§ 15-12-1407 — Apportionment and recapture of special elective benefits

(1)
As used in this section, unless the context otherwise requires:

(a) Special elective benefit means a reduction in an estate tax obtained by
an election for:

(I) A reduced valuation of specified property that is included in the gross
estate;

(II) A deduction from the gross estate, other than a marital or charitable
deduction, allowed for specified property; or

(III) An exclusion from the gross estate of specified property.

(b) Specified property means property for which an election has been
made for a special elective benefit.

(2) If an election is made for one or more special elective benefits, an initial
apportionment of a hypothetical estate tax shall be computed as if no election for
any of such benefits had been made. The aggregate reduction in estate tax
resulting from all elections made shall be allocated among holders of interests in
the specified property in the proportion that the amount of deduction, reduced
valuation, or exclusion attributable to each holder's interest bears to the aggregate
amount of deductions, reduced valuations, and exclusions obtained by the
decedent's estate from the elections. If the estate tax initially apportioned to the
holder of an interest in specified property is reduced to zero, any excess amount of
reduction reduces ratably the estate tax apportioned to other persons that receive
interests in the apportionable estate.

(3) An additional estate tax imposed to recapture all or part of a special
elective benefit shall be charged to any person who is liable for the additional tax
pursuant to the law providing for the recapture.

Legislative History

Source: L. 2011: Entire part added, (SB 11-165), ch. 184, p. 705, � 1, effective August 10.