§ 7301. Definitions
As used in this chapter:
(1) “Estate” means the gross estate of a decedent as determined for the purpose of federal
estate tax and the estate tax payable to this State.
(2) “Person” means any individual, partnership, association, joint stock company, corporation,
government, political subdivision, governmental agency, or local governmental agency.
(3) “Person interested in the estate” means any person entitled to receive, or who has
received, from a decedent or by reason of the death of a decedent any property or
interest therein included in the decedent’s estate. It includes a personal representative,
guardian, and trustee.
(4) “State” means any state, territory, or possession of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
(5) “Tax” means the federal estate tax and the estate tax payable to this State and interest
and penalties imposed in addition to the tax.
(6) “Fiduciary” means executor, administrator of any description, and trustee. (Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7302. Apportionment
Unless the will otherwise provides, the tax shall be apportioned among all persons
interested in the estate. The apportionment shall be made in the proportion that
the value of the interest of each person interested in the estate bears to the total
value of the interests of all persons interested in the estate. The values used in
determining the tax shall be used for that purpose. (Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7303. Procedure for determining apportionment
(a) The Probate Division of the Superior Court having jurisdiction over the administration
of the estate of a decedent shall determine the apportionment of the tax. If there
are no probate proceedings, the Probate Division of the Superior Court of the county
wherein the decedent was domiciled at death upon the application of the person required
to pay the tax shall determine the apportionment of the tax.
(b) If the Probate Division of the Superior Court finds that it is inequitable to apportion
interest and penalties in the manner provided in section 7302 of this title, because of special circumstances, it may direct apportionment thereof in the manner
it finds equitable.
(c) The expenses reasonably incurred by any fiduciary and by other persons interested
in the estate in connection with the determination of the amount and apportionment
of the tax shall be apportioned as provided in section 7302 of this title and charged and collected as a part of the tax apportioned. If the Probate Division
of the Superior Court finds it is inequitable to apportion the expenses as provided
in section 7302 of this title, it may direct apportionment thereof equitably.
(d) If the Probate Division of the Superior Court finds that the assessment of penalties
and interest assessed in relation to the tax is due to delay caused by the negligence
of the fiduciary, the court may charge the fiduciary with the amount of the assessed
penalties and interest.
(e) In any suit or judicial proceeding to recover from any person interested in the estate
the amount of the tax apportioned to the person in accordance with this chapter, the
determination of the Probate Division of the Superior Court in respect thereto shall
be prima facie correct. (Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. February 1, 2011.)
§ 7304. Method of proration
(a) The fiduciary or other person in possession of the property of the decedent required
to pay the tax may withhold from any property distributable to any person interested
in the estate, upon its distribution to him or her, the amount of tax attributable
to his or her interest. If the property in possession of the fiduciary or other person
required to pay the tax and distributable to any person interested in the estate is
insufficient to satisfy the proportionate amount of the tax determined to be due from
the person, the fiduciary or other person required to pay the tax may recover the
deficiency from the person interested in the estate. If the property is not in the
possession of the fiduciary or other person required to pay the tax, the fiduciary
or the other person required to pay the tax may recover from any person interested
in the estate the amount of the tax apportioned to the person in accordance with this
chapter.
(b) If property held by the fiduciary is distributed prior to final apportionment of the
tax, the distributee shall provide a bond or other security for the apportionment
liability in the form and amount prescribed by the fiduciary, with the approval of
the Probate Division of the Superior Court having jurisdiction of the administration
of the estate. (Added 1975, No. 240 (Adj. Sess.), § 11; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
§ 7305. Allowance for exemptions, deductions, and credits
(a) In making an apportionment, allowances shall be made for any exemptions granted, any
classification made of persons interested in the estate, and for any deductions and
credits allowed by the law imposing the tax.
(b) Any exemption or deduction allowed by reason of the relationship of any person to
the decedent or by reason of the purposes of the gift shall inure to the benefit of
the person bearing such relationship or receiving the gift, except that when an interest
is subject to a prior present interest that is not allowable as a deduction, the tax
apportionable against the present interest shall be paid from principal.
(c) Any deduction for property previously taxed and any credit for gift taxes or death
taxes of a foreign country paid by the decedent or the decedent’s estate shall inure
to the proportionate benefit of all persons liable to apportionment.
(d) Any credit for inheritance, succession, or estate taxes or taxes in the nature thereof
in respect to property or interests includable in the estate shall inure to the benefit
of the persons or interests chargeable with the payment thereof to the extent that,
or in proportion as, the credit reduces the tax.
(e) To the extent that property passing to or in trust for a surviving spouse or any charitable,
public, or similar gift or bequest does not constitute an allowable deduction for
purposes of the tax solely by reason of an inheritance tax or other death tax imposed
upon and deductible from the property, the property shall not be included in the computation
provided for in section 7302 of this title, and to that extent no apportionment shall be made against the property. The sentence
immediately preceding shall not apply to any case where the result will be to deprive
the estate of a deduction otherwise allowable under 26 U.S.C. § 2053(d) relating to deductions for State death taxes on transfers for public, charitable,
or religious uses. (Added 1975, No. 240 (Adj. Sess.), § 11; amended 2021, No. 105 (Adj. Sess.), § 555, eff. July 1, 2022.)
§ 7306. No apportionment between temporary and remainder interests
No interest in income and no estate for years or for life or other temporary interest
in any property or fund shall be subject to apportionment as between the temporary
interest and the remainder. The tax on the temporary interest and the tax, if any,
on the remainder shall be chargeable against the corpus of the property or funds subject
to the temporary interest and remainder. (Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7307. Exoneration of fiduciary
Neither the fiduciary nor other person required to pay the tax shall be under any
duty to institute any suit or proceeding to recover from any person interested in
the estate the amount of the tax apportioned to the person until the expiration of
the three months next following final determination of the tax. A fiduciary or other
person required to pay the tax who institutes the suit or proceeding within a reasonable
time after the three months’ period shall not be subject to any liability or surcharge
because any portion of the tax apportioned to any person interested in the estate
was collectible at a time following the death of the decedent but thereafter became
uncollectable. If the fiduciary or other person required to pay the tax cannot collect
from any person interested in the estate the amount of the tax apportioned to the
person, the amount not recoverable shall be equitably apportioned by the court among
the other persons interested in the estate, who are subject to apportionment. (Added 1975, No. 240 (Adj. Sess.), § 11.)
§ 7308. Action by nonresident; reciprocity
Subject to this section, a fiduciary acting in another state or a person required
to pay the tax who is a resident in another state may institute an action in the courts
of this State and may recover a proportionate amount of the federal estate tax or
an estate tax payable to another state or of a death duty due by a decedent’s estate
to another state from a person interested in the estate who is either a resident in
this State or who owns property in this State subject to attachment or execution.
For the purposes of the action, the determination of apportionment by the court having
jurisdiction of the administration of the decedent’s estate in the other state shall
be prima facie correct. The provisions of this section shall apply only if the state
in which such apportionment was made affords a substantially similar remedy. (Added 1975, No. 240 (Adj. Sess.), § 11; amended 2021, No. 105 (Adj. Sess.), § 556, eff. July 1, 2022.)
§ 7309. Short title
This chapter may be cited as the Uniform Estate Tax Apportionment Act. (Added 1975, No. 240 (Adj. Sess.), § 11.)