Sec. 12-350. Net estate of resident transferors; deductions.
Sec. 12-350. Net estate of resident transferors; deductions. In the case of the
estate of a resident transferor, the net estate for the purposes of the tax imposed by the
provisions of this chapter shall be ascertained by deducting from the gross taxable estate
the following items: (a) Debts of the transferor which constitute lawful claims against
his estate; (b) unpaid taxes, (1) on real property within this state which were a lien
at the date of the transferor's death, (2) on personal property of the transferor which
constituted a personal obligation or were a lien at the date of death, (3) on the income
of the transferor accrued to the date of death; (c) any tax on untaxed property assessed
by this state against the estate of the transferor; (d) special assessments which, at the
date of death, were a lien on the real property of the transferor situated within this state;
(e) funeral expenses and all amounts actually expended or to be expended for a headstone
or monument or the care of any cemetery lot; (f) reasonable compensation of executors
and administrators and reasonable attorney's fees; (g) a reasonable allowance made
during the settlement of the estate for the support of the widow, widower, dependent
minor children, including legally adopted children, of the transferor, or dependent children incapable of self-support because mentally or physically defective receiving support mainly from the transferor at the time of his death; but no such deduction shall be
made for any such allowance beyond the expiration of twelve months after the date of
the transferor's death; (h) the amount at the date of the transferor's death of all unpaid
mortgages upon real or personal property situated within this state, which mortgages
were not deducted in the appraisal of the property mortgaged; (i) reasonable expenses
of administration, including those relating to property transferred other than by will or
laws relating to intestate estates, except as provided in section 12-351; (j) in the case of
a transfer other than by will, liens subject to which the transfer is made, unpaid expenses
of administering a trust prior to death, which trust is taxable under the provisions of
this chapter, and expenses of terminating such trust if it terminates on the death of the
transferor; (k) any amount exempted pursuant to subsection (b) of section 12-344. The
foregoing deductions shall be allowed in the case of property transferred by will and
by laws relating to intestate estates, provided they reduce the gross taxable estate. In
the case of property transferred other than by will or by laws relating to intestate estates,
such deductions shall be allowed (1) only to the extent that such property is includable
in the decedent's gross taxable estate under the provisions of this chapter, and (2) only
to the extent that the transferee has actually paid the deductible items and either the
transferee was legally obligated to pay such items or the assets subject to probate are
insufficient to pay such items.
(1949 Rev., S. 2030; 1949, S. 1140d; 1969, P.A. 243, S. 1; 524, S. 1; 1971, P.A. 863, S. 1; 1972, P.A. 265, S. 1; P.A.
83-520, S. 10, 13; P.A. 88-310, S. 1, 2.)
History: 1969 acts made deductions applicable to joint bank accounts and provided exceptions relating to joint bank
accounts, specified that deductions allowed only if they reduce gross taxable estate, substituted "a reasonable allowance"
for "any allowance" in Subdiv. (h), specified "reasonable" expenses in Subdiv. (j) and included as deduction for transfers
other than by will or laws governing intestate estates and joint bank account a deduction for expenses set forth relating to
trusts, effective July 1, 1969, and applicable to estates of persons dying on or after that date (all estates of persons dying
before July 1, 1969, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); 1971 act included as deductions for transfers other than by will, laws governing intestate estates and joint
bank accounts, deductions for probate fees, appraisers' fees, and expenses relating to administrator if one appointed,
effective January 1, 1972, and applicable to estates of persons dying on or after that date (all estates of persons dying before
January 1, 1972, are subject to succession or inheritance tax laws applicable before that date and continued in force for
that purpose); 1972 act deleted Subdiv. (b) re losses incurred up to time of filing return "in the reduction to possession of
choses in action, including notes and mortgages, but not including corporate or governmental stocks or bonds nor including
income accrued after death", effective May 18, 1972, but retroactive to January 1, 1972, and applicable to estates of persons
dying on or after that date (all estates of persons dying before January 1, 1972, are subject to succession tax laws applicable
before that date and continued in force for that purpose); P.A. 83-520 included expenses relating to property transferred
other than by will or laws of intestacy as reasonable expenses of administration under Subsec. (i), permitted deduction, in
the case of transfer other than by will, of liens subject to which transfer is made, unpaid expenses of administration of
taxable trust prior to death and expenses of terminating such trust if it terminates on death of transferor, deleted former
provisions re extent to which deductions shall be allowed and substituted provision that such deductions shall be allowed
to the extent that the transferee has actually paid deductible items and either the transferee was legally obligated to pay or
assets subject to probate are insufficient to pay, and made technical changes, effective July 7, 1983, and applicable to
estates of decedents dying on or after such date; P.A. 88-310 added Subdiv. (k) deducting from gross taxable estate amounts
exempted pursuant to Subsec. (b) of Sec. 12-344.
Federal estate tax is not to be deducted in determining the net taxable estate. 141 C. 257. Cited. 210 C. 277. Cited. 215
C. 633.
Expenses of last illness and funeral are not deductible from the nonprobate portion of an estate, in this case a joint bank
account, except as they may constitute liens thereon or debts which it is judicially established are chargeable thereto. Such
liens or debts are not created by section 36-3a. 25 CS 250. Cited. 40 CS 484. Cited. 44 CS 263.
Subsec. (a):
When an insurance company makes a loan to its insured against a policy on his life, the transaction does not create a
true debt; but where the insured borrows from a bank on his own note and pledges his insurance as collateral security, a
debt is created. 142 C. 529.
Subsec. (e):
Cited. 209 C. 429.
Subsec. (h):
"Reduce the gross taxable estate" not intended to restrict the number of deductions allowable for state succession tax
purposes. 210 C. 277.
Subsec. (k):
Cited. 44 CS 421.