allowance  and  family  allowance.
 48    These  rights are in addition to any benefit or share passing to the surviving
 49    spouse or children by the will of the decedent unless otherwise   provided  in
 50    the will, or by intestate succession, or by way of elective share.
                                                                        
 51        SECTION  5.  That Section 15-2-403, Idaho Code, be, and the same is hereby
                                                                        
                                           6
                                                                        
  1    amended to read as follows:
                                                                        
  2        15-2-4034.  FAMILY ALLOWANCE. (a) In addition to the right to a  homestead
  3    or  homestead  allowance and exempt property, if the decedent was domiciled in
  4    this state, the decedent's surviving spouse or the surviving spouse and  minor
  5    children  whom  the decedent was obligated to support and children who were in
  6    fact being supported by him the decedent are entitled to a  reasonable  allow-
  7    ance  in  money  out  of the estate for their maintenance during the period of
  8    administration, which allowance may not continue for longer than one (1)  year
  9    if  the estate is inadequate to discharge allowed claims. The allowance may be
 10    paid as a lump sum or in periodic instalments installments. It is  payable  to
 11    the surviving spouse, if living, for the use of the surviving spouse and minor
 12    and  dependent  children;  otherwise  to the children, or persons having their
 13    care and custody; but in case any. If a minor child or dependent child is  not
 14    living  with  the surviving spouse, the allowance may be made partially to the
 15    child or his the child's guardian or other person having his the child's  care
 16    and  custody, and partially to the spouse, as their needs may appear. The fam-
 17    ily allowance is exempt from and has priority over all claims but not over the
 18    homestead allowance except the homestead.
 19        (b)  The family allowance is not chargeable against any benefit  or  share
 20    passing to the surviving spouse or children by the will of the decedent unless
 21    otherwise provided in the will, or by intestate succession, or by way of elec-
 22    tive  share.  The  death of any person entitled to family allowance terminates
 23    his the right to allowances not yet paid.
                                                                        
 24        SECTION 6.  That Section 15-2-404, Idaho Code, be, and the same is  hereby
 25    amended to read as follows:
                                                                        
 26        15-2-4045.  SOURCE  --  DETERMINATION  --  DOCUMENTATION. If the estate is
 27    otherwise sufficient, property specifically devised is may not be used to sat-
 28    isfy rights to the homestead allowance and exempt property.  Subject  to  this
 29    restriction,  the  surviving  spouse,  the guardians of the minor children, or
 30    children who are adults may select property of the estate as homestead  allow-
 31    ance  and  exempt  property. The personal representative may make these selec-
 32    tions if the surviving spouse, the children or  the  guardians  of  the  minor
 33    children  are unable or fail to do so within a reasonable time or if there are
 34    is no guardians  of the a minor children. The personal representative may exe-
 35    cute an instrument or deed of distribution to establish the ownership of prop-
 36    erty taken as a homestead allowance or exempt property. He The personal repre-
 37    sentative may determine the family allowance in a lump sum not  exceeding  six
 38    eighteen thousand dollars ($618,000) or periodic instalments installments  not
 39    exceeding  one  thousand  five  hundred dollars ($1,500) per month for one (1)
 40    year, and may disburse funds of the estate in payment of the family  allowance
 41    and  any  part of the homestead allowance payable in cash. The personal repre-
 42    sentative or any interested person aggrieved by any selection,  determination,
 43    payment,  proposed  payment, or failure to act under this section may petition
 44    the court for appropriate relief, which relief may provide  include  a  family
 45    allowance  larger or smaller other than that which the personal representative
 46    determined or could have determined.
                                                                        
 47        SECTION  7.  That Section 15-2-602, Idaho Code, be, and the same is hereby
 48    amended to read as follows:
                                                                        
 49        15-2-602.  CHOICE OF LAW AS TO MEANING AND EFFECT OF  WILLS.  The  meaning
 50    and  legal  effect of a disposition in a will shall be determined by the local
                                                                        
                                           7
                                                                        
  1    law of a particular state selected by the testator in  his  instrument  unless
  2    the  application  of  that  law  is contrary to the provisions relating to the
  3    elective share described in 15-2-201 through 15-2-209, the provisions relating
  4    to the exempt property and allowances described in 15-2-401 through  15-2-4045
  5    or  any other public policy of this state otherwise applicable to the disposi-
  6    tion.
                                                                        
