§ 975 — Liability for tax

New York § 975

• Jurisdiction: New York
• Law TAX: Tax
• Part 2: Returns and Payment of Tax
• Art. 26: Estate Tax

Text

§ 975. Liability for tax. (a) Duty of executor to pay tax. (1) The tax\nimposed by this article shall be paid by the executor, who shall\nthereupon charge the same against and collect it from the persons\ninterested in the estate in accordance with the rules of apportionment\nof section 2-1.8 and other relevant provisions of the estates, powers\nand trusts law.\n (2) If the tax imposed by this article, or any part thereof, is paid\nby, or collected out of, that part of the estate passing to or in the\npossession of any person other than the executor in his capacity as\nsuch, such person shall be entitled to reimbursement out of any part of\nthe estate still undistributed or by a just and equitable contribution\nby the persons whose interest in the estate of the decedent would have\nbeen reduced if the tax had been paid before the distribution of the\nestate or whose interest is subject to equal or prior liability for the\npayment of taxes, debts or other charges against the estate, it being\nthe purpose and intent of this section that so far as is practicable and\nunless otherwise directed by the will or non-testamentary instrument of\nthe decedent, the tax shall be paid out of the estate before its\ndistribution.\n (b) Liability of executor. An executor who pays, in whole or in part,\nany debt due by the estate for which he or she acts, except for a debt\nowed to the United States or to New York state, or who distributes any\nasset of the estate, prior to the payment in full of the tax imposed by\nthis article, shall be answerable in his or her own person and estate\nfor the payment of such tax to the extent that the assets of the estate\nhave been so paid out or distributed. The liability of the executor\nunder this subsection shall continue until his or her discharge as\nprovided in section nine hundred eighty-one of this article.\n (c) Liability of life insurance beneficiaries. Unless the decedent\ndirects otherwise in his or her will, if any part of the New York gross\nestate on which tax has been paid consists of proceeds of policies of\ninsurance on the life of the decedent receivable by a beneficiary other\nthan the executor, the executor shall be entitled to recover from such\nbeneficiary such portion of the total tax paid as the proceeds of such\npolicies bear to the federal taxable estate, reduced by the value of any\nreal or tangible personal property located outside New York state, and\nincreased by any federal estate tax deductions attributable to such\nproperty. If there is more than one such beneficiary, the executor shall\nbe entitled to recover from such beneficiaries in the same ratio. In the\ncase of such proceeds receivable by the surviving spouse of the decedent\nfor which a deduction is allowed under section two thousand fifty-six of\nthe internal revenue code (relating to marital deduction), this section\nshall not apply to such proceeds.\n (d) Liability of recipients of property over which decedent had power\nof appointment. Unless the decedent directs otherwise in his or her\nwill, if any part of the New York gross estate on which the tax has been\npaid consists of the value of property included in the gross estate\nunder section two thousand forty-one of the internal revenue code, the\nexecutor shall be entitled to recover from the person receiving such\nproperty by reason of the exercise, nonexercise, or release of a power\nof appointment such portion of the total tax paid as the value of such\nproperty bears to the federal taxable estate, reduced by the value of\nany real or tangible personal property located outside New York state,\nand increased by any federal estate tax deductions attributable to such\nproperty. If there is more than one such person, the executor shall be\nentitled to recover from such persons in the same ratio. In the case of\nsuch property received by the surviving spouse of the decedent for which\na deduction is allowed under section two thousand fifty-six of the\ninternal revenue code (relating to marital deduction), this section\nshall not apply to such property.\n (e) Liability of transferees and others. If the tax imposed by this\narticle is not paid when due, then the spouse, transferee, trustee,\nsurviving tenant, person in possession of the property by reason of the\nexercise, nonexercise, or release of a power of appointment, or\nbeneficiary, who receives, or has on the date of the decedent's death,\nproperty included in the New York gross estate to the extent of the\nvalue, at the time of the decedent's death, of such property, shall be\npersonally liable for such tax. Any part of such property transferred by\n(or transferred by a transferee of) such spouse, transferee, trustee,\nsurviving tenant, person in possession of property by reason of the\nexercise, nonexercise, or release of a power of appointment, or\nbeneficiary, to a bona fide purchaser, mortgagee, or pledgee, for an\nadequate and full consideration in money or money's worth shall be\ndivested of the lien provided in section nine hundred eighty-two of this\narticle and a like lien shall then attach to all the property of such\nspouse, transferee, trustee, surviving tenant, person in possession,\nbeneficiary, or transferee of any such person, except any part\ntransferred to a bona fide purchaser, mortgagee, or pledgee for an\nadequate and full consideration in money or money's worth. Provided,\nhowever, where any interest in such property was held by the decedent\nand the decedent's surviving spouse as tenants by the entirety, such\ninterest in such property shall be divested of the lien provided in\nsection nine hundred eighty-two of this article.\n