Brief (1)
SB 137 enacts the Kansas Estate Tax Apportionment Act. The bill establishes a default rule for the method of payment of federal and state estate taxes. The bill establishes an apportionment rule whereby each person interested in the estate's proportionate part of the total tax is to be determined according to the extent such person's interest is included in the total taxable value of all the interests.
The bill provides that the apportionment shall not apply if the decedent has provided for a different method for payment of estate taxes.
The bill also gives specific enforcement mechanisms designed to assist personal representatives in collecting estate taxes from beneficiaries. It also allows personal representatives from other states to bring action in Kansas courts to collect these taxes if those states grant a reciprocal right of access to their courts.
Background
The bill was proposed by the Kansas Judicial Council. Proponents said the current system commonly referred to as the "burden on the residence" approach can lead to unfortunate results such as the tax burden on nonprobate assets being shifted to the residency beneficiaries.
The bill has no fiscal impact on the state.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi