75-2-208 - Exclusions, valuation, and overlapping application.
75-2-208. Exclusions, valuation, and overlapping application.
(1) The value of any separate property of the decedent or the decedent's surviving spouseis excluded from the augmented estate even if it otherwise would be included in the augmentedestate under Sections 75-2-204, 75-2-205, 75-2-206, and 75-2-207. Property is separate propertyif:
(a) owned at the date of the most recent marriage of the decedent and the decedent'ssurviving spouse;
(b) acquired by gift or disposition at death from a person other than the decedent or thedecedent's surviving spouse;
(c) acquired in exchange for or with the proceeds of other separate property;
(d) designated as separate property by written waiver under Section 75-2-213; or
(e) acquired as a recovery for personal injury but only to the extent attributable toexpenses paid or otherwise satisfied from separate property.
(2) Income attributable to investment, rental, licensing or other use of separate propertyduring the most recent marriage of the decedent and the decedent's surviving spouse is separateproperty.
(3) Appreciation in the value of separate property during the most recent marriage of thedecedent and the decedent's surviving spouse is separate property.
(4) Except as provided in this Subsection (4), any increase in the value of separateproperty due to improvements to or the reduction in debt owed against separate property duringthe most recent marriage of the decedent and the decedent's surviving spouse is separate property. An amount equal to any payment for improvements to or the reduction in debt owed againstseparate property of the decedent made during the most recent marriage of the decedent and thedecedent's surviving spouse from the joint or commingled funds of the decedent and thedecedent's surviving spouse, or from the separate property of the surviving spouse, shall not beseparate property to the extent of the amount actually paid for the improvements or the amountactually paid for the reduction in debt, including principal, interest, and other payments under thenote, owed against separate property. The amount that is determined not to be separate propertymay not exceed the value of the separate property.
(5) All property of the decedent or the decedent's surviving spouse, whether or notcommingled, is rebuttably presumed not to be separate property.
(6) The value of any property is excluded from the decedent's nonprobate transfers toothers:
(a) to the extent the decedent received adequate and full consideration in money ormoney's worth for a transfer of the property; or
(b) if the property was transferred with the written joinder of, or if the transfer wasconsented to in writing by, the surviving spouse.
(7) The value of property:
(a) included in the augmented estate under Section 75-2-205, 75-2-206, or 75-2-207 isreduced in each category by enforceable claims against the included property; and
(b) includes the commuted value of any present or future interest and the commuted valueof amounts payable under any trust, life insurance settlement option, annuity contract, public orprivate pension, disability compensation, death benefit or retirement plan, or any similararrangement, exclusive of the federal Social Security system.
(8) In case of overlapping application to the same property of the section or subsections
of Section 75-2-205, 75-2-206, or 75-2-207, the property is included in the augmented estateunder the provision yielding the greatest value, and under only one overlapping provision if theyall yield the same value.
Amended by Chapter 142, 1999 General Session