  7        SECTION 8.  That Section 15-3-906, Idaho Code, be, and the same is  hereby
  8    amended to read as follows:
                                                                        
  9        15-3-906.  DISTRIBUTION  IN KIND -- VALUATION -- METHOD. (a) Unless a con-
 10    trary intention is indicated by  the  will,  the  distributable  assets  of  a
 11    decedent's  estate shall be distributed in kind to the extent possible through
 12    application of the following provisions:
 13        (1)  A specific devisee is entitled to distribution of the  thing  devised
 14        to  him,  and  a  spouse or child who has selected particular assets of an
 15        estate as provided in section 15-2-4023 of this  code  shall  receive  the
 16        items selected.
 17        (2)  Any  homestead  or family allowance or devise payable in money may be
 18        satisfied by value in kind provided:
 19             (A)  the person entitled to the payment has not demanded  payment  in
 20             cash;
 21             (B)  the  property distributed in kind is valued at fair market value
 22             as of the date of its distribution, and
 23             (C)  no residuary devisee has requested that the  asset  in  question
 24             remain a part of the residue of the estate.
 25        (3)  For the purpose of valuation under paragraph (2) securities regularly
 26        traded  on recognized exchanges, if distributed in kind, are valued at the
 27        price for the last sale of like securities  traded  on  the  business  day
 28        prior  to distribution, or if there was no sale on that day, at the median
 29        between amounts bid and offered at the close of that day. Assets  consist-
 30        ing of sums owed the decedent or the estate by solvent debtors as to which
 31        there  is  no  known  dispute  or  defense  are valued at the sum due with
 32        accrued interest or discounted to the date  of  distribution.  For  assets
 33        which  do  not have readily ascertainable values, a valuation as of a date
 34        not more than thirty (30) days prior  to  the  date  of  distribution,  if
 35        otherwise reasonable, controls. For purposes of facilitating distribution,
 36        the  personal  representative  may ascertain the value of the assets as of
 37        the time of the proposed distribution in any reasonable way, including the
 38        employment of qualified appraisers, even if the assets may have been  pre-
 39        viously appraised.
 40        (4)  The  residuary  estate  shall  be  distributed in kind if there is no
 41        objection to the proposed distribution and it is practicable to distribute
 42        undivided interests. In other cases, residuary property may  be  converted
 43        into cash for distribution.
 44        (b)  After the probable charges against the estate are known, the personal
 45    representative  may mail or deliver a proposal for distribution to all persons
 46    who have a right to object to the proposed distribution. The right of any dis-
 47    tributee to object to the proposed distribution on the basis of  the  kind  or
 48    value  of asset he is to receive, if not waived earlier in writing, terminates
 49    if he fails to object in  writing  received  by  the  personal  representative
 50    within thirty (30) days after mailing or delivery of the proposal.

Statement of Purpose / Fiscal Impact


                     STATEMENT OF PURPOSE
                          RS11265

The amounts for homestead allowance, exempt property, and living 
allowance set in the Probate Code of Idaho were established in 1972
and have not been modified since.  Such amounts no longer carry out 
the intent of such allowances due to inflation.  The bill increases 
those amounts to those in the 1990 and 1993 amendments to the Uniform
Probate Act, with the following exception:  the bill cross-references
section 55-1010, Idaho Code, on the statutory homestead and provides 
for the contingency of whether such a homestead exists or not.  
If the homestead exists, and therefore the surviving spouse already 
has a homestead to live in, no additional homestead allowance is made.  If, on the other hand, no statutory homestead under section 55-1010, Idaho Code, exists, then the  surviving spouse, or minor or dependent children, are entitled to a homestead allowance, in the amount set forth in section 55-1010.  The bill adds a new section 15-2-401 to clarify which law applies if the decedent was, or was not, domiciled in Idaho at the time of death.  The bill also makes minor housekeeping amendments for clarity, including cross-references in other statutes.

                             FISCAL NOTE

This bill should have no effect on revenues or expenditures.



CONTACT:  Robert L. Aldridge
          Idaho Tax & Business Lawyers Association, Inc.
          Legislative Chairman,
          Taxation, Probate & Trust Section of the
          Idaho State Bar
          1209 North Eighth Street
          Boise, Idaho 83702-4297
          Telephone: office: (208) 336-9880  home: (208) 888-4668
          Fax: (208) 336-9882
          e-mail: roberta@micron.net

STATEMENT OF PURPOSE/FISCAL STATEMENT          S  1253